London, Nov 7: France and Britain are close to settling a dispute over the future of Channel Tunnel operator Eurotunnel SA/Plc and could announce a deal, a source said.

The government source said Britain and France were still hammering out details about how to increase freight traffic through the tunnel, but had settled most other issues.

Those include the percentage of after-tax profits Eurotunnel will pay to the British and French governments in exchange for an extension of Eurotunnel's operating concession.

"I think there might be an announcement," the source said.

On July 1, French and British officials reached provisional accord on extending Eurotunnel's operating concession to 99 years.

At that time they also agreed to consider measures to increase heavy freight traffic through the tunnel to boost the heavily indebted company's profitability.

The two sides agreed provisionally that Eurotunnel would pay the two governments 25 per cent of after-tax profits, a figure Britain has since sought to increase.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.