The following is from the CNN website:
'The pact, supported by the victims' families, closes the book on a contentious period in U.S.-Libyan relations. Ties between the two countries began to improve in 2003, when Libya gave up its weapons of mass destruction program and began compensating Lockerbie victims.
'But lingering lawsuits prevented the two countries from fully normalizing ties. A joint U.S.-Libya statement issued Thursday in Tripoli said "both parties welcomed the establishment of a process to provide fair compensation for their respective nationals, and thereby turn their focus to the future of their bilateral relationship." ...
'The State Department said the "agreement is being pursued on a purely humanitarian basis and does not constitute an admission of fault by either party."
'Senior State Department officials said the formula was designed to respect Libyan sensitivities about compensating victims for incidents for which it hasn't taken responsibility.
'But it also allows Libya to settle outstanding claims for U.S. air strikes on Tripoli in 1986, in which Libya claims more than 40 of its citizens were killed, including Gadhafi's adopted daughter.
'Donations to settle Libyan claims would be placed in the "voluntary" fund, from which each country involved in the claims draws the money to pay its citizens.
'Welch said no U.S. taxpayer money would be used to compensate Libya but said he was "optimistic" donations to settle Libyan claims would be made. Other senior U.S. officials said American companies eager to do business in Libya could possibly make a contribution.
'The deal is to be followed by a U.S. upgrading of relations with Libya, including the confirmation of a U.S. ambassador and possible American aid. Secretary of State Condoleezza Rice is expected to visit Libya before the end of the year.'
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