Cautious optimism is in the air in the government as Principal Secretary Brajesh Mishra and French President Jacques Chirac's special envoy Gerard Herrera get down to business. At stake is nothing less than another opportunity for New Delhi to finally emerge from its circumscribed role in the sub-continent.

``India's dialogue with the sole superpower, the US, has started. Talks with Russia continue. Now we are beginning to engage with France, a third permanent member of the Security Council,'' said sources in the Ministry of External Affairs.

The French are deliberately being modest about the scope of the dialogue, but they are not unaware of the enormous potential it holds: apart from lucrative business contracts, the possibility of a shift from New Delhi's traditional Anglo-Saxon ties towards Francophonie is a tantalisingthought.

Officials in Paris also admit to selfish reasons: friendship with India, a nation of a billion people, also enhances France's own role as a serious-minded global player.

``We are the ultimate realists,'' officials in the French foreign ministry recently told this reporter, adding, ``when India conducted its nuclear tests, we did not scold you and treat you as a child as did some other countries. We fought against the imposition of international sanctions against India. We wanted to give the signal that this is a multi-polar world.''

For India, the dialogue with Paris also comes at a time when talks with Washington have hit a roadblock. New Delhi undoubtedly hopes too that the Indo-French dialogue will push the US to be somewhat more accommodating.

The two-day Mishra-Herrera talks will cover the gamut of issues, from improving economic ties to enhanced strategic interaction. Specifically, both sides are likely to discuss nuclear-missile issues, India's relationship with nuclear neighbourPakistan, New Delhi's position on the Comprehensive Test Ban Treaty as well as its role on the Fissile Material Cut-Off Convention.

French officials acknowledge that concrete progress will have to be seen to be made if the significance of the bilateral relationship has to be established. They are willing, for example, to participate in nuclear safety cooperation with New Delhi, which they hope could be a precursor to transfer of high-technology, including civilian nuclear plants.

``We are sensitive to the fact that India needs nuclear energy. We are also aware that India will be an important market for countries like France that want to sell civilian nuclear plants. Perhaps, reasonable progress can one day be made,'' the French officials said.

Therein lies the crux of the problem: Paris wants New Delhi to first show commitment to global treaties like the CTBT as well as accept guidelines of the Nuclear Suppliers Group before it offers nuclear energy cooperation.

India, on the other hand, wants Franceto place on the table its views on issues like the post-Pokharan Security Council resolution on Kashmir (which called for ``monitoring''of the problem), and support for its candidature as a future permanent member of the Security Council.

New Delhi says it appreciates Paris' support in the aftermath of its nuclear tests. ``But where do we both go from here?'' officials ask.