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Last Updated: Thursday, 24 April, 2003, 15:18 GMT 16:18 UK
Call to rebuild US-French ties
The depth of France's opposition to the war in Iraq came as a "shock" to Britain and the United States, the UK ambassador to France has said.

Sir John Holmes was speaking at a gathering in Paris of representatives of the French and British business communities.

Despite the difference of opinion about the method of dealing with Saddam Hussein, Sir John insisted that Britain and France had more ground in common than that which divided them.

His address followed another downturn in relations between the US and France, heightening concerns among French businesses with commercial links in North America.

The French business community is extremely worried now they'll be out of Iraq
Olivier Guez
Business journalist

Sir John told the meeting of the Franco-British Chamber of Commerce: "That France should not agree on how to deal with Saddam Hussein is not, perhaps, a big surprise.

"Ever since the first Gulf War there have been differences of approach over Iraq.

"However, the extent to which France was prepared to take its opposition to the US and UK, and its apparent interest in building an alternative security alliance with Berlin and Moscow, undoubtedly came as a shock.

"Once the immediate dust has settled, we really do need to sit down together to work out how we should relate to the world's remaining superpower."

'Force for good'

The ambassador said this would focus on whether Europe should regard America as "our main basic ally and a continuing force for good in the world, rather than something akin to a rogue country itself, which Europe has to try to control from the outside, as some here seem to regard the US".

"This may be a difficult and complicated discussion," he warned.

Some companies are deeply concerned for the future after US Secretary of State Colin Powell said France would face the consequences for failing to support the war in Iraq.

Wine in Paris shop window
Once people forget about French wines, it's very difficult to come back - especially in America
Louis Latour
Wine producer

Last year, French exports to the US were valued at almost $28.5bn but at the same time France has closer trading ties with Iraq than any other European country.

In August 2002, the car manufacturer Peugeot signed a $77m deal with Iraqi businessmen. It is not clear if the US will invite Peugeot to honour the agreement.

Olivier Guez, a journalist on France's leading business paper La Tribune, said: "The French business community is extremely worried now they'll be out of Iraq.

"They've been working with the Iraqis for 30 years and have built up extremely close commercial ties.

"The US won't work with the French as first France sold weapons, like many other countries, to Iraq and above all because France didn't support the Anglo-American coalition to invade and topple Saddam."

Letter to Chirac

Wine producers have held an emergency meeting in Paris and plan to write to President Jacques Chirac warning that their businesses are suffering because of his stance.

Before the war, about 40% of Maison Latour's wine was shipped from its vineyards in Bourgogne to America. A boycott there has seen sales drop by up to 15%.

Director Louis Latour said: "We want to convey a message to President Chirac to make him aware of the wine situation in America, how we are affected, how they refuse to promote our wines any more.

"Once people forget about French wines, it's very difficult to come back - especially in America."




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