Libya Sets Conditions for Paying Pan Am 103 Victims


Tuesday, October 29, 2002

WASHINGTON — Libyan government lawyers have set conditions for compensating families of Pan Am 103 victims with $10 million each and for recovering the money if the terms are not met.





Under the demand, the final $2 million would be paid only after the United States removes Libya from its list of countries that sponsor terrorism.

The Libyan position was disclosed in a letter to the families from the New York-based law firm Kreindler & Kreindler, which represents them.

Much of the letter reaffirms details of a Libyan offer that was announced in May.

Libya is offering to pay $2.7 billion from an escrow account to the families of the 270 people who died in the bombing of Pan Am 103 as it flew over Scotland on Dec. 21, 1988.

A Scottish court convicted a Libyan agent of participating in the bombing.

The U.N. Security Council has demanded compensation for the families, among other requirements, as a condition for lifting sanctions against Libya, which have been suspended since 1999.

A key hurdle blocking a settlement is a Security Council demand that Libya accept responsibility for the bombing. The United States has its own set of sanctions separate from those of the United Nations.

The letter to the families, copies of which were made available to some media outlets Tuesday by members of families, reaffirms that Libya will pay immediately $4 million to each family once Libya has complied fully with U.N. requirements.


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