By Sophie Louet
ALGIERS (Reuters) - France and former colony Algeria signeddefence and civil nuclear power accords on Saturday, whichParis described as a sign of a "transformation" in thecountries' ties.
Making the first visit by a French premier in 22 years,Prime Minister Francois Fillon declared French firms would notbe driven out of the north African country by armed groups,following the death of a Frenchman in a bombing this month.
"We will not give in to threats," El Watan newspaper quotedhim as saying in an interview marking his two-day visit toFrance's largest trading partner in Africa, which still sufferssporadic attacks by rebels fighting for purist Islamic rule.
Al Qaeda's north Africa wing said it was behind twinbombings that killed a French engineer in Algeria on June 8east of Algiers and vowed more attacks against "Crusaders".
The engineer was the first French citizen killed inpolitical violence in Algeria since the 1990s when the countryplunged into a civil conflict that killed up to 200,000 people.
Fillon and Algerian Prime Minister Abdelaziz Belkhadempresided over the signing of an accord on the peaceful use ofnuclear energy. It provides for cooperation in research,training, technology transfer and the exploration andproduction of uranium, sectors of interest to French nuclearplant builder Areva.
"This is an historic moment that is representative of thetransformation in our relations," Fillon said, accompanied bysix ministers including Defence Minister Herve Morin andEconomic Strategy Minister Christine Lagarde.
'CLEAR SIGNAL'
"There is no clearer signal of France's intention toestablish an exceptional partnership with Algeria."
Algerian commentators say sometimes prickly political tiesremain hostage to the past. Many of Algeria's leaders took partin an eight-year struggle against France that ended withindependence in 1962.
French business executives say their country's sometimesstormy political ties with Algeria are no obstacle to businesslinks, although Algerian red tape can be a headache.
More than 250 companies have business with Algeria,employing 120,000 people directly and 40,000 indirectly, mainlyin the building and public works sectors and water.
Belkhadem, reiterating a call for a loosening of visarules, said bilateral ties could not reach their full potentialif they were "amputated from their human dimension".
Algeria's demand for more visas and work permits is astaple of relations with France. The official APS news agencyquoted Belkhadem as saying that there was a need for "a greaterfluidity in the movement of people between the two countries".
Ministers also signed an accord on defence cooperation andinitialled a memorandum of understanding on financialcooperation to simplify legal procedures for French businesses.
Fillon said Algeria and France should examine together "allopportunities for industrial cooperation in the armamentssector." Among sales opportunities sought by French defencecontractors are multipurpose frigates and helicopters.
Companies included in Fillon's entourage are Total, Gaz deFrance, EADS, Arianespace, Saint-Gobain and naval shipyardDCNS.
