The United States, which has sanctions against U.S. companies doing business in Iran, has persistently expressed its disappointment that its close ally would invest $2 billion in the Islamic Republic.

If Japan moves its business to Libya it would be symbolic because the United States has touted the North African country as a model for nations, such as Iran and North Korea, to persuade them to scrap suspected nuclear arms programs.

In December, Libya decided to abandon weapons of mass destruction and in return won U.S. economic and diplomatic rewards that could help its oil industry boom.

"We understand Japan's energy needs. But there is no question that we are emphasizing that Libya is an alternative that is going to come online soon," the administration official, who asked not to be named, said.

The Japan Times Weekly: Aug. 14, 2004
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