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Powell says lockerbie settlement closer { August 11 2003 } Original Source Link: (May no longer be active)
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Powell Says Lockerbie Settlement Closer
Mon August 11, 2003 05:14 PM ET
By Arshad Mohammed
WASHINGTON (Reuters) - Secretary of State Colin Powell said on Monday a settlement of the Lockerbie dispute was growing closer after Britain said U.S., British and Libyan officials held "constructive" talks on the issue.
U.S. officials said last week they saw a 50-50 chance the dispute might soon be resolved with a Libyan admission of responsibility for the 1988 bombing of Pan Am Flight 103 over Lockerbie, Scotland, that killed all 259 people aboard the jet and 11 people on the ground.
"I think that we're getting closer to a settlement," Powell told reporters but said he had not yet received a report on working-level discussions among U.S., British and Libyan officials in London on Monday.
"We were pleased with the progress made today," said a British Foreign Office spokeswoman, striking an upbeat note about a dispute that has seemed close to resolution in the past only to slip away. "It was a constructive session."
The United Nations imposed sanctions on Libya in 1992 and suspended them in 1999 after Libya handed over two men accused of the bombing. One man was convicted and the other acquitted in 2001 after a trial in the Netherlands under Scottish law.
To have the U.N. sanctions permanently ended, Libya must accept responsibility for the bombing and pay compensation to the victims' families. It must also renounce terrorism and agree to cooperate in future investigations.
Sources familiar with the Lockerbie matter last week said the dispute seemed to be heading toward a resolution, possibly as early as this week, although they stressed there was no guarantee that Libya would accept responsibility.
ESCROW ACCOUNT
Lawyers for the families last week met Libyan officials and representatives for the Bank for International Settlements in Paris to discuss finalizing arrangements for an escrow account to hold the $2.7 billion, or up to $10 million per victim, Libya has agreed to pay in compensation.
The lawyers told their clients they had scheduled another meeting for Wednesday in Europe at which they hoped to sign the escrow agreement, which could be the trigger for Libya formally accepting responsibility for the bombing.
A source familiar with the negotiations said the meeting was due to take place but said there might be a technical hitch because the BIS wanted further clarifications on exactly how the account would work and how its funds would be disbursed.
The source, who asked not to be named, said the Libyan government was keen to resolve the talks about the bank account on Wednesday and would then send a letter taking responsibility to the U.N. Security Council on Thursday.
He said the United States and Britain were expected to issue a statement finding Libya's admission of responsibility acceptable, saying Tripoli had met its obligations under U.N. resolutions and offering no objection to ending U.N. sanctions, which could be lifted as early as Aug. 18.
Diplomats emphasized that resolving the U.N. sanctions is an extremely complex matter, requiring the families and Libya to finalize arrangements for the compensation and the wildcard of whether Libya will actually admit responsibility.
Lifting U.S. sanctions is a separate process requiring action by the U.S. government, where there are sharp divisions on the issue and quick action is not expected.
U.S. sanctions include a ban on imports of Libyan crude oil to the United States dating to 1982 and expanded sanctions in 1986 that include a ban on direct import and export trade, commercial contracts, and travel-related activities. (Additional reporting by Paul Taylor)
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