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Tuesday, June 3, 2008

Libya still owes Pan Am bombing victim families $2 million each

WASHINGTON — After a stalemate of nearly two years, Libya has pledged to resolve a dispute with the United States over compensation to victims of attacks attributed to the regime of Col. Moammar Khaddafy.

The State Department said Libya and the United States have agreed to settle compensation claims by the families of victims of attacks attributed to Tripoli. Officials said the attacks included the 1988 Lockerbie bombing and the 1986 bombing of a disco in West Berlin.

"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 and the United States said in a joint statement on May 30.

In 2003, Libya agreed to pay $10 million to each of the families of the 270 people killed in the Pan Am bombing over Lockerbie. Tripoli, however, has refused to relay a final payment of $2 million per victim, Middle East Newsline reported.

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The Khaddafy regime has also refused to pay compensation to the families of two U.S. soldiers killed in the Berlin bombing. Officials said Tripoli has sought to link compensation to U.S. military and dual-use sales.

The Libyan refusal has blocked State Department plans to build an embassy in Tripoli. Congress has also approved legislation that would enable victims of attacks deemed terrorist to freeze Libyan assets in the United States. President George Bush signed the bill in January 2008, but has appealed for a waiver for Libya.

Officials said the State Department has proposed the establishment of a global compensation fund to pay families of the U.S. victims of Libyan and other attacks. They said Libya, who suggested a comprehensive settlement in March 2008, has pledged to examine the idea.

On May 28-29, Assistant Secretary of State for the Near East David Welch led a U.S. delegation with Libya in talks on compensation as well as the lifting of U.S. restrictions on dual use exports. No breakthrough was announced after the session, which took place in London.

"In this context, both parties reiterated their commitment to further develop bilateral cooperation," the joint statement said. "They affirmed their mutual cooperation to combat terrorism. They also recognized the 2003 historic and courageous decision taken by leader Khaddafy to renounce weapons of mass destruction.


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