CNN TRANCRIPT
                   Special Event

                   Victim's Family Member Paul Hudson Reacts to Pan Am
                   103 Bombing Verdict

                   Aired January 31, 2001 - 9:42 a.m. ET

                   THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS
                   FINAL FORM AND MAY BE UPDATED.

                   DARYN KAGAN, CNN ANCHOR: We're going to take you live now to
                   Washington, D.C. We're going to listen in to Paul Hudson. He is a family
                   member. One of his relatives was killed onboard Flight 103 12 years ago
                   over Lockerbie, Scotland. Let's listen in.

                   (JOINED IN PROGRESS)

                   PAUL HUDSON, FAMILY MEMBER OF VICTIM: It's not only not
                   acceptable, but anyone who does that must pay a very high price.

                   QUESTION: Can you put a price on it?

                   HUDSON: No, but there are differences, several orders of magnitude
                   between what some family members feel is appropriate and what has been
                   suggested by some of these other parties.

                   QUESTION: (OFF-MIKE) actually securing damages from Libya, an
                   actual payment. I understand there is some $100 million that's been frozen --
                   Libyan assets -- in the United States. Can that in any way be sufficient to
                   compensate the families?

                   HUDSON: The amount of frozen assets has been estimated to be up to $2
                   billion. And the position of the U.S. government up to now has been that
                   they cannot be used without permission of the president of the United States
                   for any compensation. In some other cases involving the Lebanese hostages,
                   Terry Anderson and some others, there was some congressional enactment
                   last fall which provided a means by which families could be compensated.
                   But, clearly, getting a judgment is one thing, getting it paid is another thing.

                   QUESTION: (OFF-MIKE) the guilty verdict today, would you not believe
                   that that might give the Bush administration enough impetus to perhaps
                   release those frozen assets?

                   HUDSON: It would certainly be something they need to look at. The U.N.
                   Security Council sanctions, one of the terms which Libya has said that they
                   have accepted, is that if there are convictions, which there have been today,
                   they are to pay, in the words of the resolutions, "appropriate compensation."
                   That has never been defined. And that will have to be defined.

                   QUESTION: Can you tell me about the questioning, how it began, how it's
                   proceeding? Are the questions coming from all the different sites where the
                   families are watching?

                   HUDSON: Yes, they first took Washington here, and then they moved to
                   New York. And then I believe they're moving to London and Lockerbie.

                   QUESTION: How much time are they giving each city to ask questions?
                   How much time?

                   HUDSON: They gave us sufficient time. There were about half a dozen
                   questions from Washington. In New York, there was about 80 family
                   members. They had one spokesperson with a list of like 17 questions.

                   KAGAN: We were listening to Paul Hudson. A relative of his died aboard
                   Pan Am Flight 103 12 years ago above Lockerbie, Scotland.

                   If you've been watching our coverage, you know a Scottish court in Camp
                   Zeist, the Netherlands today came up with a verdict of one Libyan man
                   guilty, one not guilty, and his reaction to those verdicts today that we were
                   listening to.

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