The US State Department has called on Libya to hand over final payments due to families of victims of the Pan Am 103 bombing over Lockerbie, Scotland, in 1988.
Libyan lawyers in the United States to speak to the families of the victims said in a statement this week there was no longer a legal obligation to make final payments of $2 million to each family.
US State Department spokesman Adam Ereli said the United States was doing all it could to assist families affected by the bombing to get fair compensation from Libya, which agreed to a $2.7 billion settlement and has paid out much of that.
"Obviously, we support justice for the Pan Am 103 families. And we support their efforts to receive due compensation," Ereli told reporters.
"We are actively involved in encouraging the Libyan government to extend escrow arrangements made under the settlement so that the final payment can be effected."
But the Libyan lawyers said an agreement to keep the final portion of the compensation package in escrow accounts expired in December 2004 and there was no longer any obligation to pay the final $2 million to each family.
Libya's Embassy in Washington did not immediately return phone calls about the compensation.
Libya is set to be removed as soon as Wednesday from the U.S. list of countries that support terrorism after a 45-day Congressional review period that followed a resumption last month of full diplomatic ties between the two countries