Based on the papers of former Italian statesman Aldo Moro and on several secondary sources, this article investigates the Italo-Libyan relationship between the rise to power of Qadhafi in 1969 and the mid-1970s. Qadhafi initially pursued a policy of confrontation with the former colonial power: he expelled the remaining Italian citizens in Libya, asked for post-colonial compensations and a revision of the 1956 treaty.

Gradually, however, a new relationship developed: Italy badly needed Libyan oil, especially in view of the closing of the Suez Canal because of the Arab-Israeli wars, while Qadhafi needed to secure a fixed amount of oil revenues in order to build up domestic and international support for his revolution. Italian companies were also granted public works which were meant to improve Libyan infrastructure while Libyan oil profits could be invested in Italian stocks. Finally, Italy would provide Qadhafi with weapons and support for his regime, as the revelations about the ‘Hilton Assignment’ demonstrate. The author argues that this relationship gave both actors a wide freedom of manoeuvre within the context of the Cold War.