Baghdad - British Foreign Secretary David Miliband arrived in Basra on Monday leading a delegation of British investors and businessmen to explore investment opportunities in Iraq, the Voices of Iraq (VOI) news agency reported.

VOI cited Basra media spokesperson Aqeel al-Fereji as saying Miliband was expected to attend the Basra investment conference along with the delegation. Iraqi PM Nouri al-Maliki had met earlier Monday with British Business Secretary Peter Mandelson.

Al-Maliki told Mandelson that Iraq wants to develop bilateral relations and benefit from British companies in the reconstruction operation, VOI reported.

Al-Maliki is expected to visit Britain, France and Russia during a European tour later this month.

Miliband, whose country withdrew from Basra last week, told al- Maliki and other Iraqi officials during a recent visit that his country's "support for Basra" would continue through British investors there.

Last month, the Iraqi Oil Drilling Company of the Oil Ministry signed a contract to form an Iraqi-British oil drilling company with a capital of 90 million US dollars.

Britain, main US ally in the invasion of Iraq in 2003, is to withdraw all its troops in July 2009. Some 4,100 British troops are stationed in Iraq, the second largest contingent after US troops.

British forces, at the beginning of January, handed over Basra International Airport, their main base in southern Iraq, to Iraqi authorities. The port city is 590 kilometres south of Baghdad.

On March 31, the British military formally transferred control of its base in Basra to US forces in a military ceremony attended by Iraqi leaders. (dpa)