Libya makes first deposit into terrorism compensation fund

[JURIST] US Assistant Secretary of State David Welch said Thursday that Libya has made an initial deposit [briefing transcript] into a US government account as part of a deal to settle claims involving Libyan-linked terrorism in the 1980s. Under the agreement, Libya will pay $1.5 billion to settle claims for victims of the 1988 bombing of Pan Am Flight 103 [BBC backgrounder; JURIST news archive] over Lockerbie, Scotland and the 1986 bombing of the La Belle disco [BBC backgrounder] in Berlin, Germany. An additional $300 million will be provided by the United States to compensate Libyan victims of retaliatory air strikes that followed the disco bombing. Funding for the US portion is unclear; Bush Administration officials indicated that no US tax dollars would be used to pay for the settlement. Welch said: "we deem [the deposit] to be evidence of [Libya]'s commitment to fully implementing the whole agreement, and a substantial indication of their commitment". AP has more.

This March, the US and Libya began working to find a way to speed compensation for families of Americans who were killed by acts of terrorism authorized by the Libyan government. An agreement was signed [JURIST report] in August. The settlement is seen as a way to normalize relations between the US and Libya and to allow Libya to accelerate development of its oil resources.

 

About Paper Chase

Paper Chase is JURIST's real-time legal news service, powered by a team of 30 law student reporters and editors led by law professor Bernard Hibbitts at the University of Pittsburgh School of Law. As an educational service, Paper Chase is dedicated to presenting important legal news and materials rapidly, objectively and intelligibly in an accessible format.

© Copyright JURIST Legal News and Research Services, Inc., 2013.