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
Embassy of the United States, London the man was planning to hijack the aircraft and crash it into the United States embassy in London, using the rooftop eagle to identify it from the air. Sweden's Security Service, Säpo, denied the claims and called the reports "false information". The man was subsequently cleared of all terrorism-related charges. The security threat against the embassy prompted the U.S. government to consider moving the embassy. Several British media outlets reported that the U.S. government had wished to use Kensington Palace as their embassy, which allegedly had been vetoed by Queen Elizabeth II, as several members of the British Royal Family