Bush calls Gadhafi to laud Libya's settlement over terrorist attacks

WASHINGTON (AP) -- President George W. Bush has called Libyan leader Moammar Gadhafi to voice satisfaction with the $1.5 billion payment Libya has made to settle a long-standing dispute over terrorist attacks.

The White House says Bush and Gadhafi discussed closing "a painful chapter" in relations between the two countries.

Libya's payment goes into a fund that will pay claims from the 1988 Pan Am 103 bombing over Lockerbie, Scotland, and the 1986 bombing of a German disco. The U.S. is putting $300 million into the fund to pay victims of retaliatory airstrikes the U.S. made on Libya.

Libya's payment clears the last hurdle in the normalization of diplomatic relations between Washington and Tripoli.

In a statement, White House spokesman Gordon Johndroe says notes that the process began when Libya renounced terrorism and weapons of mass destruction five years ago.

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

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