Answering questions put by this newspaper, Mr Dalli said Malta had an understanding of North African, Mediterranean and Middle Eastern ways and could contribute towards peace in all these regions.

Mr Dalli was speaking through real-time video conferencing, provided locally by Datastream, from London. Mr Dalli explained that his meeting with Mr Powell was the first between a Maltese foreign minister and a US counterpart.

Mr Dalli explained: “Malta is friends with everyone and everyone is friends with Malta. No one is scared of us or suspicious of our intentions.” He said the Maltese government wanted to contribute to the world and wanted to be pro-active in the peace-fostering process.

Mr Dalli said that after 1 May, the importance previously given to Malta as a small island of 400,000 people could not be compared to the importance it is now given as a fully fledged European Union member.

“We are now being seen as a decision-maker within the EU. The perception we get is that Malta is treated with much more importance now, proportional to our demographics and dimensions,” he said.

He said that he and Mr Powell spoke of the special relationships Malta has with North African countries. “And it seems that everyone agrees with empowerment of those who can foster dialogue and peace in troubled regions. The US recognises that we have special areas of expertise in diplomacy,” said Mr Dalli.

Mr Dalli and Mr Powell also spoke about the return of Libya to the world of politics. He said that both Malta and the US were happy that the North African nation had decided to get rid of its stockpiled weapons of mass destruction. He also said that he had told Mr Powell that Malta had the credentials for US businesses wishing to deal with North African nations to base their operations in Malta.

“We also spoke about terrorism, and Mr Powell thanked the people of Malta for our cooperation in fighting terror. I told him that Malta wanted to eradicate terrorism, not to look good with other nations, but because we sincerely believe that there is no place for it in our world,” he said.

He also explained that he and Mr Powell spoke about the situation in Iraq, especially in view of the pictures of Iraqi detainees being subjected to inhumane treatment. “He was disgusted. Both the US and Malta agree that Iraq should be given back to the Iraqi people and that it regains its sovereignty,” he said.

The meeting lasted for 40 minutes and Mr Dalli invited Mr Powell to visit Malta. He also met senator John Sununu, and Senate Finance Committee president Chuck Grassley. He also met George W. Bush’s national security assistant consultant Stephen Hadley.