France plays nuclear card

France plays nuclear card
By Ben Hall, Financial Times Published: December 24, 2007, 22:58

Paris: President Nicolas Sarkozy of France will next month step up his use of civil nuclear power as a diplomatic tool, with a visit to the Gulf states in which he will pledge French help to acquire atomic energy.

The offer of collaboration on civil nuclear energy and, over the longer term, of functioning nuclear power stations, has emerged as one of Sarkozy's preferred methods of projecting French influence across the world, particularly in Muslim countries.

Since becoming president in May he has signed nuclear co-operation agreements with Morocco, Algeria and Libya as well as overseeing the sale of two nuclear power stations to China. France is also looking to provide nuclear facilities or technical assistance to Egypt, Jordan and some Gulf countries.

Sarkozy is playing to French strengths. His country is a world leader in nuclear reactor design and construction, the supply of nuclear fuel and the treatment of waste. Each of the potential nuclear suppliers during the long process towards acquiring a nuclear plant is owned by the French state. Some French observers argue that Sarkozy's nuclear salesmanship is simply part of a mercantilist policy of boosting French exports.

"It's another business issue in a foreign policy reduced to PR stunts and commercial goals," said Pierre Moscovici, Socialist foreign affairs spokesman. But others detect a deliberate diplomatic strategy to use nuclear power for political ends.

Message to Tehran

"Is this mercantilism? No," said Bruno Tertrais of the Paris-based Foundation for Strategic Research. "For the very simple reason that the industrialists have many other customers they would rather be dealing with."

For French companies the most attractive markets are China, India, the US and the UK, as well as some of the more developed Arab countries. France's agreements with Libya and Algeria concern training and assistance to put in place the right regulatory framework and are the very first stage in a 15- to 20-year process for building a nuclear plant.

"It is primarily a political statement aimed at Iran and intended to show that France is not denying the benefits of peaceful nuclear programmes to developing countries," said Tertrais.

Sarkozy has taken a tough line against Iran over allegations it was developing a nuclear weapons programme under the guise of a civil energy project. French collaboration on atomic power would help to show Iran that compliance with international obligations has its rewards.