Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: FRIDAY, March 16, 1990                   TAG: 9003162418
SECTION: NATIONAL/INTERNATIONAL                    PAGE: A-1   EDITION: STATE 
SOURCE: The Washington Post
DATELINE:                                 LENGTH: Medium

LIBYAN PLANT DISABLED

The cause is not known, but chemicals evidently ignited in the main production building and a smaller storage building and killed at least two workers.

Several U.S. intelligence officials said Libyan authorities reportedly arrested five workers, three Libyans and two foreigners. Other officials said they were unaware of such arrests. The foreigners' nationality and the possible charges against them could not be determined.

Libyan leader Moammar Gadhafi said his government is investigating the possible involvement of West German intelligence services, and he threatened economic retaliation against West Germany if proof is found. Employees of West German firms have worked at the plant in the past, but were thought to have been withdrawn under pressure last year from the United States and the German government.

A West German spokesman in Bonn called Gadhafi's allegation "completely baseless." No government acknowledged any responsibility for starting the fire. A previously unknown group calling itself the Organization of the National Wing of the Libyan Army telephoned a news bureau in Cairo to claim responsibility, but Egyptian diplomats doubted the call's authenticity.

Pentagon spokesman Pete Williams said Thursday night there had been "massive" damage at the complex 50 miles south of the Libyan capital. Others said the chemical production building is standing and its roof is apparently intact. U.S. reconnaissance satellites indicate the blaze destroyed enough equipment and materials to prevent production.

Sources said the fire evidently did not destroy the limited quantity of lethal mustard gas and nerve gas already produced at the plant and stored elsewhere. It also did not destroy a plant that makes canisters in which to pack the gases for air attack.

The Bush administration had launched an intensive campaign recently for diplomatic pressure to persuade Libya to dismantle the plant. Thursday, senior officials continued to assert there was no U.S. involvement in the fire.

Bush spoke by telephone with West German Chancellor Helmut Kohl Thursday morning, but White House press secretary Marlin Fitwater said, "I don't think so" when asked if the fire was discussed. "I don't have any indication that it was, let's put it that way," he said.

Western and Arab sources denied widespread reports Wednesday, partly attributed to Tunisian authorities, that border crossings between Libya and Tunisia had been stopped after the blaze, possibly to prevent saboteurs from leaving Libya. They said Libyan borders were open, although security checks were intensified at the frontier and foreign journalists were turned back.

There were no reports Thursday of casualties among people living near the complex.