PARIS. March 11. KAZINFORM. President Nicolas Sarkozy will intervene in an EU-U.S. military airplane deal after European aircraft maker EADS retreats from the contest for the 35-billion-U.S. dollar contract, a French minister said Wednesday; Kazinform refers to Xinhua.

"The matter is serious. Naturally, we are talking of the arms market, so we aren't within the classic international law of the World Trade Organization, but we're going to respond," Pierre Lellouche, France's minister for Europe, said after a cabinet meeting with the president.

Sarkozy would intervene in the deal at "the appropriate time," he said and confirmed that France and its concerned European partners would proceed to examine the issue and take "possible measures in response."

European aeronautic giant EADS has announced plans to withdraw its bid for a U.S. Air Force tanker plane contract after its American partner Northrop Grumman gave up the contest, complaining the U.S. buyer prefers Boeing as the sole bidder.

EADS Chief Executive Officer Louis Gallois confirmed Tuesday the abandonment of the bid "is final" but the company would not stop its efforts to explore the American market; Kazinform cites Xinhua. See www.news.xinhuanet.com