Unintended Effect : U.S. Sanctions Help Kadafi in Arab World : Analysis

President Reagan’s efforts to hobble Libya by imposing economic sanctions have had an unintended effect: Both at home and abroad--particularly in the Arab world--the measures have helped generate support for the regime of Col. Moammar Kadafi.

Rather than isolating the Kadafi government, the Reagan measures have united the fractious Arab states behind Libya in a moment of crisis, brought the Soviet Union directly into the fray in Tripoli’s defense and provided the regime here with a rallying cry that seems to have reversed a slump in domestic popularity.

“The best ‘supporter’ of Kadafi at the moment is Ronald Reagan himself,” a West European diplomat said.

“It’s obvious that at no cost to himself, Kadafi has won a formidable victory,” another envoy noted.

Many of the benefits that have accrued to the Kadafi government appear to be the result of good fortune, but Western diplomats here said the Libyan leader also has skillfully exploited the crisis.

Reagan imposed a package of economic sanctions against Libya beginning last Tuesday in retaliation for the government’s alleged ties to terrorism. The measures banned commercial links, ordered American workers to leave the country by Feb. 1 and froze Libyan assets in America.

In addition, U.S. naval forces approached the Libyan coast in what was widely seen as an attempt to intimidate the Kadafi government.

Almost immediately, telegrams of support for Kadafi began arriving from Arab governments and various Arab groups. The messages are featured prominently in the Libyan press and are read out by a bespectacled woman announcer each evening on national television.

Perhaps the most significant gesture came from the 45-member Organization of the Islamic Conference, which adopted a resolution in Fez, Morocco, last week that condemned the U.S. action and reaffirmed the group’s support for Libya.

Even Egypt, which only two months ago massed troops along its border with Libya in the wake of the hijacking of an EgyptAir jetliner, warned the United States not to take military action against the Libyans.

The sight of such moderate Arab states as Egypt, Kuwait and Saudi Arabia lining up in support behind Libya has clearly pleased Kadafi, who has long espoused the cause of Arab unity.

Support From Moscow

Also significant is the degree to which the Soviet Union has come to Kadafi’s support, which Western diplomats here call something “completely new.”

“It’s the first time that the Soviet Union is expressing a defense of Libya in a period of tension between the United States and Libya,” said a Western diplomat, noting that Soviet statements on the crisis employ the same rhetoric, such as “state terrorism,” that the Libyan media have used to attack Reagan.

Kadafi has skillfully played his Soviet card, telling a group of women reporters who were invited to his house last week that the United States was forcing Libya into the arms of the Soviet Union. In effect, he said, Libya was becoming the Cuba of the Mediterranean.

As if to underscore his threat to give the Soviet Union port facilities to counter the American presence in the Mediterranean, a Soviet navy submarine tender with a bright red pavilion on deck dropped anchor in Tripoli’s military harbor last week.

Kadafi Appears Victorious

Even in the case of America’s West European allies, Libya and Kadafi appear the victor over Reagan.

While Italy has imposed an embargo on weapon sales to Libya, the Italians and the other members of the European Communities have declined to impose commercial sanctions against Libya as requested by the Reagan Administration.

A number of North Atlantic Treaty Organization allies are leading candidates, in fact, to supply the manpower that will take over for the American work force expected to depart by Feb. 1.

Asked in an interview if she supported sanctions, British Prime Minister Margaret Thatcher, a close Reagan friend whose own government severed relations with Libya, said she doubted that the measures would work.

Discontent Over Economy

At home, economic problems stemming from mismanagement in the state-controlled economy had caused considerable discontent in Libya for several months before the Reagan measures were announced.

Kadafi was seen infrequently on television, according to residents of Tripoli, and his popularity seemed on the decline.

But the confrontation with the United States appears to have reversed, at least temporarily, the drop in popularity.

At the very least, the so-called People’s Congresses meeting this month have a new issue to deflect attention from the mounting crisis.

‘Hostile Measures’ by U.S.

“A number of basic People’s Congresses yesterday held emergency meetings to discuss the recent American hostile measures and the freeze of Libyan assets and deposits in the United States,” said a typical dispatch by Jana, the state press agency.

The crisis has also benefited Kadafi in another regard: Far from becoming a pariah, his name, photograph and thoughts have gained worldwide attention.

This is partly due to his adroit use of the Western news media. Although Libya is normally one of the hardest countries for a reporter to enter, Kadafi recently waived all visa requirements, and literally dozens of Western reporters are now working here.

In the last week, Kadafi has given three news conferences and invited selected groups of women reporters to his house on two occasions to publicize his eccentric views.

“It’s really incredible to turn on the radio every morning and hear the BBC talking about Kadafi this and Kadafi that,” said a Western diplomat. “Do you think anyone would pay any attention to Libya if it were not for Kadafi?”