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re French press on US Sanctions, Ir (r)



Subject: re French press on US Sanctions, Iran, TOTAL

Paris -- French national newspapers, as well as the economic press here 
reported presidential decision on U.S. sanctions against Libya and Iran 
with leading front-page stories followed immediately with full page (Le 
Monde) and double page (Liberation) articles. Le Monde's story titled " 
L'Europe menace Washington de représailles commerciales ", shouts back 
defiantly against the american legislation, and incredulously boasts 
about the French press being "strongly congratulated " by the Iranian 
press "over the hostile and unanimous reaction of the Europeans ". Le 
Monde follows its story with a less than detailed report of European 
business investment in Libya and Iran. However, apart from the hysterical 
raving about retailations and counter-measures, it eventually gets to the 
story of TOTAL's situation. (TOTAL is an active advertiser in both Le 
Monde and Liberation). 

Le Monde reports that the french oil company signed last July 1995 a $600 
million contact for development of the Sirri A and E fields, after the 
american company Conoco was forced to abandon its investment there owing 
to the embargo. Work had only just begun on the fields a few weeks ago, 
with production to start in 1998, reports Le Monde. 

Last February, TOTAL Ceo Thierry Desmarest, rejected the argument that 
TOTAL " took the place of Conoco ", saying, " We had been in negotiation 
with the Iranians long before that, around four to five years before, but 
the americans abandoned because of the US embargo. " When we sigtned, 
TOTAL respected all outstanding international and french legislation. "

Liberation (August 6 1996), quite to the contrary of Le Monde, shows 
President Clinton in a favorable light, with a front page photo of the 
president signing the legislation under the headline "Terrorism : Europe 
revolts against Clinton. America wants to hit hard companies investing in 
Iran and Libya.On the inside story, page 2-3, a proudly principled and 
defiant Mr. Clinton is pictured in a half-page photo giving the military 
salute to students against  a backdrop " The George Washington 
University, Washington D.C.. The photo caption reads, "The american 
president affirmed that the United States is a country where not just 
anything goes. " 

The Liberation story clearly signels out TOTAL as target of the U.S. 
sanctions (" TOTAL finds itself on the front line ; the french company 
recently invested in Iran and Libya "). The story is accompanied by a 
page 2 editorial by Pierre Briancon, if not favorable to the call for 
sanctions, certainly not hostile and most critical of the failure of 
Europeans to come up with a feasible alternative while having more than 
enough time to do it


TOTAL's investment is described in detail, contract signed July 1995, the 
sole foreign investor to have renewed business with Iran since the fall 
of the Shah in 1979. Production estimated to begin in 1998 at 120,000 
barrels per day, with 485 million barrels in reserve deposits. " A return 
to the source by the company that was orginally created to expoit persian 
oil ". The deal is expected to bring to Iran more than $10 billion (60 
billion francs) and $600 million (3,6 milliards francs) from gaz 
deposits. In fact, last March 1995, Conoco won the Iran contract but had 
to renounce it over the US embargo at that time. Shell, interested in the 
fields there, also abandoned over the embargo. Undeterred at the time, 
the French went in alone.  In Libya, TOTAL operates the Mabruk fields, 
beginning production in February 1995, extracting 10 000 barrels per day, 
then  finding a partner in the Norwegian company Saga. And so on and so 
on.

Libé cites TOTAL's business in the United States at 15,6 billion francs 
(roughly a little more than $3 billion), representing 11% of TOTAL's  
combined sales from drilling, refineries, and sales of gaz. TOTAL US also 
has a huge distribution network of some 2 000 service stations.

Meanwhile, TOTAL claims the US sanctions laws are not retroactive, and 
anticipates European Union and French government intervention to protect 
their investments.

Libé also cites the following figures : 90% of Irans foreign earnings 
comes from sales of its hydrocarbon ressources. Iran produces 3.6 
millions of barrels a day.

20 % of European oil comes from Libya and Iran

8.1  billion francs ($1.2 billion) , 1995 German exports to Iran, an 2.8 
billion francs for France

7.1 billion frances of Iranian imports to France(90% oil). Iran is the 49 
th ranking buyer and 29th ranking seller to France