'US, UK, Libya closer to deal on Lockerbie'

"I think we're getting close to a settlement," Powell said, according to a State Department transcript of his comments to reporters after meeting with the UN envoy to Afghanistan, Lakhdar Brahimi.

Powell declined further comment on the matter and later instructed the department to amend the transcript to change the quotation to "I think we're getting closer to a settlement."

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The implication of the slight change was not immediately clear.

Powell's comments followed a working-level meeting in London between the United States, Britain and Libya which was called to review a proposed deal amid rising hopes an agreement could be reached as early as this week.

Deputy State Department spokesman Philip Reeker would not characterize the meeting but some officials said privately they were hopeful for significant progress.