France, Iraq Restore ties

As the announcement was made simultaneously in Paris and Baghdad, a French flag was raised above the newly-established French embassy -- used as France's interests section since 1995 -- in the Iraqi capital.

France thus becomes the latest country to re-establish ties, following in the wake of the United States and Britain which led last year's war to oust Saddam.

"The government of the French Republic and the government of Iraq... on the basis of mutual respect for their sovereignty and in accordance with the principles of the UN Charter have taken the decision to re-establish diplomatic relations from July 12," the French foreign ministry said in a statement.

"The two governments are convinced that this decision will contribute to a strengthening of links between France and Iraq and to an intensification of their exchanges, in the best interests of the two countries," it said.

The statement, issued by foreign ministry spokesman Herve Ladsous, said the two countries would exchange ambassadors "as quickly as possible".