Allies pledge millions to feed hungry

George W. Bush and Tony Blair

WASHINGTON - United States President George W. Bush and British Prime Minister Tony Blair were to pledge hundreds of millions of dollars today in aid to Africa.

But Bush was to stop short of backing Blair's more ambitious plan to lift the region out of poverty.

Blair was on a one-day visit to Washington for talks with Bush that were expected to include the Prime Minister's initiative to boost financial aid for Africa.

A Blair spokesman acknowledged before the visit began that Washington would not support Britain's plan to double aid for poor countries by issuing bonds against rich states' future budgets.

But the spokesman said the two allies did agree on other ways to tackle Africa's problems.

A senior White House official, speaking on condition of anonymity, said the two leaders would announce a joint British-US initiative aimed at feeding the hungry in Ethiopia, Eritrea and other African nations threatened by famine.

The US contribution would include US$674 million ($946 million) - enough to feed 14 million people - and a significant commitment would also be made by the British, the official said.

The initiative was in response to a United Nations appeal for US$4 billion this year to address Africa's emergency needs.

Washington has already provided nearly US$1.4 billion this year.

But no breakthrough was seen on Blair's request that Bush support Britain's "International Finance Facility", which would double aid for poor countries by issuing bonds against the future aid budgets of rich nations.

That plan would raise US$25 billion to US$50 billion a year by selling bonds on global capital markets.

Bush made clear his position last week, saying the proposal "doesn't fit our budgetary process".

White House officials said that position remained the same before the Blair meeting.

British Government sources are floating the idea of pressing ahead with the finance facility without US involvement.

Blair has staked his reputation on helping Africa during Britain's presidency of the G8 group of rich nations.

He has already had talks with Italian Prime Minister Silvio Berlusconi and will visit the leaders of France, Germany and Russia in the run-up to next month's G8 summit in Gleneagles, Scotland, of which he is host.

Bush and Blair will also discuss debt relief for Africa and events in Iraq, Iran and the Middle East.

Blair has also pledged to address climate change at Gleneagles, despite the US refusal to abide by the Kyoto treaty.

The sticking points

Aid levels

Britain has persuaded its European Union partners to meet the United Nations' target of spending 0.7 per cent of output on aid by 2015. The United States says it already spends more than anyone else, and wants Africa to improve governance and curb corruption.

Prospects of success: Any more money for Africa will come with strings attached.

International finance facility

Chancellor of the Exchequer Gordon Brown's flagship policy would double aid to US$50 billion by 2015. But the US says its budgetary process makes it hard to pre-empt funds.

Prospects of success: Slim. Britain may have to go ahead without the US.

Debt

Brown has proposed 100 per cent debt relief on money owed to the IMF and World Bank. But the US, Germany and Canada oppose plans to sell IMF gold to pay for it.

Prospects of success: Improving, if not enough for campaigners.

Climate change

With the US refusing to accept scientific evidence, Blair may have to settle for a "Kyoto lite" to draw the US, China and India into moves to tackle the threat.

Prospects of success: Not great; some limited movement by US possible.

- REUTERS, INDEPENDENT