Michael, 
In this case language and country are not related.
The language used for the list is the language of the user interface.
 
In my opinion the list of country names should be in the same language as
the rest of the page. On a French web page the list will start with:
Afghanistan
Afrique du Sud
Albanie
Algérie
Allemagne
...

I've dealt with this in several multilingual web applications. In case
you're interested: I can provide a database with country names in English,
français, español, Deutsch & Nederlands.

- Yohan.

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