GADDAFI AND D'ALEMA TRADE JOKES BEFORE BUSINESS

[tolibya]

Tripoli, 24 Nov. (AKI) - Libyan leader Muammar Gaddafi and Italian foreign minister Massimo D'Alema exchanged some friendly banter before tackling the thorny issue of Tripoli's demands for compensation from Rome which stem back to when the North African country was under Italian colonial rule. "You're a great lover of the sea which adds health and I find you in good shape," Geddafi said to D'Alema - a keen sailor - when the two met Thursday at Gaddafi's fortified Bab al-Aziza residence in Tripoli. "Yes, but you are a lover of the desert", D'Alema replied, to which Gaddafi quipped: "It must be your moustache that makes you look younger".
Referring to the Libyan leader's stubble D'Alema retorted: "Well you'll also have a moustache soon".

The meeting which focused on bilateral relations took place on the sidelines of a European Union-African Union summit, hosted by Tripoli.

Libya, which says it incurred damages during the period 1911-1943 when Italy ruled the country, has suggested that by way of compensation Rome should bankroll the construction of a huge highway which would stretch across the country and link Tunisia and Egypt.

No progress has been made on the project despite former Italian prime minister Silvio Berlusconi suggesting in 2005, when he was still in power, that Italy may foot the bill.

Italy's current centre-left government has shown little interest in the project. "It can't be said that the Libyans have withdrawn this request, but the situation is making progress," D'Alema said on Thursday.

Rome says any solution should take into account some 650 million dollars of Italian investments in Libya which have gone unpaid.

Another unresolved dispute between the two countries involve claims for compensation made by thousands of Italians who were expelled from Libya in 1970 and whose property was seized by the Libyan state. Tripoli also refuses to allow these Italians or members of their families to return to Libya.

"We will announce it when an agreement which is advantageous to all is found," said D'Alema who indcated that discussions with Gaddafi also focused on trade and investments.

"It can't be forgotten that [Italian energy giant] ENI has a 10 billion euro site in Libya," D'Alema said.

He stressed that Italy remains one of Libyan's main trading partners with imports - especially oil and natural gas - from the North African nation increasing in 2006 by 56.8 percent over the previous year.