(Adds diplomat, Libyan officials on detail of talks) TRIPOLI, July 23 (Reuters) - Libya has asked for normalised relations with the European Union in talks over releasing six foreign medics jailed for infecting hundreds of children with HIV, an official source in Libya said on Monday. France's first lady and a top European Commission official flew to Libya on Sunday to try to secure the release to Bulgaria of the five Bulgarian nurses and a Palestinian doctor held in Libya for eight years on charges of infecting over 400 children with HIV. Libya requested a complete normalisation of the North African country's ties with EU states in the talks, the official said, without giving further details. But a French diplomat familiar with the discussions said the main obstacle was still money, not diplomatic recognition, with the Libyans holding out for more foreign cash and the EU refusing to pay compensation that might suggest an admission the medics are guilty. Other officials in Tripoli said the Libyans were asking the EU to contribute more money to modernise a health centre in Benghazi where the infected children can be treated and help pay for their treatment abroad if necessary. Bulgaria and its allies in the 27-member bloc say the nurses are innocent but they have provided long-term medical assistance to the victims and aid for the Benghazi hospital. (Additional reporting by Paul Taylor in Brussels)
