U.S. Will Restore Diplomatic Links With the Libyans - New York Times

U.S. Will Restore Diplomatic Links With the Libyans - New York Times:
"WASHINGTON, May 15 — The Bush administration announced Monday that it would re-establish full diplomatic ties with Libya because Libya had abandoned its nuclear and other unconventional weapons programs and helped in the campaign against terrorism."

And, of course, because they have oil.