France Pledges to Help Reduce Iraq's Debt
NewsMax.com Wires
Tuesday, Dec. 16, 2003
PARIS -- France said Monday it will work with other nations
to cancel billions of dollars in Iraqi debt and suggested that
Saddam Hussein's capture would open the way toward mending
relations with Washington.
Foreign Minister Dominique de Villepin of France, one of the
most persuasive and persistent critics of the U.S. decision to wage
war in Iraq, said he hopes the capture will allow the international
community to "regain its unity."
France's commitment toward reducing the outstanding debt came a
day before U.S. special envoy James A. Baker was to arrive in
Paris, one of five European capitals he will visit this week as
part of an effort to encourage such moves.
Words of cautious congratulations also arrived from China,
Germany, and Russia -- also among the main opponents of the war.
They praised the seizing of Saddam as a way to help establish a
stable, independent government in Iraq.
"We hope that the latest development of the situation in Iraq
is conducive to the Iraqi people taking their destiny into their
own hands, and to realizing peace and stability in Iraq," Chinese
Foreign Ministry spokesman Liu Jianchao said Sunday.
World leaders also reiterated their calls for a quick hand-over
of power to Iraqis.
"The establishment of a sovereign government will allow
international solidarity to fully express itself," French
President Jacques Chirac said, according to spokeswoman Catherine
Colonna. "We now need to look to the future."
Mending relations with Washington and persuading the Bush
administration to hand decision-making power over to the Iraqis
could also bolster France's ability to influence Iraq's future _
and its chances of participating in the lucrative reconstruction of
Iraq.
France, in the most concrete gesture to Washington, will join
other members of the Paris Club of creditor nations to look for
ways of restructuring or forgiving huge debts Iraq owes them, de
Villepin said.
"France could envisage the cancellation of appropriate debts,"
he said at a news conference after meeting a delegation of visiting
Iraqi ministers. He did not provide any figures.
Iraq owes some $40 billion to the United States, France,
Germany, Japan, Russia and others in the 19-nation Paris Club.
Other countries are owed at least an additional $80 billion.
Paris Club Rules
The Paris Club's rules allow it to forgive the debt only of
internationally recognized governments. The current U.S. plan is to
hand over control of Iraq to an independent government by July 1.
At the United Nations, U.S. Ambassador John Negroponte said
Saddam's capture could help speed the political transition in Iraq,
something other nations would like to see.
"We certainly hope that his capture will contribute to the
promotion of stability and the acceleration of the political
process and also hopefully the halting of attacks on the Iraqi
people," Negroponte said.
Russia's diplomatic point man on Iraq, Deputy Foreign Minister
Yuri Fedotov, reiterated Moscow's position that Iraq's foreign debt
can only be restructured though the Paris Club.
Forgiving Iraq's debt would be an unusual step for the Paris
Club, which said it has never forgiven the debt of an oil-rich
country.
France has also said the kind of relief offered to Iraq can be
decided only after the International Monetary Fund studies how much
the country can sustain in debt payments.
Still, French and Paris Club officials said privately that
Iraq's debt is more than its war-battered economy can bear, and
that some cancellations will be necessary.
Despite the goodwill, it is not clear what sort of reception
Baker will face. His mission was complicated by a U.S. decision
last week to lock out Russia, Germany and France from bidding on
$18.6 billion in U.S.-financed reconstruction projects in Iraq.
De Villepin insisted that France's willingness to forgive Iraqi
debts was unrelated to the tussle over contracts, saying, "let's
not mix up the different subjects."
He acknowledged that there was a "quarrel" over the issue of
contracts, and said that France and other nations are examining the
breadth of the American decision.
Referring to Baker's tour, Bush appeared especially conciliatory
toward Europe _ especially longtime allies France and Germany _ at
a news conference in Washington on Monday.
"We had a disagreement on this issue about Saddam Hussein and
his threat," Bush said. He insisted that the disagreement was not
a "dividing line" between the countries.
Speaking on French radio on Monday, the U.S. ambassador to
France, Howard Leach, said Saddam's capture would "reinforce"
French-American relations.
Baker's visit would offer the chance to discuss "the next
stages" in which "France perhaps will be able to participate in
the reconstruction of Iraq," Leach told Europe-1 radio.
© 2003 Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.
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