G7 to seek development of alternative energy

TOKYO - The Group of Seven economies will call for the development of alternative energy sources in the face of record high crude oil prices when they meet next week in Washington, Kyodo news agency said on Tuesday.

Quoting from what it said was the draft of a statement to be released at the meeting, Kyodo also said the G7 would welcome the US Deputy Defence Secretary Paul Wolfowitz's appointment as World Bank president.

The G7 would hail Brazil's efforts to reform its economy, while "sending a tough message" to Argentina to fix its debt-ridden finances, according to the document, Kyodo said.

Kyodo said it would be the first time that the seven industrialised nations -- Britain, Canada, France, Germany, Italy, Japan and the United States -- have referred to use of alternative energy sources in their statement.

The G7 is considering calling for use of "alternative sources", possibly natural gas and renewable energy, while repeating calls for oil-consuming nations, such as the United States and China, to promote energy efficiency and for producing countries to ensure stable supply, Kyodo said.

During the April 15-17 meeting, G7 members are expected to confirm the steady growth of the world economy, while reaffirming their cooperation to ensure stability in currency markets, Kyodo added, quoting G7 sources.

The group is also likely to repeat calls for China to relax its fixed foreign exchange policy, the sources added.

Kyodo said the group was likely to support US efforts to cut its fiscal deficits and ask Japan and Europe to spur structural reforms to ensure higher growth.

The G7 is unlikely to reach a conclusion on African development given the sharp differences among members over the issue, Kyodo added.

- REUTERS