European Stars And Stripes (Newspaper) - February 9, 1986, Darmstadt, Hesse                                The stars and stripes sunday. February 9,1986page 28 a Sanction guidelines deny khad Afy Windfall Washington Dpi the administration will allow . Companies to continue limited operations in Libya under a formula intended to Force their eventual withdrawal and deny Moa mar khad Afy a $1 billion plus  state and Treasury departments Friday announced new guidelines governing implementation of president Reagan s economic sanctions against Libya which went into effect a week ago amid confusion Over How american companies should discontinue operations there. The guidelines Are designed to deny libyan Leader Kha Day the benefits of taking Over abandoned is. Facilities in his Oil Rich North african nation. Officials Laid he would stand to gain up to s6 billion from an immediate and total . Economic withdrawal but the governments using a conservative estimate of More than $1 billion. The new guidelines also Are intended to Lead to a com plete is. Disengagement from Libya contemplated in Reagan s Jan. 7 executive order imposing a Haft to is. Economic and Trade exchanges with that  imposed his sanctions in retaliation for alleged libyan backing of the dec. 27 attacks on the Rome an Vienna Austria airports by a palestinian terrorist group and for khad Afy s general support of International terror ism. Senior administration officials briefing reporters on the condition of anonymity said companies will not be allowed to Transfer their operation to foreign subsidiaries for the purpose of evading Reagan s order. Instead they will qualify for limited extensions under exceptional circumstances where a precipitous withdrawal would give khad Afy an economic  firms will be granted licenses to operate under strict controls that include Deposit of All profits As of feb.1 from libyan operations into a is. Government escrow account to be held until each firm completely terminates its remaining activity in  the escrow account should give the firms a Strong incentive to terminate their operations officials said be cause they would not get a dime of their profits until that  state department statement said . Companies Are being required to remove property where possible or to sell it to Libya to libyan nationals or if the property is not for use in Libya to anyone else.". The officials said the companies would not be in a fire Sale situation because of Reagan s freezing of several Hundred million dollars of libyan assets in this country. Those assets could be tapped to make up for any . Assets or under Market Price paid for them by the libyans. Staft my Sam