Re : Story On The $6Bln. Award / Economic Blackmail

I posted on Thursday Jan. 24, 2008 a report concerning a lawyers statement how going after American assets of American companies working in Libya might be considered an act of terrorism , or even economic blackmail , considering the state of the American economy now . It would seem to be against American interest to freeze their assets , considering the possible economical recession the American public is facing . I came across a Newsweek article today explaining the how and why this is feasible . I was amazed to read how legislation is counter productive toward economic recovery , and could negatively affect so many lives . Maybe it was a case of good idea , wrong execution ?

"A bill passed by Congress in 1996 opened the door to civil suits against a handful of countries deemed state sponsors of terrorism", the Newsweek article stated .The Newsweek report further states ..... "An amendment passed by the Senate this week allows lawyers to go after the property of countries that sponsor terrorism even if Americans run the property and receive all of the profit—a significant shift, according to analysts and legal scholars. The upshot is that billions in assets here in the United States could fall within the reach of terror victims who have been awarded judgments against countries like Iran and Libya. The legislation has a long history and plenty of opponents. State Department officials say it will deny them a key bargaining chip in dealings with so-called rogue states, while the business community fears it will expose U.S. investors in the Middle East to reciprocal measures. "The government prefers to use these assets in a game of leverage for larger geopolitical issues," says David Aufhauser, who headed the National Security Council's terrorist financing task force until 2004. "To have other voices at the table dilutes the leverage."

Now here is the question , wasn't Libya taken off this list in the past year or so after making amends for past transgressions ; therefore opening the door for trade , business , restoring diplomatic relations between Libya and America ? Libya is wrapping up it's term in rotation as head of the UN Security Council . How is it possible that the esteemed UN Security Council would allow a so called "Rogue Terrorist State " to be in charge of such a important and pivotal roll if it was still practicing "State Sponsored Terrorism" ?

The Newsweek report goes on to state American business concerns for their assets in Libya.
"But could the legislation rebound on Americans who do business abroad? Major business groups, including the U.S. Chamber of Commerce, warned in a letter to Congress earlier this month that the bill would end up "crippling new (American) investment" in a country like Libya, which also owes money to terror victims. U.S. companies have invested more than $3 billion in Libya since it came off Washington's list of countries that sponsor terrorism last year. The business groups said American companies are now worried that for every Libyan asset lawyers seize in the United States to pay off the judgments, the Libyans will seize an American asset of similar value in their country. "The effects … are egregious and we urge you to make the necessary correction to the legislation," the groups wrote before the amendment passed."