In a move that surprised diplomats and took its allies, Russia and Germany, off guard, France proposed immediate suspension of economic sanctions against Iraq, thus meeting halfway the position of Americans who want the embargo to be completely lifted.

France's UN Ambassador Jean-marc de La Sabliere said it was time for the Security Council 'to take into account the new realities on the ground' and adopt 'a very pragmatic approach' to dealing with Iraq.

"I have proposed that the decision should be taken to immediately suspend the civilian sanctions," he told reporters shortly after making the proposal to the council.

The proposal if accepted would suspend the ban on trade and investments but keep the arms embargo intact. It would also remove the ban on flights to and from Iraq. But it was not clear what impact a suspension would have without an Iraqi government in place.

So far as the oil-for-food programme is concerned, France would like it to be kept under the UN for the time being, but adjustments made with a view to phasing it out.

The Council appeared to be ready to extend the authority of the Secretary General over the programme till June 3 as it decides how to handle the issue.

Diplomats and officials scrambled to explain the shift in Paris' position, which came during the Security Council's closed-door consultations on Tuesday on Iraq at which Chief Weapons Inspectors Hans Blix briefed the members.

Analysts said the French government is under intense pressure from the country's businesses to mend fences with the US as they fear that a US boycott could affect their exports and Washington might sideline French companies in the rebuilding of Iraq.

American, Russian and German ambassadors, though not fully satisfied with the French position for different reasons, offered to work with Paris to find an agreeable solution.

While American Ambassador John Negroponte reiterated the Bush administration's position that sanctions should be completely lifted, his Russian and Germany counterparts, Sergey Lavrov and Gunter Pleuger, still wanted the UN inspectors to certify that Iraq is free of weapons of mass destruction before lifting the embargo.

"We all want to know that there are no WMDs in Iraq and the only way to verify that is to have inspectors in Iraq to see for themselves and report to the Security Council," Lavrov said.

But both Lavrov and Pleuger expressed their readiness to discuss the French proposal. But Sabliere did not insist that inspectors first certify that Iraq has been disarmed of its weapons of mass destruction.

Blix, whose sharp differences with the US surfaced in the days prior to the American-led military invasion, said so far American troops have not 'stumbled' on any weapons of mass destruction and offered to send his inspectors if asked to do so.

But minutes later, Negroponte shot down his proposal, saying that the US-led forces are now undertaking this task. Blix is due to leave his post in June-end when his contract expires.

PTI