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 rest of the world. Summer 1984 In London, a committee in parliament was held to determine whether or not what the British government had done over the Libyan hostage situation was reasonable. The committee concluded that in the circumstances, the British government had done all it reasonably could in the light of what little was known at the time. 7 August 1984 The Libyans allowed family members to visit the hostages. These visits brought unofficial news of the, as yet, publicly undisclosed involvement of Terry Waite, the Special Envoy to the Archbishop of Canterbury, of the Church of England. 1