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 envoy Terry Waite", "Northampton Chronicle & Echo" "Premier to see families of 3 held", "Northampton Chronicle & Echo", 15 October 1984 "Woman plea to Gaddafi", "Northampton Chronicle & Echo", 18 September 1984 "Morris to help", "Northampton Chronicle & Echo", 12 September 1984 "Desperate plea", "Northampton Chronicle & Echo", 3 September 1984 1984 Libyan hostage incident The Libyan hostage situation began on the morning of the murder of WPC Fletcher, 17 April 1984 and lasted until 5 February 1985 (294 days). In accordance with the hostage release agreement, reporting on the incident was restricted until the fall of Gadaffi in 2011.