Libya has closed its airports and severed phone links with the outside world in the latest demand for compensation from former colonial power, Italy.

People who phoned Libya received a recorded message: "As part of the mourning over the victims of the savage crimes committed by the Italian fascists against the Libyan people, all international telecommunications are to be halted today."

Gaddafi's protests continue despite apology

Libyans wore black to mark the Day of Mourning and black banners fluttered over homes, government buildings, buses and cars said the official Libyan news agency, JANA.

Airports were closed down, but opened briefly for a visit by Amr Moussa, secretary general of the Arab League, which Libya is threatening to leave.

Libyan satellite television broadcast its programmes in black and white on Saturday.

Italy payment

The Italian occupation of Libya began in 1911.

Allied troops ended the Italian occupation during World War II and the United Nations declared Libya an independent state in 1952.

In the 1980s and 90s, Libyan leader Muammar Gaddafi repeatedly demanded reparations from Italy for the colonial period.

Italy replied that it had settled all obligations in a payment worth $6.7m in 1956.

And in 1998, the Italian and Libyan governments signed an agreement ending the conflict.

Cordial relations

Italy apologised for deporting unknown thousands of Libyans to barren islands in southern Italy, where thousands died because of disease, famine and bad weather.

But the protests have stood and Libya has held an annual Day of Mourning.

Apart from the protest, relations between Italy and Libya are currently cordial.

Italian Prime Minister Silvio Berlusconi is scheduled to pay a one-day visit to Libya on Monday. Italy imports oil and natural gas from Libya.