THE French government plans to change public operator France Telecom into a limited stock company from January 1st, 1997, which would make a partial privatisation possible in that year.

In a draft law proposal published yesterday, Telecommunications Minister Mr Francois Fillon said the state would keep a majority stake in France Telecom while staff could buy up to 10 per cent of the company.

Some unions were outraged and the Communist CGT firmed up its strike call for today while another big France Telecom union, SUD, called for a general strike from May 29th, when the full cabinet is expected to formally approve the draft law.

But another union, Force Ouvriere, said that "it took note of the political decision" and added it saw the draft as a basis for negotiations.

In the law proposal, Mr Fillon said he wanted to turn the company into a "societe anonyme" limited company after December 31st, 1996.

He also noted that France Telecom, the fourth biggest telecom operator in the world, was the only one in the top 20 that did not have a commercial company status.