and it's not a myth, but its' portrayal is (always made in the most simplistic of terms) from what I've read.
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"The Sudanese security services, he said, would happily keep close watch on bin Laden for the United States. But if that would not suffice, the government was prepared to place him in custody and hand him over, though to whom was ambiguous. In one formulation, Erwa said Sudan would consider any legitimate proffer of criminal charges against the accused terrorist."
http://www.washingtonpost.com/ac2/wp-dyn?pagename=article&node=&contentId=A61251-2001Oct2"And there were the beginnings of a debate, intensified lately, on whether the United States wanted to indict and try bin Laden or to treat him as a combatant in an underground war."
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said, 'Just ask him to leave the country. Just don't let him go to Somalia,' Erwa, the Sudanese general, said in an interview. 'We said he will go to Afghanistan, and they said, 'Let him.'"
"On May 15, 1996, Foreign Minister Taha sent a fax to Carney in Nairobi, giving up on the transfer of custody. His government had asked bin Laden to vacate the country, Taha wrote, and he would be free to go."
http://www.washingtonpost.com/ac2/wp-dyn?pagename=article&node=&contentId=A61251-2001Oct2
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They supposedly made an offer concerning bin Laden, but whether they were actually able to deliver and what their demands(strings) were is anything but clear.
Sudan was on the Terrorist Countries List then and remains there still
http://www.ch.doe.gov/insidech/org_offices/oci/TerroristCountries/
http://www.state.gov/s/ct/rls/pgtrpt/2000/index.cfm?docid=2441&CFNoCache=TRUE&printfriendly=true
This is the current Terrorist Countries List
Iran, Iraq, Syria, Libya, Cuba, North Korea, and Sudan continue to be the seven governments that the US Secretary of State has designated as state sponsors of international terrorism.
Sudan
The United States and Sudan in mid-2000 entered into a dialogue to discuss US counterterrorism concerns. The talks, which were ongoing at the end of the year, were constructive and obtained some positive results. By the end of the year Sudan had signed all 12 international conventions for combating terrorism and had taken several other positive counterterrorism steps, including closing down the Popular Arab and Islamic Conference, which served as a forum for terrorists.
Sudan, however, continued to be used as a safehaven by members of various groups, including associates of Usama Bin Ladin's al-Qaida organization, Egyptian al-Gama'a al-Islamiyya, Egyptian Islamic Jihad, the Palestine Islamic Jihad, and HAMAS. Most groups used Sudan primarily as a secure base for assisting compatriots elsewhere.
Khartoum also still had not complied fully with UN Security Council Resolutions 1044, 1054, and 1070, passed in 1996--which demand that Sudan end all support to terrorists. They also require Khartoum to hand over three Egyptian Gama'a fugitives linked to the assassination attempt in 1995 against Egyptian President Hosni Mubarak in Ethiopia. Sudanese officials continued to deny that they had a role in the attack.