The White House said President George Bush has called Libyan leader Moammar Gadhafi to thank him for following through on a pledge that settles a long-standing dispute between the two countries over terrorist attacks in the 1980s.

France announced plans to sell nuclear reactors to Libya as well as 10 billion euros of trade deals, as President Nicolas Sarkozy welcomed Libyan leader Moamer Kadhafi for a five-day visit.