The most detailed account of the operation first appeared in the New York Times yesterday. The U.S. State Department later confirmed parts - but not all - of the Times report.
No one seemed to know, however, if the guerrillas had actually taken part in any military operations against Libya.
In any event, the project fell apart in December when the government of Chad was overthrown in a coup staged by a group of its own soldiers who were backed by Libya.
After the coup, the United States flew the 600 guerrillas out of Chad to save them from being turned over to Gadhafi and it then tried to find new homes for the Libyans somewhere in Africa.
They were first taken to Zaire, but after their welcome wore thin, most were transferred to Kenya.
The guerrillas were disarmed before they left Chad, and they have been permanently disbanded, other administration officials told the Times.
The United States eventually gave Kenya $5 million in military aid partly as a reward for accepting the Libyans, the Times said.
The U.S. State Department yesterday confirmed part of the Times story, but it said that Kenya's help in sheltering the Libyans was only one of several reasons Kenya was given the U.S. aid.
But State Department spokesman Richard Boucher declined to talk about the report that the Libyans were part of a guerrilla force.
Boucher said yesterday that U.N. refugee officials were looking for countries that would grant the Libyans permanent homes.