DATE=8/25/98 TYPE=CORRESPONDENT REPORT NUMBER=2-237662 TITLE=U-N / LIBYA / LOCKERBIE (L) BYLINE=MAX RUSTON DATELINE=UNITED NATIONS CONTENT= VOICED AT: INTRO: THE UNITED STATES AND BRITAIN PROPOSED A SECURITY COUNCIL RESOLUTION AT THE UNITED NATIONS TODAY (TUESDAY) THAT COULD LEAD TO THE SUSPENSION OF SANCTIONS AGAINST LIBYA. BUT LIBYA MUST FIRST MEET TWO REQUIREMENTS, AS WE HEAR FROM OUR UNITED NATIONS CORRESPONDENT MAX RUSTON. TEXT: THE FIRST REQUIREMENT IS THAT LIBYA MUST HAND OVER TO THE NETHERLANDS TWO MEN ACCUSED OF BOMBING A PAN AMERICAN AIRLINER OVER LOCKERBIE, SCOTLAND, IN 1988. TWO-HUNDRED-70 PEOPLE DIED IN THE BOMBING. THE SECOND REQUIREMENT IS THAT THE LIBYAN GOVERNMENT SATISFY FRENCH JUDICIAL AUTHORITIES WITH REGARD TO THE BOMBING OF A FRENCH U-T-A AIRLINER OVER AFRICA. U-S DEPUTY AMBASSADOR TO THE UNITED NATIONS PETER BURLEIGH (BUR-LEE): /// BURLEIGH ACT /// THE PROPOSAL THAT THE BRITISH AND AMERICAN GOVERNMENTS ARE MAKING IS DIRECTLY IN LINE WITH PROPOSALS THAT HAVE BEEN MADE BY THE ARAB LEAGUE, THE ORGANIZATION OF AFRICAN UNITY, THE NONALIGNED MOVEMENT AND SPECIFICALLY THE GOVERNMENT OF LIBYA. AND IF YOU WILL REFER TO A LETTER OF JANUARY TWO, 1998, FROM THE FOREIGN MINISTER OF LIBYA TO THE PRESIDENT OF THE SECURITY COUNCIL ... I CANNOT QUOTE IT EXACTLY ...BUT HE SAYS WE WILL AGREE TO A TRIAL UNDER SCOTTISH LAW, WITH SCOTTISH JUDGES, IN A THIRD COUNTRY. /// END ACT /// THE PROPOSAL PUT FORWARD BY BRITAIN AND THE UNITED STATES SAYS THE TWO ALLEGED TERRORISTS SHOULD BE TRIED IN THE NETHERLANDS BY SCOTTISH JUDGES IN ACCORDANCE WITH SCOTTISH LAW. THE UNITED NATIONS SECURITY COUNCIL IMPOSED SANCTIONS ON LIBYA IN 1992 WHEN LIBYA REFUSED TO TURN OVER THE SUSPECTS IN THE LOCKERBIE BOMBING. OVER THE LAST FEW MONTHS, LIBYA HAS BEEN STEPPING UP CALLS FOR THE SANCTIONS TO BE LIFTED. SOME NEIGHBORING COUNTRIES HAVE SAID THEY WILL SOON STOP ABIDING BY THE SANCTIONS. LIBYA SAYS IT WILL RESPOND TO THE U-S AND BRITISH PROPOSAL ON WEDNESDAY. U-S OFFICIALS SAY THEY WILL CONSIDER EXPANDING THE SANCTIONS AGAINST LIBYA IF IT DOES NOT AGREE TO THE PROPOSAL. (SIGNED) NEB/UN/MPR/LSF/PT 25-Aug-98 4:57 PM EDT (2057 UTC) NNNN Source: Voice of America .