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The United States says Libya has put money in a compensation fund for claims related to Libyan terrorist attacks.

State Department officials said today (Thursday) the money was "a substantial amount," and that the Libyan move marked a breakthrough in normalizing U.S.-Libyan ties.

The fund was set up in August to compensate the families of victims of terrorist attacks in the 1980's, including the 1988 downing of a U.S. airliner over Lockerbie, Scotland and the 1986 bombing of a Berlin disco.

The U.S. carried out retaliatory airstrikes on Libya's capital and on the city of Benghazi in 1986.

Secretary of State Condoleezza Rice visited Libya last month, in part to push Libyan leader Moammar Gadhafi on the fund deal, which also provides compensation for victims of the U.S. strikes.