US says Libya to benefit from medics' release

WASHINGTON, July 24 (Reuters) Libya's decision to free six foreign medics will result in improved relations with the West and ends a ''painful chapter'' for those affected by the case, the United States said today.

''This is a very positive development. More than anything else we are pleased for these individuals who are finally able to be reunited with their families,'' said State Department spokesman Sean McCormack.

''This brings to a close a very painful chapter for everyone involved,'' he told reporters.

The five Bulgarian nurses and a Palestinian doctor, who were convicted of infecting hundreds of Libyan children with HIV, returned to Bulgaria today after a deal between Tripoli and the European Union ended their eight-year ordeal.

The case had held back Libya's full resumption of normal relations with the United States even though ties had dramatically improved between the two countries since Tripoli gave up weapons of mass destruction in 2003.

''Certainly this will help bring about changes with Libya's relationship with the rest of the world. It (the medics' case) is an issue that Secretary (of State Condoleezza) Rice raised every single time (she spoke to the Libyans),'' said McCormack.

''It removes an obstacle for Libya certainly in the entire world for the kind of relationship they are going to have with the rest of the world,'' McCormack added.

When it became clear that the medics' case would soon be resolved, US President George W Bush this month nominated a US ambassador to Libya.

There are still other unresolved issues between the two countries, including compensation for US relatives of victims of the 1988 bombing of Pan Am flight 103 over Scotland.

''We want to see the right thing done by American citizens.

Ultimately though, the outcome of those discussions is going to be dependent on the Libyan government and the representatives of those families,'' said McCormack.

Libya has been pushing for a visit by Rice to Tripoli, which would be an obvious sign of improved ties between the two countries.

''She will take a look at when is the right time to take a visit there,'' said McCormack.

REUTERS RJ BD2315