LONDON, Dec 21: Libya said on Sunday its decision to abandon secret efforts to build an atomic bomb and chemical weapons was driven by a need to develop its economy and boost the living standards of its people.

But Britain, which played a key role in talks that persuaded Tripoli to abandon its arms ambitions, said the fate that befell Iraq and its leader Saddam Hussein may have prompted the move.

Libya’s step, which could lead to the end of US sanctions and the return of US oil companies, marks an about-face for Muammar Qadhafi, the country’s leader for 34 years.

“We are turning our swords into ploughshares and this step should be appreciated and followed by all other countries,” Libyan Prime Minister Shokri Ghanem told the BBC, adding that economic progress was more important than arms.

Britain, pivotal in isolating Libya after the Lockerbie bombing 15 years ago on Sunday, drew a comparison with Iraq, suggesting the fortunes of its deposed leader might have been different had Baghdad been more forthcoming over arms.

“We showed after Saddam Hussein failed to cooperate with the United Nations that we meant business and Libya, and I hope other countries, will draw that lesson,” Defence Secretary Geoff Hoon told Britain’s Sky television.

The United States and Britain accused Saddam of developing banned arms, though none have been found since they invaded Iraq in March to topple him, despite fierce opposition from other UN Security Council members.

US intelligence officials said Qadhafi seemed the driving force behind the decision to come clean announced on Friday, and his motivation may have ranged from concerns about the Iraq war and a desire to rejoin the international community to concerns about domestic threats to his own rule.

WORLDWIDE PRAISE: Whatever the reason, Qadhafi’s decision won praise from around the world, notably from US President George W. Bush and British Prime Minister Tony Blair but also from European and Arab leaders who were strongly critical of their war on Iraq.