The United States restored full diplomatic ties with Libya today, rewarding it or scrapping its weapons of mass destruction programmes.
Culminating a gradual rapprochement, the United States will reopen an embassy and remove Libya from a list of state sponsors of terrorism, Secretary of State Condoleezza Rice said in a statement.
"We are taking these actions in recognition of Libya's continued commitment to its renunciation of terrorism and the excellent cooperation Libya has provided to the United States and other members of the international community in response to common global threats faced by the civilized world since September 11, 2001," she said.
The two countries have not had full ties for more than 25 years, but relations dramatically improved after Libya decided in December 2003 to give up its weapons programme.
In 2004, the US ended a broad trade embargo placed on the oil-producing nation in 1986. The US embassy in Libya was set on fire by a mob in 1979.
Some of the American relatives of those killed in the 1988 Pan Am airliner bombing over Lockerbie which Libya accepted responsibility for, voiced outrage and complained they had not been told in advance.
"I think it is absolutely appalling. This is an administration that has done everything wrong. It is a dangerous move and now they have rewarded the terrorists," said Susan Cohen, whose 20-year-old daughter was killed in the attack.
"The only reason they are doing this is oil," she added.
US oil companies have lobbied for better ties, hoping it would lead to them doing business in the North African nation, which investors believe has not tapped its potential as an energy producer.