Posted by Festus Owete, with agency report on
United States' President George Bush has opposed a novel plan by the United Kingdom for the write-off of the huge debts owed by Nigeria and other African nations.
United States' President George Bush has opposed a novel plan by the United Kingdom for the write-off of the huge debts owed by Nigeria and other African nations.
Agency report indicated on Friday that Bush said a key part of the plan did not fit with the U.S budget process.
Bush's stance sets up a possible clash with UK Prime Minister Tony Blair, due in Washington on Monday and Tuesday.
Blair has already flown to Italy for talks with Prime Minister Silvio Berlusconi and will visit the leaders of France, Germany and Russia in the run-up to the G8 summit in Gleneagles, Scotland next month.
The pressure to act was ratcheted up by rock star, Bob Geldof, this week as he announced five star-studded concerts aimed at pressuring world leaders into eradicating African poverty.
The UK is pushing hard for major debt relief and a doubling of aid to Africa even as Chancellor Gordon Brown laid out a set of ambitious plans on Thursday.
Brown said this was a time for 100 percent debt relief, not 'timidity."
The UK has said that 2005 is a vital year for Africa and argues that without significantly more money, the United Nations' Millennium Goal of halving world poverty by 2015 will be impossible to meet.
The UK secretary also said that aid should be doubled to $80bn a year by 2010.
However, the U.S remains concerned that the UK is proposing that the debt plans should be financed in part by selling gold reserves held by the International Monetary Fund.
A surge in the price of gold has boosted the value of the reserve, and the UK wants to use the extra income.
The US - along with some other countries including Japan, Germany and Italy - has never been keen on the idea of selling IMF gold.
Washington DC has also raised questions over the IFF, which would allow developing countries to borrow against future aid pledges.
Bush reportedly said on Wednesday that the IFF for Africa 'doesn't fit our budgetary process."
However, agency report quoted UK government sources as talking about pressing ahead even without US involvement.
Brown, however, played down reports of a rift or stand-off between the UK and the US, explaining, 'In my talks over the last few months, but particularly over the last day or two, with the U.S Treasury Secretary, we believe that there is common ground on securing that debt relief. We believe it is going to be possible to reach an agreement on debt relief."
Meanwhile, Nigeria's former Finance minister, Mallam Adamu Ciroma, has warned that the mismanagement of Nigeria's resources may mar the country's ongoing plea for debt relief.
He also said that certain conditions in the country might hamper huge inflow of foreign investments into Nigeria.
Ciroma, who is also a delegate at the National Political Reform Conference, said in an interview in Abuja that the drive for debt relief was premature.
Saturday Punch, June 04, 2005