CNN TRANCRIPT
                   Breaking News

                   Verdict Reached in Lockerbie Trial

                   Aired January 31, 2001 - 5:00 a.m. ET

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

                   ANAND NAIDOO, CNN ANCHOR: Hello, and welcome to special
                   coverage of the Lockerbie bombing trial verdict. I'm Anand Naidoo, at
                   CNN Center. We welcome our viewers from around the world.

                   We're standing by for a verdict to be handed down any minute now: Two
                   Libyans are accused of blowing up Pan Am Flight 103 in 1988, over
                   Lockerbie, Scotland, killing 270 people.

                   Richard Blystone joins us now from outside the court at Camp Zeist in the
                   Netherlands.

                   Richard, what's happening there?

                   RICHARD BLYSTONE, CNN CORRESPONDENT: Well, Anand, many
                   members of the families, bereaved parents, widows, and widowers are
                   inside there now, about a dozen from Britain and dozens, I would say, from
                   the United States. Nearly three-quarters of the 270 victims of Pan Am Flight
                   103 were Americans.

                   The closed circuit television coverage of the trial is not available to us, but it
                   is available to families around the world, in Britain, in England and Scotland,
                   and in the United States. So those people will hear the verdict microseconds
                   after it happens.

                   What the three judges -- are probably right now filing into the courtroom,
                   the court will rise, and the judges will sit and will give their verdicts in the
                   case of the two Libyans, Abdel Baset Al-Megrahi, allegedly a Libyan
                   intelligence agent accused of bringing the Lockerbie bomb into Malta from
                   Libya from where it was transshipped to Frankfurt, West Germany, on to
                   London, where it joined Pan Am Flight 103.

                   The other accused: Al Amin Khalifa Fhimah. He was an ex-station manager
                   for Libyan Arab Airlines, in Malta.

                   The prosecution case hinging on the fact that the judges must believe beyond
                   reasonable doubt that the bomb actually entered this chain at Malta, and thus
                   that the two were able to -- and probably the only ones able to -- have put it
                   aboard the Air Malta plane for Frankfurt.

                   The prosecution has torn into that argument in its - I mean, excuse me, the
                   defense has torn into that argument, saying that any clever terrorist would not
                   choose to put a bomb aboard in Malta with two intersecting flights and hope
                   that it would be on time -- unaccompanied, undetected in that flight leaving
                   from London hours later.

                   So if the judges are convinced beyond reasonable doubt, we will be getting
                   the verdict any second now. They have three choices: guilty, innocent, or
                   case not proven. In the case of guilty, an appeal would probably be
                   launched almost immediately. In the case of innocent, whichever or both are
                   declared innocent will be free to leave.

                   We understand, although we don't have it officially, that they will be turned
                   over to Dutch authorities and then put on a United Nations plane back to
                   Libya. That would be retracing the trip they made almost two years ago,
                   April 5, 1999, which was more than a year before the start of this trial --
                   that was May 3, 2000. The trial was a very long one, starting nine months
                   ago: 84 days of testimony, 235 witnesses, the prosecution case lasting into
                   November, the defense case very brief -- Anand.

                   NAIDOO: Richard, as you point out, there was many standards, many
                   milestones, reached in this trial, also that of in forensic investigation. I mean,
                   the prosecution was trying to show that the materials used in the construction
                   of...

                   BLYSTONE: We have a verdict, Anand, we have a verdict. We have a
                   verdict: I'm hearing from the relay from the courtroom that Abdel Baset Ali
                   Al-Megrahi has been found guilty of murder in the Lockerbie bombing.

                   We're waiting now to hear the verdict in the case of Al Amin Khalifa Fhimah
                   -- Megrahi, 48 years old, alleged to have been a Libyan agent who brought
                   the bomb from Libya into Malta, where it was placed aboard an Air Malta
                   flight for Frankfurt, West Germany, then on to London; it tagged for New
                   York, and it got aboard Pan Am Flight 103.

                   We're waiting now to hear what else -- we're waiting now for the second:
                   not guilty for Al Amin Khalifa Fhimah. Forty-four years old, he had been up
                   to a couple of months before the bombing, the station manager for Libyan
                   Arab Airways in Malta. It was -- the prosecution alleged that it was he who
                   used his airport connections and his airport pass to get baggage tags
                   consigning the suitcase containing the radio cassette player containing the
                   bomb onto this Air Malta flight. So he is not guilty; he will be free to go
                   home to Libya.

                   We will be waiting now to hear what the defense of Mr. Megrahi will say.
                   The right of appeal is not automatic, but in this case, it is thought very likely it
                   would be granted. The defense lawyer for Megrahi, William Taylor, will be
                   putting in a plea for that -- for that appeal.

                   If that appeal is granted, it would be heard before five Scottish judges,
                   different judges, from the same high Scottish Court. It would be heard here
                   in Camp Zeist, in the Netherlands, the compromise site agreed between
                   Britain, the United States and Libya, if Megrahi wants to be present.
                   Otherwise, it could be heard in Edinburgh, Scotland -- Anand. NAIDOO:
                   Richard, take us through the sequence of events. What are we expecting
                   now to happen is that the defense, at least Al- Megrahi's defense, will now
                   present -- would it be mitigating arguments to the judge?

                   BLYSTONE: That is a possibility, but we will not know the timing of this,
                   Anand, until it actually happened. There's -- there was expected to be a
                   pause in the courtroom while the defense digests this, and then the
                   opportunity for the announcement of an appeal. It may well be that the
                   pronouncing of a sentence would come before that. We'll just have to wait,
                   I'm sorry, until that happens.

                   But once again, Al Amin Khalifa Fhimah, whose lawyer, in October, moved
                   for the charges against him to be dropped, because there was no evidence
                   he was even in that airport in Malta on the date of the bombing -- he has
                   been declared not guilty, innocent. The judges had another option here: They
                   could have ruled case not proven. That is possible in Scottish law, but
                   apparently, they did not, and in the case of Abdel Baset Ali Al-Megrahi,
                   they found the prosecution's totally circumstantial case to be convincing
                   enough to be beyond reasonable doubt.

                   The defense in this case really had to prove nothing. All it had to do was to
                   do enough to tear apart the prosecution case to win acquittal.

                   Now, what the judges had to believe was that the bomb was indeed put
                   aboard at Malta and that Megrahi was instrumental in putting it there. The
                   evidence gathered over years of investigation, 15,000 people interviewed,
                   180,000 fragments of evidence, resulted in what was a very delicate web of
                   circumstance designed to show that Megrahi was the one who brought the
                   bomb and that Fhimah helped him to put it aboard.

                   It has been an exercise throughout in the uses of circumstantial evidence. The
                   prosecution case depends on this: In one of the items of debris from the
                   bombing was found a piece of clothing and embedded in it a fragment of
                   circuit board. Detectives, investigators, linked that circuit board to circuit
                   boards used in the past by Libya. The prosecution brought forward a
                   witness from a clothing store in Malta who said he had sold that piece of
                   clothing to Abdel Baset Ali Al- Megrahi. The defense tried to rip up that
                   identification; obviously, though, the judges were persuaded -- Anand.

                   NAIDOO: Richard, stay with us, we're now going to go to the village of
                   Lockerbie, where villagers there have also been awaiting this verdict. Joining
                   us from there is our senior international correspondent Walter Rodgers --
                   Walter.

                   WALTER RODGERS, CNN CORRESPONDENT: Hello, Anand.

                   In about an hour and 15 minutes, officials in the town of Lockerbie, in the
                   town hall just behind me, will be holding a news conference, and they will be
                   rendering their judgment on the quality of the verdict in the trial of the -- of
                   the two men who were accused in this trial of bringing down Pan Am Flight
                   103. For most of the 4,000 Scots who live in this town, however, they're
                   hoping this will be something of a final chapter. A collective sigh of relief
                   could almost be heard throughout the town.

                   It has been a 12-year-long ordeal for the 4,000 Scots who live here. Many
                   of them lived through the nightmare of that night. The town did, indeed, lose
                   11 of its citizens the night the jumbo jet, the 747, blew up over the town and
                   the fiery debris rained down.

                   Curiously, of the surviving relatives, only one of the Lockerbie surviving
                   relatives is still in the town. As I say, most people in the town would like to
                   bring this to some sort of a closure. They are, I'm sure, grateful the verdict is
                   completed now. And they can get on with the rest of their lives, and just be
                   another quiet lull in the Scots town, just a little north of the English border --
                   Anand.

                   NAIDOO: Walter, stay with us as well.

                   We're now going to go to Manhattan in New York, where some relatives of
                   the victims of the Lockerbie tragedy have been watching the verdict on
                   closed-circuit television.

                   Frank Buckley is outside the federal building in downtown Manhattan and
                   joins us now -- Frank.

                   FRANK BUCKLEY, CNN CORRESPONDENT: Good morning.

                   This is one of the locations, where family members of the victims of this
                   tragedy have been able to come for the past several months to watch the
                   trial unfold on a closed-circuit television, in a room here at the Jacob Javitz
                   Federal Building.

                   They are able to watch the trial by themselves. No reporters have been able
                   to be present, or any sorts of observers. They've been able to take in the
                   trial. And several of them have stayed throughout the trial watching every
                   day. Others have just arrived this morning to hear the verdict announced.

                   We know that this morning, some 25 people or so stayed together in a hotel
                   here in New York City. They came together in a bus to this location, and
                   have watched on a wide-screen TV to see the verdict read in the court.

                   Now we are expecting at some point later this morning for some of them to
                   come out. They haven't organized anything, per se, but we do expect them
                   to come out at some point today, and to tell us their reaction to the verdict.

                   We know that they were concerned that some of the prosecution, because it
                   was circumstantial and because one of the key witnesses was attacked so
                   heavily by the defense in cross-examination, there was some concern that
                   there would not be a guilty verdict to come out of this trial. Some of them
                   will undoubtedly be happy that there is at least one guilty verdict. But again,
                   we are still waiting for them to come out to give us their reaction.

                   NAIDOO: OK, Frank, thank you.

                   Now the London "Times" newspaper referred to the case as the biggest and
                   costliest mass murder case in British history.

                   For his assessment we're joined now by David Leppard. We'll get back to
                   David Leppard.

                   We're going to go back to Richard Blystone now, who's at Camp Zeist in
                   the Netherlands -- Richard.

                   BLYSTONE: Hell, Anand.

                   Well, Al Amin Khalifa Fhimah, the 44-year-old ex-station manager of
                   Libyan Arab Airways on the Island of Malta, where the bomb allegedly
                   started its journey, has now been escorted from the courtroom.

                   We understand that he will be turned over from Scottish authorities here in
                   Camp Zeist -- this is a little bit of Scotland here. He will be turned back over
                   to the Dutch, who will turn him over to the United Nations. He will be free to
                   go and forever beyond the reach of criminal courts, we are told, in any
                   country.

                   Ali Abdel Baset Al-Megrahi is still sitting in the court, we understand,
                   awaiting the pronouncement of sentence and perhaps the launching of an
                   appeal by his defense -- Anand.

                   NAIDOO: OK, thanks, Richard. We'll get back to you in a moment.

                   Now let's go to our guest in London, David Leppard of London "Sunday
                   Times." He's covered this trial and in fact -- not the trial but the events since
                   the bombing of the plane 12 years ago.

                   Mr. Leopard, there's a split verdict here, one guilty, one not guilty. What do
                   you make of that?

                   DAVID LEPPARD, "SUNDAY TIMES": Well, it sounds a bit confusing,
                   but this is a tremendous triumph, in fact, for the British law enforcement
                   system and particularly for the Scottish police who worked so hard and so
                   assiduously to produce a case which could stand up in an independent court.

                   I think there'll be tremendous relief in the law enforcement in community in
                   Britain and America, about the guilty verdicts on one of the defendants,
                   Megrahi. Clearly, this verdict sustains their evidence. It sustains the forensic
                   case. It sustains the eyewitness evidence, which pointed to Megrahi as the
                   man who bought clothes in a shop in Malta, which were forensically linked
                   to the bomb parts when it was recovered around Lockerbie after the crash.

                   A lot of people were saying that the prosecution case was contaminated;
                   that it had been affected by political considerations. I think this verdict of the
                   guilty on the one defendant really does ride roughshod over that assessment.

                   This is a fine piece of criminal detective work. A lot of people here and in
                   America will be very, very pleased about the guilty verdict.

                   NAIDOO: Well, as you point out, you know, a fine piece of criminal
                   detective work, but it does -- the guilty verdict does beg the question: Did
                   Al-Megrahi basically sit down in a coffee shop in Malta and dream this up?

                   LEPPARD: I think that's obviously not the case.

                   The police, the security services, the FBI have always taken the view, since
                   this evidence has been acquired, that this was a conspiracy by the Libyan
                   intelligence services; that Megrahi, although he is the only convicted
                   defendant in the dock, was simply a pawn or an instrument of a wider
                   conspiracy involving Libyan intelligence services and the Libyan government
                   at the very highest level.

                   And I think one of the questions now that is raised by this verdict is: Who
                   else inside the Libyan government, inside the Libyan security operators was
                   involved in the murder of these 270 victims of the Lockerbie bombing?

                   NAIDOO: And will we ever know that?

                   LEPPARD: Well, we certainly won't know it in the sense that we know that
                   Megrahi is guilty today. I don't think there's going to be any further
                   indictments issued. I don't think that the level of evidence against others
                   unknown, as the indictments originally put it, is sufficient to be put before a
                   court of law.

                   I think the guilty verdict on one of the defendants, although there is of course
                   likely to be an appeal, should put this case to bed as it were. A lot of the
                   relatives will, I think, be very relieved that at last we have established
                   beyond reasonable doubt that one of these two individuals was behind the
                   bombing.

                   NAIDOO: OK. Mr. Leppard, there's one other question. You've covered
                   this trial, at least the crash and the investigation very closely. What can you
                   -- can you kind of characterize for us what was remarkable about the
                   investigation?

                   LEPPARD: Well this was a massive criminal investigation. And probably
                   most remarkable in all of this was the painstaking work gathering forensic
                   evidence from the shattered debris of the Pan Am jumbo jet, which, of
                   course, exploded six miles over the Scottish countryside.

                   I think it's probably true to say that it's...

                   NAIDOO: OK, I'm sorry, I'm going to have to interrupt you there.

                   Richard Blystone, our correspondent at Camp Zeist, has some new
                   information for us. Let's go to him -- Richard.

                   BLYSTONE: Yes, Anand, we're hearing now that the court has risen and
                   that the sentence will come down in a little over two-and-a-half hours at
                   2:00 p.m. our time here in the Netherlands. That's six hours ahead of you on
                   the East Coast of the United States. The lawyer for Abdel Baset Al-Megrahi
                   has risen earlier to say that his client is indeed innocent; and if any sentence is
                   handed down, it should start when the accused arrived here in Lockerbie.

                   They've been nearly two years, both of them, in jail here in Lockerbie. And
                   he's been saying that the any sentence should be said to start at -- on April
                   5, 1999, when they arrived here.

                   The guilty verdict now does raise the prospect of claims against the Libyan
                   government. The regime of Moammar Gadhafi in Libya is in the frame, if not
                   in the courtroom. The charge, as it was finally amended, says that the two
                   acted in concert to further the aims of the Libyan intelligence agency.

                   NAIDOO: OK, Richard, we'll get back to you.

                   The acting U.S. attorney general is about to make a statement about the
                   verdict. Let's listen in.

                   (JOINED IN PROGRESS)

                   BOB MULLEN, ACTING U.S. DEPUTY ATTORNEY GENERAL: ...
                   offices to be congratulated on the case it presented, the evidence it
                   presented to the Scottish court.

                   We also owe a debt of gratitude to the Scottish police and the FBI for the
                   thorough investigation that led to this successful prosecution.

                   The investigation continues to determine who else may have been involved in
                   this act of terrorism, and to bring that individual or those individuals to
                   justice.

                   QUESTION: Could we have your name, please, sir?

                   MULLEN: Yes, my name is Bob Mullen, and I'm the acting deputy attorney
                   general.

                   And after I turn it over to Neil Gallagher, who is representing the FBI, I'd be
                   happy to answer any of your questions.

                   NEIL GALLAGHER, FEDERAL BUREAU OF INVESTIGATIONS:
                   Good morning, my name is Neil Gallagher. I'm assistant director of the FBI.

                   On December 21, 1988, I was in charge of the FBI's counterterrorism
                   program. Today, I have a lot of mixed emotions. From one perspective, I
                   feel rather pleased that the work of the Scottish police, of the FBI, has
                   proved to be accurate, that we have identified the person that's responsible
                   for these 270 murders.

                   At the same time, as Mr. Mullen and I just spent time with the families, you
                   look in the eyes of the families and you realize that these are real people who
                   lost their loved ones. So it's not a sense of satisfaction because there are still
                   270 innocent people who were murdered on that day.

                   Thank you.

                   QUESTION: Gentlemen, one of the family members, a Ms. Cohen, came
                   out and expressed concern that the real mastermind of this -- and she
                   believes it was Gadhafi -- is going to get away with impunity. Can you offer
                   any reassurances to her?

                   MULLEN: I stood at microphones in 1991 announcing the indictment. I was
                   asked questions about why others weren't included, and the answer then is
                   the answer as it is today: In order to bring an individual into court, you need
                   evidence. We have, over the years, continued to try to accumulate that
                   evidence.

                   At such point in time when we have evidence to bring into court any other
                   individual who played any other role in this tragedy, we will indict and bring
                   them into court. And I say that, I believe, on behalf of not only the United
                   States prosecutorial authorities, but also the Scottish authorities, with whom
                   we have worked closely over the years.

                   QUESTION: Is this case closed?

                   MULLEN: No, the case is not closed. The investigation continues. It has
                   continued since the plane went down and will continue until every individual
                   -- when we can identify who played any role in this tragedy is brought to
                   justice.

                   QUESTION: Did anybody talk to the president?

                   MULLEN: Not yet.

                   Any other questions? Thank you very much.

                   NAIDOO: That was Bob Mullen, the acting U.S. attorney general, on his
                   reaction to the verdict handed down at Camp Zeist.

                   Now let's go to Bert Ammerman, one of the family members. He is speaking
                   in New York right now.

                   (JOINED IN PROGRESS)

                   BERT AMMERMAN, BROTHER OF VICTIM: This has been a surreal
                   experience. There's no question today going into the verdict that we wouldn't
                   be here today without the family group, unfortunately, with the right cause,
                   and the support of the media. Any one of those three missing, we would not
                   be here today.

                   As I went in this morning, there was a great deal of comfort and peace for
                   me. Each family comes to closure at their different levels and different times.
                   For some, it was brining their loved ones back; for some, it was having the
                   memorial at Arlington Cemetery. For me, it always was to find the truth and
                   to have a trial.

                   When I met with President Bush in April of 1989, I told him that this was a
                   political act, this was not a criminal act. It should never have been in the
                   criminal arena. We told the Clinton administration it should have never been
                   in the criminal arena. They put it there, I believe, because they never thought
                   there would be indictments.

                   I will be indebted forever to the Scottish police, to the FBI. They surprised
                   everyone and got indictments in '91. And the families kept the pressure on
                   our government and the British government, and we got a trial.

                   And yet when I came in this morning I didn't really care what the verdict was
                   going to be because I knew that I was able to hear the evidence. And when
                   I went in this morning, I came to my own judgment that these two men were
                   guilty. I wasn't sure what the courts were going to do.

                   And as typical for us over the 12 years, through good efforts of everyone,
                   we sat there, the judges came out, and the sound didn't work. So we could
                   not hear what the verdicts were. That was frustrating, through no one's fault.

                   Fhimah was found innocent, Megrahi was found guilty. With Megrahi being
                   found guilty, that is state-sponsored terrorism. That leads to the doorsteps of
                   Gadhafi. Gadhafi is a coward. He is a rogue leader and Libya's a rogue
                   nation.

                   I don't hold out much hope that our new president or the prime minister of
                   England at this point will show any backbone, because the politicians over
                   12 years have never shown a backbone. They've never done what is right
                   for citizens. Some in government have, but most of the leaders wanted this to
                   go away. They wanted it to go away because they're more concerned about
                   Middle East peace and oil than they are about their own citizens. And that's
                   what I've learned in 12 years.

                   We have a new president now, a new administration, but many of the people
                   he's put in charge were in office 12 years ago, so they don't need long to be
                   brought up to speed. And I would hope that President Bush, Secretary of
                   State Colin Powell, will meet immediately and make the following
                   announcement: that Libya will remain a rogue nation, and that Gadhafi is a
                   rogue leader, and they will have terrorist classification until he is out as a
                   leader.

                   And that should never go away. They should continue to move for the
                   sanctions. This is state-sponsored terrorism. Megrahi was an agent in the
                   Libyan Intelligence secret service. He didn't do this by himself. His guilty
                   plea today leads to the doorsteps of Gadhafi, but I doubt that our political
                   leaders have the substance or the backbone to do what's right, and that's to
                   hold Gadhafi personally accountable for this.

                   We'll get a lot of rhetoric today. We'll get rhetoric out of the White House:
                   They'll spin it. We'll get rhetoric out of the State Department: They'll spin it.
                   And then they'll hope that this will go away -- and sadly, personally, I tend
                   to think they'll most likely be right.

                   But for me, I can walk away today, and I am: My political activism is over. I
                   fell very satisfied that I did everything possible that I could do in my brother's
                   name. And the families up there, I think most of them feel the same way. We
                   got some justice today. One individual, hopefully, is going to spend the rest
                   of his life, natural life, behind bars in Scotland.

                   And that is a tribute to this process: If there's anything that's positive out of
                   this, the system works. This is the first time we've ever had a trial in a neutral
                   country under the jurisdiction of the offended country. That is a major step
                   forward, and I hope that the United Nations continues that and moves in that
                   direction. The Scottish judicial process was outstanding. No one can
                   question the integrity of what took place.

                   So our loved ones did not die in vain. Today is a day of satisfaction.

                   True justice, though, I believe, will never be served, because the person that
                   should be brought to justice is the leader of Libya, and I just don't think
                   that's going to happen.

                   Any questions?

                   QUESTION: Why do you think they had a problem tying the evidence...

                   NAIDOO: That was Bert Ammerman, the brother of one of the victims of
                   the Lockerbie bombing, the bombing that took place 12 years ago. He said
                   that the actual judicial process, the Scottish judicial process, was outstanding
                   and that the trial was a tribute to that process. But he did express a lot of
                   bitterness about the fact that what he believed -- who he believed -- to be
                   the ultimate culprit and the man behind the bombing of the plane was actually
                   Moammar Gadhafi, the leader of Libya.

                   Now, we're going to go to Libya, to take in what Libyan television has been
                   saying about this verdict.

                   UNIDENTIFIED MALE (through translator): ...the verdict by unanimous
                   decision, and we heard a while ago that the defense committee will submit an
                   appeal -- to appeal for the decision to make an appeal due within the next
                   14 days.

                   We also knew that there are consultations underway between the judges and
                   will continue until -- to the end to lay the final details of this verdict that was
                   issued following the discussions of the Lockerbie case.

                   As you know -- that this court started its discussions and held 84 sessions
                   from the start, with the total of 506 hours, including 90 hours of closed
                   sessions, and discussed 10,000 pages of information and submitted 235
                   witnesses.

                   Then, therefore, this is the verdict that was issued, as I have told you, on
                   Abdel Baset Al-Megrahi, that is not guilty, but the defense will submit an
                   appeal within 14 days as of today, a petition to appeal on the verdict. And
                   also there are other details we will update to you soon, dear audience from
                   Zeist camp, in Holland, we greet you, and farewell.

                   NAIDOO: Libyan television reporter there, on the coverage of the verdict at
                   Camp Zeist.

                   We are going now back to Richard Blystone, who's at Camp Zeist.

                   Richard, if you're there: We heard just a few minutes ago...

                   BLYSTONE: Anand...

                   NAIDOO: Go ahead.

                   BLYSTONE: Yes, well, let me just say first, and quickly, that Phillip Turner,
                   CNN producer, was in the courtroom when the verdict was handed down.

                   Phil, first of all, the reactions of the accused, as they heard in the case of
                   Megrahi, guilty, in the case of Fahima, not guilty.

                   PHILLIP TURNER, CNN PRODUCER: Megrahi looked straight ahead
                   when Lord Sutherland gave the verdict. It was unanimous verdict. He
                   looked straight ahead, they showed no emotion, and then there was some
                   pause.

                   And then it was the verdict on Fahima. Fahima showed no reaction.

                   The reaction was mainly from the public galleries, where there were over
                   200 people seated. Many of them were journalists, but there was a
                   delegation from Libya that was sitting directly behind the two accused. And
                   when the verdicts went out, there was a palpable intake of breath. People
                   couldn't believe it. There was a gasp.

                   BLYSTONE: What about the relatives of the victims?

                   TURNER: The relatives of the victims were hard to see from my vantage
                   point. I couldn't see the usual family members there. I don't know if they
                   were in another part of the courtroom. There seemed to be a delegation of
                   Libyans directly behind the defendants. And when the defendants entered
                   the courtroom, one raised his arm in -- either in friendship or
                   acknowledgment or in solidarity with one of the two accused.

                   BLYSTONE: Now, this was an emotional moment for many of the families
                   of the accused, bereaved, Dr. Jim Swier (ph), among them, the British
                   doctor whose daughter Flora (ph) died. Anything from him?

                   TURNER: Yes, there was a long pause when the clerk of the court
                   recorded the verdicts, and there was five minutes of silence, and just
                   afterwards, about 15 minutes into the procedures, it appears that Dr. Swier
                   collapsed. There was a -- efforts were being made to get him out of the
                   gallery area and he collapsed. He's led the campaign for the British families
                   ever since the incident, and it must have just been overwhelming for him to
                   receive this information.

                   BLYSTONE: OK, thanks Phil Turner, CNN producer.

                   The British families are supposed to make a brief statement very shortly and
                   after that, tomorrow afternoon, in London, they make a fuller statement.
                   They're expected to demand from the British government a full...

                   NAIDOO: Our apologies -- we've lost Richard Blystone there.

                   So let's go to David Leppard, a journalist in London who's been covering
                   the crash and investigation.

                   Mr. Leppard, we heard the -- Bob Mullen, the acting U.S. attorney general,
                   as well as Neil Gallagher of the FBI say that this case is not closed, that the
                   United States will still go after those people who they believe are also
                   responsible for this. What is your reaction to that?

                   LEPPARD: Well, I'm surprised to see that the American law enforcement
                   authorities are saying the investigation continues. I wasn't aware of that. But
                   if it is continuing, as they say, I think it's going to focus on a meeting which
                   took place at the headquarters of the Libyan intelligence services in Tripoli
                   several weeks before the bombing was carried out in December of 1988.

                   The issue really is who was at this meeting, which according to Intelligent
                   sources that I've spoken to, was actually the meeting which decided to carry
                   out the bombing of Pan Am 103. I think we can fairly safely say that the
                   meeting was probably chaired by the then head of Libyan Intelligence, who's
                   a man called Abdula Alsanooci (ph), and a number of other people, senior
                   officers of the Libyan intelligence services, were also present.

                   Now, these people, if the prosecution case is correct -- which clearly it is,
                   because it's been vindicated today -- were instrumental in organizing the
                   guilty man, Al-Megrahi -- Al-Megrahi -- to actually carry out the bombing
                   attack in Malta. And it's to identify these individuals and to establish the
                   evidence which links those individuals and what they said at that meeting and
                   in other meetings to the actual conspiracy, which must form the focus of this
                   criminal investigation, which apparently continues today.

                   NAIDOO: OK, David Leppard, let me leave you there for just a moment to
                   go up to Lockerbie, in Scotland, where Walter Rodgers has some reaction
                   there.

                   Walter, what have you been hearing?

                   RODGERS: Hello, Anand.

                   Well the news of the verdict is now just slowly trickling through the
                   townspeople here in Lockerbie. Lockerbie is a marketing town of about
                   4,000 people.

                   One of the women who came into town to do her marketing today is Peggy
                   Kyle (ph) -- lives just outside Lockerbie.

                   Mrs. Kyle, you know the verdict: one innocent, one guilty. What's your
                   reaction?

                   UNIDENTIFIED FEMALE: I can't believe it. I really can't. I think if one is
                   guilty, then obviously the other one is. And I think it's a disaster. I really do. I
                   mean I think the people that were involved must have been looking for a
                   guilty verdict. Hopefully -- I think it's going to the civil courts now.

                   RODGERS: Do you consider justice was done?

                   UNIDENTIFIED FEMALE: No.

                   RODGERS: Why not?

                   UNIDENTIFIED FEMALE: Because I think both of them should have
                   been found guilty. I can't understand the verdict, one innocent and one guilty.
                   If they couldn't have found them both guilty or both innocent, why did they
                   not go for a not proven case?

                   RODGERS: That's a quirk of Scottish law the not proven.

                   UNIDENTIFIED FEMALE: That is.

                   RODGERS: When I first told you of the verdict, you said great. What did
                   you mean?

                   UNIDENTIFIED FEMALE: Well, I'm glad that it was out and people knew
                   what the verdict was. We had just missed it. I think -- I don't think people
                   will be happy with it.

                   RODGERS: Do you think -- do you think this town will ever forget what
                   happened here?

                   UNIDENTIFIED FEMALE: Oh, no, no, never, never. The scars are still
                   about.

                   RODGERS: Where -- what do you see, how do you feel? What do people
                   say when the news media's not in town?

                   UNIDENTIFIED FEMALE: I think they were all looking for a guilty
                   verdict. I think they all felt they should have been found guilty. I mean,
                   although it took place in other parts of the world, in Germany and in Malta...

                   RODGERS: What do you remember of that night?

                   UNIDENTIFIED FEMALE: That night is fixed very well in my mind. We
                   had gone on holiday to south of England for Christmas, and I was sitting
                   watching television, and suddenly the news broke. And I just sat there. I just
                   couldn't believe it. And of course, we phoned home directly to see what had
                   happened, and we were told, you know, that everything was absolute chaos.

                   RODGERS: But you're glad it's over now.

                   UNIDENTIFIED FEMALE: Oh, yes, yes, it's been going on so long. And
                   it's strange, every time you come into town, you usually meet somebody
                   from America or one of the relatives that has come to see the memorial at
                   the Christhill Cemetery (ph), and you just think of how people are always
                   going to be coming here, people that have lost their children. It was so sad
                   -- so many young lives that were involved, all those students...

                   RODGERS: Peggy Kyle, thanks very much. Thank you for talking to us.

                   We've been talking with one of the ladies who lives in the area of Lockerbie.
                   She was here that night more than 12 years ago. When we asked her about
                   the verdict, she said she thought - she would have preferred to see both
                   proven guilty. She did not think justice was done.

                   Nonetheless, in about 45 minutes from now, some of the officials in the town
                   of Lockerbie will be holding a news conference to render their judgments on
                   the verdict in the Town Hall behind me - Anand.

                   NAIDOO: OK, Walter, thank you.

                   And now some of the family members have been -- of the victims -- have
                   been gathering in Washington, D.C., here in the United States, and they're
                   now talking about their reaction to the verdict. Let's listen to some of the
                   comments that they're making.

                   (JOINED IN PROGRESS)

                   BOB MONETTI, FATHER OF VICTIM: ... go into civil suit and prove
                   Gadhafi ordered this damn thing.

                   Any questions?

                   QUESTION: And how hard will it be to prove...

                   MONETTI: I think it'll be a lot easier to prove in U.S. civil court than it was
                   in Scottish criminal court. Scottish criminal court's rules are awful. They're
                   very defendant favorable, and the fact that Megrahi was convicted is
                   fantastic.

                   I'm from Cherry Hill, New Jersey.

                   QUESTION: Could you spell your last name?

                   MONETTI: M-O-N-E-T-T-I.

                   (CROSSTALK)

                   MONETTI: Yes -- he was 20. And I have a little brochure which explains
                   dates and times and all of that kind of stuff if anybody wants one.

                   QUESTION: What did Rick (ph) want to do?

                   MONETTI: If Rick didn't want to be a reporter, I wouldn't be here. He was
                   at -- he was at Syracuse's Newhouse School -- and he loved -- he was a
                   dual major: journalism and political science. So he would have been telling
                   you guys what they asked me.

                   This certainly helps. It's a lot nicer than if they were found not guilty. It's not
                   going to change anything in our house. The kids not coming home anymore.
                   But it is nicer that these guys were convicted. It makes it easier to carry this
                   fight against Libya.

                   We've already talked to the State Department and the Justice Department
                   that we need their cooperation to convict Libya of this thing.

                   NAIDOO: That was Rick Monetti, the father of -- OK, that was Bob
                   Monetti, the father of Rick Monetti, who was 20 at the time when he was
                   killed in the Lockerbie bombing.

                   Now let's go back to Richard Blystone who's at Camp Zeist -- Richard.

                   BLYSTONE: Anand, we have with us again Clare Connelly of the Glasgow
                   University Lockerbie briefing unit, who's been following every twist and turn
                   of this trial for the last nine months.

                   Clare, a guilty verdict on Abdel Baset Ali Mohmed Al-Megrahi shows that
                   the prosecution was able to put over beyond reasonable doubt a
                   circumstantial case?

                   CLARE CONNELLY, UNIVERSITY OF GLASGOW: That's correct.
                   And certainly, the verdict comes as no surprise. There was clearly much
                   more evidence that set readily to prosecute. Therefore, his conviction
                   doesn't come as a surprise.

                   Also the acquittal of the second accused when there was so little evidence is
                   also not a surprise today.

                   BLYSTONE: But this was a gossamer web of circumstance.

                   CONNELLY: Absolutely.

                   But that is present in Scottish law for a case to be based on circumstantial
                   evidence and for a verdict of guilty to be determined. And I think that this
                   reflects the complexity of the child what it's basted (ph) in. And it's almost
                   like a spider's web with the evidence being spun out.

                   But it was enough for the judges. They had all of the evidence and they can
                   convince beyond reasonable doubt.

                   BLYSTONE: But now that we can talk about this, because we've been
                   limited to Scottish law in giving value judgments, what was convincing to you
                   and presumably, then, to the judges in the prosecution's case?

                   CONNELLY: Well I think we're going to the base of an idea of what was
                   convincing to the judges when they issued their written judgment.

                   But in terms of what was convincing to me would be the evidence deleting
                   the MST facting (ph) timer between the producer's meddle and medics (ph)
                   of the supply to Libya, and also in particular, the identification by the
                   shopkeeper in Malta, of the first accused, as the person who purchased the
                   clothes that were later found in the suitcase with the bomb. BLYSTONE:
                   And now the defense tore into both of those things, saying that the
                   identification was not reliable, and implying that the fragment of the circuit
                   board in the clothing, there was a lapse in the record of possession of that,
                   so that the evidence could have been doctored.

                   CONNELLY: I mean quite clearly, yes, the defense did a very good job of
                   vigorously cross-examining all witnesses with any significance. But obviously
                   that cross-examination hasn't vented the prosecution case to such an extent
                   that the judges are felt boned (ph) to acquit the accused.

                   BLYSTONE: Now under Scottish law, as I understand it, a right of appeal
                   is not automatic. What do you expect in that way?

                   CONNELLY: Well, as you see, a right of appeal is not automatic, so what
                   would happen to law (ph) is if the first accused wishes to appeal against this
                   verdict, he has two weeks within which to lodge a notice of intention to
                   appeal, then a further six weeks to gather together the documents, the
                   grounds for that appeal. And a judge then looks at those papers and decides
                   whether an appeal should be had. If an appeal is granted, it goes ahead, if
                   not, the accused can then have those papers reviewed again by a panel of
                   three judges.

                   BLYSTONE: Mitigation: Are you expecting anything along those lines, and
                   in any case, what is possible?

                   CONNELLY: Well, Bill Taylor (ph) said today that because his client
                   maintained that he was not guilty, that, therefore, there would be no plea in
                   litigation. And the judges said he may wish to address them on further
                   matters, after he has seen the written judgment.

                   So, the court has now adjourned until two o'clock. When it returns at two
                   o'clock, the judges will be indicating, choose the minimum period of time that
                   Al-Megrahi must stay before he can apply for parole.

                   He's receiving a month (ph) to life sentence because he's been convicted of
                   murder. They've also set a minimum period. He would then be open to him
                   (ph) to apply for parole, but that is not automatic he would be granted
                   parole at that point.

                   BLYSTONE: Clare Connelly, the Scottish -- the University of Glasgow
                   briefing unit, thanks very much for being with us -- Anand.

                   NAIDOO: Richard, we heard some of the family members here in the
                   United States talk of civil action against the Libyans who are being accused.
                   Is there provision made for that in this process?

                   BLYSTONE: Provision for civil action against the accused, is there any
                   opening for that?

                   CONNELLY: Certainly, a civil case could now be heard and could be
                   proceeded. I now (ph) understand the American families. I might not intend
                   to do that, but I hope an action's already been started. That's open, too.
                   And I understand that the action would be against both the Libyan
                   government and the two accused.

                   And as you -- as you probably know, the British families that are intending in
                   holding a press conference tomorrow. And it would appear that the -- and
                   they're more than inflicting (ph) the public inquiry taking place for questions
                   that haven't been answered in the trial could be addressed.

                   BLYSTONE: Anand, we've just heard on CNN that, you know, a -- this
                   civil action is different from our criminal one, anywhere in the world. We
                   have the O.J. Simpson trial as an example.

                   Tell us a little bit, in general, about the rules of evidence and so on in the civil
                   action against those in the criminal trial.

                   CONNELLY: Well, I think the most important thing is that the decision in a
                   civil action is made on the -- for the -0 on the balance of probability, the
                   evidence supports the case that's being presented by the pursuer. That
                   differs from a criminal case, where it has to be belief beyond reasonable
                   doubt. So, clearly, a lower standard of proof that applies in a civil action.

                   Also in the U.S., as in the case in Scotland, it is often to individuals --
                   interested parties to lead (ph) an action for civil damages and expect (ph) the
                   loss of our loved one, even if the person who's been tried for the crime of
                   murdering that person hasn't quite been acquitted.

                   BLYSTONE: Now, let's bring that up. The Libyan regime was not in court,
                   but it was not out of sight either. It was in the charge.

                   CONNELLY: Well, that's right, exactly. It was -- it was -- Al- Megrahi
                   was described as someone who is part of the Libyan Intelligence Services. I
                   mean, he was acting to further the request desired of the Libyan Intelligence
                   Services.

                   BLYSTONE: Clare Connelly, thanks very much.

                   Well, it's clear, Anand, we have not heard the last of Lockerbie.

                   NAIDOO: OK, Richard, let's leave you there for a moment to go to New
                   York.

                   Frank Buckley has been listening to some of the reaction from some of the
                   family members there -- Frank.

                   BUCKLEY: Well, family members are gathered in a room here at the Jacob
                   Javitz Federal Building, and were able to watch, at least, as the verdict was
                   being announced.

                   They tell us that they weren't able to hear, so there was a moment of tension
                   inside the room. Then, when they heard the verdict of guilty, there was
                   cheering inside the room.

                   There were at least two dozen family members of victims in the room. We
                   don't know the exact number, but they're inside. They were happy about the
                   one guilty verdict. But they also have said, at least to the two people we've
                   spoken with, have said that they believe that this was a case of state-
                   sponsored terrorism. They're hoping that the U.S. government and the
                   British government will continue to pursue this case.

                   U.S. officials today have said that, in fact, this case is not over, and that the
                   investigation does continue. That comes as good news, indeed, to the family
                   members of the victims, who believe that this case goes beyond the two men
                   who were charged in this crime.

                   NAIDOO: OK, thank you, Frank.

                   Now, let's go back to David Leppard, who's in London. He's a journalist for
                   the "Sunday Times" there, who's covered this investigation very closely.

                   Mr. Leppard, the -- we heard a lot of dissatisfaction on the part of some
                   relatives, who say that the Scottish court there, one family member
                   describing it as being disposed favorably towards the accused. Do you
                   believe that is that case?

                   LEPPARD: Well, I think self-evidently, it's not the case.

                   We're talking about the criminal Scottish court. And clearly, the evidence
                   has been accepted as substantially incriminating the defendants. The
                   evidence was accepted as being sufficiently strong, even though it was
                   mainly circumstantial. And that's quite a remarkable achievement for the
                   prosecution in this case.

                   I think the level of proof is, obviously, higher in a criminal case. And if there
                   is civil action to take place, it should be a lot easier now for the relatives to
                   establish that the Libyan government -- the Libyan Intelligence Services
                   were the masterminds -- the key figure behind Megrahi's action in planting
                   this bomb.

                   NAIDOO: Well, we've heard about civil action as far as the judicial process
                   is concerned. We've also heard from the FBI and from the attorney general's
                   office in the United States, saying that this case is not closed. What do you
                   see happen now?

                   LEPPARD: Well, I think the British authorities will have to consider whether
                   they really want to continue a criminal investigation.

                   I can't see how any criminal investigation can possibly establish sufficient,
                   hard evidence to be put before another court.

                   And the reason I'm saying that is because all of the hard evidence relates to
                   a conspiracy in Tripoli meetings, conversations, orders within the hierarchy
                   of the Libyan Intelligence Service.

                   Some of these orders, some of the discussion there may be in minutes, may
                   be in memoranda. But I imagine that most of the discussion was made in a
                   way that couldn't possibly be used subsequently against Libyan Intelligence.
                   And certainly it would have been destroyed by now. So, all you've really got
                   is the prospects. And we did in this case have one inside -- insider from
                   Libyan Intelligence giving evidence as a so-called "super grass," incriminating
                   certainly the first defendant and suggesting that the second defendant was
                   also guilty, although he was subsequently acquitted.

                   So it's going to be a question of intelligence work here, cultivating the inside
                   informants within the Libyan Intelligence hierarchy, who can actually come
                   forward and give evidence in a court of law. And I frankly believe that that is
                   going to be almost impossible.

                   NAIDOO: We also heard from some of the family members, some of them
                   believing that the man ultimately responsible for this bombing, Colonel
                   Moammar Gadhafi, the leader of Libya, is going to get away with this.

                   Do you think that any government, either the British government or the
                   American government, can actually put any more sanctions on -- political
                   sanctions or economic sanctions, on the Libyan leader in the time -- in the
                   months ahead?

                   LEPPARD: Well, I think it's absolutely possible. I mean, the logic of this is
                   that Megrahi's been indicted. Megrahi was -- and has been convicted -- was
                   the head of the Libyan Intelligence Service in Malta, therefore, acting as an
                   instrument of the Libyan government.

                   The evidence is clear that Libya was involved. Gadhafi is in charge in Libya,
                   very close links to the head of his own Intelligence Services. Not clear
                   exactly what he said about this bomb plot, whether he was personally
                   involved in any detail.

                   There are already sanctions outstanding against the Libyan government. But
                   UN sanctions were lifted as part of a deal to get these two defendants over
                   to the court.

                   So I think there's going to be a lot of conversation, a lot of discussion, in
                   London and in Washington today, about what sort of action the Western
                   governments involved here, who represent the victims in this case, can take
                   against Libya. And we'll just have to wait and see.

                   NAIDOO: OK, thank you, David Leppard, for joining us from London.

                   So the verdict there, a unanimous verdict, three Scottish judges finding
                   Abdel Baset Al-Megrahi guilty of the crime. The three judges also
                   unanimously found not guilty Al Amin Khalifa Fhimah.

                   As we've said, it's been 12 years since Flight 103 blew up over Lockerbie,
                   Scotland. And it's been a difficult and complex path to this day of the ruling.

                   To give you some perspective now on the history of the bombing, Relitza
                   Vasilova has this report.

                   (BEGIN VIDEOTAPE)

                   RELITZA VASILOVA, CNN CORRESPONDENT (voice-over): The
                   devastation in the small Scottish town after Pan Am Flight 103, on its way
                   from London to New York, exploded over Lockerbie on December 21st,
                   1988.

                   In an instant, the 259 people aboard the plane were killed, and falling debris
                   killed 11 more on the ground.

                   But it will take almost 12 years before the families of those who died would
                   see anyone brought to trial.

                   First, the enormous complexity of the investigation, then Libya's refusal to
                   hand over suspects, would get in the way. Investigators combed more than
                   2,000 square kilometers, partly on hands and knees, searching for clues.

                   Three years after the crash, in 1991, Scottish and U.S. authorities indicted
                   two Libyans, Abdel Baset Ali Mohmed Al-Megrahi and Al Amin Khalifa
                   Fhimah, for murder and conspiracy to murder.

                   According to the indictment, the two suspects were Libyan intelligence
                   agents working undercover at Malta's Luqa Airport. They were accused of
                   loading a suitcase with plastic explosives onto a plane bound for Frankfurt,
                   where the luggage was transferred to the Pan Am airliner.

                   Libyan leader Moammar Gadhafi refused to hand them over. A seven-year
                   struggle to get the two suspects to trial was only just beginning.

                   In 1992, in an effort to pressure Libya to surrender the suspects, the U.N.
                   imposed travel and arms sanctions.

                   The next year, Libyan lawyers said the suspects say they're willing to stand
                   trial in Switzerland. The U.S. and Great Britain refused.

                   Five years into the sanctions, in 1997, Libya offered to have the suspects
                   tried in a neutral venue. The U.S. and Britain rejected that offer, insisting the
                   two face trial on their soil.

                   But a year later, the two changed their minds; trial in a neutral site, the
                   Netherlands, but under Scottish law, sentences, if any, served in Scotland.

                   U.N. Secretary General Kofi Annan and then-South African President,
                   Nelson Mandela helped negotiate the deal. Some of the victims' relatives
                   voiced the fear that the price of Mr. Gadhafi's approval was a secret
                   promise, that the investigation would not go up the Libyan chain of
                   command. The U.N. denies that any such deal was made.

                   In 1998, Libya formally agreed to the trial. And in April 1999, Al-Megrahi
                   and Fhimah arrived under tight security at a former U.S. military base in the
                   Netherlands, declared Scottish territory for the duration of the trial.

                   Soon after they were handed over, the U.N. suspended its sanctions against
                   Libya. Many European countries were eager to start restoring links with
                   oil-rich Libya. Britain restored full diplomatic ties. Even Washington
                   suspended its sanctions against Libya. Then the proceedings began in May
                   2000.

                   Under tight security, the two suspects appeared before three Scottish judges
                   for a trial that would last more than eight months. Fhimah and Al-Megrahi
                   were prosecuted on charges of murder, conspiracy to murder, and airline
                   safety violations.

                   In a surprise move during its summation, the prosecution dropped the lesser
                   charges against them, and pressed for conviction on the charge most serious
                   and difficult to prove: murder.

                   One question left unanswered: Who ordered the bombing and why?

                   Relitza Vasilova, CNN.

                   (END VIDEOTAPE)

                   NAIDOO: David Leppard, the British journalist who has covered the crash
                   and investigation of the Lockerbie disaster -- we'll be talking to him at the
                   top of the hour in World News.

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