US, Libya, Finalize Deal on Terrorism Compensation | Voice of America - English
The United States and Libya Thursday signed an agreement in Tripoli, designed to settle all remaining U.S. compensation claims from Libyan-sponsored acts of terrorism in the 1980s. Lingering claims disputes have been blocking the full normalization of relations between the two countries.
Thesigning of the comprehensive claims settlement agreement climaxes amajor push by the two governments in recent months to resolve thecompensation issue, and Assistant Secretary of State for Near easternAffairs David Welch said in Tripoli it will "turn a new page" in thebilateral relationship. The U.S.-Libyan rapprochement began in2003, when the Tripoli government renounced weapons of mass destructionand terrorism and agreed to pay compensation for terror attacksattributed to Libya - most notably the 1988 bombing of a U.S. Pan Amjumbo jet over Lockerbie, Scotland that killed 270 people. Libyaagreed to provide $10 million in compensation to the families of eachLockerbie victim in a phased payout linked to normalization steps. Butthe process became bogged down in legal disputes, with the remaining$500 million of the $2.7 billion package unpaid. Under theagreement signed Thursday, Libya is to put up an additional sum ofabout $1 billion to be distributed by a new entity set up by the U.S.government, to Lockerbie families and victims of other attacks,including the 1986 bombing of a Berlin disco that killed two U.S.soldiers. The deal would also settle Libyan claims from U.S. airstrikes against Libya in the 1980s. State Department Deputy Spokesman Robert Wood described the accord in a briefing for reporters. "Theagreement is designed to provide rapid recovery of fair compensationfor American nationals with terrorism-related claims against Libya," hesaid. "It will also address Libyan claims arising from previous U.S.military actions. The agreement is being pursued on a purelyhumanitarian basis, and does not constitute an admission of fault byeither party." The effort to resolve the compensation issuecleared a major hurdle two weeks ago, when the U.S. Congress approvedand President Bush signed, a measure giving Libya immunity from furtherterrorism-related U.S. lawsuits once compensation for remaining caseshad been paid through the new fund. Though the United States andLibya announced a normalization of relations in 2006, members ofCongress concerned about compensation cases had blocked funds forbuilding a U.S. embassy in Tripoli and prevented a full U.S. ambassadorfrom taking up residence there. U.S. oil companies and otherfirms have begun operations in Libya in recent years but Libyaninvestment in the United States has been severely limited by theprospect of asset seizures stemming from terrorism cases. In hisremarks in Tripoli, Assistant Secretary Welch said the agreement wouldresolve the last major historical issue that has stood in the way of amore normal U.S.-Libyan relationship. Welch met Libyan leaderMuammar Gadhafi Wednesday and said he had conveyed the best wishes ofthe American government and a personal message to Mr. Gadhafi fromPresident Bush.