Blair and Bush strike a deal on Africa

George Bush (left) and Tony Blair

LONDON - British Prime Minister Tony Blair has struck a deal with US President George W. Bush to help wipe out the debts of Africa's poorest nations as the first step towards a US$25 billion ($35 billion) aid package for the continent.

The deal could lead to an agreement to double global aid to Africa at next month's summit of the G8 nations at Gleneagles, Scotland.

Over dinner at the White House yesterday, the transatlantic allies hammered out details of a 100 per cent debt relief plan that could be worth more than US$20 billion to Africa.

It could allow African governments to channel almost US$1 billion a year into schools, clinics and roads instead of repaying crippling debts.

The move would clear the ground for a huge aid package for Africa at Gleneagles, recommended in March by the Commission for Africa, set up by Mr Blair.

The United States could provide up to US$6 billion despite the reservations of the Bush Administration.

Mr Blair has been touring several capitals to persuade the world's richest nations to do more to help impoverished Africa. Reflecting the change of tack to secure Bush's support, he said: "It is better we look at specific programmes about how that money is going to be used than talk simply about the global figures."

The President rejected Mr Blair's initial requests for the US to back a British-led international finance facility to bring forward future aid payments, and to join the European Union in pledging to meet the United Nations' goal of spending 0.7 per cent of national output on aid.

Instead, the US will insist on carefully targeted measures but will still contribute to the overall package.

Yesterday, the White House announced its first instalment - US$674 million for famine relief in Ethiopia and Eritrea.

Mr Blair welcomed the initiative but conceded there was "a lot more" to be done.

Other US grants may improve water supplies, education, vaccinations and help to tackle Aids.

Charity group Oxfam warned that the package would not go far enough. Director Barbara Stocking said pressure was building on the G8 leaders.

"To drop the bar at this critical stage would be seen by many as a betrayal of Africa. Mr Blair needs to show he will not countenance fudges, empty gestures or half-measures."

- INDEPENDENT