Relatives of the victims of the 1988 Lockerbie bombing have given a cautious welcome to a statement by Libya that it is ready, in principle, to pay them compensation. The announcement was made by Libyan Foreign Minister Abderrahmane Chalgam, after talks between his leader, Colonel Gadaffi, and visiting UK Foreign Office Minister Mike O'Brien. Jim Swire, a spokesman for the families of the Lockerbie victims, said the Libyan announcement should be regarded as a significant step forward. Libya has never admitted responsibility for the Lockerbie bombing of Pan Am flight 103, which killed 270 people. Libyan Abdelbaset al-Megrahi is serving life in a Scottish prison after being convicted in 2001 of the bombing. "This is the first time, I think, that an important member of the Libyan regime has made a comment like this," said Mr Swire. "But of course paying compensation is only one of the things that Libya has to do if she wants to get the UN sanctions permanently removed." Sanctions against Libya have been suspended but Colonel Gaddafi wants them lifted permanently.