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The Times newspaper claims to have uncovered evidence that Abdelbaset Ali Mohmad Al Megrahi has been told he must decide whether to apply to serve the rest of his sentence at home in Libya, surrounded by his family, or remain in a Scotland to attempt to clear his name.
"The choice comes after Britain ratified a long-awaited prisoner transfer agreement with Libya yesterday," the Times reports.
"In order to pursue a move to a Libyan jail, Abdel Basset Ali al-Megrahi, 57, who has continually protested his innocence and is dying of cancer, would have to abandon his appeal, which began on Tuesday at the Court of Criminal Appeal, in Edinburgh.
"A spokesman for the Ministry of Justice confirmed yesterday that the prisoner transfer agreement had now come into effect"
“The instruments of ratification have been exchanged and the agreement is now in force,” the source is reported to have confirmed.
The Times also claims that Robert Gordon, director general of the SNP Administration's justice department, who held discussions recently with Libyan officials about the prisoner deal, encouraged Megrahi's legal team to seek the transfer. They are reported to have been told that Justice Minister Kenny MacAskill would look on such an application "favourably".

