Mr Annan was speaking in the Western Saharan town of Laayoune, where he is on a personal mission to the territory, which is claimed by Morocco and fighters belonging to the Polasario Front campaigning for independence.

Moroccan television showed flag-waving crowds

Mr Annan is on a 10-day tour of North Africa as part of UN efforts to resolve the long-running conflict over the disputed territory of Western Sahara.

He was met by thousands of people chanting "the Sahara is Moroccan."

Moroccan TV said more than 100,000 people gathered to show their support for Morocco's King Hassan.

A UN-brokered referendum on the future of Western Sahara is scheduled for next year, but correspondents say it seems unlikely it will take place on time because of disagreement over voter registration.

Morocco annexed the territory in the mid-1970s, sparking a war with the Polisario Front, which lays claim to the territory. The guerrilla movement has been struggling for independence for the territory ever since.

Kofi Annan meets Interior Minister Driss Basri

Mr Annan, who was met on Sunday by Interior Minister Driss Basri, is due to have talks with King Hassan on Monday and Tuesday.

Later in the week he is due to meet Polisario leaders in Algeria, which supports the Western Saharan group's struggle for self-determination.

Algeria's position has led to the closure of the border with Morocco and a halt in attempts at regional co-operation.

Delayed referendum

The referendum on Western Saharan was first scheduled for 1992, but both sides are still squabbling over who has the right to vote.

The United Nations has spent tens of millions of dollars identifying more than 140,000 Western Saharan voters and it wants to end the registration process soon.

Some members of the Polisario Front have warned that unless the referendum is held soon, its guerrilla warfare could be resumed.

UN officials say Mr Annan is bringing fresh ideas to break the deadlock in what is one of Africa's most intractable disputes.