US and Libya closer to compensation deal
Saturday, 31 May 2008 10:39
Libya and US move closer to Lockerbie deal
The US and Libya have begun negotiations to quickly settle compensation claims for a series of 1980s terror attacks blamed on Libyan agents.
The most famous was the 1988 Lockerbie disaster when a Pan Am flight exploded over Lockerbie, Scotland, killing 270 people.
In a joint statement, the countries said: "Both parties affirmed their desire to work together to resolve all outstanding claims in good faith and expeditiously through the establishment of a fair compensation mechanism."
Libya has already agreed to pay each victim £5 million but the final payments have been held up over disputes over US obligations in return.
The country has so far paid out £4 million in compensation to each victim.
But a US court ruling that Libya should pay out billions of dollars more in relation to another bombing angered the north
African country and has held up the payments.
The 'all in one' deal would address the Lockerbie bombing but also the 1986 bombing of a Berlin disco, the 1989 bombing of a French UTA airliner and a handful of other cases involving Libyan suspects.
Speaking anonymously to the Associated Press, a US state department official said both nations wanted "legal peace" and a clean slate.
In addition, the countries affirmed their mutual cooperation to combat terrorism.
An historic agreement between the two countries in 2003 led to Libya renouncing weapons of mass destruction and establishing new ties with Washington.