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France has agreed a £2 billion deal to build nuclear power stations in the Gulf and in return has secured a military base there.
The French base in Abu Dhabi would accommodate up to 500 troops. It would probably serve as a maintenance station for France's naval vessels in the Gulf and could also be used as a springboard to send troops into the troubled region.
“France responds to its friends,” President Sarkozy said, calling the deal “a sign to all that France is participating in the stability of this region”.
The French moves followed an American promise to sell £10 billion of weaponry to Gulf states to help them to counter the influence of Iran.
Mr Sarkozy toured the region on the heels of President Bush, who is wrapping up his week-long visit today in Egypt. The timing of Mr Sarkozy's announcement hints at an emerging contest for clout in the Gulf, where Sunni countries are regarded as key allies for the West.
While the prime concern of Mr Bush has been to shore up support for his efforts to isolate Iran, Mr Sarkozy touted his trip as pure business. The French deal is poised to deliver a £3 billion windfall to French power companies including Areva, Total and Suez.
With the price of oil soaring to $100 a barrel, Gulf states are desperate to develop alternative energy sources to fuel refineries and construction in order to free up their own oil for export.
Nuclear power would also provide a cheap way of meeting the region's demand for desalinated water and electricity, which has skyrocketed as countries such as the United Arab Emirates pursue aggressive growth.
Under the agreements, French companies would develop civilian nuclear energy in Gulf countries including Saudi Arabia, Qatar and the UAE. Some analysts worry that the build-up of nuclear capacity in the area could trigger a regional arms race with Iran. Others consider a Western-allied, nuclear-powered Gulf as presenting a possible way out of the crisis with Iran, which has huge economic ties to the UAE, just across the Strait of Hormuz.
“One could imagine a scenario where the Gulf becomes a place where Iran could base its enrichment facilities, overseen by a reputable third country,” said Michael Knights, a lead analyst at Olive Group, a security consultancy company.
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I actually think this is a good thing... the world over should reduce their draw on oil. Kudo's to France for building this station.
Daniel, Virginia, US,
I aggree, all countries should denouce nuclear power. The risk is to high. People like George Bush are mad enough to use them on us anytime. I dont trust him do you?
No nukes no bomb no reactor jus a simple no. New Zealand did it so can the US.
Paul, Ipswich, QLD
it is umpossible to do a nuclear bomb with the generation of french nuclear power station, for me it is a good think that it western country who built them rather than the russian.
remy, liverpool , england
With an unstable Pakistan already possessing nuclear weapons, and Iran aggresively seeking nuclear weapons, the other Gulf States obviously feel the need for their own nuclear bombs. The first step is to build a nuclear power plant so they can obtain the fissile plutonium contained in the spent fuel.
Peter Grynch, Chicago, IL, USA
nucular power,refineries. when will we get on the ball.we are so far behind. we would be self sufficient,and need no one.look at the money we can save.we have plenty of oil.
michael, new port richie, united states florida
Looks like the Russians and the French are going to give all of the Middle East ready access to nuclear bomb making materials by building nuclear power plants all over the place. That's really nice isn't it. Why? Just so they can make a buck or two?
When these rogue states run by religious fanatics and kooks attack each other along with Israel and there are mushroom clouds popping up all over the Arab states we can only hope the fallout will blow over both Russia and France for being so incredibly irresponsible.
mike o'brien, seattle, usa
Sarko doesn't really care about iran or the gulf regional stability today ,but france economical problems and he's right.
today in france we are struggling under taxes set by 30 years of socialism... sarko is just putting a little bit of capitalism in our society, a bit of americanism.
eric, paris, france
This is great... the more nuclear power in the region the less likely they will be to attack anyone... as they will be obliterated as well. Besides... nuclear power is the cleanest and most efficient. Just keep the Russians away from designing and maintaining them and I think we will be fine. (Google Search on Chernobyl) Maybe the United States should re-start up the program of building nuclear reactors.... and don't forget... maybe a new refinery!! Lord knows the Tree-Huggers are opposed to anything that is forward thinking. Lib's need to get a clue... Nuclear is the key!! Also, to stop our country from relying on foreign oil... how allowing the oil industry to tap into the 85% of known oil fields in our country that the Enviro-wackos are preventing us from getting to!! Let's use our brains people!! Oh yea... lets do ethanol... it burns dirtier than gasoline! DOH!!! Good for France and good for Sarkozy... he has a hot new wife... and is making the right moves for his country!!
Miles K, Murrieta, CA
How delightful. The oil producing countries of the Middle East build nuclear power plants to free up more oil for export. Meanwhile, liberals in the US block the building of nuclear power plants in the US leaving us dependent on Middle East oil. The result: High gas prices here and Nuclear capability in the turbulent Middle East. Brilliant. Thanks Lefties!
Bea, Los Angeles, USA
What king of deal Sarko made with Bush to get all these deals in this region otherwise restricted to US interest?
john darbauj, monterey park, USA