( AP ) - French President Nicolas Sarkozy called his country's past colonial system "profoundly unjust" Monday in a step toward ending decades of rancor with Algeria, once the crown jewel among French colonies.
France in the past has steadfastly rebuffed entreaties, notably from Algeria, to apologize for an era marked by humiliation and brutality in some colonies.
"Yes, the colonial system was profoundly unjust, contrary to the three founding words of our Republic: liberty, equality, fraternity," Sarkozy said at the start of a three-day state visit to Algeria.
The French leader was looking to seal billions of dollars in contracts with the gas-rich North African nation. He announced that more than $7.3 billion in contracts were to be signed Tuesday, among them gas projects and infrastructure initiatives including a long-stalled subway for Algiers. There will also be an accord on "civilian nuclear energy," Sarkozy told French and Algerian business leaders without elaborating.
The friction over the colonial era has complicated ties between France and Algeria for years. Tensions increased last week when Algeria's veterans affairs minister, Mohamed Chedif Abbas, said Sarkozy won the presidency because he was backed by a "Jewish lobby."
Algerian President Abdelaziz Bouteflika called Sarkozy several days later to distance himself from the minister's comments.
On Monday, Sarkozy appealed for both France and Algeria to fight "all forms of racism."
"There is nothing that more closely resembles anti-Semitism than Islamophobia. Both have the same face: that of stupidity and hate," said Sarkozy, whose maternal grandfather was Jewish.
Sarkozy went part way toward satisfying the Algeria's longtime demand that France apologize for its actions as the colonial ruler.
He did not say France should assume full responsibility for the brutality of an eight-year war that led to Algeria's independence in 1962.
"Terrible crimes were committed throughout an independence war that left ... victims on both sides," Sarkozy said. "It is all of the victims that I wish to honor."
The French and Algerian presidents planned to sign a partnership treaty. Aides called it a "simplified" version of a friendship treaty that was frozen after France passed a 2005 law spelling out the "positive" effects of colonialism. The law was rescinded but anger built up nevertheless.