Friday, October 27, 1995


   CANBERRA, Oct 27 (Reuter) -- France has threatened legal action
against Australia's smallest state, saying the state's anti-nuclear
boycott of French goods could be a discriminatory act under trade rules
that may be punished with heavy fines.
   The parliament of the Australian Capital Territory (ACT), Australia's
smallest regional government with less than 350,000 people and a land
mass smaller than many Australian sheep stations, voted last month to
ban government purchases of new French products.
   Territory chief minister Kate Carnell said on Friday her government
would not bow to the threats.
   Carnell has released a copy of a letter written to her by French
Ambassador Dominique Girard in which the threat is made.
   "Such an attitude could constitute a discriminatory act, according to
treaties and conventions governing international trade, and could lead
to legal proceedings being undertaken by the competent national or
international judicial authorities," Girard said in the letter.
   "No doubt the French government and the enterprises involved would
use every means at their disposal to prosecute if such actions were to
go ahead, and to obtain the heaviest possible penalties, particularly on
financial grounds, from a public authority instigating such an
initiative," he said.
   Carnell said the threat would not prevent the boycott of products,
which was likely to affect purchases worth only a few million dollars.
   "I'm very disappointed at the French ambassador's position on this,
to suggest legal action against the little old ACT, which feels strongly
about an important issue to the whole region," Carnell told local radio.
   Australia's federal government has vigorously opposed France's
resumption of nuclear testing in the South Pacific, but has studiously
avoided trade sanctions which would contravene world trade rules.
   Australia's protests have been confined so far to sanctions on
defence ties and contracts and diplomatic protests.
   France resumed what it says is its last series of nuclear tests at
its South Pacific test site last month and plans another four before May
next year.