Sarkozy seeks deeper Libya ties after medics freed

PARIS, July 25 (Reuters) French President Nicolas Sarkozy travels to Libya today, seeking to deepen political and commercial links with the oil-rich nation after helping to free six foreign medics whose detention soured ties with the West.

Libya yesterday freed the medics after agreeing a partnership deal with the European Union. The five Bulgarian nurses and a Palestinian doctor had been held for more than eight years and convicted of infecting hundreds of Libyan children with the virus that causes AIDS.

They flew home on a French presidential jet accompanied by Sarkozy's wife and European Union External Relations Commissioner Benita Ferrero-Waldner. Their release cleared the way for the French leader's visit.

Sarkozy said he wanted to help Libya return to the ''concert of nations'' after being isolated for more than three decades because of Western accusations that it supported terrorism.

But he will also pursue hard-nosed national business interests in Libya and widen French diplomatic influence in Africa.

''We are going to develop commercial relations with a country with which there is no reason that we would not have this kind of relationship,'' Economy Minister Christine Lagarde said on Wednesday on LCI television.

Relations between France and Libya deteriorated after an attack on a French airliner in 1989. France convicted six Libyans in absentia but Tripoli has denied responsibility.

Ties improved when the West lifted sanctions in 2003 and Libya abandoned its weapons of mass destruction programmes.

BANKS, PLANES AND ENERGY Sarkozy visited Libya in 2006 as interior minister but the the jailed medics were an obstacle to normalising relations.

''Of course they are going to get some contracts regarding the airport, regarding high tech, wherever the French are good,'' said Libya expert Saad Djebbar, a London-based Algerian lawyer.

''Conversely, if Sarkozy hadn't done what he has done it would have taken them a long time to find any space in Libya.'' France may also be looking to get into the Libyan arms market with a sale of Dassault Aviation's Rafale jet fighter, promote its banks and there is speculation about a sale of civil nuclear technology.

Libya has approached France's Areva about nuclear energy and earlier this month it selected BNP Paribas as a partner for Sahara Bank in the first partial privatisation.

''The three Maghreb countries and Libya are countries where French banks have got cards to play and they are playing them very well,'' said Lagarde.

Libya and France have also been strategic rivals for influence in west and central Africa for almost four decades but they may now have a chance to work together.

''On Darfur, the Libyans will work closely with Sarkozy. ...

Libya has influence in Sudan,'' said Djebbar.

Sarkozy is also expected to discuss his plans for a Mediterranean Union before travelling on to Senegal and Gabon.

REUTERS SBC KN1701