What led Libya and other state sponsors of terrorism to reduce their support over the last decade?

In 1979, the United State established a list of countries providing either direct or indirect support to terrorist groups. This list was legislated in the Export Administration Act under the Secretary of State's authority. The annual list is published in the Code of Federal Regula tions and in Country Reports on Terrorism. Libya, which was put on the list in 1979, was removed in 2006. Libya took responsibility for the explosion of Pan Am flight 103 in 1988. The explosion over Lockerbie, Scotland, killed 270 people. Libya agreed to compensate families of the flight's victims, and to cooperate in the investigation and trial of the event. Libya also agreed to abandon its fledgling WMD program. Perhaps most important, Libya agreed to cooperate with the United States in new anti-terrorism efforts. On May 15, 2006, Secretary of State Condoleezza Rice announced normal diplomatic relations would resume.