Visit is first by a British leader since Churchill

When Tony Blair visits Colonel Muammar Gadaffy in his Bedouin tent outside Tripoli today, he will become the first British premier to tread on Libyan soil since Winston Churchill in 1943.

The trip is the culmination of a carefully orchestrated campaign, in which Britain has led the way, to bring Libya back into the international fold and end its two decades of isolation.

On his way to the historic meeting, Mr Blair insisted it was right to "extend the hand of friendship" to rogue states prepared to renounce terrorism and weapons of mass destruction.

The two leaders were due to talk for up to two hours - though Colonel Gadaffy has a reputation for keeping VIP guests waiting before talks.

Downing Street was coy about whether Mr Blair would greet his host with the traditional kiss on both cheeks often favoured by the Libyan leader.

A No 10 spokesman joked: "I've done my research. I sent my envoys into Libya and I am assured he is not a kissing man. But I may be proved wrong."

High security surrounds the trip. There were reports that Mr Blair would be watched over on his visit by dozens of SAS soldiers in addition to his own regular bodyguards.

The British meeting was preceded by a two-day visit to Tripoli by US assistant secretary of state William Burns who last night delivered a letter from President George Bush praising Libya for making "excellent progress" on destroying its nuclear weapons programme and thousands of tons of chemical munitions.

But State Department spokesman Adam Ereli confirmed Libya was still being blacklisted for sponsoring terrorism. He said it had " curtailed support for international terrorism" but still had contact with "some past terrorist clients".

Nevertheless, America is sending a team of medical experts to Libya to examine ways to combat the parasitic disease river blindness, as part of a series of "rewards" for Colonel Gadaffy's moves on the weapons issue.

British firms, including Shell and BAe, are set to sign valuable gas exploration and export deals while Libya will eventually be allowed to buy arms and send troops to train in the UK.

In return it has accepted a "highly intrusive" arms inspection regime and invited Amnesty International to visit Libya.

As part of the deal, Britain is expected to train Libyan army officers and advise the country's military. The gesture will be particularly welcomed by Col Gadaffy, who trained in Britain before seizing control in his north African homeland in a coup in 1969.

Foreign investment is key to Libya's plans to open up its economy, particularly the oil industry which is its main source of foreign revenue.

British exports to the country rose by 12 per cent last year and could take off once relations improve further. Trade Minister Mike O'Brien welcomed the Prime Minister's visit with a declaration that it could lead to closer business ties in the future.