UK brokering 10 bn punds secret deal with Libya

London: Britain was reportedly brokering a secret deal with Libya worth up to 10 billion pounds before anti-government protests started in the North African country against the 41-year-rule of Colonel Muammar Gaddafi's regime.

The British Foreign Office was in talks with key members of the Gaddafi regime, and was in the advanced stages of winning a compensation for UK victims of Irish Republican Army bombs built with Libya-supplied explosives, 'The Sunday Telegraph' reported.

The possible agreement would have included payouts for 150 families of those killed and injured bringing the claim as well as a huge "cultural and social" investment focusing on reconciliation projects, much of it in Northern Ireland, the newspaper has claimed.

Sources said the talks were on for the past 18 months and David Cameron was taking a personal interest in the talks, adding the agreement would have seen Libya committing between 2 billion and 10 billion pounds to the UK as part of an effort to detoxify "Brand Libya".

It is thought up to 1 billion pounds might have been shared between the 150 claimants. They include victims injured by IRA bombs constructed from Semtex supplied by Libya, and relatives of those killed in the blasts.

The rest of the money would have been spent supporting other victims of the IRA Libyan Semtex bombs who haven't been involved in the legal action, as well as wider educational and medical schemes to help all communities affected by troubles, the report said.

One insider said if the deal had gone ahead it could have "helped to cement a lasting peace in Northern Ireland".

Jason McCue, the human rights lawyer who is head of the Victims' Initiative, described the potential deal as "extremely innovative".

"The whole idea was to create a proper and solid foreign relationship with Libya that benefited victims, and the people of Northern Ireland and the UK and indeed the people of Libya. There is no question that numerous meetings with members of the Gaddafi regime were now absolutely pointless," he said.