Libya's UN ambassador, Abuzed Omar Dorda, has been more conciliatory in his reaction to the verdict than the foreign minister, implying that Libya will comply with the demand to pay compensation after the appeal. The UK may be prepared to accept compensation without a formal admission of responsibility, but Washington appears to be taking a harder line. Economic pressures President Bush is anxious not to be seen as soft on rogue states in his first term in office. But he is also under opposing pressures from, on the one hand, the US relatives of the Pam Am flight, and, on the other, oil companies which are anxious to secure lucrative contracts in Libya. The Washington-based lobby group USA Engage suggests that sanctions cost American companies billions of dollars in lost exports every year.
Libyan oil is cheap to extract, of high quality, and close to European markets.
But it is also now in a position to trade one country off another, as other nations, such as Germany, are set to move in.