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Libya, U.S. Make Deal On Terrorism Lawsuits

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The Associated Press

Published: August 15, 2008

TRIPOLI, Libya - Libya and the United States on Thursday settled all outstanding lawsuits filed by American victims of terrorism, clearing the way for the full restoration of diplomatic relations.

There were 26 pending lawsuits filed by American citizens against Libya for the 1988 bombing of Pan Am Flight 103 over Lockerbie, Scotland, and other attacks, said a senior Libyan government official, who spoke on condition of anonymity because the details of the deal had not been publicly announced.

The official said there were also three outstanding lawsuits filed by Libyan citizens for U.S. airstrikes on Tripoli and Benghazi in 1986 that Libyans say killed 41 people, including leader Moammar Gadhafi's adopted daughter.
State Department spokesman Robert Wood confirmed the deal.

"The agreement is designed to provide rapid recovery of fair compensation for American nationals with terrorism-related claims against Libya," he said in a statement. "It will also address Libyan claims arising from previous U.S. military actions. The agreement is being pursued on a purely humanitarian basis and does not constitute an admission of fault by either party."

The settlement completes a nearly five-year effort to rebuild ties between the countries.

A joint U.S.-Libya statement issued later Thursday in Tripoli said that "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 agreement will be followed by a U.S. upgrading of relations with Libya including the confirmation of a U.S. ambassador and a visit by Secretary of State Condoleezza Rice before the end of the year. It will also allow direct U.S. aid.

The agreement also gives immunity to the Libyan government from any further terrorism-related lawsuits, the Libyan government official said.

The mother of one of the Lockerbie victims called the settlement a "triumph for terrorism."

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