France and Emirates sign key nuclear, military deals (Roundup)

Jan 15, 2008, 12:55 GMT

Abu Dhabi - French President Nicolas Sarkozy sealed a key deal for a civil nuclear project in the United Arab Emirates (UAE) on Tuesday afternoon, in addition to inking several cooperation agreements in the military and traditional energy fields.

'This (nuclear project) deal does not contradict the commitment of the Emirates to work with the countries of the Gulf Cooperation Council in the area of peaceful nuclear power use; this is an addition to our efforts in this area,' Emirates Foreign Minister Sheikh Abdullah Bin Zayed al-Nahyan told the press after striking the deal with his French counterpart Herve Morin.

Al-Nahyan added that the Emirates are currently immersed in high- level negotiations with the United States, Russia, Germany, China, Japan, South Korea and the United Kingdom, over its anticipated civil nuclear programme and its draft policy.

'We are in preparations to seek similar direct consultation with the International Atomic Energy Agency,' added the minister.

The Emirates' official news agency WAM said that the pair also signed a defence cooperation deal in Abu Dhabi's Musharraf Palace.

Under this defence agreement, Sarkozy signed a memorandum of understanding on establishing a permanent French naval base in the port city of Abu Dhabi, Arab broadcaster al-Jazeera said citing unnamed French sources.

This deal also secures long-term bilateral relations between Paris and Abu Dhabi in the military sector.

Sarkozy's UAE visit is the third and final leg of his Gulf tour, which had previously taken him to Saudi Arabia and Qatar.

Before leaving Qatar, Sarkozy had told the Arab television broadcaster al-Jazeera that Arab countries should not be banned from using nuclear power for peaceful purposes.

The president predicted that 'in 40 years from now there will be no oil left and in 100 years no more gas,' and so nuclear power, in his view, will replace both resources.

'It is the energy of the future,' he told the press.

The French president had discussed in Riyadh and Doha cooperation deals worth some 40 billion euros (59.4 billion dollars), most of which are expected to be sealed in the next few months, according to pan-Arab newspaper al-Hayat.

France and Qatar also signed protocols managing their cooperation in the energy sectors - traditional, renewable and nuclear.

Sarkozy, accompanied by the heads of top French firms, including Areva Transmission and Distribution and oil company Total, had already inked energy agreements that include transporting electrical equipment worth up to 500 million euros to Qatar, which is flush with cash and investment opportunities, and abundant in oil.

In the UAE, Sarkozy's visit also extended France-UAE economic, education and cultural ties and saw the signing of three memorandums of understanding in the fields of transportation, education and protection of intellectual property.

French ambassador to Abu Dhabi Patrice Paoli had earlier told the country's official news agency that Sarkozy's visit was 'important and will translate mutual intentions and commitments' between the two countries in many fields.

In addition to the commercial, military and civil deals, rounding off his visit to the Emirates, the president held talks with the head of the state Sheikh Khalifah Bin Zayed al-Nahyan regarding regional issues of concern, including the Lebanese political standoff and the controversial Iranian nuclear programme.

During the first leg of his tour in Saudi Arabia, Sarkozy had signed four bilateral agreements covering the areas of oil and gas, political cooperation, investment, and education and vocational training.

Before leaving Riyadh, Sarkozy criticized the high price of oil, currently hovering at around 100 dollars a barrel. His comments echoed similar sentiments expressed by US President George W Bush, also currently on a Mideast tour.

'When the price of oil increases three-fold in four years to reach 100 dollars per barrel, I feel perturbed about the nature of such increases,' said Sarkozy, who questioned the effects of the rocketing cost on purchasing power and on poorer nations with a shortage of alternative energy resources.

'We believe that the realistic price for oil should be 70 dollars,' he added.

His statements sparked a reaction from Qatari Energy Minister Abdullah Bin Hamad al-Attiyah, who said that the rise to the 100- dollar mark was a fleeting development connected to fluctuations and traffic in the market.