Italy Follows U.S., Cuts Off Arms Sales to Libya

Italy today suspended all arms sales to Libya following President Reagan’s call for global economic sanctions against the North African country, Foreign Ministry officials said.

The move appeared to be the first concrete response by a European ally to Reagan’s call for sanctions. British Prime Minister Margaret Thatcher refused today to follow the United States in applying economic sanctions against Libya, and most other allies have rejected or reacted coolly to the U.S. demand.

Italy’s decision came a day after Foreign Minister Giulio Andreotti and Defense Minister Giovanni Spadolini said Italy would not export “particularly dangerous arms” to Libya during the current, heightened tension between Libya and the United States.

No Contracts Since 1981

Italy has not signed any new arms contracts with Libya since 1981 and has confined itself to fulfilling earlier agreements, which were suspended with today’s action, officials said.

Reagan imposed sanctions on Libya in response to the Dec. 27 attacks at the Rome and Vienna airports by terrorists. The State Department linked the attacks to Libya. Nineteen people, including five Americans and four terrorists, were killed in the near-simultaneous attacks.

Reagan asked U.S. allies to join in the economic boycott. West Germany declined, and today Thatcher also refused.

“I do not think . . . sanctions against Libya would work,” she told U.S. correspondents in London. “In theory sanctions work, but they only work if adopted 100%, and I don’t know any place in which they have been adopted 100%.”

‘Contrary to Law’

Asked what she would think of retaliatory strikes to stem terrorism, Thatcher replied that these were “contrary to international law.”

She added, “Once one fails to observe the borders of other countries you will have much greater chaos.”

Thatcher said, “I accept that terrorism is against international law, but you have to fight it with legal means.”