(AFP) updated version

Cuban President Fidel Castro held "friendly and warm" talks today with Prime Minister Dr Mahathir Mohamad after a red-carpet welcome and described them both as the "two mavericks."

Castro, leading a 200-strong delegation on his first visit here, was given a full-scale ceremonial welcome in Kuala Lumpur by the Yang di-Pertuan Agong before being driven down south to the new administrative capital of Putrajaya.

The colourful Cuban leader, posing for photographs with Mahathir at Putrajaya after private talks, showed the victory sign and described both of them as the "two mavericks."

The two leaders also led a delegation meeting and later witnessed the signing of an agreement to boost economic, scientific and technical cooperation by their respective foreign ministers.

Castro and Mahathir shared many common views about globalisation and talked about creating a more just and equitable world order, said Foreign Minister Syed Hamid Albar.

Cooperation

They backed the need for a centre to research and collate the views of the Group of 77 developing nations on world economic, trade and financial issues, Syed Hamid told a press conference.

"Both leaders agree that developing countries need to come together, need to be able to understand the issues and tackle them in a very intellectual and articulated way," he said.

The foreign minister said the cooperation pact would provide the framework for economic and trade expansion, the exchanges of scientists and research work as well as training for Cuban officials.

Malaysia has also agreed to grant another RM57 million (US$15 million) in credit to Cuba to buy its palmoil.

He said the two leaders also discussed cooperation in research, agriculture and medical projects, with Castro urging Malaysians to invest in Cuba's tourism industry and explore business joint ventures.

Talks were "very very friendly and warm, like between friends," Syed Hamid said.

Warm welcome

Castro, who was earlier taken by Mahathir to the roof of the prime minister's department for a view of Putrajaya, was very impressed with the new city.

"He said some people may see projects like this in Putrajaya negatively but history will judge it is a correct project," Syed Hamid said.

Earlier in Kuala Lumpur, Malaysian King Sultan Salahuddin Abdul Aziz Shah, welcomed Castro at the Parliament Square. A military band played both national anthems and a 21-gun salute was fired.

Castro, who arrived in a bulletproof limousine, inspected a guard of honour from the Royal Malay Regiment and met ministers and diplomats.

Earlier in his tour Castro visited Algeria and Iran, which, like Malaysia, are members of the Group of 77 that held a summit in Havana a year ago.

Mahathir attended that summit and also visited Cuba in 1997.

Tight security

Tomorrow the Cuban leader will visit the Petronas Twin Towers, the world's tallest buildings, and have a private dinner with Mahathir. He leaves Sunday morning and is due to stop over in Qatar on his way home.

Security was tight for the visit, with a police helicopter escorting Castro on his journeys and Cuba sending a 60-member security force.

Castro, 74, says he has been targetted by scores of assassination attempts since he came to power 42 years ago.