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President and Mrs Thabo Mbeki will on Monday - 17 November 2003 - depart for France where they will pay a State Visit until Wednesday, 19 November 2003.

President Mbeki will also be accompanied by the Ministers of Foreign Affairs, Dr Nkosazana Dlamini Zuma; Public Enterprises, Jeff Radebe; Trade and Industry, Alec Erwin; and Social Development, Zola Skweyiya.

Regular interaction between France and South Africa occurs within the Forum for Political Dialogue established in 1997. The annual consultation with the Minister of Foreign Affairs coincided with the visit of Minister Dominique de Villepin in June 2003. This forum consists of three expert groups: bilateral, multilateral, and issues of mutual interest.

France is a strategic partner for Africa and South Africa. In this regard, President Chirac was, in 1996, instrumental in placing the issue of debt relief on the G8 agenda during the Lyon summit when the terms for Highly Indebted Poor Countries (HIPCs) were first revised. He has since engaged in individual consultations with leaders from the South (including South Africa) that culminated during the G8 Evian summit in June 2003 in an invitation to leaders from emerging market economies as well as the New Partnership for Africa's Development (NEPAD) Steering Committee to attend additional consultations on the fringes of the Summit. He also invited these leaders to follow-up consultations held on the fringes of UNGA58.

In this regard objectives achieved during G-8 Evian Summit in June 2003 are as follows:

* The G8 expressed satisfaction with the progress report made by African leaders on the implementation of NEPAD

* African leaders expressed satisfaction regarding the report on the G8 Africa Action Plan

* Agreement between both sides was reached on the fact that NEPAD is a long term programme of between 15 to 20 years that required ongoing engagement, therefore there was agreement as to the need to continue to strengthen the partnership between Africa and the developed world by way of a broadened and structured engagement to include other development partners

* The G8 leaders supported the joint Africa/G8 Plan to enhance African capacity to support peace keeping operations

* African leaders welcomed the United States announcement of 15 billion dollars over 5 years for the treatment of HIV/AIDS in Africa and the Caribbean

* The European Union (EU) responded by pledging to spend 1 billion dollars per year towards the Global Health Fund

* The G8 committed to support long term agricultural sustainability and food security and to respond to emergency food aid needs of Africa

* Africa welcomed the announcement of the G8 on water

* The G8 meeting committed support in meeting the Millennium Development Goals and the Johannesburg World Summit on Sustainable Development Plan of Action in this regard

* France promised to double their support for water in Africa

* Agreement was reached that strong political leadership was required to address the slow progress in achieving the goals of the World Trade Organistion Doha Development Round and the current deadlock on the Geneva negotiation ahead of the Cancun Ministerial Conference particularly in the area of agricultural subsidies and other destabilising support measures

* The G8 leaders recognised the slow progress on the issue of debt and undertook to provide leadership to ensure that they met commitments made at their summit last year in this regard.

France has identified the bridging of the North-South divide, through multilateralism, as a foreign policy priority. In this regard President Chirac stated in his address to UNGA58 in September 2003, "the United Nations (UN) has just weathered one of the gravest trials in its history. The debate turned on respect for the Charter and the use of force. The war, embarked on without UN Security Council approval, has undermined the multilateral system. There is no alternative to the UN. But in the face of today's challenges, this fundamental choice, as expressed in the charter, calls for far-reaching reform of our organisation."

In addition, multilateralism further needs to be protected and strengthened as it the only means whereby the poor, marginalized and small nations of the world have a voice strong enough to raise their concerns at the global level.

Based on these policies, discussions between Heads of State as well as with Prime Minister Jean-Pierre Raffarin, are expected to focus on:

* African Union (AU)/NEPAD: Progress made in respect of AU institutionalisation, NEPAD and the G8 Africa Action Plan, conflict resolution efforts on the continent (role of the UN and African regional economic communities)

* Multilateral matters: Reform of the UN, outcome of the Cancun meeting and reform of the international financial architecture

* The Middle East: The Palestinian/Israeli conflict and post-war Iraq and reconstruction efforts.

Economic Relations

France is among South Africa' s ten most significant economic partners (ODA, trade and investment and research and development). France was the ninth largest export market for 2002 (R6,8 billion) and the seventh largest import market for 2002 (R11,3 billion). France is also the ninth foreign direct investor to South Africa ($531 million or R3 billion).

The South African subsidiary of French Air Liquide has entered into a joint venture with Community Investment Holdings (formerly known as Malesela Group) to form a new empowerment company, Air Liquide Healthcare. Both companies have equal stakes and are set to be the first direct empowerment deal between a foreign company and a local company. The new company will supply medical gas registered with the Medical Control Council, as well as provide equipment and services into the high growth health care industry.

France is also a major tourism partner and it is expected that South African Airways will benefit from the proposed merger between Air France and KLM.

France is perceived as one of the foremost strategic partners in the field of research and development through joint tertiary research cooperation projects (also benefiting previously disadvantaged institutions).

In addition, France will ratify the SA/EU Trade, Development and Cooperation Agreement (TDCA) (EU/SA TDCA), approved by the French Senate in June 2003, on 18 November 2003 when President TM Mbeki will address the National Assembly.

The Development Bank of Southern Africa (DBSA) and the French Development Agency (AfD) signed an agreement on the creation of a fund of ~2,8 million for the study of NEPAD projects on 18 October 2003. In terms of the agreement the DBSA and AfD will contribute in equal parts to the fund, which will be used to allocate grants to finance NEPAD project studies or any other preparatory activities. This effectively means that infrastructure development preparatory projects within NEPAD have been boosted by almost R25 million.

Projects to be financed will stem exclusively from the transport (road, air, shipping and rail), energy (generation, transmission and distribution), information and communications technologies as well as water and sanitation sectors. Projects will also have to have a regional or continental impact and priority will be accorded to public-private sector partnerships.

This agreement indicates the willingness of France to support the implementation of NEPAD in the long term. It was also clear that it represents a partnership in the real sense of the word, with the two institutions being equal participants.

While in Paris, President Mbeki will lay a wreath at the Tomb of the Unknown Soldier; receive courtesy calls from leaders of the three main political parties; meet with the President of the Senate, Christian Poncelet; address the National Assembly; meet with the Deputy Director-General of the UN Education, Scientific and Cultural Organisation (UNESCO) and present an address on NEPAD at UNESCO; and engage with captains of industry at an investment seminar.

Background

High-level visits

a. Bilateral relations have been strengthened due to regular contact between leaders at the highest level. Presidents Thabo Mbeki and Jacques Chirac met three times in 2003 prior to the State Visit, although the focus was mainly multilateral.

b. Minister Nkosazana Dlamini Zuma and her French counterpart, Dominique de Villepin, met regularly; Minister Dlamini Zuma held consultations on 25 April in Paris and received Minister Dominique de Villepin for an official visit from 26 to 27 June 2003.

c. Various Ministers, e.g. Prof Kader Asmal and Lindiwe Sisulu, visited France during 2003. Minister Ronnie Kasrils represented the President at the fifth Bordeaux Europe-Africa Conference from 20 to 22 October 2003. The French Minister for Public Works, Transport, Housing, Tourism, and Marine Affairs, Mr G de Robien, held bilateral discussions with Minister Omar on 19 October 2003 in Durban during the World Roads Congress (next congress to be hosted in France).

Enquiries: Ronnie Mamoepa on 082 990 4853.

Issued by: Department of Foreign Affairs

16 November 2003