Libya signs $170 million compensation deal for 1989 French airl

PARIS -- Libya signed a $170 million compensation accord Friday with families of people who died in the 1989 bombing of a French jetliner, its latest overture to the West after decades as an international pariah.

As about 20 relatives of victims sat quietly nearby, their top negotiator and the director of a foundation run by the son of Libyan leader Moammar Gadhafi signed the deal at a Paris law office.

The Sept. 19, 1989, bombing of a UTA airliner over Niger's Tenere desert killed all 170 people aboard. Victims came from 17 countries, but France, with 54 dead, had the heaviest toll.

Applause broke out after the signing of papers to seal the deal between the group of victims' families and the Gadhafi International Association for Charitable Organizations, headed by Gadhafi's son Seif el-Islam.

"I'm certain this will open a new page in Libya's foreign relations," said Saleh Abdul Salam, the Gadhafi foundation's director.

Libya had already agreed to $33 million in compensation in 1999, but the families demanded more money after Libya agreed to pay a far higher sum -- $2.7 billion -- to relatives of the 270 victims of the 1988 downing of a Pan Am jet over Lockerbie, Scotland. Most of the Lockerbie victims were Americans.

The families of seven American victims will also share in the indemnities. The include relatives of Bonnie Barnes Pugh, the wife of the former U.S. ambassador to Chad.

While the deal is not between governments, France was in the wings during talks.

The pact was the latest move by Libya to shed its image as a rogue state. Gadhafi last month abruptly renounced efforts to build weapons of mass destruction and opened his country's arms production facilities to international inspection.

The arrival in Paris on Thursday of Libyan Foreign Minister Abdel-Rahman Shalqam underscored that the impact of the accord would also be felt in the diplomatic arena.

The Libyan minister was to meet separately later Friday with President Jacques Chirac and hold a joint news conference with his French counterpart, Dominique de Villepin.

"There is a bit of general euphoria linked to the end of enormous negotiations, the end of 14, nearly 15 years of grieving," the families' representative, Guillaume Denoix de Saint Marc said ahead of the signing.

He said that families were "satisfied" with the terms of the accord, but not all details were disclosed in full. The families had scheduled a news conference for later Friday.

"The Libyan government has finally recovered its honor," said Denoix de Saint Marc, who lost his father in the bombing.

Six Libyans -- including a brother-in-law of Gadhafi -- were convicted in absentia by a French court. They remain at large.

Abdul Salam, speaking with reporters after signing the documents, was unrepentant about the convictions, saying that Libya "is certain about the innocence of the six convicted Libyans." He said the accord was "essentially done on a humanitarian basis."

Abdul Salam said Libya "respected all French laws." The six "must have the opportunity to defend themselves," he said.

The victims' families were expected to create a special foundation to distribute the funds among themselves, but the cash is not expected to start flowing for six months. However, a check for a quarter of the sum -- $42.5 million -- was being handed over Friday, Denoix de Saint Marc said.

A bank handling the funds transfer and SOS-Attentat, a group that works for terrorism victims' rights, also signed the deal.

The broad outlines of the accord were signed in September, clearing the way for the international community to lift 11-year-old sanctions against Libya. However, a fall deadline for a final accord had passed without progress.