LINDA WERTHEIMER, HOST: And I'm Linda Wertheimer.

Today the United States and Britain said two Libyan suspects in the bombing of Pan Am Flight 103 can be tried in The Netherlands.

Two-hundred-seventy people, most of them Americans, died when the jumbo jet exploded over Lockerbie, Scotland in 1988. An exhaustive investigation pointed to two Libyan agents as suspects, and they were indicted by the United States and Britain in 1991. Libya has refused to turn the two men over to U.S. or British courts on the grounds they could not get a fair trial in either country. Hoping to break the long impasse, Washington and London have now agreed to let three Scottish judges conduct the trial in The Hague.

NPR's Ted Clark reports.

TED CLARK, NPR REPORTER: Libya has argued that the suspects would not get a fair trial in the United States or Britain. But Libyan officials have said the men can be tried in a neutral country.

That is exactly what Washington and London agreed to today. Secretary of State Madeleine Albright says this is a way to call the Libyan government's bluff.

MADELEINE ALBRIGHT, U.S. SECRETARY OF STATE: Libya has repeatedly stated its readiness to deliver the suspects for trial by a Scottish court sitting in a third country. This approach has been endorsed by the Arab League, the Organization of African Unity, the Organization of the Islamic Conference, and the non-aligned movement. We now challenge Libya to turn promises into deeds. The suspects should be surrendered for trial promptly.

CLARK: If the trial goes forward and the suspects are convicted, they could be sentenced to up to 30 years in Scottish prison. The indictment allows for the possibility that others might have been involved in planning the attack on Pan Am 103, and provides for their prosecution, as well. Limited sanctions imposed against Libya by the United Nations would be suspended if the suspects are surrendered for trial, and the sanctions could be lifted permanently if Libya cooperates during the proceedings. Unilateral sanctions imposed separately by the United States would not be affected. A senior American official said today the U.S.-British offer will not be on the table indefinitely. He said Libya would be given a reasonable period of time to respond. A report from Cairo quotes the head of the Arab League as saying the League and Libya "agree in principle, but want to study details of the proposal." Albright warned against any effort to amend it.

ALBRIGHT: Let me be clear. The plan the U.S. and the UK are putting forward is a "take it or leave it" proposition. It is not subject to negotiation or change, nor should it be subject to additional foot- dragging or delay.

CLARK: If Libya rejects the widely-endorsed plan, a senior U.S. official said today: "We think we're capable of building a much stronger international consensus around further steps that must be taken against Libya." The official suggested Washington would push for an international oil embargo against Libya; something the UN Security Council has so far rejected.

Families of those who died on Pan Am 103 are divided over the plan to try the suspects in The Hague. Susan Cohen (ph), who lost her daughter Theodora, says the United States should have used military force against Libya. This plan, she argues, is a victory for Libya Muammar Gaddafi.

SUSAN COHEN, FAMILY OF PAN AM 103 VICTIM: He has won. He is strengthened today because it's the U.S. who couldn't hold the position. What message does that send to terrorists? Anytime you don't want to be tried somewhere where you should be tried, you can just insist on being tried somewhere else? What kind of strong policy is that? We have been very weak and we're paying the price for it.

CLARK: But Jane Schultz (ph), whose 20-year-old son died on Pan Am 103, applauded the U.S. government for agreeing to let the trial take place in Holland.

JANE SCHULTZ, FAMILY OF PAN AM 103 VICTIM: I think things are finally going to move forward, and that the ball is certainly in Colonel Gaddafi' s court and if he's a man of his word, then let's see the two terrorists brought to trial.

CLARK: U.S. and British officials say they're ready to start the trial as soon as the suspects are surrendered.

Ted Clark, NPR News, Washington.

This is a rush transcript. This copy may not be in its final form and may be updated.