Italy's Prime Minister Silvio Berlusconi has become the first European leader to visit Libya since Tripoli's shock decision in December to give up weapons of mass destruction. It is a sign that Libya is returning to respectability after decades as a pariah on the world stage. However thorny bilateral issues with Rome remain - notably the question of compensation for Italy's occupation of the country from 1934 to 1945. In another diplomatic breakthrough for Tripoli, British Prime Minister Tony Blair has announced plans to hold talks with Libyan leader Muammar Gaddafi. Foreign minister Jack Straw also praised Libya's WMD move after talks with his counterpart Mohamed Abderrhmane Chalgam. Tripoli's ties with London have improved dramatically since it paid compensation last year for the Lockerbie airliner bombing. Relations with France are also on the up as a result of a similar deal. Washington has yet to lift economic sanctions.