Lockerbie compensation deal hits impasse

Negotiations with Libya over increased compensation for families of victims of a 1989 French airliner bombing over the Niger desert have hit an impasse, a representative the families said today.

“We’re in a very difficult phase of the negotiations,” said Guillaume Denoix de Saint Marc, whose father died in the bombing.

France said earlier this week it was very close to finalising an agreement with Libya that would clear the way for lifting US sanctions and releasing £1.6 billion compensations to the families of the victims of the Lockerbie bombing.

Foreign Minister Dominique de Villepin said on Monday the ”foundations” of a deal had been found, a day after Libyan leader Moammar Gaddafi had announced an agreement on Sunday.

But, Denoix de Saint Marc said today that Libyan negotiators seemed to be stalling.

“I think there is internal dissension on Libya’s side. I think there is a will to bide for time,” he said. “At the moment there is a real blockage that we have to resolve.”

France, a permanent member of the UN Security Council with veto power, has threatened to hold up a British proposal to lift sanctions against Libya unless compensation is settled.

Britain’s proposal would end a ban on arms sales and air links with Libya.

France was embarrassed by the size of the compensation that Libya recently agreed to pay for another attack – the 1988 Pan Am bombing over Lockerbie.

Under that agreement, families of the 270 victims will each receive between £3 million and £6 million.

“We are not necessarily looking for total parity with Lockerbie,” but the settlement needs to be “symbolically important so that we have a feeling of justice,” Denoix de Saint Marc said.

Families of the 170 victims of the bombing to the French airliner shared a much smaller £21 million settlement under a 1999 agreement with Libya, getting about £122,000 each.

In light of the Lockerbie agreement, France said it wanted the compensation package to be renegotiated.