Libya, US settle all terror-related lawsuits

The following is from Associated Press news agency:

'Libya and the United States settled all outstanding lawsuits by American victims of terrorism on Thursday, clearing the way for the full restoration of diplomatic relations.

'There were 26 pending lawsuits filed by American citizens against Libya for the 1988 bombing of Pan Am Flight 103 over Lockerbie, Scotland, and other attacks, said a senior Libyan government official, who spoke on condition of anonymity because the details of the deal had not been publicly announced.

'He said there were also three outstanding lawsuits filed by Libyan citizens for U.S. airstrikes on Tripoli and Benghazi in 1986 that Libyans say killed 41 people, including leader Moammar Gadhafi's adopted daughter.

'The settlement completes a nearly five-year effort to rebuild ties between the two countries.

'The agreement will be followed by a U.S. upgrading of relations with Libya including the opening of an embassy in Tripoli, the confirmation of a U.S. ambassador and a visit by Secretary of State Condoleezza Rice before the end of the year. It will also allow direct U.S. aid.

'The deal also gives immunity to the Libyan government from any further terror-related lawsuits, the Libyan government official said.

'The U.S. had no diplomatic relations with Libya from 1980 until late 2003, when Gadhafi pledged to abandon his weapons of mass destruction programs, stop exporting terrorism and compensate the families of victims of the Lockerbie bombing and other attacks.

'After that, the nation that once was a global pariah was given a reprieve from U.N., U.S. and European sanctions, removed from the State Department's list of state sponsors of terrorism and allowed a seat on the U.N. Security Council.

'The last hurdle was over compensation for Americans harmed in Libyan-sponsored attacks, including the Lockerbie attack and the 1986 bombing of La Belle discotheque in Berlin, which killed two American soldiers. The disco attack prompted former President Reagan to order the 1986 airstrikes on Libya.

'Libya has paid the 268 families involved in the Pan Am settlement $8 million each, but was withholding an additional $2 million it owed each of them because of a dispute over U.S. obligations in return.

'The main Libyan lawsuit was filed by 45 families of those killed in the 1986 airstrikes. There are two other cases pending related to other incidents.

'International institutions and foreign companies operating in Libya — including some American firms — will contribute to a fund to compensate the American and Libyan claimants, the Libyan government official said.

'The top U.S. diplomat for the Middle East, David Welch, signed the deal with Ahmed al-Fatouri, head of America affairs in Libya's Foreign Ministry, in a ceremony before reporters and members of both delegations.

'"We went through a long path of negotiations until we reached this agreement," al-Fatouri said just before the signing. "It opens new horizons for relations based on mutual respect. ... The agreement turns the page on the negative past forever."

'Welch called the deal a "historic agreement" and said he delivered a letter from President Bush to Gadhafi.'

A later edition can be read here. The BBC News website's report can be read here.

It is noteworthy that Patrick Haseldine's comments on this blog to the effect that the talks were to cover Libyan as well as US claims (something that Western press reports failed to make clear) have been vindicated.