Approved For Release 2004/12/17 : CIA-RDP96-00789R001001430004-9 Libya’s Continuing Responsibility for Terrorism Introduction This White Paper is designed to provide context for the allegations in the US and Scottish indictments of Libyan nationals for the bombing of Pan Am Flight 103 in December 1988. To this end, the Paper discusses the attitude of the Qadhafi government toward terrorism and outlines Libyan responsibility for terrorist acts. Based on analysis of Libyan behavior over many years, on the results of investigating the bombing of Pan Am Flight 103 since 1988, and on the structure of the Libyan regime and the relations among leading officials in that regime, we conclude that the bombing of Pan Am 103 was not an aberration and was an action authorized by the Libyan Government. Libya's support for terrorism began in the earliest days of the Qadhafi regime. As early as 1972, Libyan leader Mu‘ammar Qadhafi publicly offered to help extremist movements—including the Provisional Irish Re- publican Army and the Black Power movement in the United States—and to support any group in the Middle East willing to attack Israel. Qadhafi dispatched terrorists to Italy in 1973 to shoot down an Israeli airliner and at least as early as 1975 ordered the murder of Libyan dissidents living abroad. Although dissidents historically have posed little —if any—threat to Qadhafi’s rule, the Libyan leader has concentrated on eliminating them. Assassinations took place in the early and mid-1980s and included two attempts (one of them successful) against Libyan students in the United States. Libyan involvement in and support of terrorism expanded throughout the early 1980s. Tripoli provided passports to Abu Nidal organization (ANO) members who attacked the El Al ticket counter at the Vienna airport in December 1985. Libya also sponsored the bombing of the La Belle disco in Berlin in April 1986 that killed three people, including two US servicemen. Over the years, even as Libyan agents and their proxies planned and carried out terrorist attacks, Qadhafi regularly sought to calm international concerns through public denunciations of terrorism. For example, in 1977, Qadhafi plotted to assassinate a US Ambassador, just after { Libyan leader Mu‘ammar al-Qadhafi assuring President Carter that he sought good relations with the.United States. Moreover, Qadhafi periodically has issued public denials of his involvement in terrorism while his intelligence apparatus was preparing for acts of terrorism (see inset on page 3). Libyan action has not been limited to Israeli and Western targets. In the mid-1980s Libya backed plots against President Mubarak of Egypt, former President Nimeiri of Sudan, President Mobutu of Zaire, former Tunisian Presi- dent Bourguiba, and former President Habre of Chad. In addition to using and supporting terrorism, Qadhafi also has a long history of trying to subvert governments in Africa, Asia, and Latin America. The Record Over the Past Five Years The 1986 airstrike on Libya by the United States, com- bined with other international pressures, did not end Tripoli’s support for terrorism. Following the air attack, Approved For Release 2004/12/17 : CIA-RDP96-00789R001001430004-9
Approved For Release 2004/12/17 : CIA-RDP96-00789R001001430004-9 Qadhafi and Kidnapping The hollowness of Qadhafi’s rhetoric is best illustrated by Libya's longstanding involvement in kidnapping, despite his regular denunciations of such acts. In 1978, Libyan intelligence officers kidnapped imam Musa Sadr, the spiritual leader of the Lebanese Shia community, just after he arrived in Tripoli. Musa Sadr eventually died in Libyan captivity. Throughout the 1980s, Qadhafi publicly denounced the i/legal detention of hostages by extremist groups in Lebanon. Yet in April 1986, Libya bought and arranged for the murder of three Western hostages in Lebanon, including American Peter Kifburn. More re- cently, in November 1987 the Abu Nidal organization (ANO) hijacked the yacht Silco in international waters. The hostages—Belgian and French nationals—were released in stages, with the last detainees freed in January 1991. The yacht was seized by ANO elements under the direction of the Libyan intelligence service, and some of the hostages were even held on Libyan soil. Qadhafi began to use front companies and other organiza- tions to hide Libya’s hand (see inset on page 4). In addition, Qadhafi has placed a premium on masking Libya’s support for terrorism in an attempt to avoid jeopardizing Libya’s economic links to his African neigh- bors and major European trading partners. The Libyans sponsored a series of anti-US operations immediately after the US airstrikes in April 1986. Tripoli was responsible for the shooting of a US Embassy communicator in Sudan on 15 April 1986 and for the shooting of another Embassy communicator in Sanaa, North Yernen, on 25 April 1986. In addition, two Libyans were apprehended on 18 April 1986 as they attempted to attack the US Officers Club in Ankara with grenades obtained from the Libyan People’s Bureau there. The Libyans confessed that they were ordered to cause the maximum number of casualties, particularly women and children. We believe that Libya was responsible for the destruction of Pan Am Flight 103 over Lockerbie, Scotland, on 21 December 1988 and that senior government officials involved in previous terrorist attacks around the world orchestrated the operation. Forensic evidence indicates that the bomb’s timer was unique to Libyan inventories, and an official of the Libyan national carrier, Libyan Arab Airlines, used his credentials to circumvent security proce- dures in Malta to assist in the operation. Over the past several years, Libya has provided assistance to Palestinian terrorists, enabling them to launch attacks against Israel and Western targets: ¢ In May 1990, Palestine Liberation Front (PLF) members attempted a seaborne raid on Israel; the operation failed, and four terrorists were killed and 12 captured. Libya provided the group with training, sophisticated equip- ment, weaponry, and the mother ship used in the operation. * In July 1988, ANO operatives attacked the Greek cruise ship The City of Poros, killing nine and wounding over 100 people. Libya provided the weapons used in the operation. Libya has regarded Africa as an attractive environment for its operations and is responsible for several attacks there: * On 30 October 1991, a French judge issued international arrest warrants, charging four Libyan officials with involvement in the bombing of UTA Flight 772 in September 1989, In March 1990, Libyan diplomats were expelled from Ethiopia after a bomb exploded in the Hilton Hotel in Addis Ababa, in an apparent attempt to kill the Israeli Ambassador who was staying there. In February 1988, two known Libyan terrorists were arrested in Dakar, Senegal, in possession of explosives and weapons. ¢ In October 1987, a bomb exploded in the office of World Vision, a private relief organization operating in Moudou, Chad. Libyan diplomats based in Cotonou, Benin, assisted the terrorists who carried out the attack. e in March 1987, a bomb exploded at the cafe ‘'L’Historil’’ in Djibouti, killing 11 and wounding 50. The Libyans ordered a Paiestinian group, the Popular Struggle Front, to conduct the attack or risk losing Tripoli’s financial support. 2 Approved For Release 2004/12/17 : CIA-RDP96-00789R001001430004-9
Approved For Release 2004/12/17 : CIA-RDP96-00789R001001430004-9 Comparing Qadhafi’s Public Statements on Terrorism With the Facts The Fiction: Libya “rejects terrorism, including the killing of peaceful, innocent old men, women, or children anywhere, be it on board a plane or anywhere else.”’ Tripoli Domestic Service, 5 September 1986. The Fact: Libya provided financial and logistic support to the Abu Nidal organization hijacking of Pan Am Flight 073 in Karachi, Pakistan, in which 21 passengers were killed and 120 wounded, 5 September 1986. The Fiction: Libya denounces the Provisional Irish Republican Army (PIRA) bombing in Enniskillen, North- ern Ireland, in which 11 died and 65 were injured. JANA, 10 November 1987. The Fact: French authorities intercepted a ship carrying 150 tons of arms and explosives provided by the Government of Libya and destined for PIRA in Ireland, 31 October 1987. Four earlier shipments successfully arrived at their destination. The Fiction: ‘The Great Jamahiriyah does not practice terrorism, nor does it support it.” Colonel Qadhati, 11 February 1988. The Fact: Pan Am 103 exploded over Scotland, 21 De- cember 1988, killing 259 persons on board and 11 citi- Zens of Lockerbie on the ground. Libyan involvement is certain, The Fiction: Libya “‘has affirmed and continues to affirm that it denounces and opposes terrorism."’ JANA, 9 April 1989. The Fact: Libyan agents, under the direction of senior officials in Tripoli, sabotaged UTA Flight 772, which exploded over Niger, killing all 171 people aboard, 19 September 1989. The Fiction: Referring to the PLF raid on Israel, Libya said that it “has no connection and no relation with that operation.’ JANA, 6 June 1990. The Fact: Libya materially assisted the 30 May 1990 raid by the PLF on Israel, which was launched from the Libyan coast, by providing the operatives with extensive training, military hardware, and navigational equipment. The Fiction: Qadhatfi told the Egyptian press in June 1991 that ‘Abu Nidal is not operating at all. The world hasn’t heard anything about him for years... Abu Nidal is notin Libya.” The Fact: The ANO remains headquartered in Tripoli, and Abu Nidal himself is known to meet with Colonel Qadhafi. November 1991. _-__ oOo Ce rr — The Libyans have supported terrorist groups in Europe, particularly the Provisional Irish Republican Army (PIRA), which Colonel Qadhafi has called a popular national liberation movement. Throughout the mid-1980s, Libya provided the group with arms. Libya's hand was openly revealed in October 1987, when French authorities inter- cepted a freighter, the Eksund, off the coast of France and seized 150 tons of weapons and explosives destined for the PIRA. Libya has also provided financial support to the PIRA. 3 Since April 1986, Libyan assassins have murdered three anti-Qadhafi Libyan dissidents residing in Greece, Italy, and France. Tripoli has continued to target other exiles deemed ‘‘opponents”’ of the Libyan Government. Current Support for Terrorism Despite the efforts of the international community, Libyan involvement in terrorism today remains extensive. Tripoli is one of the largest financiers of terrorists worldwide, and it continues to permit terrorist groups to operate at camps throughout Libya. Approved For Release 2004/12/17 : CIA-RDP96-00789R001001430004-9
Approved For Release 2004/12/17 : CIA-RDP96-00789R001001430004-9 i  — The Libyan Use of Terrorist Fronts Because of public exposure of the role of Libyan People’s Bureaus (LBPs) in international terrorism in the early 1980s, Libya has over the past few years shifted some of its terrorist support operations to other institu- tions. These institutions include the Islamic Call Society, student organizations and friendship societies, and Libyan front companies. By using multiple organizations, Libya is able to continue its activities even if one group is exposed. Front companies provide Libyan operatives with cover and deception capabilities. Some of these companies probably were established as legitimate corporations, but they have been blackmailed into cooperating with the Libyan intelligence services. The front companies typi- cally establish a partnership with local nationals to enhance their cover. The companies’ partners rarely know that they are dealing with Libyan intelligence officers or Libyan businessmen taking orders from the Libyan Government. Libyan front companies known to have been directly or indirectly involved in terrorist operations over the past decade include Exo-Commerce and Sarra or Sarrah. For example, under the guise of a “legitimate” business, the Benin-based Sarrah company infiltrated arms and explosives into neighboring African countries for terrorist acts in the late 1980s. Another front company, the Greek- based Germa Shipping and Stevedoring Company, owned the Tiny Star, the mothership used in the 30 May 1990 PLF attack on Israel, launched from a.Libyan port. In addition, other businesses are surrogates of the Libyan intelligence service. Neutron International is run by Musbah Warfalli, an architect of Libyan attacks against Libyan dissidents in the early 1980s. The Libyan Arab Foreign Investment Company, or LAFICO, is wholly owned by the Libyan Government.and is some- times used by the Libyan intelligence service for cover purposes. The General Arab African Company is a major trading company serving as a front for Libyan intelligence throughout Sub-Saharan Africa. Even Libyan businessmen not readily identified with the Libyan intelligence service or a front company have been used in operations. For example, in January 1997 the Chadian Government arrested two Libyan agents posing as businessmen who were apparently attempting to smuggle explosives into Ndjamena. We have reason to believe that many other Libyan businessmen and busi- nesses worldwide are linked to the Libyan intelligence service. Libyan Arab Airlines (LAA) is the government-owned national flag carrier, providing scheduled passenger and cargo service to Europe, Africa, and the Middle East. Although it conducts legitimate activities, LAA has been used to transport arms, explosives, and terrorists. Among the Libyans implicated in supplying arms to the PIRA from 1985 to 1987 was an LAA employee. An LAA flight was used in the August 1986 escape of six terrorists believed to be responsible for the 3 August attack on the British base at Akrotiri, Cyprus. The six were disguised as airline crewmembers, and the captain made false state- ments to airport authorities about the crew's size to disguise their presence. The-airline remains well posi- tioned to assist in an attack, particularly since at least 30 percent of LAA employees posted abroad are Libyan intelligence officers. The Islamic Call Society (/CS), created by the Libyans to propagate Islam, is used for legitimate religious purposes, but Qadhafi also exploits the organization's philanthropic reputation to advance his terrorist agenda. The ICS office in Curacao assisted separatists who bombed a government office in Cayenne, French Guy- ana, in January 1987. For much of the 1980s, Tripoli used its Call Society office in Cotonou, Benin, to recruit and fund terrorists in the region. The Libyans also use travel agencies around the world to facilitate the movement of local terrorists to Libya for advanced training. The agency normally books dissi- dents/ terrorists for travel through third countries so their ultimate destination—Libyan terrorist training camps—goes undetected. eee eee 4 Approved For Release 2004/12/17 : CIA-RDP96-00789R001001430004-9