The injection of streptozotocin to 18-day-old rat fetuses induced, 2 days later, a 50% fall in plasma insulin and a twofold increase in plasma glucagon concentrations and liver CAMP levels. Phosphoenolpyruvate carboxykinase mRNA that were undetectable in the fetal rat liver, accumulated 48 h after streptozotocin injection, their concentration being 30% of that found in the liver of l-dayold newborn rats in whom liver phosphoenolpyruvate carboxykinase gene expression is maximal. Physiological concentrations of glucagon (0.7 & 0.2 nM) induced, within 2 h, phosphoenolpyruvate carboxykinase mRNA accumulation in cultured hepatocytes from 20-day-old fetuses. The addition of insulin (0.01 -100 nM) inhibits, by no more than 30Y0, the glucagon-induced phosphoenolpyruvate carboxykinase mRNA accumulation. Exposure of fetal hepatocytes to insulin for 24 h did not change the glucagon doseiresponse curve and did not lead to a more efficient inhibition of the glucagoninduced phosphoenolpyruvate carboxykinase mRNA accumulation, despite a clear stimulatory effect on the rate of lipogenesis. In contrast, when hepatocytes were cutured in the presence of dexamethasone, the glucagon-induced phosphoenolpyruva te carboxykinase mRNA accumulation can be totally inhibited by pharmacological concentrations of insulin (1 0 nM).From these in-vivo and in-vitro studies, it is concluded that, under physiological conditions, the postnatal rise in plasma glucagon concentration is more important than the fall in the plasma insulin concentration for the primary induction of liver phosphoenolpyruvate carboxykinase gene expression.The development of hepatic gluconeogenesis at birth is essential to ensure glucose homeostasis in suckling newborn rats that received a high-fat/low-carbohydrate diet, the milk [l]. The appearance of hepatic gluconeogenesis at birth is due to the induction of cytosolic phosphoenolpyruvate carboxykinase (PEPCK) activity. Indeed, PEPCK mRNA is undetectable in the fetal rat liver and accumulates rapidly after birth [2 -51 as the result of an increase in the rate of PEPCK gene transcription [ 5 ] . The postnatal increase of PEPCK mRNA and activity is controlled by the rapid change in pancreatic hormone concentrations that occur at birth; an increase in plasma glucagon and a decrease in plasma insulin [6]. Indeed, the injection of fetal rat in utevo with pharmacological doses of glucagon or dibutyryl cyclic AMP (But,cAMP) increases liver PEPCK activity and mRNA levels 12, 7 -91, whereas the injection of pharmacological doses of insulin has the opposite effect [9]. Similarly, the addition of glucagon or But,cAMP to cultured fetal hepatocytes induces