U.S. SEES MORE HARMONY IN TALKS WITH FRANCE The U.S. Expects more harmonious talks than usual during French Prime Minister Jacques Chirac's first official visit this week as frequently rancorous disputes between the two countries begin to fade. "The Libyan bombing is a thing of the past, the trade war didn't happen and we have reached reasonably good cooperation on terrorism," one U.S. Official told Reuters. "It looks like a reasonably harmonious visit in prospect, more harmonious than usual." Since taking office a year ago, Chirac has been obliged to deal with a series of potentially serious disputes with the United States. During the U.S. Bombing of alleged terrorist targets in Libya last April, France refused to allow British-based U.S. Planes to overfly its territory, forcing them to take a circuitous route. That angered Washington. The U.S. Officials, who asked not to be identified, said a year ago Washington felt the French were not taking strong enough action against terrorism. "Now they are. We're pleased and they are pleased that we are pleased," one said. More recently, a dispute over U.S. Access to the grain markets of Spain and Portugal after they joined the European Community threatened to become a trade war. In retaliation for what Washington saw as deliberate Community moves to exclude U.S. Grain, the United States was poised to impose swingeing tariffs on European Community food imports and a major trade war was averted at the last minute. Last week, the forces of President Hissene Habre of Chad, supported, trained and armed by Paris and Washington, scored a major success by pushing Libyan troops out of their last bases in northern Chad. A French official added: "There is also a common interest in getting Japan to cut its trade surplus with the rest of the world by opening up its markets." Although relations have improved markedly between the two countries, many irritants remain. At the top of the list is the Community's common agricultural policy (CAP). To Washington, as one official put it, "CAP is the root of all evil" in international food trade because it subsidises farmers and sells vast amounts of excess produce at below world prices, thereby eating into U.S. Markets.