US, Libya working on compensation proposal over 1980s terror attacks

A State Department official says the United States and Libya have agreed to try to quickly compensate families of American victims of three terrorist attacks blamed on Libyan agents in the 1980s. The settlement would help resolve lawsuits that have dragged on for two decades and clouded a deal that Libyan leader Moammar Gadhafi struck to give up weapons of mass destruction in return for improved relations with the United States. Libyan officials have become increasingly frustrated by what they see as US delays in making diplomatic and political concessions to Libya. Libya had agreed to pay $10 million to each victim in the 1988 bombing of Pam Am flight 103 over Lockerbie, Scotland, but it has not made the final payment because of a dispute over US obligations in return.