Tripoli/Washington - US Secretary of State Condoleezza Rice and Libyan leader Moamer Gaddafi discussed common interests such as the fight against terrorism and laid the basis for cultural, trade and diplomatic ties during their historic meeting, Washington's chief diplomat said late Friday.

Rice met Gaddafi Friday in a visit that marked the end of decades of frosty relations between the two countries. They met in a building in a government compound in central Tripoli that was bombed by the United States in 1986, an attack that killed dozens of people, including Gaddafi's adopted daughter.

Rice told reporters in Tripoli that her discussions with Gaddafi were "fruitful" and "wide-ranging" and affirmed the two countries' "desire to move forward in a positive way, toward a positive relationship," according to a transcript of her remarks released in Washington.

She said she had also given reassurances to the Libyan leader, who apparently asked her about the US military's AFRICOM programme and whether "we were looking to a large military presence" on the continent.

"I said to Leader Gaddafi that we clearly werent getting through about what we meant for AFRICOM - that this was to ... help Africans help themselves in peacekeeping, in counterterrorism work," she said.

Gaddafi greeted Rice wearing a white Libyan robe decorated with a brooch in the shape of Africa, photographers who left the hall shortly after the meeting began told reporters, according to the BBC.

There was no handshake between the two. As Rice entered the room, Gaddafi raised a hand to his chest in a traditional gesture of welcome.

Rice said she and Gaddafi established that they have many challenges in common, including issues in Africa and in the Maghreb, and that they agreed on the importance of the counterterrorism campaign.

She said they had laid the basis for a trade and investment agreement that would allow "the improvement of the climate for investment" - an issue important to US investors anxious to start putting money into Libya.

The two countries would soon sign an agreement on educational and cultural exchanges that will make it possible for more Libyan students to come to the US and Americans to go to Libya, Rice said.

Rice noted that her meeting with Gaddafi marked a "new phase" in relations, and that forward movement had only come about through "difficult decisions" and the "hard work of a lot of people" in dealing with "issues of the past."

"I think were off to a good start. It is only a start, but after many, many years, I think it is ­ its a very good thing that the United States and Libya are establishing a way forward," she said.

Rice said she looked forward to "the Libyan people and the American people getting to know each other better."

"I hope that Americans will take advantage to come here," she said. (dpa)