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So, to summarize, this is probably what happened:

* In July 1988 the USS Vincennes shot down an Iranian airliner over the Persian Gulf, killing all 290 people on board.
* The Iranians hired a Palestinian terrorist group, the PFLP-GC (known to have connections with CIA drug-smuggling operations), to exact revenge.
* In December 1988 operatives of the PFLP-GC managed to replace one of the suitcases containing CIA heroin, and destined to be transported on Pan Am Flight 103 to the U.S., with a suitcase containing a bomb.
* CIA operatives (perhaps the same people as the PFLP-GC operatives) placed this suitcase on the Pan Am plane as part of the CIA's normal drug-smuggling operations.
* The bomb exploded over Lockerbie, killing 189 Americans. The Iranians got their revenge.
* The U.S., anxious to conceal the role played by the CIA, blamed Libya, imposed crippling economic sanctions in an effort to force Libya to "admit" guilt, and persuaded the U.N. to do the same.
* In 2000 a show trial was staged in the Hague which resulted in the conviction and imprisonment of a Libyan official.
* After years of economic hardship Libya decided it was better to pay billions of dollars and formally "admit guilt" in order to have the sanctions lifted.
* The real perpetrators of the bombing remain unidentified.