BEIRUT -- Malaysian Prime Minister Mahathir Mohamad called on the first day of a visit here Monday for closer economic links with Beirut following talks with his Lebanese counterpart, 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, AFP reported.

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 privatize electricity, also we would like to see Malaysian businessmen participate to privatize 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 $600 million in the form of loans and low-interest bond subscriptions, also met President Emile Lahoud.

CAPTION Lebanese Prime Minister Rafik al-Hariri (L) reviews the honor guards with Malaysian Prime Minister Mahathir Mohamad upon his arrival in Beirut January 20, 2003.