Italy and Libya could sign a historic friendship and cooperation accord resolving issues related to Italy's colonial occupation of the North African country by the end of August, Premier Silvio Berlusconi has said.
Speaking to journalists on Thursday evening, the premier confirmed news leaked to Libyan television earlier in the day that the two countries were close to reaching an agreement after more than a decade of negotiations.
The accord would finally resolve issues related to Italy's colonial occupation of the North African country in 1911 and the expulsion of some 20,000 Italians by Libyan leader Muammar Gaddafi in 1970.
''We are working intensely and with a strong desire to draw up a pact of friendship by August 31,'' Berlusconi said.
Gaddafi's son, Seif al-Islam, told Libyan television that the two countries were likely to sign a ''billion dollar'' agreement in the next few weeks.
The accord includes various projects, including the Italian construction of a large coastal highway costing an estimated six billion euros that would link Libya with Egypt and Tunisia.
Italy would also carry out an extensive operation to clear land mines from the country that Tripoli claims were planted by the Italian occupiers.
The Libyan leader has long demanded compensation for damages caused during Italy's occupation of the country.
The 1970 expulsions came a year after Gaddafi came to power in a coup. Most of the Italians had been in Libya since the colonial period.
The friendship accord was almost sealed last year by the Romano Prodi government but then Gaddafi decided against it.
The two countries have struck a number of agreements regarding energy supply and combating illegal immigration.
Italy is Libya's biggest trade partner and 25% of Italian oil imports come from the North African country.
Immigration continues to cause friction between Rome and Tripoli due to the large number of illegal immigrants who continue to arrive on Italian shores from Libya despite a cooperation agreement to contain the phenomenon.
On Thursday Berlusconi said six Italian coastguard craft were ready to start patrolling Libya's 800-km coastline to stop migrants from setting off on the dangerous voyage, but they were still waiting for a green light from Tripoli.
