U.S., Libya inch toward better ties

WASHINGTON -- U.S. officials have had positive discussions with Libya, but the country hasn't agreed to take the steps that would prompt the administration to remove it from the list of states that support terrorism, administration officials said Wednesday.

The North African country has recently been seeking to cultivate better relations with the United States. Libyan representatives have been talking to U.S. and British officials about complying with U.N. requirements aimed at forcing Libya to renounce terrorism and own up to past acts.

The Libyan government also has been in compensation talks with families of victims of the 1988 bombing of Pan Am Flight 103, for which the United States holds Libya responsible.

White House spokesman Ari Fleischer said that while the United States and Libya have had discussions, Libya has not agreed to apologize for the Pan Am bombing or to pay compensation to the victims. "Libya knows what it has to do. ... That has not taken place yet," Fleischer said.

State Department spokesman Richard Boucher said that although Libya has been working to improve its public image, "What we're looking for is action. We haven't seen it."

He added that recent talks with the Libyans in London don't "represent any kind of new initiative or shift in our relationship. ... There's been no change in our policy toward Libya."

Repairing relations with Libya would be a major step and offer a variety of benefits for both sides.

For the United States, it could bring intelligence help in its war on terrorism and would demonstrate to other countries in the region that they can take steps to return to America's good graces. It would mean economic benefits for Libya, which badly wants U.S. oil industry expertise and has been under a U.S. trade ban.

The Wall Street Journal reported last week that Libya has signaled to U.S. officials that when the Pan Am legal process ends, the Libyan government might compensate victims and acknowledge responsibility. USA Today reported Wednesday that an imminent deal would require the Libyan government to pay as much as $6-billion in compensation.

But Fleischer said the United States has no action on Libya planned and is not negotiating a compensation settlement.

Libyan leader Moammar Gadhafi denounced the Sept. 11 terrorist attacks on the United States, and officials of his country have called publicly for an improvement in relations with Washington. Gadhafi has cracked down on militants in his country and has forced some to leave Libya.

The State Department's list of countries that support terrorism cites Libya, Iraq, Iran, Sudan, North Korea and Cuba.

Last year, a Scottish court in the Netherlands convicted a Libyan intelligence agent of killing the 259 people aboard the Pan Am jet and 11 more on the ground. On Wednesday, lawyers for the agent appealed to overturn his conviction.

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