Libya has pledged to assume responsibility for the 1988 bombing of Pan Am Flight 103 over Lockerbie, Scotland, and to pay $2.7 billion in compensation to relatives of the 270 victims in exchange for a formal end to an 11-year United Nations embargo, U.N. diplomats said today. U.S., British and Libyan officials completed the terms of the agreement at a meeting in London on Monday, concluding more than four years of negotiations. If Libya follows through, it would be the first time that the government of Libyan leader Moammar Gaddafi has admitted any involvement in the jet bombing that killed all 259 people aboard and 11 on the ground. Diplomats familiar with the discussions cautioned that the deal could still unravel if Libya reneges on its commitment. But one U.N.-based diplomat who has been briefed on the talks said the “shape” of the pact has been “agreed to” in London. Full Story