Libya is refusing to sell its minority interest in Fiat.

The head of Fiat admitted that he has been unable to convince Libya to sell its 13% of common voting shares and 15% of non-voting shares in the Italian industrial giant or remove directors that represent a Libyan firm suspected of terrorist links. But Fiat Chairman Gianni Agnelli said he hopes to offer legal guarantees that Libyan leader Col. Moammar Kadafi would not benefit from contracts that may be awarded to Fiat under President Reagan’s Strategic Defense Initiative program, commonly known as “Star Wars.”