MS. LUCAS MAGNUSON:  Hi, good afternoon, everybody.  Happy Monday.  The President is delighted to welcome President Hollande of France to the White House, starting today, for the state visit.  We'll have a preview of the visit in this call.  A reminder that this call is on background and our speakers should be identified as senior administration officials.

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I think in terms of what we will be focusing on throughout the visit, first of all, France is really a key partner in the principal security challenges that we're currently confronting.  As we enter Iran negotiations, beginning in Vienna next week, towards a comprehensive agreement, the U.S. and France have been very aligned in working toward the common position with the P5-plus-1 to peacefully resolve the Iranian nuclear issue, so the two Presidents will discuss the preparations for those negotiations and the implementation of the current Joint Action Plan.

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Q    Thanks, guys, for doing this.  My question:  You alluded earlier to France and the U.S. being on the same page in the negotiations with Iran on the nuclear program, but, of course, in the last few weeks there was a very big delegation of French businesspeople that went to Tehran to begin to look for business opportunities there.  And clearly that’s been addressed publicly by Wendy Sherman and I think privately by the Secretary of State.  I’m wondering whether you’d expect President Obama to raise this directly with President Hollande.  And then also, what is your assessment of France’s role in trying to maintain the solidity of the sanctions regime?  Do you worry that this kind of thing weakens that regime?

SENIOR ADMINISTRATION OFFICIAL:  Thanks, Mark.  Good question.  First of all, I think it’s important to note that France has been an important partner in developing the sanctions regime.  As you know, after we passed our unilateral sanctions with respect to the Iranian banking and oil sectors, the critical challenge was going around the world and getting other countries to move with us in reducing or eliminating their purchases of Iranian oil.  And France was a critical partner in Europe in securing the oil embargo from the European Union that had such a deep impact on the Iranian economy.  So I think the French understand the utility of sanctions in getting us to where we are in the negotiations, and they have been a good partner in enforcing that sanctions regime, including the EU oil embargo in particular.

With respect to that delegation, I’d just say a couple of things.  And you’re right, Wendy addressed this.  Secretary Kerry actually also addressed this publicly.  The point we’ve made clear to France and to every other country is that there can be no relaxation of sanctions beyond what was agreed to in the Joint Plan of Action unless we reach an agreement, and that, frankly, any activity to conduct business in Iran that contravenes our sanctions will be viewed by the United States as sanctionable activity.  Again, that’s not unique to France; that runs across the board.

We understand obviously that some businesses may explore those opportunities, but they will have to know that they will be sanctioned if they get ahead of this process.  So the fact of the matter is if we reach an agreement, then, clearly, some aspect of that agreement would likely include additional sanctions relief. But if we do not reach an agreement, the current sanctions regime holds and holds in place.

I think the French government understands that position, and frankly, they have been a strong partner in the negotiations in taking a very firm line that Iran must meet the requirements of the international community and demonstrate that its program is peaceful.  So while I think the subject of making sure that the sanctions regime is vigorously enforced will come up, I think we’re confident that the French government understands that, is on the same page with us, and making clear that any additional sanctions relief that goes above or beyond what’s in the Joint Plan of Action would only come on the other end of an agreement. And it’s clearly going to be a very tough negotiation over the course of the next six months to get there.

So we are tracking this issue closely, but we’ve communicated privately the same thing we have communicated publicly.  And I think President Obama is confident that France will be a partner with us in enforcing the current sanctions regime and certainly delaying any additional relief until after an agreement is reached.  And, as we said, if an agreement is not reached, we support increasing sanctions to increase the cost on the Iranian government.

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