Libya in discussions to compensate victims of IRA

Libya is in talks with the British government about a potential compensation deal for victims of Tripoli-backed IRA terrorism, it was revealed today.

Hundreds of relatives are involved in a multi-million damages claim against the Libyan leader for his country's role in providing arms and explosives to republican paramilitaries during the Troubles.

Now, for the first time, the authorities in Tripoli have hinted that they may be willing to consider a payout in recognition of their role in arming the IRA.

In a rare interview, Libya's secretary for international co-operation Mohammed Siala told the Independent newspaper that the issue of compensation had been discussed with London.

When asked about the Libyan position regarding the claim, he said: "It is a special case. We have a good understanding with the UK."

However, Mr Siala said no firm agreement had been reached.

"Things have not matured yet," he told the paper.

The families' calls for justice intensified after the release earlier this month of Lockerbie bomber Abdelbaset Ali Mohmed Al Megrahi from a Scottish jail on compassionate grounds.

Relatives called on Colonel Gaddafi to show the same compassion and settle their claim.

Colin Parry, whose 12-year-old son Tim was killed in the IRA bombing in Warrington in 1993, said the move should be reciprocated by Libya with an acknowledgement of past wrongs.

"We see Libya rejoicing over the return of Al Megrahi and the Scottish Government was, in my opinion, right to show compassion to a dying man," he said last week.

"But I think it's now time for Libya to acknowledge the pain and suffering they inflicted by supporting the IRA and show the same compassion to its victims."

Mr Parry also called on the British government to back the families' court bid against Col Gaddafi.