Relatives of the two men CIA contractor Raymond Davis is alleged to have shot and killed have pardoned him, leading to his effective "acquittal" in a Pakistani court. The news comes courtesy of the BBC, which also points out that the relatives "confirmed to the judge overseeing the case that they had received compensation--known as 'blood money.'"

At Davis was originally thought to be merely an employee of the American consulate in Lahore. It later emerged that the State Department had attempted to quash even speculation about a CIA connection, contacting The New York Times, Associated Press, and The Washington Post to request delicacy. The New York Times had pointed out, back on February 11, that "the reason he was driving alone with a handgun, a pocket telescope and GPS equipment has fueled speculation in the Pakistani news media." The BBC has since reported that "unnammed officials have claimed he is a CIA contractor." Our last news of Davis came yesterday, when the Lahore High Court reportedly declined to decide whether Davis had diplomatic immunity.

Davis, though apparently some Pakistanis question whether that is his real name, says the two men were attempting to rob him when he shot them dead on January 27.

Update: Reuters is reporting that Pakistani officials saught to end the diplomatic dilemma by suggesting "blood money" payment. "Lawyers for the victims however suggested that they were forced to sign the deal."