The cross section of charm production in gamma gamma collisions sigma(e(+)e
(-) --> e(+)e(-)c (c) over bar X) is measured at LEP with the L3 detector a
t centre-of-mass energies from 91 GeV to 183 GeV. Charmed hadrons are ident
ified by electrons and muons from semileptonic decays. The direct process g
amma gamma --> c (c) over bar is found to be insufficient to describe the d
ata. The measured cross section values and event distributions require cont
ributions from resolved processes, which are sensitive to the gluon density
in the photon, (C) 1999 Published by Elsevier Science B.V. All rights rese
rved.