Libya offers new deal to Pan Am 103 families

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Libya offers new deal to Pan Am 103 families
By Barbara Slavin, USA TODAY

WASHINGTON =97 Libya has promised to pay families of victims at least $5=20
million each and admit responsibility for a terrorist bombing in 1988 that=
=20
brought down Pan Am Flight 103. The offer represents a new effort by Libyan=
=20
leader Moammar Gadhafi to put the Pan Am case behind him and remove the=20
tinge of terrorism from Libya in the aftermath of the Sept. 11 attacks.=20
Gadhafi also is eager to see the return of U.S. oil companies. In 1986,=20
Washington barred U.S. oil companies from Libya, which has an economy that=
=20
is heavily dependent on oil. Gadhafi's initiative could ease his country's=
=20
pariah status but may not quickly restore U.S. relations. A copy of the=20
agreement, reached in Paris last week by a Libyan delegation and lawyers=20
for the victims, was obtained by USA TODAY on Tuesday. Under the offer,=20
families of the 270 victims would receive $5 million each =97 for a total=20
settlement of $1.35 billion =97 if United Nations sanctions against Libya=
 are=20
lifted. That amount would be doubled if the Bush administration allows=20
economic ties to be resumed with the North African country within eight=
 months.

It will take several days to see how many families will accept the offer.=20
But relatives of the victims, whose plane blew up over Lockerbie, Scotland,=
=20
on Dec. 21, 1988, said the new proposal was more palatable than a previous=
=20
offer. "It's a somewhat more realistic deal," said Dan Cohen of Cape May=20
Court House, N.J. His daughter, Theodora, 20, was one of 189 Americans=20
killed in one of the worst acts of foreign terrorism against U.S. citizens.

The provisions of the offer:
Libya would "provide a formal statement of responsibility to the U.N.=20
Security Council." That would satisfy conditions for an end to U.N.=20
sanctions on air travel and investment that were suspended in 1999 after=20
the Libyan regime surrendered two suspects for trial. One was convicted=20
last year.

Within 30 days after accepting responsibility, Libya would deposit $10=20
million per victim into an escrow account in a European bank. Half that=20
amount will be taken back unless the United States ends its commercial=20
sanctions.

Cohen said that he and his wife, who rejected the previous offer, would=20
accept money tied to the U.N. sanctions but no more. "We will accept=20
nothing that has anything to do with these other conditions," he said.

State Department officials expressed skepticism that Gadhafi would publicly=
=20
accept responsibility for the Pan Am  bombing. Even if he does, a State=20
Department official said, that would not automatically lead to an end to=20
U.S. sanctions or Libya's removal from a list of countries the United=20
States accuses of sponsoring terrorism. Under pressure from some in the=20
Bush administration, the State Department is also demanding that Libya give=
=20
up a chemical weapons program that U.S. intelligence reports say has given=
=20
the nation tons of chemical agents.


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