Friday 31 October 2008

Libya completes payments for US terror victims

Libya has paid $1.5 billion into a fund to compensate the families of American victims of Libyan-linked terror attacks in the 1980s, clearing a final hurdle to full normalization of ties between Washington and Tripoli, the State Department said Friday.

In exchange, under a deal worked out earlier this year, the Bush administration will restore the Libyan government's immunity from terror-related lawsuits and dismiss pending compensation cases, it said.

Spokesman Sean McCormack called it "a laudable milestone" giving "a measure of justice to families of U.S. victims of terrorism and clearing the way for continued and expanding U.S.-Libyan partnership."

The money will go into a $1.8 billion fund that will pay $1.5 billion in claims for the 1988 Pan Am 103 bombing over Lockerbie, Scotland, and the 1986 bombing of a German disco. Another $300 million will go to Libyan victims of U.S. airstrikes ordered in retaliation for the disco bombing. (...)

The final deposit had been expected in early September but was inexplicably delayed, angering some in Congress who have thus far refused to lift holds on the nomination of a new U.S. ambassador to Libya and funds for the construction of a new U.S. embassy in Tripoli.

A first partial payment to the fund was received on Oct. 9, just days after the opening of a U.S. trade office in Libya's capital and a historic visit there last month by Secretary of State Condoleezza Rice, who was the highest-ranking U.S. official to visit the country in more than 50 years. (...)

The developments come amid a huge increase in interest from U.S. firms, particularly in the energy sector, in doing business in Libya, where European companies have had much greater access in recent years. Libya's proven oil reserves are the ninth largest in the world, close to 39 billion barrels, and vast areas remain unexplored for new deposits.

[From Matthew Lee of Associated Press.

As this article on the Al Arabiya website makes clear, the compensation covers the families of all the victims of the Lockerbie disaster, not just the US ones.]

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