[Congressional Record Volume 154, Number 129 (Thursday, July 31, 2008)]
[Senate]
[Pages S7979-S7981]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                      LIBYAN CLAIMS RESOLUTION ACT

  Ms. KLOBUCHAR. Mr. President, I ask unanimous consent that the Senate 
proceed to the immediate consideration of S. 3370, introduced earlier 
today by Senators Biden, Lugar, Lautenberg, Warner, Leahy, and Levin.
  The PRESIDING OFFICER. The clerk will report the bill by title.
  The legislative clerk read as follows:

       A bill (S. 3370) to resolve pending claims against Libya by 
     United States nationals, and for other purposes.

  There being no objection, the Senate proceeded to consider the bill.
  Mr. BIDEN. Mr. President, today, with the passage of the Libyan 
Claims Resolution Act, the United States moves closer to a 
comprehensive resolution of all outstanding claims by U.S. nationals 
against Libya for its support for terrorism over several decades. These 
claims include, most notably, the Pan Am 103 bombing over Lockerbie, 
Scotland, which killed 270 innocent human beings in December 1988 and 
the bombing of the LaBelle discotheque in Berlin in April 1986 in which 
two American military personnel were killed and scores more injured. 
There are many other pending claims involving attacks against Americans 
that are attributable to Libya. These, too, will be resolved by this 
legislation. Although less well known in the public's memory, they were 
no less devastating to their victims and no less an affront to 
humanity.
  For several months now, the Bush administration has been negotiating 
with the Government of Libya on a comprehensive settlement to 
compensate American victims of Libyan terror. The State Department has 
reported to us in recent days that an agreement has been reached but 
has not yet been signed. I commend the fine effort of Assistant 
Secretary of State David Welch and Deputy Legal Adviser Jonathan 
Schwartz, who led the U.S. delegation in these very difficult 
negotiations. Signature on the agreement awaits action by Congress, and 
that is what we are doing today.
  The agreement will provide full compensation to pay settlements 
already reached in the Pan Am 103 and LaBelle cases and enough funds to 
ensure that every American claimant in these cases involving Libyan 
terrorism will receive financial compensation comparable to the Pan Am 
103 and LaBelle settlements. No U.S. taxpayer money will be used to pay 
these claims. The regime in Libya is notoriously unpredictable, so 
there is a chance that the deal could fall apart. But there is reason 
to believe that the Libyan leader, Colonel Qadhafi, has decided it is 
in his interest to settle all of these cases, rather than let them 
languish in court for years or decades, at the expense of progress in 
the Libyan-American relationship. Should the government of Libya change 
its position and fail to provide the complete funding, the victims will 
retain their full rights to proceed with their legal challenges.
  But before Libya is willing to sign the agreement, it wants legal 
assurances that upon providing the full funding it will be immune from 
further legal repercussions stemming from these cases. This 
legislation, if signed into law by the President, provides such 
assurances, allowing the deal to go forward. It authorizes the 
Secretary of State to work with the Libyans to set up the funding 
mechanism. It assures the Libyans that if and only if full compensation 
has been paid to all American victims of Libyan terrorism, they will be 
immune from further claims of this nature. And it assures the American 
claimants that their lawsuits will not be extinguished unless the 
funding promised by the agreement is provided.
  If this bill is approved by the House, Congress will have joined with 
the President to solve an issue of national and international 
importance, while protecting the interests of its nationals who have 
valid claims against Libya. Under the Constitution, there is no 
question the executive and the legislative branches have the authority 
to work together in this manner to settle claims so as to help the 
hundreds of American claimants who will benefit from this initiative. 
This cooperative effort--and the prompt bipartisan support for it--is 
also a good example of how the two branches should work together to 
advance our national interests.
  I wish to be clear about what my support for this legislation means 
and does not mean. It is clearly in the interest of the United States 
to develop better relations with Libya. Libya is an important country 
as a gateway between Europe and Africa, which shares a border with the 
Darfur region of Sudan, and is a member of OPEC. Colonel Qadhafi 
appears to have made a break with his past support for terrorism and 
efforts to acquire weapons of mass destruction. That is good news for 
Libya, for the United States, and for the world.
  It also is a powerful demonstration that diplomatic engagement, 
backed up with sanctions and incentives, can change the behavior of 
countries whose policies threaten our interests. There is a lesson in 
here for more productive approaches we could have taken earlier with 
other problematic countries. It is important for countries like Iran, 
North Korea, and Syria that pursue malevolent policies to see that 
there is a roadmap back into the international community if they modify 
their behavior. In short, the model of normalization with Libya, if 
applied to other cases, can prove that our goal is conduct change, not 
regime change and can actually produce that change.
  For these reasons, I support the nascent Libyan-American agreement to 
comprehensively settle all outstanding American claims against Libyan 
terrorism. Libya's renunciation of its weapons of mass destruction 
programs and its previous support for terrorism is something all of us 
should welcome. I support the carefully calibrated movement toward the 
full normalization of bilateral relations.
  But it should be underscored that this legislation does not exonerate 
or excuse Libya for its despicable and cowardly support for terrorism. 
I hope that the agreement can provide a modicum of justice and closure 
for the victims of Libyan terrorism and their families. But it is small 
consolation indeed and will not bring back the lives that have been 
lost, nor undo the suffering endured by survivors.
  Neither does today's legislation indicate a shift in my views of the 
fundamental nature of the Qadhafi regime. Yes, Americans are interested 
in Libya's external behavior. But we are also concerned about the human 
rights conditions within Libya. Though his support for terrorists has 
ended, Qadhafi's Libya remains a police state that brooks no political 
opposition. Four decades after coming to power in a military coup, 
Qadhafi continues to rule by personal fiat. He may have had a change of 
mind about Libya's policies, but I doubt that it has been matched by a 
change of heart.
  It is critical that the Bush administration pursue a broader 
engagement with the Libyan people and civil society. This relationship 
must be about more than securing contracts for American oil companies. 
We have learned the hard way that our vital interests can be threatened 
by relationships that ignore the huge deficiencies in governance and 
basic freedoms in many Middle Eastern countries and are based 
exclusively on commercial and security interests. So I am disappointed 
that this comprehensive claims settlement agreement is not accompanied 
by a comprehensive plan to engage Libyan society. I urge the Bush 
administration to put as much energy into developing such a plan as it 
did in the negotiations for a claims settlement.
  For more than 4 years, I have called for the release of Fathi 
Eljahmi, a courageous Libyan democracy advocate

[[Page S7980]]

with serious health problems whose only crime was to speak truth to 
power. Though the change in direction in Libyan foreign policy in the 
last few years is as commendable as it is remarkable, Mr. Eljahmi's 
continuing captivity is a reminder that basic fundamental freedoms such 
as rule of law and the freedom of speech do not exist inside Libya. As 
I have made it clear to Colonel Qadhafi, the future of the Libyan-
American relationship, at least as far as this Senator is concerned, 
will be affected by the Libyan Government's treatment of Mr. Eljahmi. I 
urge the Libyan Government to release him unconditionally and 
immediately, and to end the harassment of his family.
  Engagement does not mean that we surrender our values. Engagement 
means we are in a stronger position to advance our values and to secure 
real change. I urge the Bush administration to use this opportunity to 
assert America's interests in a broader relationship that will put 
Libya on a more sustainable, and more democratic, path.
  Mr. LEAHY. Mr. President, I am pleased that the Senate has 
unanimously passed legislation that, in conjunction with an 
international agreement being finalized between the United States and 
Libya, will at long last provide full and fair compensation to those 
United States nationals who have terrorism-related claims against 
Libya. I commend Senator Frank Lautenberg, who has been working hard 
for years to try to get justice for these victims of terror, as well as 
the other cosponsors who have enabled this important legislation to win 
Senate approval.
  This legislation takes a critical step in securing the final payment 
of settlement amounts already reached by the victims of the Pan Am 103 
Lockerbie bombing and the LaBelle discotheque bombing, as well as fair 
compensation for all other similar claims against Libya. It has wide 
support among victims' rights groups, and it will be an important step 
in restoring relations between the United States and Libya.
  I urge the House to work quickly to pass this legislation so that we 
can send this bill to the President's desk.
  Mr. LEVIN. Mr. President, I join with Senators Biden, Lugar, 
Lautenberg, Warner, and Leahy today in submitting the Libya Claims 
Resolution Act.
  During last year's consideration of the Defense authorization bill, I 
joined with Senator Lautenberg and 31 other cosponsors in unanimously 
adding a provision which allowed victims of terrorism to seek redress 
in U.S. courts against foreign states whose officials or agents commit 
acts of terrorism, by establishing a private right of action under the 
sovereign immunity exception for state sponsors of terrorism.
  I supported the Lautenberg amendment to the Defense authorization 
bill out of concern over Libya's backing out of a settlement agreement 
with the victims and families of victims of the 1986 bombing of the La 
Belle Discotheque in Berlin, Germany. On April 5, 1986, Libya directed 
its agents to execute a terrorist attack in West Berlin for the sole 
purpose of killing as many American military personnel as possible. The 
La Belle Discotheque was known to be frequented by large numbers of 
U.S. military personnel. The bombing of the discotheque occurred at a 
time when 260 people, including U.S. military personnel, were present. 
When the bomb detonated, two U.S. soldiers were killed and over 90 U.S. 
soldiers were injured.
  Since shortly after the National Defense Authorization Act was 
enacted in January 2008, and in direct response to the Lautenberg 
provision, the Libyans approached the State Department about securing a 
comprehensive settlement of claims against Libya brought by American 
victims of acts of terrorism.
  Under the proposed international agreement the United States would 
receive sufficient funding to pay the two large outstanding settlements 
with Libya--the Pan Am 103 families' settlement and the La Belle 
Discotheque settlement--as Congress has requested in previous 
legislation. In addition, Libya would provide sufficient funds to 
ensure fair compensation of the other pending claims for acts of 
terrorism.
  In return for this comprehensive claims settlement, the United States 
will need to assure Libya that it will not face further terrorism-
related litigation in U.S. courts. This legislation, the Libya Claims 
Resolution Act, will restore Libya's sovereign immunity--once the 
United States has received the agreed funding.
  With the enactment of this legislation, the international agreement 
can be concluded quickly and the money channeled to American claimants. 
According to the State Department, the Pan Am and La Belle claimants 
should receive their settlements shortly after the agreement is signed, 
ending years of waiting for just compensation form Libya.
  I commend the State Department for its efforts to bring these claims 
to a resolution.
  Ms. KLOBUCHAR. Mr. President, I ask unanimous consent that the bill 
be read three times and passed; that the motion to reconsider be laid 
upon the table, with no intervening action or debate; and that any 
statements relating to the bill be printed in the Record.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The bill (S. 3370) was ordered to be engrossed for a third reading, 
was read the third time, and passed, as follows:

                                S. 3370

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Libyan Claims Resolution 
     Act''.

     SEC. 2. DEFINITIONS.

       In this Act--
       (1) the term ``appropriate congressional committees'' means 
     the Committee on Foreign Relations and the Committee on the 
     Judiciary of the Senate and the Committee on Foreign Affairs 
     and the Committee on the Judiciary of the House of 
     Representatives;
       (2) the term ``claims agreement'' means an international 
     agreement between the United States and Libya, binding under 
     international law, that provides for the settlement of 
     terrorism-related claims of nationals of the United States 
     against Libya through fair compensation;
       (3) the term ``national of the United States'' has the 
     meaning given that term in section 101(a)(22) of the 
     Immigration and Nationality Act (8 U.S.C. 1101(a)(22));
       (4) the term ``Secretary'' means the Secretary of State; 
     and
       (5) the term ``state sponsor of terrorism'' means a country 
     the government of which the Secretary has determined, for 
     purposes of section 6(j) of the Export Administration Act of 
     1979 (50 U.S.C. App. 2405(j)), section 620A of the Foreign 
     Assistance Act of 1961 (22 U.S.C. 2371), section 40 of the 
     Arms Export Control Act (22 U.S.C. 2780), or any other 
     provision of law, is a government that has repeatedly 
     provided support for acts of international terrorism.

     SEC. 3. SENSE OF CONGRESS.

       Congress supports the President in his efforts to provide 
     fair compensation to all nationals of the United States who 
     have terrorism-related claims against Libya through a 
     comprehensive settlement of claims by such nationals against 
     Libya pursuant to an international agreement between the 
     United States and Libya as a part of the process of restoring 
     normal relations between Libya and the United States.

     SEC. 4. ENTITY TO ASSIST IN IMPLEMENTATION OF CLAIMS 
                   AGREEMENT.

       (a) Designation of Entity.--
       (1) Designation.--The Secretary, by publication in the 
     Federal Register, may, after consultation with the 
     appropriate congressional committees, designate 1 or more 
     entities to assist in providing compensation to nationals of 
     the United States, pursuant to a claims agreement.
       (2) Authority of the secretary.--The designation of an 
     entity under paragraph (1) is within the sole discretion of 
     the Secretary, and may not be delegated. The designation 
     shall not be subject to judicial review.
       (b) Immunity.--
       (1) Property.--
       (A) In general.--Notwithstanding any other provision of 
     law, if the Secretary designates any entity under subsection 
     (a)(1), any property described in subparagraph (B) of this 
     paragraph shall be immune from attachment or any other 
     judicial process. Such immunity shall be in addition to any 
     other applicable immunity.
       (B) Property described.--The property described in this 
     subparagraph is any property that--
       (i) relates to the claims agreement; and
       (ii) for the purpose of implementing the claims agreement, 
     is--

       (I) held by an entity designated by the Secretary under 
     subsection (a)(1);
       (II) transferred to the entity; or
       (III) transferred from the entity.

       (2) Other acts.--An entity designated by the Secretary 
     under subsection (a)(1), and any person acting through or on 
     behalf of such entity, shall not be liable in any Federal or 
     State court for any action taken to implement a claims 
     agreement.
       (c) Nonapplicability of the Government Corporation Control 
     Act.--An entity designated by the Secretary under subsection 
     (a)(1) shall not be subject to chapter 91 of title 31, United 
     States Code (commonly

[[Page S7981]]

     known as the ``Government Corporation Control Act'').

     SEC. 5. RECEIPT OF ADEQUATE FUNDS; IMMUNITIES OF LIBYA.

       (a) Immunity.--
       (1) In general.--Notwithstanding any other provision of 
     law, upon submission of a certification described in 
     paragraph (2)--
       (A) Libya, an agency or instrumentality of Libya, and the 
     property of Libya or an agency or instrumentality of Libya, 
     shall not be subject to the exceptions to immunity from 
     jurisdiction, liens, attachment, and execution contained in 
     section 1605A, 1605(a)(7), or 1610 (insofar as section 1610 
     relates to a judgment under such section 1605A or 1605(a)(7)) 
     of title 28, United States Code;
       (B) section 1605A(c) of title 28, United States Code, 
     section 1083(c) of the National Defense Authorization Act for 
     Fiscal Year 2008 (Public Law 110-181; 122 Stat. 342; 28 
     U.S.C. 1605A note), section 589 of the Foreign Operations, 
     Export Financing, and Related Programs Appropriations Act, 
     1997 (28 U.S.C. 1605 note), and any other private right of 
     action relating to acts by a state sponsor of terrorism 
     arising under Federal, State, or foreign law shall not apply 
     with respect to claims against Libya, or any of its agencies, 
     instrumentalities, officials, employees, or agents in any 
     action in a Federal or State court; and
       (C) any attachment, decree, lien, execution, garnishment, 
     or other judicial process brought against property of Libya, 
     or property of any agency, instrumentality, official, 
     employee, or agent of Libya, in connection with an action 
     that would be precluded by subparagraph (A) or (B) shall be 
     void.
       (2) Certification.--A certification described in this 
     paragraph is a certification--
       (A) by the Secretary to the appropriate congressional 
     committees; and
       (B) stating that the United States Government has received 
     funds pursuant to the claims agreement that are sufficient to 
     ensure--
       (i) payment of the settlements referred to in section 
     654(b) of division J of the Consolidated Appropriations Act, 
     2008 (Public Law 110-161; 121 Stat. 2342); and
       (ii) fair compensation of claims of nationals of the United 
     States for wrongful death or physical injury in cases pending 
     on the date of enactment of this Act against Libya arising 
     under section 1605A of title 28, United States Code 
     (including any action brought under section 1605(a)(7) of 
     title 28, United States Code, or section 589 of the Foreign 
     Operations, Export Financing, and Related Programs 
     Appropriations Act, 1997 (28 U.S.C. 1605 note), that has been 
     given effect as if the action had originally been filed under 
     1605A(c) of title 28, United States Code, pursuant to section 
     1083(c) of the National Defense Authorization Act for Fiscal 
     Year 2008 (Public Law 110-181; 122 Stat. 342; 28 U.S.C. 1605A 
     note)).
       (b) Temporal Scope.--Subsection (a) shall apply only with 
     respect to any conduct or event occurring before June 30, 
     2006, regardless of whether, or the extent to which, 
     application of that subsection affects any action filed 
     before, on, or after that date.
       (c) Authority of the Secretary.--The certification by the 
     Secretary referred to in subsection (a)(2) may not be 
     delegated, and shall not be subject to judicial review.

                          ____________________