DATE=7/2/98 TYPE=CORRESPONDENT REPORT NUMBER=2-234914 TITLE=U-N / LIBYA SANCTIONS (L - ONLY) BYLINE=MAX RUSTON DATELINE=UNITED NATIONS CONTENT= VOICED AT: INTRO: THE U-N SECURITY COUNCIL TODAY (THURSDAY) MAINTAINED SANCTIONS ON LIBYA, IMPOSED IN CONNECTION WITH THE 1988 BOMBING OF A PAN AM AIRLINER OVER SCOTLAND. V-O-A'S UNITED NATIONS CORRESPONDENT MAX RUSTON HAS THE STORY. TEXT: THE CONTINUATION OF SANCTIONS COMES AMID SIGNS THAT THEY MAY SOON LOSE THEIR EFFECTIVENESS. THE U-N SECURITY COUNCIL'S DECISION FOLLOWS AN ANNOUNCEMENT LAST MONTH FROM THE ORGANIZATION OF AFRICAN UNITY, THE O-A-U, THAT ITS MEMBERS MAY STOP COMPLYING WITH THE SANCTIONS STARTING IN SEPTEMBER. SECURITY COUNCIL PRESIDENT SERGEI LAVROV OF RUSSIA SAID NO AGREEMENT WAS REACHED ON LIFTING THE SANCTIONS. HE DID NOT PROVIDE DETAILS OF THE COUNCIL'S PRIVATE DISCUSSIONS. /// LAVROV ACT /// MEMBERS OF THE COUNCIL COULD NOT AGREE THAT NECESSARY CONDITIONS EXIST TO CHANGE THE SANCTIONS REGIME. /// END ACT /// THE SECURITY COUNCIL DISCUSSED THE SANCTIONS AS PART OF A ROUTINE 120 DAY REVIEW. SANCTIONS WERE IMPOSED IN 1992 TO PROTEST LIBYA'S FAILURE TO EXTRADITE TWO MEN ACCUSED OF BOMBING A PAN AM AIRLINER OVER SCOTLAND IN 1988. TWO-HUNDRED-SEVENTY PEOPLE WERE KILLED IN THE EXPLOSION. LIBYA HAS OFFERED TO SEND THE SUSPECTS FOR TRIAL IN A THIRD COUNTRY THAT IT CONSIDERS NEUTRAL. THE UNITED STATES AND BRITAIN SAY THE SUSPECTS MUST BE TRIED IN THEIR COURTS, NOT IN A PLACE OF LIBYA'S CHOOSING. DESPITE THE CONTINUATION OF SANCTIONS, LIBYAN DIPLOMATS SAID THE SITUATION IS IMPROVING, BASED ON THE O-A-U DECISION TO STOP COMPLYING WITH THE SECURITY COUNCIL REQUIREMENTS. IN AN APPARENT REFERENCE TO THE O-A-U MOVE, U-S DIPLOMATS SAID SOME REGIONAL ORGANIZATIONS ARE BEING EXTREMELY UNHELPFUL AND SHOULD NOT TRY TO PICK AND CHOOSE WHICH SECURITY COUNCIL RESOLUTIONS TO OBSERVE. (SIGNED) NEB/UN/MPR/LSF/JO 02-Jul-98 2:21 PM EDT (1821 UTC) NNNN Source: Voice of America .