Libya Pays Up for Terrorism

The Great Socialist People's Libyan Arab Jamahiriya made its final payment yesterday into the $1.5 billion fund to compensate U.S. victims of its terrorist acts -- and to buy a better relationship with America. More from the Washington Post:

"President Bush, in exchange, signed an executive order yesterday restoring Libya's immunity from terrorism-related lawsuits and dismissing pending compensation cases.

The rapprochement with Libya began during the Clinton administration but intensified under Bush in 2003 after Tripoli agreed to give up its weapons of mass destruction. Secretary of State Condoleezza Rice in September became the first secretary of state in more than half a century to visit the Libyan capital, where she had dinner with the country's mercurial leader, Moammar Gaddafi.

In 2003, Libya agreed to pay $2.7 billion to the families of the 270 victims of the 1988 bombing of Pan Am Flight 103 over Lockerbie, Scotland, and diplomatic relations between the two countries were restored in 2006. But full progress was slowed by litigation stemming from Libya's involvement in other acts of terrorism.

In August, the last hurdle preventing Rice's visit was cleared when the United States and Libya agreed to settle all outstanding terrorism-related litigation, including claims resulting from the 1986 bombing of the La Belle disco frequented by U.S. military personnel in Berlin. The deal also settled Libyan claims for 40 deaths -- including an adopted child of Gaddafi's -- caused by a U.S. bombing raid over Tripoli in retaliation for the Berlin deaths.

All told, the fund will hold $1.8 billion, including $1.5 billion for claims for the Lockerbie and La Belle cases and $300 million for the Libyan victims."

It's not just about welcoming more American leaders into Gaddafi's tent, but normal relations means Libya can profit from investment and tourism.

(Photo by Artyom Korotayev/Epsilon/Getty Images)