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To: John Hunt who wrote (30631)	3/25/1999 3:19:00 PM
From: Alex	Read Replies (2) \| Respond to of 116764

3/25/99 - Chretien proposes Third World debt relief plan <Picture> WINNIPEG, Mar 25, 1999 (The Canadian Press via COMTEX) -- Prime Minister Jean Chretien wants the world"s richest countries to forgive loans to the poorest, but he wants debt relief and new loans tied to Third World countries improving their own living standards rather than buying weapons. In a speech today to the Canadian Club of Winnipeg, Chretien set out a four-part plan that he will present to the Group of Eight nations in June in Cologne, Germany. It appeals to the wealthiest nations to show charity for the less fortunate or risk the consequences. ""We do not have to accept predictions of inevitable conflicts between races, religions and cultures in the next century,"" he said in a text of his speech. ""But the one clash which looms as almost certain is that between the world"s rich, and its many more poor. ""It is in our own self-interest to understand that now that our house is in better repair it is time to refocus our attention on helping our less fortunate neighbours in the global village."" Chretien"s proposal calls on the G-8 to forgive all loans from what is technically known as the Heavily Indebted Poor Countries, or as he described them ""the poorest of the poor."" The prime minister wants the cases of extremely poor countries that have been ineligible for debt relief so far to be reviewed if they have been hit with ""unexpected shocks,"" such as natural disasters or world economic turmoil. Honduras, still recovering from Hurricane Mitch, is an example of a country that would be reviewed. He said he will also propose that 10 million ounces of gold from the stocks of the International Monetary Fund be sold with the proceeds used by the IMF to help heavily indebted poor countries. There is no indication of how much money the gold sale would raise. And he says that any further debt forgiveness and future loans from agencies in the developed world be linked to spending on human development by impoverished countries. ""Governments that make a real effort to educate their people, to give them a healthier, better life, deserve more support,"" Chretien said. ""But governments that would rather spend on AK-47s to oppress their own people and destabilize their neighbours deserve no such break."" Chretien"s speech does not say what his proposals would cost Canada, but he noted that over the last 20 years, successive Canadian governments have forgiven $1.3 billion in foreign debt. Debt in the Third World is crippling the economies of many of the poorest countries, especially in Africa. Some of the proposals put forward by Chretien have already been suggested by others in the G-8. Major creditor countries have agreed on the need for greater debt relief and hope to reach an agreement in Germany. The World Bank has a program for debt relief that is supposedly aimed at 41 of the world"s poorest countries, but so far, only seven have qualified for help. Copyright (c) 1999 The Canadian Press (CP), All rights reserved.