By John Keating PARIS, Dec 11 (KUNA) -- Two-days of high-level talks on bilateral relations between France and Morocco kicked off here Monday in the presence of the two countries Prime Ministers and several ministers, as well as large delegations from both nations.

The main focus of the talks is to further enhance the already very strong economic ties between the two countries and a number of contracts and agreements are expected to be signed during the talks dubbed as an "Intergovernmental Seminar." Moroccos delegation is led by Prime Minister Driss Jettou, who will also meet with President Jacques Chirac independently of the Seminar discussions.

Other members of the delegation include Finance and Privatization Minister Fathallah Oualaalou, Employment and Professional Training Minister Mustafa Mansouri, Equipment, and Transport Minister Kareem Ghellab, Tourism, Artisans and Social Economy Minister Adil Douiri, Industry, Trade and, Economic Modernization Minsiter Salaheddin Mezzouar, and Minister Delegate for Foreign Affairs Taieb Fassi Fihri.

The Ministerial delegation is accompanied by a large number of senior officials from the concerned government departments and a series of meetings with French businessmen at the MEDEF federation are also scheduled.

Moroccan diplomatic sources told KUNA that several agreements would be signed on cooperation and also relative to international accords.

In particular, an "Open Skies" accord is expected for aviation transport between Morocco and France, and by extension to the European Union.

Additionally, Morocco is hoping that France will agree to increase its contribution to development through the French Development Agency.

Currently, Frances contribution is 100 million Euros annually and there is a request to increase this to 150 million Euros, although a lesser sum is probably more likely, the diplomatic source indicated to KUNA.

The bilateral talks, under the aegis of Jettou and French Prime Minister Dominique de Villepin and his senior Economic Ministers, will address cooperation in key sectors like investment, education, training, and employment and these areas are the focus of the two-day session.

Moroccan officials said that France had been particularly active in helping with training and educational programs in Morocco, where large strides had been made.

For example, the number of people involved in professional training programs had more than tripled from 10,000 initially, officials said.

On foreign investment, the officials pointed out that France is by far the leader in this area and accounted for an average of 50 percent of foreign investment in Morocco over the past five years, with a value of about one billion Euros annually.

In 2005 alone, France provided 75 percent of all foreign investment, valued at 1.77 billion Euros, a rise of 300 percent, due to privatization operations.

According to official Moroccan figures, therefore, France provided 72 percent of all foreign direct investment in the period from 2001-2005.

At the same time, France is Moroccos number one trading partner, with 25 to 48 percent of all trade flows, and is an active supporter of and partner in many of Rabats program to modernize its economy by improving infrastructure, privatizations, increased training and education programs, extension of electricity networks, telecommunications, reduction of rural isolation, and housing improvement.

Morocco is also the European Unions leading trading partner and Morocco considers itself as a form of "relay" for the Mediterranean area to the EU.

Senior Moroccan officials here indicated that 2006 was "an exceptional year" for the economy, with Gross Domestic Product (GDP) growth expected to at least continue its annual average increase of around 7.5 percent, while inflation should be curtailed at just above 2.0 percent despite government spending and a blip of 3.0 percent in 2005.

Moreover, in the tourism sector, one of the vital areas for the economy, Morocco is now recording "double digit" growth on a regular basis.

Moroccos modernization also includes vast social programs to provide access to health care and housing and significant effort to tackle poverty and lack of education.

All the above is part of the governments "Emergence Plan," designed to develop a "multitude of strategies in different sectors," the officials indicated.

While the "Emergence Plan" is producing results that are deemed important ahead of an election year in Morocco, officials concede there are still problems, notably with the high jobless level.

The unemployment rate is officially put at around 9.8 percent, more or less the same as in France. But, it is the lowest rate for the past 35 years, it was stressed.

Foreign debt stands at USD 12 billion and overall debt is 67 percent of GDP, but Morocco has a positive balance of payments and the public deficit is down to 25 percent of GDP.

The governments task now is to "reabsorb the public deficit and correct the budget" problems in addition to moving forward with rural development, electricity grid access and health care, the officials pointed out.

Independently of relations with France, officials here indicated they were also eager to attract investment from other countries, including the Gulf Cooperation Council (GCC) nations.

In this vein, it was remarked that His Highness the Amir of Kuwait, Sheikh Sabah Al-Ahmad Al-Jaber Al-Sabah, will travel to Morocco next Wednesday for summit talks with His Highness King Mohammed VI.(end) jk.

Source Kuna