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[Robert Weissman <rob@essential.org>]

In an address today to African government officials, President Clinton
reiterated his support for the harmful African Growth and Opportunity Act. 
Afterwards, he outlined his proposed debt relief initiative. 

>From our perspective, this initiative is unacceptable, because the debt
relief is conditioned on countries adhering to structural adjustment
programs.  Still, it is a sign that various initiatives on debt-related
matters, in the United States and around the world, have forced the US
government to put the issue on its agenda. That is a sign of strength.

With structural-adjustment-conditioned debt relief now part of the
political equation in the United States, it becomes especially important
for progressive forces to call clearly for debt cancellation without any
onerous conditions attached. 

Robert Weissman
Essential Information			|   Internet:	rob@essential.org

The White House
March 16, 1999
Remarks by President Clinton

... There's another crucial way the United States can hasten
Africa's immigration. One of the most serious issues we must
deal with together, and one of truly global importance is debt
relief. Today, I ask the international community to take
actions which could result in forgiving $70 billion in global
debt relief -- global debt. Our goal is to ensure that no
country committed to fundamental reform is left with a debt
burden that keeps it from meeting its people's basic human
needs and spurring growth. We should provide extraordinary
relief for countries making extraordinary efforts to build
working economies. (Applause.)

To achieve this goal, in consultation with our Congress and
within the framework of our balanced budget, I proposed that
we make significant improvements to the heavily-indebted Poor
Countries Initiative at the Cologne Summit of the G-7 in June.
First, a new focus on early relief by international financial
institutions, which now reduce debt only at the end of the
HIPC program. Combined with ongoing forgiveness of cash flows
by the Paris Club, this will substantially accelerate relief
from debt payment burden.

Second, the complete forgiveness of all bilateral concessional
loans to the poorest countries. Third, deeper and broader
reduction of other bilateral debts, raising the amount to 90
percent. Fourth, to avoid recurring debt problems, donor
countries should commit to provide at least 90 percent of new
development assistance on a grant basis to countries eligible
for debt reduction.

Fifth, new approaches to help countries emerging from
conflicts that have not had the chance to establish reform
records, and need immediate relief and concessional finance.
And, sixth, support for gold sales by the IMF to do its part,
and additional contributions by us and other countries to the
World Bank's trust fund to help meet the cost of this
initiative. Finally, we should be prepared to provide even
greater relief in exceptional cases where it could make a real difference.

What I am proposing is debt reduction that is deeper and
faster. It is demanding, but to put it simply, the more debtor
nations take responsibility for pursuing sound economic
policies, the more creditor nations must be willing to provide debt
relief.