TRADING WITH IRAN

By DOUGLAS WALLER/WASHINGTON AND BRUCE CRUMLEY/PARIS

There's a battle in the Clinton Administration over how to deal with French oil giant TOTAL and its $2 billion natural-gas deal with Iran. National Security Council and White House political aides want to crack down on Total, using the law Congress passed last year requiring sanctions for foreign companies doing business with Iran. But European experts at the State Department prefer to waive the penalties if France promises to restrict other dealings with the rogue nation. They fear the dispute could escalate into a major trade war with Europe and Asia. "There's absolute unanimity on the undesirability of what Total has done," says a senior Clinton Administration official. "But there is not unanimity yet on what our policy should be in response."

--By Douglas Waller/Washington and Bruce Crumley/Paris