France and Germany share the same view that the U.S. missile defence shield plan could have 'terrible consequences' on the 1972 Anti-Ballistic Missile Treaty.

President Chirac told a news briefing after talks with Chancellor Schroeder that both countries felt the same.

Last week Mr Schroeder warned the U.S. it could spark a new arms race.

The Summit agreed to development of surveillance systems to combat problems discovered during NATO's war in Kosovo.

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