Egypt hopes FT, Orascom agree on Mobinil

* Egypt telecoms official wants FT, Orascom to resolve row

* Wants France Telecom's continued investment in Egypt

* Dispute between companies, not with government - Kamel

(Adds further Kamel comments, background)

WASHINGTON, June 23 (Reuters) - The Egyptian minister of communications and information technology told Reuters on Tuesday that he hopes France Telecom (FTE.PA) and Orascom Telecom (ORTE.CA) can work out their dispute over the ownership of Egyptian mobile operator Mobinil (EMOB.CA).

"I hope they come to an understanding and work together," Tarek Kamel told Reuters after delivering a speech in Washington focused on Egypt's telecommunications industry.

When asked if he would like France Telecom to be more involved in Egypt's telecoms industry, he said: "Absolutely, I want them to continue in Egypt, investing in Egypt, creating value to the economy."

France Telecom and Orascom are in an acrimonious battle over the implementation of an agreement they signed in August 2001 as partners in the holding company that has their stake in Mobinil.

In April the International Court of Arbitration at the International Chamber of Commerce in Geneva ruled that France Telecom must buy Orascom's 28.75 percent stake in the holding company at a price of 273.26 Egyptian pounds per share.

The two sides are now at loggerheads over what happens to other shares in the company and the price France Telecom must pay for them.

A France Telecom executive earlier this month questioned the neutrality of Egypt's market regulator in the matter, and Orascom's chairman has said it would not give up its Mobinil stake without exhausting all legal avenues.

Orascom Chairman Naguib Sawiris told Reuters earlier on Tuesday that France Telecom was in the "business of value destruction." [nLN711543]

Kamel said the dispute was between the two companies.

"At the end of the day this is a conflict between them

(France Telecom) and an Egyptian company,' he said. "It's not a conflict with the government."