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DATE=12/21/98 TYPE=CORRESPONDENT REPORT NUMBER=2-243383 TITLE=CLINTON / LOCKERBIE (L-ONLY) BYLINE=DEBORAH TATE DATELINE=WHITE HOUSE CONTENT= VOICED AT: INTRO: PRESIDENT CLINTON IS RULING OUT ANY COMPROMISE ON WHERE THE BOMBERS WHO BROUGHT DOWN PAN AMERICAN [AIRLINES] FLIGHT 103 SHOULD BE IMPRISONED IF THEY ARE CONVICTED. THE ISSUE HAS BECOME A STUMBLING BMOCK IN EFFORTS TO TRY TWO LIBYANS FOR THEIR ALLEGED INVOLVEMENT IN THE ATTACK OVER LOCKERBIE, SCOTLAND, A DECADE AGO. V-O-A'S DEBORAH TATE REPORTS FROM THE WHITE HOUSE. TEXT: IT HAS BEEN 10 YEARS SINCE A BOMB BLEW UP PAN AM FLIGHT 103, KILLING 270 PEOPLE. BUT THE TWO LIBYAN SUSPECTS HAVE YET TO BE BROUGHT TO JUSTICE -- TO THE FRUSTRATION OF PRESIDENT CLINTON AND THE ANGER OF MANY OF THE VICTIMS' FAMILIES. IN AN EFFORT TO END A PROLONGED STANDOFF OVER THE ISSUE, WASHINGTON AND LONDON EARLIER THIS YEAR DROPPED THEIR INSISTENCE THAT THE SUSPECTS BE EXTRADITED TO EITHER OF THEIR COUNTRIES. INSTEAD, THEY CHALLENGED LIBYA TO MAKE GOOD ON ITS OFFER TO ALLOW THEM TO BE TRIED IN THE HAGUE UNDER SCOTTISH LAW. FOLLOWING A MEETING WITH U-N SECRETARY GENERAL KOFI ANNAN EARLIER THIS MONTH IN TRIPOLI, LIBYAN LEADER MOAMMAR GADHAFI APPEARED TO AGREE TO RELEASE THE SUSPECTS ON THOSE CONDITIONS. BUT A DISPUTE OVER WHERE THEY WOULD SERVE THEIR PRISON TIME, IF CONVICTED, REMAINED A STUMBLING BLOCK. AT A MEMORIAL SERVICE MONDAY FOR THE VICTIMS OF THE AIRLINER BOMBING, AT ARLINGTON NATIONAL CEMETERY OUTSIDE WASHINGTON, MR. CLINTON MADE CLEAR THERE WOULD BE NO COMPROMISE ON THE MATTER. /// CLINTON ACT /// THE LIBYAN LEADER, MR. GADHAFI, HAS GIVEN US MIXED SIGNALS. WE BELIEVE THERE IS SOME POSSIBILITY HE WILL ACCEPT OUR OFFER. THAT WOULD BE THE BEST OUTCOME, FOR IT WOULD MEAN THAT FINALLY THERE WOULD BE A TRIAL. BUT LET ME BE ABSOLUTELY CLEAR: OUR POLICY IS NOT TO TRUST MR. GADHAFI'S CLAIMS. IT IS TO TEST THEM. THIS IS A TAKE-IT-OR-LEAVE-IT OFFER. WE WILL NOT NEGOTIATE ITS TERMS. IF THE SUSPECTS ARE CONVICTED, THEY WILL SERVE THEIR TIME IN SCOTLAND. /// END ACT /// IN A WARNING TO MR. GADHAFI, MR. CLINTON SAID IF THE TWO SUSPECTS ARE NOT TURNED OVER FOR TRIAL, HE WILL SEEK STRONGER U-N SANCTIONS AGAINST LIBYA. (SIGNED) NEB/DAT/WTW 21-Dec-98 4:12 PM EST (2112 UTC) NNNN Source: Voice of America .