US/France talks on French oil deal with Iran

The US Under Secretary of State for Political Affairs, Thomas Pickering, is holding talks in Paris aimed at averting trade sanctions over a two billion dollar natural gas deal between France and Iran.

An American law of 1996 penalises companies that invest more than forty million dollars in the oil and gas sectors of Iran and Libya.

But correspondents say there is concern in Washington that imposing trade sanctions would complicate already difficult relations with an important ally and could destroy the momentum for better ties with Iran.

The Iranian President, Mohammed Khatami, is due to address the American people on CNN later today.

A French foreign ministry spokesman said other issues would also be raised in the talks in Paris, including the Middle East peace process, Iraq and possibly the latest violence in Algeria.

From the newsroom of the BBC World Service