A GROUP of French businessmen returned from Baghdad yesterday confident they would be able to clinch multi million dollar deals once Iraq agreed to United Nations terms for limited oil sales.

"We went to Iraq with businessmen to explore the possibilities to be involved in the UN Security Council 986 resolution to supply food and medicine, Mr Thierry Courtaigne, director of CNPF International (Confederation of French Industries and Services International), said.

Mr Courtaigne, however, insisted they were "applying the rules of the game" in dealing with Iraq, under stringent UN trade sanctions since the invasion of Kuwait in August 1990.

Members of the 40 strong delegation said they explored prospects of a substantial French share in an estimated $500 million worth of humanitarian needs Iraq could buy if it accepted the resolution, which allows it to sell $2 billion worth of oil over six months.

Negotiations over the partial oil deal, which started in January, are scheduled to resume in New York today.

The delegation included representatives of key French industries and banks including the oil industry which has taken a lead among foreign firms in clinching tentative deals with Baghdad to be implemented once the embargo is fully removed.

Businessmen said Iraq was very keen to attract Western multinationals and foreign capital, especially French firms, due to long standing business ties before the Gulf crisis.

"There is an evolution in Iraqi policy towards international investment, they want to attract it, and European firms will be interested in participating in this new step," Mr Courtaigne added.

Members of the delegation said the visit allowed French industry to position itself in the post sanctions Iraqi market.