Washington: The United States has resumed direct diplomatic ties with Libya after a 24-year break, even as the Bush administration pursued reports that Moammar Gaddafi had taken part in a plot to assassinate Saudi Arabia's Crown Prince.

The announcement was made in Tripoli yesterday (June 29, 2004) by Assistant Secretary of State William J Burns after talks with Gaddafi, and also at the State Department.

Burns inaugurated a new US liaison office in Tripoli in what was the latest move by the Bush administration to reciprocate Gaddafi's promise last December to dismantle his chemical, biological and nuclear weapons programmes.

Burns said that he and J Cofer Black, who heads the State Department's office to counter terrorism, had discussed with Gaddafi "recent public allegations regarding Libya and Saudi Arabia".

At the State Department, spokesman Adam Ereli said, "I think we made clear our concerns about the story" concerning an alleged plot against Saudi Crown Prince Abdullah.

Burns said the two sides "held detailed discussions on Libya's commitment to support the global war on terrorism, to repudiate the use of violence for political purposes and to implement its pledge to cease all support for terrorism".

Libya is one of seven nations annually branded as sponsors of terror by the Department.

Burns, who is the senior Department official dealing with the Middle East, gave no indication in his statement what Gaddafi may have said about the plot reports.