Bush and Blair progress on African debt relief

WASHINGTON - United States President George W. Bush and British Prime Minister Tony Blair said they were close to a deal on a plan that would cancel 100 per cent of Africa's debt, while failing to agree on Blair's ambitious proposal to dramatically increase new assistance for Africa.

At a joint news conference after talks, the two leaders said they hoped to present the plan to leaders at a Group of Eight summit next month in Gleneagles, Scotland.

Both leaders said only those countries who stamp out corruption would benefit.

"I see we've got a fantastic opportunity, presuming that the countries in Africa make the right decisions. Nobody wants to give money to a country that's corrupt, where leaders take money and put it in their pocket," Bush said.

Blair said "we're well on the way to agreement" on African debt relief and that once the United States and Britain reach a common position, then "we need to get the agreement of others."

Blair, however, failed to enlist Bush's support on a proposal to give Africa as much as US$50 billion (27.3 billion pounds) a year by making long-term aid commitments that would allow poor countries to raise money on global capital markets.

Blair also got no concession from Bush on his campaign for a global commitment to cut greenhouse gas emissions blamed for global warming. Bush said he was investing millions of dollars in climate change research and taking other steps to address the problem.

"We want to know more about it," said Bush, who withdrew the United States from the Kyoto treaty aimed at attacking the problem early in his first term.

Blair admitted differences, saying, "I think everyone knows there are different perspectives on this issue," but insisted there is a "common commitment" to tackle the problem.

The two leaders, close allies on the Iraq war, were united in rejecting the so-called Downing Street memo of July 2002 in which a British intelligence official said "intelligence and facts" were being fixed by Washington and London to make the case for war in Iraq, eight months before the US-led invasion.

"No, the facts were not being fixed in any shape or form at all," said Blair, who noted the memo was written before the United States and Britain went to the United Nations seeking support for action against Saddam Hussein.

Both leaders have suffered politically at home for the decision to go to war against Iraq without broader international support and with the absence of weapons of mass destruction.

On African aid, Bush pledged US$674 million to ease famine in Ethiopia, Eritrea and other countries, and Blair promised US$125 million for Ethiopia. The money was reallocated from previously existing budgets.

"And so when I say we're going to do more, I think you can take that to the bank, as we say, because of what we have done," he said.

And he praised Irish rock star Bono for his activism on this issue. "I admire him. He is a man of depth and a great heart, who cares deeply about the impoverished folks on the continent of Africa," he said.

An official of the Oxfam charity criticised the Washington announcement of US$674 million as inadequate and said Africa doesn't need "yet more warm words followed by empty gestures."

"While the world asks for aid to be doubled, all the US seems willing to do is shunt around existing funds. It appears they are more concerned about securing headlines than securing lasting change in Africa," the Oxfam official said.

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 summit.

Blair said he hoped G8 finance leaders could reach a deal on debt cancellation at a meeting this weekend in London as part of a broader agreement to increase aid and trade opportunities for Africa in time for the Gleaneagles summit.

"I hope we are able to conclude a deal at the finance ministers' meeting this weekend but one that will involve 100 per cent debt cancellation and also the commitment to the additional funding necessary," he said.

"But we know there's a lot more to do and over the coming weeks in the run-up to the summit that takes place in Scotland we want to carry on working on the specific programs in relation to things like education and infrastructure and dealing with the killer diseases that allow us to make the commitment that we need," Blair added.

- REUTERS