Fed: Costello backs tough stance against France on Iraq

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Fed: Costello backs tough stance against France on Iraq

By Krista Hughes, Economics Correspondent

CANBERRA, April 30 AAP - Treasurer Peter Costello today backed Australia's tough stanceagainst France over the war in Iraq but said he hoped it would not damage the relationshipbetween the two countries.

Australia criticised France for its opposition to the war, with Prime Minister JohnHoward accusing France of opportunism and hypocrisy after it threatened to veto any UnitedNations support for military action.

In Paris to attend a meeting of Organisation for Economic Cooperation and Developmentministers, Mr Costello said Australia and France had a good relationship, despite differencesover Iraq and farm subsidies.

But he said Australia did not regret the strength of its stance against France on Iraq,as reflected in Mr Howard's comments.

"No, we were part of the coalition of the willing," Mr Costello said in an interviewon French TV news channel LCI last night.

"We had troops in Iraq and they made a very significant contribution, and we are pleasedwith the outcome in Iraq.

"But we always try (to) keep differences in proportion.

"We had a difference over Iraq, but that doesn't jeopardise the whole of the relationship.

"We have enjoyed a good relationship with France in the past, and we hope to continue that."

French President Jacques Chirac is expected to visit Australia in late July, the firstvisit to Australia by a French president.

Australia's trade with France is worth $4.7 billion a year, including $1.5 billionin exports, while French companies have plunged $9.1 billion into Australia and employabout 80,000 people locally.

Mr Costello denied the spat over Iraq would jeopardise defence contracts with Frenchcompanies including Australian Defence Industries - half-owned by French giant Thales- and garrison caterers Sodexho.

"Our view in relation to defence is that where we stipulate a product and it meetsour specifications and our price, and we enter a contract, then we honour it," he said.

"A good product for a good price is what interests us."

"In relation to any future contracts, obviously the Thales interest will not affectADI, provided it delivers value for money."

Mr Costello was noncommittal about Australia's chances of participating in the European-basedAirbus A400M program for a next generation large transport aircraft.

"I do not know that we have any plans to actually engage in construction, but of courseas a supplier of military hardware we always look at the projects which are coming fromall around the world," he said.

AAP kmh/sb/gl/bwl

KEYWORD: IRAQ FRANCE COSTELLO