http://www.insightmag.com/news/2004/03/30/World/How-George.W.Bush.Got.Qaddafis.Attention-632702.shtml
I like this part too....
Qaddafi now sought counsel from an unusual source, which Insight can reveal here for the first time. One month before Qaddafi's historic announcement on Dec. 19, 2003, he met in Tripoli with visiting Ukrainian President Leonid Kuchma. "During their private meeting, Qaddafi asked Kuchma how America had treated him when he gave up his nuclear weapons after the fall of the Soviet Union," says Weldon, who heard the story directly from Ukrainian Foreign Minister Kostyantyn Hryshchenko. Kuchma suggested that Qaddafi broaden his ties beyond the administration and work with members of the U.S. Congress, as well.
The final event that sealed the fate of Qaddafi's nuclear-weapons program took place in early December 2003 along the borders of the Tigris River near Tikrit, when U.S. soldiers pulled former Iraqi dictator Saddam Hussein out of a spider hole."When Qaddafi watched a U.S. medic probe Saddam's hair for lice and poke around his mouth, he was stunned," several sources tell Insight. Western diplomats in Tripoli agree that Saddam's capture "traumatized" the Libyan leader. "What happened is very clear," an administration official says. "Things happened, and immediately afterward the Libyans did things in response."
Until Saddam's capture, "we were still negotiating. Both sides were sparring back and forth," a British official involved in the talks says. "Things radically changed course after that." Just 10 days later, Qaddafi made his official announcement that Libya was giving up its WMD programs and had invited U.S. and British experts into the country to verify the dismantling of his weapons plants.
Ultimately, the credit for the dramatic change in direction goes to Qaddafi, a Western ambassador in Tripoli believes: "He understood that his revolution could not continue unless he delivered more prosperity to Libyans, and the only way to do that was by renewing relations with the West." Now it's up to the United States to deliver its side of the bargain, he adds, by lifting sanctions and resuming normal trade with Libya.
What was Clarke's plan on dealing with Libya?