“It is a material and emotional recognition of the mistakes that our country has done to yours during the colonial era,” Mr. Berlusconi told reporters at the airport on his arrival. “This agreement opens the path to further cooperation.”

In return, Italy wants Libya to crack down on the thousands of illegal migrants smuggled across the Mediterranean to Italian shores. Libya largely hasn’t delivered on pledges over the last few years to eliminate the problem.

Italy will fund $500 million worth of electronic monitoring devices on the Libyan coastline.

With the agreement, there should be “fewer clandestine migrants leaving Libyan shores for Italian” coastlines, Mr. Berlusconi told reporters in Libya in comments carried Aug. 30 on Italian state TV.

Rome is also keen on increasing its already long-consolidated energy ties with Tripoli. Libya is a big supplier of natural gas and oil to Italy.

Mr. Berlusconi said the agreement helps open the way to more “gas possibilities, possibilities for Libyan oil, which is of the best quality.”

Col. Gadhafi received Mr. Berlusconi under a big tent in Benghazi where they discussed the agreement over lunch. The Italian leader said $200 million of the package would be for infrastructure projects over the next 25 years, including a coastal highway stretching across the country from Tunisia to Egypt.

Relations between the two countries have warmed over the last few years, with Italian leaders meeting Gadhafi several times. However, it has taken years of negotiations for the two sides to reach a deal on compensation for Italy’s rule over Libya from 1911 to 1943. Libya also named Aug. 30 Libyan-Italian Friendship Day.

—Associated Press

Related links:

Jamaican attorney makes case for slavery reparations (FCN, 11-16-2007)

Reparations: What does America and Europe Owe? (FCN, 02-29-2004)

Haiti makes its case for reparations (FCN, 02-10-2004)

Gadhafi calls for reparations for African slave trade (FCN, 09-21-1999)