Ironing out final wrinkles in a $20 billion deal, rich countries on Thursday announced a plan designed to stop extremist groups acquiring nuclear arms and stepped up pressure on Palestinian leader Yasser Arafat.
The plan, agreed at the summit of the Group of Eight industrialized nations in the Canadian Rockies, will pay Russia to decommission nuclear facilities and weapons of mass destruction in the former Soviet Union.
Officials hope this will ease concerns that groups like al Qaeda, blamed for the Sept. 11 suicide hijackings in the United States, might get their hands on radioactive material.
"This is significant. It's a substantial upping of resources," a U.S. administration official said.
Meeting in a secluded luxury resort, the leaders of Britain, Canada, France, Germany, Italy, Japan, Russia and the United States have also discussed the world economy and the conflict in the Middle East, including a controversial peace proposal from President Bush.
Bush played down resistance to his call for the removal of the Palestinians' long-time leader Yasser Arafat. Speaking before one-on-one talks with Russian President Vladimir Putin, Bush said his proposals for ending the Israeli-Palestinian conflict were well received by European leaders.
"The response has been positive and for that I'm grateful," he said. "And the reason why is once European leaders understand something has to change in order for there to be peace, and that starts with free elections, a new constitution, transparency, rule of law among the Palestinians."
"STAND DOWN"
Backing Bush, Italian Prime Minister Silvio Berlusconi said Arafat should book himself a place in history and stand down.
"Many people are convinced that Arafat, a winner of the Nobel peace prize, should make a generous gesture and move aside," Berlusconi said. "If I were President Arafat I would make a grand gesture that would enable him to go down forever in history as the man who gave everything for the freedom of his country."
The focus of the official talks shifted on Thursday to Africa, where much of the continent is mired in poverty and debt and struggling to cope with an epidemic of HIV/AIDS.
A G8 statement said "half or more" or new development assistance could go to Africa, provided the continent adopted strong policies and ensured that money did not go to waste.
"Today we have a deal that represents a new beginning and fresh hope for the African continent," said Canadian Prime Minister Jean Chretien, host of the meeting.
Aid groups have blasted the initiative, saying it will fall far short of what is needed. "They're offering peanuts to Africa, and repackaged peanuts at that," said Phil Twyford, Oxfam's international advocacy director.
WORLDCOM SHADOWS
On the economic front, accounting scandals at U.S. firms like WorldCom Inc have cast a shadow over an otherwise improving world economy, and Bush on Thursday he was worried about the economic consequences of the scandal.
WorldCom, the second-largest U.S. long-distance carrier, has admitted it booked expenses improperly to boost profits -- a $3.85 billion accounting scandal. The company said it would restate results for the last five quarters, erasing all profits from the beginning of 2001.
"I'm concerned about the economic impact of the fact that there are some corporate leaders who have not upheld their responsibility," Bush said, in his second comments in as many days about the WorldCom fiasco.
"If you are a responsible citizen and you run a corporation in America, you must fully disclose all assets and liabilities, and you must treat your shareholders and employees with respect."
Putin said Bush had discussed concerns about U.S. accounting practices and the stock market with the leaders of the industrialized nations at the Group of Eight meeting.
Putin welcomed Bush's comments to the G8 on the issue, citing the implications on the global economy.
"Under the circumstances of the globalized community and world, a lot depends on the state of the U.S. economy these days," the Russian leader said through a translator.
"And therefore, the willingness of the president of the United States to secure the stock market and market of the securities is very important as well as the notion of transparency in the U.S. business. It is a very good signal."
Outside the heavily fortified Kananaskis valley, protests by anti-G8 activists have been small and decidedly nonviolent, in contrast to protests at similar top-level events in recent years, such as last year's G8 summit in Italy.
Noisy demonstrations have been going on all week in Calgary, the nearest major city about 1-1/2 hours' drive east of Kananaskis. The closest demonstrators got to the G8 retreat was on Wednesday, when they blocked a road about 12 miles (20 km) from where the leaders met.
That forced delegates and journalists to detour along dirt roads to and from the site, which is protected by jet fighters and anti-aircraft guns.
The only casualty so far has been a Kananaskis bear, shot and killed by a sharp-shooter when it got too close.
(China Daily June 28, 2002)
