The Central Intelligence Agency and Libyan intelligence services developed such a tight relationship during the George W. Bush administration that the U.S. shipped terror suspects to Libya for interrogation and suggested the questions they should be asked, according to documents found in Libya's External Security agency headquarters.

The relationship was close enough that the CIA moved to establish "a permanent presence" in Libya in 2004, according to a note from Stephen Kappes, at the time the No. 2 in the CIA's clandestine...