Libyan Foreign Minister Mousa Kousa this afternoon praised Malta, Italy, Spain and Portugal for the stand they are taking in the ongoing dispute between his country and Switzerland which had drawn in all Schengen area countries.

Speaking in Sirte, Mr Kousa repeated Libya's call for Switzerland to withdraw its Schengen area blacklist of some 180 senior Libyan officials and said Schengen rules should not be used in this way.

Mr Kousa did not announce any change in Libya's position of banning entry to all travellers from Schengen area countries, but a number of Italian unskilled workers were allowed into Libya last night and this morning.

A few Maltese were also allowed in today, although most were sent back. It was unclear what criteria were used in the choice of Maltese who were allowed in.

Maltese Foreign Minister Tonio Borg and Italian Foreign Minister Franco Frattini last month crticised the Swiss action and had talks with Mr Kousa in Rome.

A Foreign Ministry spokesman said Dr Borg and Sig Frattini remained in regular contact over the issue.

Progress towards a resolution to the problem appeared to have been made yesterday after Hannibal Gaddafi, the Libyan leader's son, met in jail a Swiss businessman who has been detained in Tripoli since Hannibal himself was briefly arrested in Geneva.

Maltese workers in Libya have been extending their stay there for as long as their visa allows because they are afraid their replacements will not be allowed into the country.