France says China holding out on CO2 monitoring

COPENHAGEN (Reuters) - China's objections to a monitoring system for CO2 emissions remain one of the main stumbling blocks to reaching agreement at the climate talks in Copenhagen, French President Nicolas Sarkozy said on Friday.

"The discussions lasted all night without interruption," Sarkozy told reporters during a break.

"The good news is that they're continuing, the bad news is they haven't reached a conclusion," he said.

"There is a lot of tension...but even so, things are moving a bit," he said, adding that Chinese objections to allowing international monitoring of carbon dioxide (CO2) emissions were among the problems holding up a deal.

"What's blocking things? A country like China which has trouble accepting the idea of a monitoring body," he said.

"India has trouble accepting a target for limiting its carbon emissions...and then there are grotesque positions from a country like Sudan."

Sarkozy welcomed the U.S. decision to approve a $100 billion aid package to help poor countries help fight climate change.

"But in exchange, (U.S. President Barack Obama) wants an organism to monitor everybody's efforts," he said.

"Europe is completely united. A large part of Africa agrees with us completely, the United States is very close to our position," he said.

(Reporting by Emmanuel Jarry; Writing by James Mackenzie; editing by Crispian Balmer and Michael Roddy)