Real Property

PARIS (Reuters) – Airbus parent EADS, on Friday sought to clarify the agreement of 3,500 million euros (4,760 billion) to rescue the A400M project, in an attempt to avoid higher provisions for which expects to take in the impending 2009 earnings results.

Dialogues to refine the details of a rescue package for the troubled European project focused on a dispute over the definition of loans or guarantees that governments been put on the table, along with 2,000 million euros in direct assistance to save 10,000 jobs.

Britain, facing a record debt and elections scheduled for May 6, is prepared to spend 200 million euros to a package of 1,500 million in guarantees, but wants this to be considered a normal loan and give back, sources close to negotiations.

Other , particularly France and Germany are prepared to provide the money as an advance of future royalties on exports.

Analysts say the failure to resolve the accounting issue in time for the results of 9 March, could force EADS to add 1,500 million euros to its A400M loss record, over 1,700 million which is expected to cause new provisions.

Defense Minister of Great Britain declined to comment and reiterated that his country wants to get the troop transport plane A400M, but not at any price.

The A400M has been hit by heavy losses that must be shared between the largest aerospace group in Europe and the NATO member states that requested the plane: Britain, France, Germany, Spain, Belgium, Luxembourg and Turkey.

defense ministers expect to sign an agreement on 8 March.

EADS welcomed the decision to rescue the project, but declined to comment on the latest round of technical talks.

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(Additional reporting by Julien Toyer, Sabine Siebold, Matthias Blamont, editing by Justin Palmer Spanish)