In return, the European nation wants crackdown on illegal migrants
Associated Press
Aug. 30, 2008, 10:45PM

BENGHAZI, LIBYA — Italy agreed Saturday to pay Libya $5 billion as compensation for its 30-year occupation of the country, which ended in 1943.

Italian Prime Minister Silvio Berlusconi and Libyan leader Moammar Gadhafi signed a memorandum pledging a $5 billion compensation package involving construction projects, student grants and pensions for Libyan soldiers who served with Italy during World War II.

“It is a material and emotional recognition of the mistakes that our country has done to yours during the colonial era,” Berlusconi told reporters at the airport on his arrival.

In return, Italy wants Libya to crack down on the thousands of illegal migrants smuggled to Italian shores. Libya largely hasn’t delivered on pledges over the last few years to eliminate the problem.

Rome is also keen on increasing its already long-consolidated energy ties with Tripoli. Libya is a big supplier of natural gas and oil to Italy.

Gadhafi received Berlusconi under a big tent in Benghazi where they discussed the agreement over lunch. The two exchanged gifts, with Berlusconi giving Gadhafi a silver inkstand with two pens inside to sign the agreement. The Libyan leader gave Berlusconi a linen suit.

Relations between the two countries have warmed over the last few years, with Italian leaders meeting Gadhafi several times. However, it has taken years of negotiations for the two sides to reach a deal on compensation for Italy’s rule over Libya from 1911 to 1943.

Source: http://www.chron.com/disp/story.mpl/headline/world/5975842.html