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The United States told the World Court Friday that the West's standoff with Libya concerns not just Pan Am Flight 103 but Libya's continued involvement in terrorism.

During its presentation Thursday, Libya insisted on its innocence, even though a day earlier it had renewed its offer at the United Nations to hand over the two suspects."Libya has failed to take concrete steps to distance itself from terrorism," Edwin D. Williamson, a U.S. State Department legal adviser, told the court Friday.

"We want to see the guilty brought to justice, and we want to see Libya out of the terrorism business," he said.

He charged that Libya was pressing its case in the World Court to head off proposed U.N. sanctions against the North African country.

"Libya's real objective must be simply to have a proceeding of some kind in this court as part of a political initiative against the council's proposed sanctions resolution," he said.

Britain and the United States say they have hard evidence of Libyan involvement in the 1988 bombing over Lockerbie, Scotland, that killed 270 people.

The West also seeks four other Libyans suspected in the 1989 bombing of a French airliner over Niger in which 171 people died.

The United States and Britain have issued warrants for two suspects in the Pan Am disaster they say are Libyan government agents and asked the U.N. Security Council to punish Libya for refusing to surrender the two for trial.