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July 31st, 2008
Posted: 01:52 PM ET

WASHINGTON (CNN) — The United States and Libya have a tentative deal for Libya to pay hundreds of millions of dollars to terrorism victims, but the deal hinges on congressional action, the State Department and lawyers for the victims said Thursday.

If the deal goes through, it could put an end to legal liability by Libya from numerous lawsuits filed by families of victims of what the United States considers Libyan terrorist acts, paving the way for stronger U.S.-Libyan ties and increased American investment in the oil-rich nation.

The 1988 bombing of Pan Am Flight 103 over Lockerbie, Scotland, killed 270 people — including 189 Americans– while the 1986 La Belle disco bombing in Berlin killed three — including two American servicemen — and injured 229, 79 of them Americans.

The deal hinges on Congress passing fresh legislation creating a fund for the settlement.
–From CNN State Department Producer Elise Labott


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The CNN Wire is a running log of the latest news from CNN World Headquarters, reported by CNN's correspondents and producers, and The CNN Wire editors. "Posted" times are Eastern Time.

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