President George W. Bush called Libyan leader Muammar Gaddafi to express satisfaction that the compensation agreement for victims of terrorism had been fully implemented, the White House said on Monday, reported Reuters.
It was the first time the two leaders had spoken and was a sign of the warming ties between their countries that began after Libya gave up its weapons of mass destruction program in 2003.
"The two leaders discussed that this agreement should help to bring a painful chapter in the history between our two countries closer to closure," said Gordon Johndroe, spokesman for the White House National Security Council.
Under the agreement, a $1.8 billion fund was created to compensate victims of terrorism, including the 1988 bombing of Pan Am Flight 103 over Lockerbie, Scotland.
"While we will always mourn the loss of life as a result of past terrorist activities, the settlement agreement is an important step in repairing the relationship between Libya and the United States," Johndroe said.