Proposals for a panel of Scottish judges

The bombing of flight Pan Am 103 over Lockerbie killed all 259 passengers and crew, and 11 people on the ground but nobody has ever stood trial.

The Washington and London 'take it or leave it' proposal of a trial in the Netherlands with a Scottish panel of judges has been greeted with "cautious optimism" by relatives of victims.

Martin Cadman: "Cautious optimism"

The father of a Lockerbie victim, Martin Cadman, said: "I think we feel cautious optimism.

"There's a need to congratulate the government in what they have acheived in the last nine months, something the previous government didn't seem to want to attempt to start.

Martin Cadman: "Congratulations to government"

"This government has had the courage and the will to break the impasse that the previous administration did absolutely nothing about."

Lord Fraser of Carmylie: "There could be a fair trial in a Scottish court2

Lord Fraser of Carmylie was the Scottish Solicitor General at the time of the disaster and went on to take charge of the investigation as Advocate General.

He told BBC Radio 4's World at One programme just before the announcement that he felt less than happy at the implication in such a proposal that the suspects would not get a fair trial in Scotland.

But he added that if the moves meant an end to a decade of anguish for the families of victims, they were to be welcomed.

He said: "I would clearly have preferred that the trial be located in Scotland.

"If this is a way to bring the two to court, then so be it."

Bill Merrick: "Step in the right direction"

American Bill Merrick's sister was one of those travelling to New York on flight 103.

He says he doubts that a trial will ever take place.

"I think it's a step in the right direction, but personally I don't think it will ever be resolved because I don't think Gadaffi will turn the suspects over."

Jean and Bary Barclay: Broken stalemate

Jean and Barry Barclay lost their son Alistair in the tragedy.

"For many years we have had just a stalemate," Mrs Barclay told BBC News.

"Although we have used our best efforts to persuade the government to change and do something to move things along.

Jean Barclay: "We're delighted"

"We are delighted to see some movement."

Dr Jim Swire, whose daughter Flora was killed, said he was "euphoric" at the improving prospects of a trial.

Dr Jim Swire: "Euphoric"

He said: "We are 75% of the way towards a fair trial."

Solicitor for the two accused, Alistair Duff, is in close contact with colleagues in Tripoli.

Before the announcement he said that insistence on a panel of Scottish judges, rather than international judges, would not necessarily lead to proposals being vetoed.

Alistair Duff: 'There will be conditions'

He said: "The possibility of that proposal involving a trial before a panel of Scottish judges is not one that necessarily renders that package unacceptable."

He added that the proposals would have to come with guarantees for his clients.

Solicitor for the accused Alistair Duff: "Package not necessarily unacceptable"

They would include assurances over the amount of time they would be held in custody pending a trial, and the conditions of their custody.

He also made it clear that the team of defence lawyers would have to be given enough time to prepare a case.

"The prosecution have had 10 years, arguably, to prepare their case. We need to be given enough time to prepare."

But Washington and London's decision to accept a trial in a third country might not be enough to persuade colonel Gadaffi.

The BBC's diplomatic correspondent James Robbins says the Libyan leader may refuse any concessions to America after its "anti-terrorist" bombings in Afghanistan and Sudan.

He said the first sightings of Colonel Gadaffi in some time had been at protests against the American strikes.

But, he added, Libya might also want to see an end to sanctions put in place against them - including the ban on the import of oil technology - when it refused to hand over the suspects.