London: In a goodwill gesture, Libyan leader Muammar Gadaffi is to pay up to 2 billion pounds to victims of Irish terrorism for his role in supplying shiploads of deadly plastic explosives to the IRA, a leading British newspaper reported today.
About 800 million pounds will go directly to victims of the violence. First in line will be the 147 families of those caught in atrocities in which Semtex, the plastic explosive supplied by Libya, was used, The Sunday Times reported.
A trade deal between Britain and Libya is also expected to be part of the historic settlement. Gadaffi is seeking to present the payment as a goodwill gesture and is not expected to admit liability, the report said.
Semtex supplied by Gadaffi's regime was used by the Irish Republican Army (IRA) in at least 10 atrocities, including the bombing of Harrods in 1983 and Enniskillen in 1987.
The Real IRA used it at Omagh in 1998, killing 29 people and injuring 220. It was used in the bombing of Pan Am Flight 103 at Lockerbie, when 270 were killed, for which Libya has paid over 5 million pounds to each family.
A source close to the talks said: "Gadaffi can now make a major humanitarian gesture which will end the legal actions and build diplomatic and business relations with the UK."
The IRA victims welcomed the prospect of a payout.
Anna Dixon, 73, who with her husband Jim, also 73, was injured at Enniskillen, said: "Jim's injuries were horrendous the doctors said it was as if his head had been crushed like an eggshell. He can't close his mouth easily and he is in constant pain due to nerve damage. The doctors say they can do nothing. I would like some of this money to go to pain research."
An additional 314 million pounds could be added if the US government agrees to co-operate. This money is left over from an earlier USD 1.5 billion compensation package for American victims of Libyan-sponsored terrorism, including the Lockerbie bombing.
Families received more than 5 million pounds each and it is suggested that similar amounts can be paid to American victims of IRA terrorism, or Irish-born casualties who moved to America.
Politicians will be briefed on Wednesday about progress in the talks, the report said.
A Foreign Office spokeswoman said: "We believe success can be achieved through the direct contacts which we have helped establish between the campaign and the Libyan authorities."
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