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                   Breaking News

                   Libyan Found Guilty of 1988 Pan Am Bombing

                   Aired January 31, 2001 - 7:01 a.m. ET

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

                   CAROL LIN, CNN ANCHOR: It has been a busy night. We've been
                   following a breaking news story this hour.

                   Twelve years since the explosion, nine months of trial and more than 10,000
                   pages of testimony, this morning, we have a verdict in the 1988 bombing of
                   Pan Am Flight 103.

                   Two Libyans were on trial. Ali Mohmed Al-Megrahi is found guilty of
                   murder. Al Amin Khalifa Fhimah is declared not guilty.

                   Sentencing for Al-Megrahi is expected shortly, which we will bring to you
                   live from the Netherlands.

                   We have correspondents covering this big story in New York, Washington,
                   the Netherlands and Tripoli.

                   But first, we go to Richard Blystone. He is outside the specially built
                   courthouse at Camp Zeist in the Netherlands.

                   Richard, why the split verdict?

                   RICHARD BLYSTONE, CNN CORRESPONDENT: Well, it was a case
                   of the web of circumstantial evidence, Carol. The prosecution case was
                   entirely circumstantial.

                   But as the defense pointed out, there was no proof at all that Al Amin
                   Khalifa Fhimah, the ex-station manager of Libyan Arab Airlines in Malta,
                   was even at the airport in Malta when the bomb was allegedly slipped
                   aboard an Air Malta flight from which it went to Frankfurt, West Germany,
                   was transferred to a feeder flight and joined Pan Am 103 in London.

                   In the case of Abdel Baset Al-Megrahi, a 48-year-old former -- allegedly --
                   Libyan security agent, the evidence was somewhat stronger.

                   But in the end, the judges actually will be telling us a little bit more about their
                   reasons for their verdicts in about an hour. So I'll leave that there for now.

                   There were gasps in the courtroom this morning when the verdict of guilty
                   was announced, on the other side of the bulletproof glass. Both the Chief
                   Judge Lord Sutherland and the accused Megrahi staring straight ahead --
                   Carol. LIN: Richard, is there any chance for parole for Al-Megrahi?

                   BLYSTONE: That will be discussed later.

                   How long it will be before he can be paroled, there is a mandatory life
                   sentence. And William Taylor, the defender of Megrahi, the Scottish lawyer,
                   rose to tell the judge he would not offer matters in mitigation, so that --
                   because he said his client is not guilty, is innocent; and hence he would not
                   make that plea for mitigation to lower the sentence.

                   But he said he would ask that, at least, it start when the accused first came
                   here to jail April 5, 1999, whatever the sentence is.

                   But we'll hear more about those proceedings later in the day, Carol.

                   LIN: OK. And what happens to Mr. Fhimah at this point?

                   BLYSTONE: He apparently, already, is on his way out of here. He was
                   escorted from the courtroom after exchanging what had seemed to be a few
                   words with Megrahi, taken under guard, out of the courtroom where he will
                   be free.

                   The scenario for his leaving is he would be turned over by the Scots from
                   this little bit of Scotland in the Netherlands, to the Dutch authorities, handed
                   over to the United Nations and flown to Libya, retracing the steps he made
                   last April when -- not two years ago April -- when he came to court.

                   LIN: All right. Richard Blystone, thank you very much, reporting live from
                   the Netherlands -- Linda.

                   LINDA STOUFFER, CNN ANCHOR: Two-hundred-seventy people
                   killed in that bombing.

                   CNN's Frank Buckley has been with a couple of families who lost loved
                   ones in the bombing. He's in New York this morning.

                   Frank, hello.

                   FRANK BUCKLEY, CNN CORRESPONDENT: Hello, Linda.

                   We are at the Jacob Javitz Federal Building, where about 50 or 60 family
                   members of the victims of Pan Am 103 gathered to watch on closed-circuit
                   television as the verdict was read.

                   They couldn't hear the verdict initially, and they had to actually make a
                   phone call to Camp Zeist to find out exactly what that verdict was. When
                   they heard there was at least one guilty verdict, there was a cheer.

                   Joining me now is Jeannine Boulanger, who is the mother of Nicole Elise
                   Boulanger who was a musical theater major at Syracuse University. Thanks
                   for joining us.

                   Your reaction to this verdict today?

                   JEANNINE BOULANGER, VICTIM'S MOTHER: Much relief.

                   I've always reminded myself, however, that we have gone through the most
                   horrific moment and survived. And that was December 21st. And anything
                   else would have to pale in terms of its relevance. But it does feel very good.

                   BUCKLEY: You were able to go to Camp Zeist to see these -- trial at lest
                   for a week, the Justice Department taking family members over there in a
                   rotation.

                   Can you give me a sense, having been there, having seen these defendants,
                   what was your reaction upon seeing them and being there and hearing the
                   evidence for yourself?

                   BOULANGER: Well, I was seated in the courtroom I would say
                   approximately, maybe, 15 feet away from them. It was a bit intimidating at
                   first. But I grewly -- slowly grew to be comfortable in that arena. It's a very
                   formal setting, a lot of procedures that are intricately followed, and certainly
                   no aspiring thespians in that courtroom.

                   BUCKLEY: But to be so close to the men accused of killing your daughter
                   and so many others, what was that like?

                   BOULANGER: It was so hard. I mean, they look like ordinary individuals,
                   except for the particular garb they may have had on in that day. I guess we
                   kind of portray in our minds what murderers look like. And they really look
                   like ordinary human beings.

                   BUCKLEY: Many people we've spoken with today, family members have
                   suggested they believe this goes beyond the two men who were standing
                   trial. Do you share their belief?

                   BOULANGER: Absolutely. I think Mr. Megrahi, having been a Libyan
                   intelligence agent, certainly points the finger directly to state-sponsored
                   terrorism with Mr. Qadhafi at the helm.

                   BUCKLEY: There was very little media coverage of this case in terms of the
                   trial itself that began in May. Were you disappointed in that? Do you believe
                   that people have forgotten 12 years later what happened?

                   BOULANGER: Well, I think the people who have connections to 103
                   certainly remember it. But I think that it was probably to the good. I
                   remember sitting in the courtroom, hearing testimony, and the next moment
                   picking up some European press articles, and not recognizing what I myself
                   had experienced in that courtroom. So I learned, then, to rely not on the spin
                   that the press chose to make on the day's activities.

                   BUCKLEY: And you were able to access a Web site that was
                   password-protected just for family members and get daily transcripts. Was
                   that helpful for you at all?

                   BOULANGER: Oh absolutely, absolutely. And it certainly showed it was a
                   lot of evidence to support this verdict.

                   BUCKLEY: Jeannine, thank you very much, Jeannine Boulanger.

                   We should tell you there were 35 Syracuse University students aboard that
                   Pan Am 103 when it went down -- Linda.

                   STOUFFER: Frank Buckley, in New York, thank you very much.

                   Well CNN's Kathleen Koch is also following some of these families. She's in
                   Washington D.C. today.

                   Hello, Kathleen.

                   KATHLEEN KOCH, CNN CORRESPONDENT: Hello, Linda.

                   Well, obviously here, just as in New York, just as overseas, this has been a
                   heart-wrenchingly emotional morning for these families.

                   Some 60 family members, along with U.S. Justice Department and FBI
                   officials, gathered here in downtown Washington at an office building to hear
                   the verdict be read.

                   The families say that their greatest fear, after the 12 long years of waiting,
                   was that these two Libyan defendants would go free. Now, many of these
                   were parents who had lost children, just as the woman who Frank just
                   interviewed, and many of them students at Stanford University.

                   Now, they -- as the verdict was read, families said that they held hands, they
                   clasp hands. And cheers went up, and there were some gasps, and there
                   were some screams. But the family members here, just as the U.S. Justice
                   Department, firmly believe that this case is far from over.

                   (BEGIN VIDEO CLIP)

                   ROSEMARY WOLFE, MOTHER OF VICTIM: We only have part of the
                   truth, and we only have a small measure of justice. What we have here is the
                   foot soldier. But we don't have Qadhafi, and we don't have the rest of the
                   Libyan agents who worked with him to do this.

                   (END VIDEO CLIP)

                   (BEGIN VIDEO CLIP)

                   BOB MUELLER, ACTING DEPUTY ATTORNEY GENERAL: The
                   case is not closed. The investigation continues. It has continued since the
                   plane went down, and will continue until every individual and we can identify
                   who played any role in this tragedy is brought to justice.

                   (END VIDEO CLIP)

                   KOCH: The acting deputy attorney general says, though, that they will need
                   more evidence to bring further charges in this case.

                   But the families are not waiting. They say that they have over 100 civil suits
                   pending against Libya for more than $10 billion in damages. They believe,
                   obviously, that this one guilty verdict today strengthens their case. But they
                   are also realistic. They realize that actually collecting damages from Libya
                   will be very difficult.

                   Now, on the issue of closure, these families today say that obviously this
                   verdict does not bring back their loved ones. One father said that he will
                   have closure the day that they close the lid on his casket.

                   Reporting live in Washington, I'm Kathleen Koch. Back to you.

                   LIN: All right.

                   Right now, let's go to CNN's Walt Rodgers who has been getting reaction
                   from the towns people in Lockerbie, Scotland -- Walt.

                   WALTER RODGERS, CNN CORRESPONDENT: Good morning,
                   Carol.

                   Well, you had a verdict that was split in the Netherlands, and so is public
                   opinion here in Lockerbie, Scotland. One woman with whom I spoke right
                   here in the town center said she thought the verdict was great. So did
                   another man.

                   Others in Lockerbie, however, the Scots in this little village of 3,000 to
                   4,000 people are simply relieved, glad that the trial is over, glad that there's
                   a verdict, indeed, glad that the ordeal of the past 12 years has been
                   completed. It was a horrific ordeal here. Many in this -- many here are still
                   seeking answers, as are the relatives in the United States.

                   A short while ago, in the town hall, there was a representative sampling of
                   opinion of government officials here in Lockerbie. Many of them -- many of
                   the government officials, town councilors spoke on the subject of the tragedy
                   and the verdict.

                   (END VIDEO CLIP)

                   ANDREW CAMPBELL, DUMFRIES GALLOWAY COUNCIL: And on
                   behalf of Dumfries and Galloway Council, I want to thank you, everyone
                   who helped and give me assurance that their efforts have been appreciated.

                   We should -- we should reflect also on the unique and enduring bond of
                   friendship forged between the people of Scotland and the families of the
                   victims. A bond of friendship born of the tragedy, representing the finest of
                   human qualities and the great human spirit.

                   We recognize the hardship and the stress that these people have come
                   through over the years. And the message goes out to the world: There is no
                   hiding place anywhere for such atrocity as took place with the bombing of
                   Pan Am 103 over Lockerbie in December 1988.

                   (END VIDEO CLIP)

                   (BEGIN VIDEO CLIP)

                   PHIL JONES, DUMFRIES AND GALLOWAY COUNCIL: No measure
                   of justice administered by the courts could ever equal such an appalling loss
                   of life. And no measure can be placed on the opportunity that was denied
                   innocent people to live their lives.

                   The families and those most closely affected will have their own private
                   thoughts today on the outcome of the trial. And whilst for some this verdict
                   will bring matters to a degree of closure, for others, no doubt, the search for
                   answers will go on.

                   (END VIDEO CLIP)

                   (BEGIN VIDEO CLIP)

                   JOE MEECHAN, LOCKERBIE DIST. COMM. COUNCIL: We see the
                   trial as the end of our chapters, and the story will go on. I think there will
                   always be concern that the perpetrator has been prosecuted by the person
                   or people who issued the orders to carry out this disastrous act are still the
                   key.

                   (END VIDEO CLIP)

                   RODGERS: It has been just over 12 years since tragedy stuck -- struck this
                   town of Lockerbie, Scotland. And everyone is facing the future with a
                   divided opinion.

                   Some in the town are saying the town must go forward; it must not look
                   backward. Indeed, they want to try to forget what befell them a dozen years
                   ago. Others in the town say time may move along but the disaster of
                   Lockerbie will never go away -- Carol.

                   LIN: So, Walt, have you heard from any of the people in Lockerbie whether
                   they're going to be helping some of the American families in their civil suit
                   against Libya? Or is there really a sense there that perhaps this is now a
                   situation that these families will have to deal with on their own if Lockerbie
                   moves forward?

                   RODGERS: Carol, there's been an enormous bond formed between the
                   people of Lockerbie and the families of the victims of the Pan Am 103
                   disaster.

                   Americans still come to this town. Families from 21 different countries come
                   to this town. They go to a lovely cemetery just outside town, which has a
                   garden of remembrance in that cemetery. There are plaques recalling many
                   of the victims, all 16 members of the Pan Am crew, many lovely epitaphs
                   and remembrances on those plaques.

                   Often when Americans come to this town, as it has been for years, they're
                   invited into the homes of the families here in Lockerbie, given a hug, and
                   offered a cup of tea.

                   There is truly a genuine bond of humanity between the families of the
                   Lockerbie victims and, of course, the 3,000 to 4,000 residents of
                   Lockerbie, Scotland -- Carol. LIN: Walt, I'm just curious if you've had a
                   chance to see the area where the plane actually went down. We see --
                   we've been rolling the pictures of the devastation shortly after the crash.
                   What does that area look like now? Has it been rebuilt?

                   RODGERS: The earth has healed, but the crash actually took place over a
                   very large area. The worst part of the plane's wreckage fell on Lockerbie
                   itself. The nose cone, the cockpit, fell on a nearby hillside. Other parts of the
                   plane -- engines fell in cul-de-sacs and crescents -- residential areas.
                   Lockerbie lost 11 of its citizens, killed by the burning and falling debris.

                   The earth has healed; the psychological scars remain considerably deeper --
                   Carol.

                   LIN: Clearly. Thank you very much, Walter Rodgers, reporting live from
                   Lockerbie, Scotland -- Linda.

                   LINDA STOUFFER, CNN ANCHOR: CNN's Kelly Wallace is live at the
                   White House now. She has details on a statement from the Bush White
                   House.

                   Hello there, Kelly.

                   KELLY WALLACE, CNN CORRESPONDENT: Well, hello there,
                   Linda.

                   We received a statement just moments ago from White House Press
                   Secretary Ari Fleischer. The White House is calling this verdict a victory for
                   an international effort that has resulted in an indictment of a member of the
                   Libyan Intelligence Services.

                   The statement reads, quote, "The government of Libya must take
                   responsibility."

                   Now at the same time, the White House is saying that the United States and
                   the United Kingdom have made it clear that a verdict, in and of itself, does
                   not signify an end to the United Nations' sanctions against Libya. This
                   statement is pointing to U.N. Security Council resolutions, which called for
                   Libya to satisfy certain requirements such as -- in their statement,
                   compensating the victims' families, and accepting responsibility for this act of
                   terrorism. The statement saying, quote, "The government of Libya has not
                   yet satisfied these requirements."

                   So the White House is saying it will work closely with the United Kingdom,
                   and then approach the government of Libya to see what next steps it must
                   take.

                   The statement, though, is also talking about the victims' families saying,
                   quote, "We want to express our deepest sympathy to the families lost in the
                   bombing of Pan Am 103." Quote, "Nothing can undo the suffering this act of
                   terrorism has caused. But we hope that this verdict will help reduce the
                   anguish and uncertainty that the family members have endured since
                   December 21st, 1988."

                   So, again, this is a statement from the White House press secretary, issued
                   just a short time ago. We'll have to wait and see what next steps the U.S.
                   will take, Linda. But this is the first major international development that this
                   11-day-old White House has had to confront -- Linda.

                   STOUFFER: Foreign policy team is in place, and already they have this to
                   consider.

                   Now, you talked about the U.N. sanctions that were suspended when the
                   two Libyans were delivered for trial. But what about in the future? The U.S.
                   sanctions, does the same go for those?

                   WALLACE: No mention of the U.S. sanctions. But as you point out, that is
                   correct. The U.S. does have some unilateral sanctions against Libya, some
                   imposed by President Clinton back in 1996.

                   Other sanctions predate the bombing in 1988. Also, the U.S. continues to
                   have Libya on its State Department list of state- sponsored terrorism
                   countries that are accused of sponsoring terrorism.

                   So it's unclear what next steps the U.S. will take. We'll have to be watching
                   to see some signals from the Bush administration's foreign policy team --
                   Linda.

                   STOUFFER: And we know you'll keep us up to day. Kelly Wallace at the
                   White House, thank you -- Carol.

                   LIN: All right, right now, then, let's go to CNN's Richard Roth. He is
                   standing by at the United Nations.

                   Richard, any reaction there from members to the United States' plan to
                   continue to press for restitution from the government of Libya?

                   RICHARD ROTH, CNN CORRESPONDENT: Well, diplomats are still
                   not here yet. But officials we've reached over the phone, U.S.,U.K.
                   authorities, are certainly in no mood to lift sanctions on Libya.

                   But that is the mood of many members of the U.N. Security Council, that --
                   before the verdict, there was a move in late December by the so-called
                   "non-aligned movement" to get the sanctions lifted.

                   The U.S., U.K. and Libyan ambassadors and representatives did meet a
                   week ago to just go over what would happen before these verdicts. Now,
                   the U.N. sanction will apparently remain in a suspended status.

                   But the U.S., the U.K., to get these sanctions lifted, they say Libya first has
                   to give an official renunciation of terrorism. It also has to offer compensation
                   to the families, and cooperate with crime investigators to determine what
                   exactly happened, now that one of the defendants has been found guilty.

                   The Libyan government here, of course, denies any involvement in the
                   bombing.

                   (BEGIN VIDEO CLIP)

                   ABUZED DORDA, LIBYAN AMBASSADOR TO U.N.: We do respect
                   the Scotch court sitting in the Netherlands. And Libya will implement the
                   decision; not only respect it. And we are looking forward to the appeal. And
                   then we will watch the result of that.

                   And may I say what we have assured to the Security Council and to the
                   secretary general and to the concerned parties, I mean, U.S.A. and U.K.,
                   since two years ago, that Libya's going to also respect and implement the
                   decision which might be taken by civil Scotch court based on this criminal
                   court decision.

                   (END VIDEO CLIP)

                   ROTH: The Security Council voted March 31st, 1992, to impose an air and
                   arms embargo. That will still remain in place if it's up to the U.S. and U.K..

                   Richard Roth, CNN, reporting live at the U.K. -- in the U.N. -- Carol.

                   LIN: All right, thank you very much, Richard -- Linda.

                   STOUFFER: And now we want to go straight to Tripoli.

                   CNN's Brent Sadler is in the Libyan capital. He joins us right now on the
                   telephone.

                   Brent, what can you tell us?

                   BRENT SADLER, CNN CORRESPONDENT: Thanks, Linda. Well, first
                   of all, it would appear that the Libyan authorities here in Tripoli are opening
                   the doors to international journalists who are now arriving, have been for the
                   past hour or so and earlier, really gathering at the airport here and allowing
                   access to journalists to report Libyan reaction to this verdict in the
                   Netherlands.

                   I've been able to just canvass one or two comments from people around the
                   airport, Libyans. And they expressed relief that one of the two men will be
                   coming home, but also expressed concern about what the conviction would
                   be in terms of relations between Libya, the United States in particular, and
                   elsewhere in the world.

                   And there has been an announcement, as you heard, from the United
                   Nations that the Libyan ambassador to the U.N. has confirmed that Libya
                   will appeal -- or the guilty verdict will be appealed on behalf of Abdel Baset
                   Al-Megrahi. That's the man who has been convicted for blowing up the
                   airline, the Pan Am 103.

                   A Foreign Ministry spokesman here in Tripoli has said they hoped here that
                   this verdict in the Netherlands would help turn the page of stormy relations
                   between Libya and the United States. The foreign ministry spokesman said
                   here that they hope the U.S. attitude towards Libya would change as a result
                   of Libya's involvement in allowing these suspects originally to be handed
                   over. And they would hope that relations between the two countries would
                   improve. It remains to be seen, however, just how high a level of reaction
                   there is here in the capital itself. And, doubtless, we'll be finding that out over
                   the next day or so -- Linda.

                   STOUFFER: Doubtless you'll keep us posted. Brent Sadler, thank you very
                   much. Brent joining us on the phone from Tripoli.

                   And as mentioned, the Libyan government says they plan to appeal the
                   conviction of the one Libyan man. He will actually be sentenced in less than
                   an hour. We will continue to follow this story, bring you that sentencing when
                   it happens.

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