BRUSSELS - Belgium's Senate Friday cleared new legislation to replace a controversial war crimes law, drawing a line under a row that placed the small European nation at bitter odds with the United States, AFP said.

The new legislation, a watered-down version of the 10-year-old "universal competence" law, went through the upper house of parliament by 39 votes to four, with 20 abstentions.

The revised law passed the Chamber of Representatives on Tuesday by an overwhelming margin.

Human-rights groups have cried foul over the end to a trail-blazing piece of legislation that had given Belgian courts the right to try anyone accused of war crimes, crimes against humanity or genocide.

But Guy Verhofstadt, who was re-appointed prime minister last month after winning elections in May, stood firm in wanting to end an acrimonious chapter in Belgium's foreign relations by scrapping the law.

Verhofstadt said the change, the first decision taken by his new government after it took office for a second term, would "prevent our legal system from being abused" without "affecting the essence" of the law.

The 1993 law had already dragged Belgium into a diplomatic minefield on several occasions before cases were brought against U.S. President George W. Bush and British Prime Minister Tony Blair, among others, accusing them of war crimes in Iraq.

The United States gave a highly measured reaction to Friday's vote, saying it appreciated the move but was unsure if it would address its concerns.

"We appreciate the Belgian government's efforts to change the law related to universal competence," State Department spokesman Richard Boucher said.

"Ultimately, as we've said, it's up to Belgium to resolve the problem and thus prevent the Belgian legal system from being haven for politically motivated war crimes cases," he told reporters.

"We hope that the legislation will be effective in this regard, but whether the problem is resolved will be judged by results: whether the complaints naming U.S. officials are dismissed and whether future ones are prevented," he said.

Washington, warning of serious consequences for Belgium's status as an international hub, threatened to cut off funding for a new NATO headquarters in Brussels unless the law was abrogated.

Israel was also infuriated by a case brought against Prime Minister Ariel Sharon over a 1982 massacre of Palestinian refugees in Beirut.

The new law only applies to Belgian nationals or people resident in Belgium. Foreign officials will enjoy immunity while in Belgium, removing the distant prospect of Blair being arrested during a European Union gathering in Brussels.

It will annul most cases currently before the courts, with the notable exception of charges brought by Belgian residents over incidents in Rwanda, Chad and Guatemala.

Other suits, such as the ones against Bush and Blair, have already been referred back to the countries' own jurisdictions, where they have been quietly shelved.

The United States, which was also angered by Belgium's stand against the war in Iraq, has given a cautious welcome to the scrapping of the old war crimes law.