Sunday Times: "[T]he United States wanted Megrahi to remain imprisoned." The Sunday Times article made clear that the administration supported keeping Megrahi imprisoned, but that in the event he was released, they preferred to release him in Scotland rather than send him to Libya. From the Sunday Times (accessed via Factiva):
In the letter, sent on August 12 last year to Alex Salmond, the first minister, and justice officials, [deputy head of the London US embassy Richard] LeBaron wrote that the United States wanted Megrahi to remain imprisoned in view of the nature of the crime.
The note added: "Nevertheless, if Scottish authorities come to the conclusion that Megrahi must be released from Scottish custody, the US position is that conditional release on compassionate grounds would be a far preferable alternative to prisoner transfer, which we strongly oppose." LeBaron added that freeing the bomber and making him live in Scotland "would mitigate a number of the strong concerns we have expressed with regard to Megrahi's release".
The US administration lobbied the Scottish government more strongly against sending Megrahi home under a prisoner transfer agreement signed by the British and Libyan governments -- in a deal now known to have been linked to a £550m oil contract for BP.
It claimed this would flout a decade-old agreement reached by the UK and US governments that anyone convicted of the bombing would serve their sentence in a Scottish prison.