Muammar Gaddafi US companies to cease operating in the country, although several hundred workers remained when the Libyan government doubled their pay. Diplomatic relations also broke down with the UK, after Libyan diplomats were accused in the killing of Yvonne Fletcher, a British policewoman stationed outside their London embassy, in April 1984. In Spring 1986, the US Navy again began performing exercises in the Gulf of Sirte; the Libyan military retaliated, but failed as the US sank several Libyan ships. After the US accused Libya of orchestrating the 1986 Berlin discotheque bombing, in which two American soldiers died, Reagan decided to retaliate
1984 Libyan hostage incident James's Sq., London. She died shortly afterwards. That evening, Doug Ledingham, the airport manager for British Caledonian Airways at Tripoli Universal Airport, Libya, was arrested by soldiers. 17 to 27 April There was a standoff between the Libyan and British governments over the pursuit of who shot WPC Fletcher. The standoff resulted in the breaking of diplomatic relations by Britain with Libya, and the return to Libya under diplomatic immunity of the occupants of the Libyan Peoples' Bureau in London. Rumours abounded at the time as to the fate of the person who is alleged to have fired the fatal