Blair's Gadaffy gamble

Tony Blair clasped the hand of Libyan dictator Colonel Muammar Gadaffy today and warmly told him: "It's good to be here."

The very British handshake happened in a drab green tent outside the capital, Tripoli, as the Prime Minister sealed the return of Libya - for years reviled as a sponsor of world terrorism - to the international community.

They did not, despite speculation, exchange the traditional kiss on both cheeks sometimes favoured by Colonel Gadaffy and which Mr Blair's media advisers had been clearly dreading. After talks in Gadaffy's canvas headquarters among bare fields, Mr Blair held an open-air press conference. He said the time had come to offer "the hand of partnership" to Libya, whatever that country's past misdeeds.

He praised Colonel Gadaffy's "full and transparent" co-operation in moves to dismantle his programmes for weapons of mass destruction.

Those programmes, both nuclear and chemical, had been "significant and substantial", the Prime Minister said.

Asked whether he felt "queasy" sitting down with Colonel Gadaffy given the bloodstained history of his regime, Mr Blair replied: "I have also sat down with people from Sinn Fein, because it was important to do so in the context of peace in Northern Ireland."

The Prime Minister said he had embarked on his Libya visit with his eyes open and aware that there were still "potential pitfalls". In a fast-changing world, it was right that Libya should join the fight against al Qaeda and against international terrorism.

Answering the criticisms from some families of the Lockerbie victims and others, he said: "We do not forget the past but we do try, in the light of changes, to move beyond it."

Agreement with Libya, moving on from former enmity, "will improve the lives and security of us all".

Mr Blair flew in to be greeted by enthusiastic Libyans. The mood was summed up by a bus driver who exclaimed in broken English: "You British, very good, good friends."

Mr Blair's chartered BA 777 was met by a full red carpet reception. A small boy kissed the Prime Minister while the Revolutionary Guard stood to attention.

A 30-vehicle convoy sped through the city, then crossed acres of arable land before turning on to a dusty road to Colonel Gadaffy's tented headquarters - a row of eight sunbleached marquees which would have struggled to hold a modest wedding reception.

Colonel Gadaffy, despite having a reputation for keeping some guests kicking their heels, was already waiting inside his own tent which was little newer than the rest, but contained striped brocade armchairs and simply patterned rugs. Colonel Gadaffy was dressed in a white shirt and brown tunic, under which shiny black Western-style shoes could be glimpsed.

As Mr Blair stepped from his car looking faintly surprised at the surroundings, the Libyan leader came slowly to the tent entrance. They stretched out their arms for the formal handshake before moving inside.

The two exchanged good-natured banter at the start of their talks, when Colonel Gadaffy commented on how young his guest appeared. "That's not what the British press say," smiled Mr Blair, 50. "You get old pretty quickly in a job like this." Gadaffy, 62, replied gallantly: "Well, you look very young to me."

Mr Blair said warmly: "It's good to be here at last, after so many months."

Colonel Gadaffy began speaking in Arabic, but switched to English to ask the Prime Minister about his health, saying: "You did a lot of fighting on this issue and seem exhausted." Mr Blair answered: "There's a lot to do." Colonel Gadaffy then smiled and told his guest: "But you look good and you are still young and vigorous." Mr Blair replied to the compliment with a simple "thank you".

The discussion became serious, beginning with how to fight terrorism. Diplomats outside acknowledged the irony of Mr Blair debating how to beat international terrorists with the man alleged to have been behind the Lockerbie bombing and said to have sheltered the killer of Pc Yvonne Fletcher.

After an hour of talks they moved to the tent next door where Colonel Gadaffy's personal chef had prepared a meal of fish couscous with fruit juices, olives and camel's milk. Outside the venue an equal mix of Arab and British journalists were being pushed back by an even bigger number of troops and charcoalsuited security guards struggling to maintain their good temper. Otherwise, the landscape was devoid of people.

On one side was a herd of 30 camels - one wearing a chastity belt.

British officials said the two leaders discussed a wide range of global issues and agreed on the importanceof combating terrorism. "We are not pretending we agree on every issue but that's the bottom line," said Mr Blair's spokesman. "They agreed on the need to unite to recognise the problems posed to the world by fundamentalism.

"And they agreed on the need to form new partnerships with different countries and groupings to find new ways to tackle terrorism, politically and in terms of security."

British officials also revealed that Libya has supplied the UK with intelligence on a stream of Islamic fundamentalist groups. They were confident that today's talks would lead to a solid alliance between Libya and Britain and other countries to combat al Qaeda.

In return Colonel Gadaffy will receive military equipment and training for his troops in Britain to safeguard his own country against extremist threats.

A contract worth £120 million was signed between Shell and the Libyan government for gas exploration - with the potential to lead to deals worth £600 million.

Malcolm Brinded, chief executive of Shell Gas & Power, who flew in with the Prime Minister, hailed it as a "landmark agreement" for trade between the two countries.

Mr Blair found himself in a predictably bizarre diplomatic episode, as scores of Libyan officials mulled around the tent.

Libyan foreign minister Abdel Rahman Chalgham was tackled by reporters on his attitude to al Qaeda and told them: "They are a real obstacle against our progress, against our security, against women, against our culture, against any change in our region."

One Libyan official said Colonel Gadaffy's turning point away from isolation on the world stage began in 1998 when he realised Libya's stagnant economy would never prosper under totalitarian rule, but needed Western investment and private enterprise.