SEA ISLAND, Ga. - Group of Eight leaders, meeting amid one of the most favorable global economic outlooks in years, lapsed into finger-pointing on Wednesday over who was racking up the greatest problems for future growth. advertisement
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French President Jacques Chirac said America’s huge trade and budget deficits were alarming the rest of the world. U.S. officials, however, focused on Europe’s lagging performance at a time when even Japan’s economy has apparently shaken off its lethargy and begun to grow. The quibbling came as political leaders of the G-8 major industrialized nations began formal summit talks at this tightly guarded Georgia resort island. The meeting, dominated by discussions about Iraq and its future, ends on Thursday. Chirac, at a news conference, said France and other countries felt the Bush administration’s twin deficits on trade and spending were sowing seeds of trouble for the global economy. Chirac has ‘some concern’ over U.S. deficits
“There were some concern and reflections, that was my case, and I was not alone ... on the eventual consequences of the strong U.S. budget and trade deficits on the future, and notably on currency and interest rates,” Chirac said. U.S. officials sought to highlight the more robust U.S. economic performance this year, saying it underlined Europe’s need for market-based reforms to make it more like America. Seeking to build on rare harmony with Europe after a U.N. vote, U.S. President George Bush proposed a wider but unspecified role for NATO in post-occupation Iraq. But Chirac immediately objected. Bush found general agreement among the once-bickering summit partners a day after the U.N. Security Council unanimously approved a resolution steering Iraq’s new government toward elections next year. Bush introduces new Iraqi president
Bush introduced Iraq’s new president, Ghazi al-Yawer, at the annual summit. “We’re pulling for him,” the president said. Bush discussed the possible expanded role for the North Atlantic Treaty Organization during a breakfast meeting with British Prime Minister Tony Blair, his top Iraq war ally. "We believe NATO ought to be involved," Bush said about the 15 NATO nations that already have forces in Iraq. "We will work with our NATO friends to at least continue the role that now exists, and hopefully expand it somewhat." Blair agreed, and told reporters, “The next step in this is going to be for the new Iraqi government to sit down with a multinational force and work out how, over time, the Iraqi capability for security can be established and built up.” But Chirac expressed skepticism about an expanded NATO role. "I do not believe it is NATO's purpose to intervene in Iraq," he told reporters. "I have reservations vis-a-vis this initiative." Chirac: Iraq must request role
At the same time, trying to convey a new G-8 atmosphere of compromise, Chirac said, "I'm very much open to debate and discussion" about security for post-occupation Iraq. Chirac said any NATO role could only be justified "if the sovereign Iraqi government were to ask for it." Sixteen of the 26 NATO members already have troops in Iraq, and NATO itself provides logistical help for a Polish-led division there. The Bush administration would like to have the alliance take on additional duties, such as training Iraqi’s new army. It would also like NATO to send forces but recognizes that is unlikely given strong German and French opposition to sending troops. “There are going to be some constraints, obviously,” Bush said. “A lot of NATO countries are not in a position to commit any more troops — we fully understand that. But I do think NATO ought to stay involved.” At NATO headquarters in Brussels, Belgium, a spokesman said any possible future role in Iraq would depend on requests from the Iraqi government and decisions made by all the allied countries. “It is impossible now to prejudge what role the alliance could take,” NATO spokesman James Appathurai told Associated Press Television News. Attending the summit are the leaders of the world’s seven wealthiest democracies — the United States, Britain, Canada, France, Germany, Italy and Japan — plus Russia. The morning session dealt with the economy, and summit partners congratulated each other on strong recoveries under way in most of their countries. Concern about oil prices
But German Chancellor Gerhard Schroeder also raised concerns about high oil prices. He said there should be discussion about how to make oil markets more transparent, and said he expected G-8 energy ministers to report back in six months with suggestions. The session gave Bush an opportunity to introduce to allies the new Iraqi president, chosen late last month. Bush said al-Yawer and Iraqi Prime Minister Iyad Allawi are now the leaders of a sovereign nation and “must make wise decisions on behalf of the Iraqi people.” Bush promised “America will help.” The president's comments came a day after the U.N. Security Council unanimously approved a resolution on Iraq supporting its return to sovereignty. Bush hailed the vote as “a great victory for the Iraqi people” and thanked President Vladimir Putin for Russia’s help in winning the vote. Putin, who had opposed the U.S.-led war in Iraq, called the U.N. vote “a major step forward.” Face-to-face meetings
A dinner Tuesday evening marked the formal opening of the summit, but Bush first had one-on-one meetings with Japanese Prime Minister Junichiro Koizumi and the leaders of Canada, Germany and Russia. Sea Island, a five-mile-long private resort island, has been virtually sealed off from the mainland by barricades and fences for the summit. Police and journalists far outnumbered protesters on Tuesday, disappointing activists who said heavy security scared away many others. Protest marches in Brunswick, the nearest coastal city, and Savannah, 80 miles to the north, drew about 100 activists each Tuesday. While the Security Council agreement on Iraq was an important victory for Bush, taking the sting out of recent disagreements with Europe, the president faces other potentially divisive issues at the summit. His proposal to promote democracy across the Muslim world has run into resistance from Arab and European governments that see it as heavy-handed U.S. interference. Turkish Prime Minister Recep Tayyip Erdogan told reporters that the success of the plan depended on first resolving conflicts in Iraq and between Israel and the Palestinians. “Solving the Israeli-Palestinian problem is an urgent matter above everything else,” Erdogan said in Ankara before leaving for the summit. Anticipating such criticism, U.S. officials said their proposal would include a firm rejection of the idea that the Israeli-Palestinian conflict stalled democratic and human-rights reforms. Canadian Prime Minister Paul Martin voiced support for Bush’s initiative and rejected criticism that it was an attempt to deflect attention from the Israeli-Palestinian crisis. “Everybody wants to ease the tensions in the Middle East,” he said. Martin said Canada had no plans to commit troops to Iraq, but he said the country was providing reconstruction money. While Iraq and the Middle East overshadowed this year’s agenda, summit participants announced agreement Tuesday on fighting famine on the Horn of Africa, eradicating polio, cutting poverty and developing an HIV vaccine. © 2004 MSNBC Interactive | MORE FROM INTERNATIONAL NEWS |
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