George Bush will back an ambitious British-designed plan for more generous debt relief for the world's poorest countries this week as the White House seeks backing from the G8 industrial nations for the financial reconstruction of Iraq. In a last-minute softening of his stance, Mr Bush has signalled to Tony Blair that he is prepared to offer greater generosity towards impoverished nations in Africa in an attempt to win western backing for a $90bn (£48.8bn) write-off of debts built up by Saddam Hussein. | International horse-trading at its finest. |
The US had been planning a modest extension of debt relief at a G8 summit which begins today in Sea Island, Georgia. Mr Bush, according to UK sources, is now prepared to go much further on debt relief, following criticism that America cannot expect the slate to be wiped clean for Iraq unless it is prepared to adopt the same approach to poor countries in the rest of the world. With the White House also eager to secure backing for a new UN resolution on Iraq, Mr Bush will seek to show a commitment to multilateralism by endorsing a proposal drawn up by the chancellor, Gordon Brown, and the international development secretary, Hilary Benn. This would make the world's 41 highly indebted poor countries (HIPC) eligible for 100% debt write-offs from their multilateral creditors such as the World Bank and the International Monetary Fund, at a cost to rich countries of $1bn-plus per year. | Already discounted, since everyone knows that money will never be repaid. |
Mr Blair will unveil the proposal at Sea Island, and will see Mr Bush's change of heart as a vindication of his view that British support for the Iraq war has won him influence in Washington. UK Treasury officials said it was "an ambitious and unprecedented extension of debt relief", and that details would need to be finalised by finance ministers over the coming months. They added that it was vital that America did not use its support for multilateral debt relief as an excuse for backsliding on other forms of debt relief and financial assistance to poor countries. These include plans - also due to receive G8 support this week - for a $1bn, one-off top-up to a trust fund that helps poor countries pay off their bilateral debts and an extension of the HIPC programme beyond the end of 2004 to allow countries in conflict to remain eligible for help. In return for America's support on debt relief, Mr Blair will back President Bush's call at the summit for a drive to bring democracy and human rights to the Middle East, even though the initiative has caused deep divisions within the Arab world, especially traditional western allies such as Egypt and Saudi Arabia. The president is looking for G8 approval for a proposal to bring democracy, human rights and the rule of law to perhaps the most authoritarian regions in the globe. | Not a bad trade between Dubya and Tony. |
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