Libya begins payments to terror victims: official

WASHINGTON (AP) -- A senior U.S. official says Libya has started paying money into a fund to compensate the families of American victims of Libyan-linked terror attacks.

The official says Libya made a substantial payment Thursday as part of an agreement reached earlier this year to fully restore ties between the United States and Libya. The money deposited into a U.S. account is not the full amount needed, but the official says it demonstrates Libya's willingness to resolve compensation claims.

The official spoke on condition of anonymity ahead of a formal announcement of the payment, which will go to the families of victims of the 1988 Pan Am 103 bombing over Lockerbie, Scotland, and the 1986 bombing of a Berlin disco. The move follows the opening of a U.S. commercial office in Libya's capital earlier this week and a historic visit last month by Secretary of State Condoleezza Rice.

(Copyright 2008 by The Associated Press. All Rights Reserved.)

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