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Oil ban fear likely to cause cuts in costs, imports and halt to new contracts

Libya may send back 5000overseas workers
TRIPOLI. May 10: Libya, fearing a poaaiblr oil ban tn It* dUpute with the We»t to mov tng to cut a pending and might •end home about 5.000 foreign worker*, report* Reuter
The central bank recommend* not to enter Into new contract* and to limit Import* to the necessary good* *uch a* food, medicine, spare part* and raw material* needed by the Industry,' central bank Governor Abdel Hafir Zlltnl told a meeting on Tuesday night that discussed the 1992
93 fiscal budget
Oil revenues are the back bone of Libya s economy and Tripoli last month boosted its oil production by around 100,000 barrels per day (BPD) to 1 55 million BPD compared with March figures tn antlctpa Hon of a possible oil embargo, traders said last week
Libya Is under a three week-old UN air and arms cm bargo for its failure to hand over to the United States or Britain two suspects accused of bombing an American airline
over Lockerbie, Scotland. In 1988, killing 270 people
"We should punish them like they are punishing us. We should respond by economic sanctions to (their) economic sanctions, said IJbyan leader Muammar Gaddafi, who also at tended the meeting that wa* broadcast live by the Libyan television
The best answer to the (western) plot is to Ignore them, to rely on ourselves, to compensate our fosses and Io deprive them from gaining bll
lions of dollar - he said
Without giving figure* Zlltnl said Libya's balance of pay ment* ■ ho wed a deficit al the end of 1991 The country's fls cal budget begins on April 1.
He said the deficit was caused by an Increase In Im ports "We regret to say that the Libyan economy still relics on oil this is dangerous In the long term.' he added
Qaddafi said government expenditures should be sharply cut. especially tn the education and health services, which are
provided free to Libya's four million population
The education and health (sectors) which spend about 1.2 billton dinars (US 4 25 bi) lion dollar) about half of the total budget - should be reduced,' he said, adding that such services should only be provided to the poor.
The rich can open private schools for their children and private clinics for their own health care," he added.
He said the public sector . should replace some 5,000
foreign workers, particularly In the health and education sectors.
lie also urged the general people's congresses (parliament) which met Saturday to adopt a law privatising some areas of the public sector.
The public sector enterprises should go to the street. They can be sold to Indlvldu al*. families or a cooperative society. Even some small units related to strategic Industries, such as Iron and Steel plants can be sold.'Gaddafi said