BEIRUT - Malaysian Prime Minister Dr Mahathir Mohamad called on the first day of a visit here yesterday for closer economic links with Beirut following talks with his Lebanese opposite number Rafiq Hariri.

"I hope this visit together with businessmen from Malaysia would help to build a greater economic interaction between Lebanon and Malaysia," he told a press conference.

Mahathir, heading a delegation also including four ministers, said he was "amazed by the tremendous reconstruction" in downtown Beirut over the past five years since his last visit to post-war Lebanon.

Hariri was more specific in his call for closer economic ties, inviting the Malaysian business community to take part in gas exploration off Lebanon, as well as the country's mobile phone and telecommunications sectors.

"When the documentation is ready to privatise electricity, also we would like to see Malaysian businessmen participate to privatise electricity and water as well," Lebanon's prime minister said.

Officials said an accord on avoiding double taxation was signed during talks between the two countries, while Mahathir said that he was working to increase air links.

Mahathir, whose country has already aided Lebanon to the tune of US$600 million in the form of loans and low-interest bond subscriptions, also met President Emile Lahoud and is to visit tourist sites on Tuesday.

He is to travel on to Egypt later the same day. AFP