Reply #25: Obstacles Loom on Path to Funding Libyans

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Obstacles Loom on Path to Funding Libyans
MIDDLE EAST NEWS MAY 7, 2011

By CASSELL BRYAN-LOW And DEBORAH BALL

The U.S. and other countries that seek to hand frozen assets of Col. Moammar Gadhafi's regime to rebels that seek to overthrow him face political and legal obstacles that could slow the delivery of funds.

Secretary of State Hillary Clinton on Thursday said the Obama administration was working with Congress to pass legislation allowing the Treasury Department to release Libyan assets that it froze in response to the Libyan leader's crackdown on protesters. The U.S. has frozen more than $34 billion of assets related to the Gadhafi regime; billions of dollars more have been frozen elsewhere.

To get frozen assets to the Libyan opposition is fraught with complexities. "It is a lot more complicated than saying we are going to unfreeze these assets and hand them over," says Harriet Territt, a London-based lawyer at Jones Day.

The U.K., for instance, is keen to help address humanitarian needs, but needs to clear a number of complex obstacles, said a person familiar with the situation. "We're considering a number of options to do this and we will see what is legally possible," a spokesman for the U.K.'s Foreign Office said.

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http://online.wsj.com/article/SB10001424052748704810504576307251084940750.html