Concern over US tanker contract

PARIS - The leaders of France and Germany say they have concerns about the U.S. Air Force's $35 billion contract for a refueling tanker.

A European-led consortium pulled out of bidding last week for the contract, saying the Pentagon was favoring rival American bidder Boeing.

French President Nicolas Sarkozy and German Chancellor Angela Merkel say trans-Atlantic economic relations must be "based on open markets and fair competition, and reject the temptations of protectionism.

Last week, the French and British leaders accused the U.S. of protectionism in the affair. Merkel has not spoken about it before.

A statement released by the French presidency Tuesday says Sarkozy, Merkel and European Union partners will study the case's implications.