TRALEE, Ireland. Sept 8: EU foreign ministers, divided in their support for President Bill Clinton's bombing of Iraq, today discuss how to react to Washington's plans to punish its foes hi Cuba, Libya and Iran, reports Reuter.

The ministers, holding informal-two day talks under Ireland's EU presidency, are expected to discuss how to retaliate against planned US trade sanctions on the three states which might affect European companies.

EU states are angry that two pieces of US legislation will impose sanctions on non-US companies operating with Cuba. Libya and Iran in contravention of free trade laws.

"We will be reviewing what retaliatory measures are open to us,” said one senior EU offl- • cial. "There are a number of things we could do that must be discussed.”

European states are angered that their own companies risk becoming embroiled i# Ameri-

can attempts to punish Iran and Libya for its alleged support for terrorism and Cuba for its failure to democratise under communist strongman Fidel Castro.

The sanctions are enshrined in two pieces of US legislation — the D'amato Act, which targets Iran and Libya, and the Helms-Burton Laws, which are aimed at Cuba.

The EU has threatened to take the Cuba law to the World Trade Organisation, set up to promote the freeing of world commerce and an end to protectionism.

The EU review follows Intensive EU discussion on Saturday which failed to give Washingtog backing for its attacks on Iraq to punish Saddam Hussein for an Incursion into Kurdish areas.

Instead EU ministers called on Iraq to withdraw from "safe havens’' set up for Kurds after the 1991 Gulf War and said It backed the territorial integrity and sovereignty of all states in the region. ’