ALGERIA - Geo-Political Factors - US-French Rivalry.

Beyond the domestic and bilateral issues, observers note that there are also geo-political drivers to be considered in assessing the deepening Algerian-US relationship. As a former French colony, Algeria has traditionally been considered part of the French sphere of influence in Africa. During the cold war era, the US had its links with Algiers but did not challenge the French influence in a determined way.

This will change in the coming years. Apart from the growing linkages between the oil companies of the US and the Algerian hydrocarbons sector, the growing rift between the French and American worldviews - now on display over the question of a war to oust Saddam Hussein - could well mean that Washington will be less willing to accommodate French interests in the area.

US links with Algeria have been improving steadily since Bouteflika took office in 1999. Linkages have been enhanced across the board, from economic interaction, to diplomatic consultation and defence co-operation. Over the complaints of human rights groups, the US has sold (non-lethal) defence equipment to the country, with Bouteflika having visited the US twice since taking office (see following pages).

The French government has also started taking steps to improve relations with Algeria. On March 2-4, French President Jacques Chirac is expected to make a landmark visit to the country. The trip has symbolic importance for both sides because it will be the first state visit by a French leader to Algeria since the former French colony declared independence. In January, Prime Minister Ali Benflis went to Paris, flanked by top economic officials to attend a conference staged by the French Foreign Trade Centre.

France is giving Algeria incentives to reform its economy, administration, judiciary and education system. President Jacques Chirac has called 2003 the "Year of Algeria in France", a project that will bring 1,800 cultural and artistic events to cities and towns throughout France. France supplies over 28% of Algeria's imports. Algerian dependence on France involves all the sectors, including defence. French investments in Algeria have risen to almost $3 billion.

From an Algerian point of view, the friction between the US and France could prove to be an advantage. Chances are that the Bouteflika government will use the undeclared competition between Washington and Paris for influence in Algeria to attract both economic and strategic benefits for the country. Whether this will succeed, remains to be seen, but in such a competition the US stands a better chance of coming out on top (see the latest edition of News Service).