The initiative comes amid talks between a son of Colonel Muammar Gadaffi, the Libyan leader, and French officials to avert a threat to the agreement. Both London and Washington believe that Libya has done enough to justify an end to sanctions.
Libya wrote to the UN on Friday admitting its role in the downing of the Pan Am flight over the Scottish town in 1988. It has offered compensation of £1.7 billion to the families of the 270 mainly American victims.
The French government wants equally generous payments to be made to the families of the 170 victims of French UTA flight 772, which exploded over Niger in 1989. Six Libyans, including a step-brother of Gadaffi, were jailed in absentia by a French court in