U.S. to Restore Diplomatic Ties With Libya

By Barry Schweid for the AP:

WASHINGTON — American oil companies stand to gain in competing for access to oil reserves in Libya by the restoration of normal diplomatic relations and the removal of Moammar Gadhafi's regime from a U.S. list of terrorism sponsors. The diplomacy that led to the renewal of ties with the North African country, which were severed in 1980, could also serve as an example to Iran, Bush administration officials say. "It could be a model," Assistant Secretary of State David Welch said Monday, citing Libya's decision, under the weight of sanctions, to abandon its nuclear and other weapons programs...
As the administration turned a page with Libya and struggled to find a way to halt what it insists is an Iranian nuclear program, the State Department took a significant step against Venezuela, also a major oil producer. Long at odds with the leftist government in Caracas, the department gave notice it was banning arms sales to Venezuela as well as financing for such purchases.