"For too many years, Libya has refused to accept responsibility for its
horrific acts of terrorism against American victims," Sen. Frank Lautenberg,
a New Jersey Democrat, said. "But after the pressure we applied, Libya will
finally be held accountable for these devastating events. Our bill becoming
law means these victims and their families can get the long overdue justice
they deserve."
In 2003, Libya agreed to pay up to $10 million for each Lockerbie
victim. Under the deal, Libya was to have relayed an initial $4 million once
United Nations sanctions were removed; another $4 million when the United
States lifts its sanctions, and $2 million when Tripoli is dropped from the
State Department's list of terrorist sponsors. All three conditions have
already been fulfilled, but Libya has not relayed the final payment.
"Congress passed important legislation that will further efforts to
obtain fair compensation for American citizens in their claims against the
Libyan government," Secretary of State Condoleezza Rice said. "We hope
administration efforts, working with the Congress, will help our fellow
citizens close a painful chapter in their lives."
Officials said the legislation provided the framework for a resolution
of the Libyan compensation issue. They said the fund would include Libyan
money for the families of the Pan Am victims as well as those of the 1986
bombing in Berlin in which two U.S. soldiers were killed.
For its part, the United States would contribute to the fund to help
compensate victims of American air strikes on Libya in 1986. Officials said
the fund would exceed $1 billion.
"The United States also looks forward to expanding its relationship with
Libya and its people as we resolve contentious issues from the past," Ms.
Rice said.
In 2008, Libya and the United States held talks on the compensation
issue in Europe and the Middle East. The latest round was said to have taken
place in the United Arab Emirates in July.
Officials said a Libyan agreement to establish the fund would prompt a
decision by Ms. Rice to visit Libya and launch construction of a U.S.
embassy in Tripoli. They said an announcement could be issued in August
2008.