United Nations: Britain has asked the UN Security Council to lift sanctions against Libya after Tripoli agreed to pay $ 2.7 billion in compensation for 270 people killed in the 1988 Lockerbie bombing of a Pan Am airliner.

But France, with a veto power, has threatened to block the British move until it negotiates a higher compensation from Libya for the families of 170 people killed in the downing of now defunct UTA airliner over Niger in 1989.

A Libyan official described the French demand as "blackmail", but said the two sides were in contact and a way would be found out soon.

Diplomats said the British sponsored resolution, which was sent to the Council on August 18, could come up for discussion in a day or two, but a vote could be delayed until the French position became clear.

Under the deal negotiated by the United States, family of each victim of the Lockerbie bombing could get upto $ 10 million. But the relatives of each victim of the French airliner would get much less and that has resulted in intense domestic pressure on Paris to negotiate better terms with Libya.

A French court had found six Libyans guilty in absentia for the downing of the aircraft, and Libya, without accepting the responsibility, gave $ 34.3 million, which meant a compensation of only $ 33,780 for family of each of the victims.

PTI