Thursday, 25 November, 2004, 00:46 GMT
President Jacques Chirac of France has made the first visit to Libya by a French leader since 1951.
Mr Chirac said Paris sought "a true partnership" with the oil-rich state after years of tension with Tripoli, once considered a sponsor of terrorism.
Experts say the visit also confirms the gradual return of Libya's Col Muammar Gaddafi to international acceptance.
On Thursday, President Chirac is going to Burkina Faso for a summit of French-speaking nations.
"We have seen strong turbulence," Mr Chirac said, adding that "this difficult period is happily behind us.
"Now, we have entered a dynamic and positive phase with the will to rebuild a strong dialogue and establish a true partnership," he said.
President Chirac took with him a large delegation of business leaders keen to win contracts with Libya, whose economy is due to be liberalised.
Shortly after arriving on his 24-hour visit on Wednesday, the French leader held an hour-long meeting with Col Gaddafi at the vast Bab Azizia palace in Tripoli.
Col Gaddafi said he was "happy to welcome a friend", said Mr Chirac's spokesman, Jerome Bonnafont.
Last hurdle overcome
President Chirac's visit follows similar trips this year by British Prime Minister Tony Blair and German Chancellor Gerhard Schroeder.
Europe lifted its sanctions and arms embargo on Libya after Col Gaddafi last year denounced terrorism and agreed to stop developing weapons of mass destruction.
The last remaining hurdle to restoring relations with France was overcome in January when Tripoli agreed to pay compensation to the families of those killed when a French airliner was blown up over Niger in 1989.
The attack on the UTA passenger jet killed 170 people, including 54 French nationals.