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Viewing cable 05PARIS2656, GOF ANNOUNCES ADVANCES IN ATTRACTING INVESTMENT

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Reference ID Created Released Classification Origin
05PARIS2656 2005-04-19 15:58 2011-08-24 00:00 UNCLASSIFIED Embassy Paris
This record is a partial extract of the original cable. The full text of the original cable is not available.

191558Z Apr 05
UNCLAS PARIS 002656 
 
SIPDIS 
 
PASS FEDERAL RESERVE 
PASS CEA 
STATE FOR E, EB, EUR AND DRL/IL 
TREASURY FOR DO/IM SOBEL, RHARLOW, LHULL 
TREASURY ALSO FOR DO/IMB AND DO/E WDINKELACKER 
LABOR FOR ILAB - WBRUMFIELD 
USDOC FOR 4212/MAC/EUR/OEURA 
 
E.O. 12958: N/A 
TAGS: EFIN ECON PGOV FR
SUBJECT: GOF ANNOUNCES ADVANCES IN ATTRACTING INVESTMENT 
 
 
1. SUMMARY: Prime Minister Raffarin on April 18 hosted his 
second annual conference on attracting foreign investment, 
where he outlined increased spending on research and 
development, presented a new advertising campaign, and 
announced positive 2004 results.  According to the GOF, 
France moved up to second place in 2004 in attracting 
foreign investment among major industrialized countries on a 
three-year adjusted basis, and thereby created 33 thousand 
new jobs.  END SUMMARY. 
 
2.  On April 18, Prime Minster Jean-Pierre Raffarin hosted a 
conference on the attractiveness of France as a destination 
for foreign direct investment (FDI).  This is the second 
such conference; the last was held on April 26, 2004.  The 
conference participants included around two dozen CEOs, both 
foreign and French, invited by the GOF to form the 
"Strategic Council for the Attractiveness of France." 
 
3.  The GOF used to occasion to highlight the measures it 
has taken or hopes to take to attract FDI, mostly centered 
on fiscal measures to promote research and development. 
 
4.  The GOF focus on R&D is reflected in its new advertising 
campaign, launched by the French Agency for International 
Investment (Agence Francaise pour les Investissements 
Internationaux, AFII) with the slogan: "The new France, 
where the smart money goes." 
 
5.  The GOF also used the conference to announce preliminary 
data for investments in 2004, which show the role of FDI in 
employment in France.  According to that data, 33 thousand 
jobs were created or maintained in 2004 due to FDI inflows, 
which is an increase of eight percent for the year, and 
thirty percent over a two year period.  Press reports 
indicate the GOF also distributed data showing that France 
was second only to the United States in attracting inward 
FDI flows in 2004 compared with other major industrial 
countries, with China falling to third place.  To smooth out 
the impact of non-recurring events, the rankings are drawn 
up using average FDI inflows over a three-year period for 
ten major industrialized countries. 
 
6.  However, Econoff spoke with Cynthia Odsi of AFII, who 
acknowledged that AFII has not yet finalized its data (the 
latest official figures are from 2002, which show China 
attracted 56 billion euros, while France had inflows of 54.7 
billion euros).  AFII should release its study to the public 
on June 30th at the World Investment Conference at La Baule, 
France.  AFII hopes other European countries will adopt the 
study as a benchmark for attracting investment. 
WOLFF