DATE=3/12/99 TYPE=CORRESPONDENT REPORT NUMBER=2-246554 TITLE=LIBYA / EGYPT WRAP (L) BYLINE=SCOTT BOBB DATELINE=CAIRO CONTENT= VOICED AT: INTRO: LIBYAN LEADER MUAMMAR GADHAFI HAS ENDED A WEEK-LONG VISIT TO EGYPT WITHOUT BREAKING ANY NEW GROUND ON THE LONG-AWAITED HAND-OVER OF TWO LIBYANS THEY'RE WANTED IN CONNECTION WITH THE 1988 BOMBING OF A PAN AM JETLINER OVER LOCKERBIE SCOTLAND. CORRESPONDENT SCOTT BOBB REPORTS FROM CAIRO THAT EGYPTIAN OFFICIALS SAY PROGRESS HAS BEEN MADE, BUT MORE TIME IS NEEDED. TEXT: COLONEL GADHAFI DID NOT ADDRESS THE LOCKERBIE ISSUE PUBLICLY DURING HIS STAY IN EGYPT AND CANCELLED A NEWS CONFERENCE WHERE HE SURELY WOULD HAVE BEEN ASKED ABOUT IT. THE LIBYAN LEADER MET A NUMBER OF TIMES WITH EGYPTIAN PRESIDENT HOSNI MUBARAK. EGYPTIAN OFFICIALS SAY PROGRESS WAS MADE TOWARD EASING COLONEL GADHAFI'S CONCERNS ABOUT THE CASE. THEY SAID THEY HOPE THE STALEMATE WILL BE ENDED IN A FEW WEEKS. U-S DEFENSE SECRETARY WILLIAM COHEN MET WITH PRESIDENT MUBARAK THURSDAY AND AFTERWARD TOLD REPORTERS HE WAS TOLD THE LIBYAN LEADER IS STILL DECIDING WHETHER TO SURRENDERED THE TWO SUSPECTS. COLONEL GADHAFI TOLD LIBYANS BEFORE HIS TRIP THAT A MEDIATION EFFORT BY SAUDI ARABIA AND SOUTH AFRICA HAD EASED HIS CONCERNS AND THAT HE WAS INCLINED TO SETTLE THE MATTER. THE TWO LIBYAN SECURITY OFFICIALS ARE ACCUSED OF MASTERMINDING THE BOMBING OF A PAN AM PASSENGER PLANE OVER LOCKERBIE, SCOTLAND TEN YEARS AGO. LIBYA HAS REFUSED TO SURRENDER THE TWO SUSPECTS, SAYING THEY COULD NOT GET A FAIR TRIAL IN BRITAIN OR THE UNITED STATES, WHICH CLAIM JURISDICTION IN THE CASE. THE VARIOUS PARTIES LAST YEAR AGREED TO ALLOW THE SUSPECTS TO BE TRIED IN THE NETHERLANDS, A NEUTRAL COUNTRY, BUT LIBYA WANTS ASSURANCES THAT THE TRIAL WILL COMPLETELY CLOSE THE MATTER. COLONEL GADHAFI IS SAID TO BE CONCERNED THE TRIAL MIGHT LEAD TO OTHER LEGAL ACTIONS AGAINST HIS GOVERNMENT AND THAT THE ECONOMIC SANCTIONS IMPOSED SEVEN YEARS AGO WILL ONLY BE SUSPENDED, NOT TERMINATED. THE LIBYAN LEADER IS ALSO SAID TO HAVE BEEN IRRITATED BY A LETTER FROM THE UNITED NATIONS, SENT AT THE URGING OF THE U-S AND BRITISH GOVERNMENTS, ASKING FOR A RESPONSE WITHIN ONE MONTH. LIBYA HAS REJECTED THE LETTER AS AN ULTIMATUM. ///REST OPT./// COLONEL GADHAFI'S TRIP TO EGYPT HAD ALL THE APPEARANCES OF AN OFFICIAL VISIT BY A HEAD-OF-STATE, ALTHOUGH UNDER THE SYSTEM ADOPTED UNDER HIS LIBYAN REVOLUTION, HE IS NOT THE HEAD-OF-STATE AND EXERTS NO OFFICIAL FUNCTION. THE COLONEL ARRIVED BY LAND LAST WEEK IN A CONVOY OF NEARLY 200 VEHICLES AND PITCHED HIS TENT ON THE GROUNDS OF THE PRESIDENTIAL PALACE. EGYPTIAN OFFICIALS SAY AGREEMENTS WERE REACHED DURING THE VISIT ON A NUMBER OF BILATERAL ISSUES. THESE INCLUDE IMPROVING THE ROAD NETWORK AND BUILDING AN OIL-AND-GAS PIPELINE BETWEEN THE TWO COUNTRIES. THEY ALSO INCLUDE JOINT VENTURES IN VARIOUS INDUSTRIAL PROJECTS, ESPECIALLY AN AMBITIOUS DESERT RECLAMATION PROJECT IN TOSHKA, SOUTHERN EGYPT, THAT IS A TOP PRIORITY OF THE MUBARAK GOVERNMENT. THE LIBYAN LEADER ALSO GAVE LENGTHY SPEECHES TO NUMEROUS SEGMENTS OF EGYPTIAN CIVIL SOCIETY, INCLUDING BUSINESSMEN, LABOR LEADERS, STUDENTS AND PEASANTS. (SIGNED) NEB/SB/PCF 12-Mar-99 9:45 AM EST (1445 UTC) NNNN Source: Voice of America .