U.S.-Libya Comprehensive Claims Settlement Agreement (2008)
In July 2008, Gaddafi’s son Saif al Islam announced that an agreement was being negotiated with the United States whereby Libya would make any future compensation payments to American victims of terror attacks conditional upon the settlement of claims by victims of the U.S. bombing of Libya in 1986.
On August 14, 2008 the resultant U.S.-Libya Comprehensive Claims Settlement Agreement was signed in Tripoli by Assistant Secretary of State for Near Eastern Affairs, David Welch, and by Libya’s Secretary for American Affairs, Ahmad Fituri.
In October 2008 Libya paid US$1.5 billion, over three installments of US$300 million on October 9, 2008, US$600 million on October 30, 2008, and a final US$600 million October 31, 2008, into a fund which will be used to compensate relatives of the Lockerbie bombing victims an additional US$2 million each, after having paid them US$8 million earlier;
American victims of the 1986 Berlin discotheque bombing;
American victims of the 1989 UTA Flight 772 bombing; and,
Libyan victims of the 1986 US bombing of Tripoli and Benghazi.
As a result, President Bush signed an executive order restoring the Libyan government’s immunity from terror-related lawsuits and dismissing all of the pending compensation cases in the United States.