Libya describes reports that it is holding secret talks with Israel as baseless. Rasha Saad investigates Sources in Israel announced this weekend that the Israeli foreign minister's chief political advisor, Ron Prosor, met with Libyan foreign ministry officials in Paris late last month. The reports were met with swift denials from Libyan deputy foreign minister, Hassuna Shawsh, who insisted no meetings had taken place. "Libyan authorities have looked into these reports and found nothing to them," Shawsh told the official Libyan news agency JANA. "Whoever is circulating these reports should provide proof by stating the date and place of these meetings, as well as the people involved," he said. It didn't stop there. Sources in Israel say that officials in Sharon's office leaked false information about meetings to sabotage any attempt to open a dialogue with Libya. Meanwhile, Saif Al- Islam Gaddafi, the son of Libyan leader Muammar Gaddafi, told Al-Jazeera television that he believed the rumours of the meetings were being spread by Arabs. "All of the recent moves with the US and Britain to end Libya's diplomatic isolation have caused envy among some Arabs who criticised us for not consulting them first and, consequently, are spreading rumours against us," he said. Despite Libyan denials, observers pointed out that Saif Al- Islam's statements to Al-Jazeera can be seen as an indication that such contact, if not taking place now, is expected in the near future. While denying reports about meeting a member of the Knesset on the sidelines of an international parliamentary conference in Athens last year, Saif Al-Islam said that Israel was no longer considered a security threat; that Libya and Israel were not in conflict. Back in Israel, Foreign Minister Silvan Shalom said on Thursday that Israel would be ready to talk to Libya if it renounced "terrorism and destroyed its weapons of mass destruction", but declined to say if meetings had already taken place. The leaks on secret contact between the two states surfaced after Libya announced its intentions last month to abandon its weapons of mass destruction programme. It is widely believed that the motive behind this move was to end years of international isolation and assist Libya's integration into the globalisation process. Others suggest that Gaddafi himself was the driving force behind the declaration, his motivation being personal: not to share the same fate as Saddam Hussein. According to sources, the Libyans are very focussed on extremism at home, and have made some contributions to the war on terrorism. They have also pursued political reform. Last year, a new prime minister, Shukri Ghanem, an economist, was appointed with an explicit reform agenda. Behind him -- and the radical supporters of Gaddafi -- are reformers determined on economic efficiency and political change. Saif Al-Islam, who is close to the reformers, has reportedly persuaded his father that all abuse of human rights must end, and that political reform is also needed. Ghanem, for his part, stated there was a lengthy internal debate about Libya's decision to scrap its weapons programmes. "We thought this would make us look better in the eyes of the world and set an example for others in the Middle East to follow, especially Israel," he says. Ghanem denied that Libya acted because of America's invasion of Iraq. "Weapons of mass destruction are very costly. It's better that we concentrate on our economic development," he said. Despite positive American remarks on the Libyan move, sanctions have yet to be lifted. In fact, they were renewed. Bush said last week that Tripoli must follow up with "concrete steps". There was, however, a positive lining to the renewal of US sanctions, in that President Bush did not define how long the measure would remain in effect. "This decision gives the US president the possibility of ending these sanctions at any moment," Shawsh said. In another good will gesture seen as another step towards sound relations with the West, Libya signed a deal on Friday to pay $170 million to the families of the 170 people killed when a UTA plane was destroyed over Chad. France, which lost 54 citizens on the plane, campaigned for a more "equitable" settlement for the UTA families after Libya agreed a $2.7 billion payout for the 270 people killed in the Lockerbie incident. A representative of a private fund controlled by Saif Al-Islam signed the agreement concluded in Paris. France and Libya have diplomatic ties and some French firms conduct business in the North African country, but French Foreign Minister Dominique de Villepin said relations could enter a new phase now the dispute was resolved. "This is a new era dawning," he told reporters, adding that he hoped French firms would participate fully as Libya's economy opened for more international business. Relations with the EU are also expected to improve considerably following the Franco-Libyan deal. Romano Prodi, the head of the European Commission has predicted a key change in the EU's ties with Libya as a result of the French settlement. "This confirms that 2004 can mark a decisive turning point in relations between Europe and Libya," Prodi said, as news of the settlement emerged. He added that he hoped the settlement would "allow Libya to take its full place in the Euro-Mediterranean Partnership".
