Iraq rejects France's forum offer

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Iraqi President Jalal Talabani has rejected a French proposal to hold a conference outside Iraq to try to reconcile the country's rival factions.

Mr Talabani said such a forum was not "necessary" because Iraq's political groups were in daily contact.

But he said Iraq would welcome French investment and reconstruction aid.

French Foreign Minister Bernard Kouchner suggested in Iraq this week to hold a forum similar to that hosted by France for Lebanon in July.

"In Lebanon, there are different parties who are unable to talk and sit at the same table," President Talabani told France's newspaper Le Monde.

"In Iraq, we speak to each other and we meet each other every day.

"Each community participates in the dialogue. We will find a way out without a conference," he said.

Mr Talabani also insisted that "there is no Sunni-Shia war in Iraq", despite daily attacks in the country.

His comments come as the Iraqi coalition government is facing a growing crisis after the walk-outs by a number of political blocs, including the main Sunni group.

'Historic' visit

On Wednesday, the French foreign ministry said the idea of holding an international conference on Iraq was "one among many".

"It could only be held, at the appropriate moment, if the Iraqis wish it to," ministry spokesman Denis Simonneau said.

Mr Kouchner made the suggestion during his three-day trip to the country earlier this week.

But he also expressed dismay at what he described as a climate of intolerance among Iraqis, saying that Paris wanted to help improve the situation.

His visit marked the first time a French minister has been to Iraq since France opposed the US-led invasion in 2003.

Franco-US relations warmed after Nicolas Sarkozy was elected French president.