New Mood, Old Disputes

Munich, Germany "It is time to turn away from the disagreements of the past," Secretary Rice said in France. "It is time to open a new chapter in our relationship, and a new chapter in our alliance." All over Europe, the media talked about Condi's "charm offensive" and the President's desire to invite more harmonious transatlantic ties.

Yet, while the social atmosphere is improving, old and new disagreements between the Bush administration and European governments continue to persist. In London recently, the finance ministers of the largest, most industrialized countries (Britain, Canada, France, Germany, Italy, Japan, and the U.S.) met to discuss Prime Minister Blair's proposal to take over the debt payments--$9.5 billion annually--to the World Bank for the poorest countries. This would bring substantial relief to Africa in particular, and avoid depleting the funds the World Bank urgently needs for further loans to the neediest. Six of the seven ministers agreed to Blair's proposal. U.S. representative John Taylor, undersecretary of the Treasury, however, proposed to have the World Bank forgive all of the loans, even though such a move might exhaust the Bank's reserves.

Taylor promised that if the World Bank were out of money, the U.S. would supply it with new funds. This response, however, met with skepticism because the U.S. has fallen billions of dollars behind in the Millennium Account the President launched in 2002, and because the huge expenditures for the war in Iraq makes more American foreign aid unlikely.

At present, the U.S. spends 0.15 percent of gross national income on foreign aid. We now rank 22nd among all countries, and last among the bigger donor countries. To help reduce the national debt, the administration wants to cut foreign aid next year from a promised $5 billion to $3 billion.

As the country that substantially aided the postwar recovery of Europe with its Marshall Plan, the United States has widely been admired as an exemplary donor. Former President Clinton was asked why Americans now are so reluctant to support the reduction of poverty worldwide. "Because," Clinton explained, "nobody will ever get beat for Congress or president for not doing it."

The British Chancellor of the Exchequer, Gordon Brown, additionally proposed to have the International Monetary Fund (IMF) write off its outstanding loans to the poorest countries by selling part or all of its $43 million gold reserve. Secretary Taylor opposed this recommendation, too, and suggested that the IMF stop making loans to poor countries altogether.

At the World Economic Forum in Davos, Switzerland, Germany's Chancellor Schröder and France's President Chirac sided with Prime Minister Blair to give the elimination of poverty worldwide top priority. President Bush differs. Repeatedly, he has stated that above everything else freedom from tyranny must top the agenda of the world's democracies.

Although Blair continued to defend the Bush demand for aggressive promotion of democracy everywhere, he warned that "if America wants the rest of the world to be part of the agenda it has set, it must be part of their agenda, too."

The agendas of the European Union (EU) and the Bush administration, however, differ substantially. The President wants the EU to train Iraqi soldiers and police inside, not just outside, Iraq. Germany, for example, is willing to increase its training program for Iraqis in the Emirates.

The President leans toward regime change in Iran. The EU merely wants to persuade Iran to abide by the Nuclear Non-Proliferation Treaty.

The President refuses to recognize any jurisdiction of the International Court of Justice (ICJ) over Americans. He has asked other countries to have persons charged with crimes by the U.S. extradited to the U.S. and tried by U.S. courts. The EU disagrees. It wants the ICJ recognized worldwide as the principal judicial organ of the United Nations.

Last not least, the EU has now enacted the Kyoto Protocol on climate change. Yet, President Bush rejects it as too costly for the US economy.

So much for trans-Atlantic unity. As Mao once pointed out," Two people who sleep in the same bed do not necessarily share the same dreams."

Wolf D. Fuhrig	Home	02-27-05
New Mood, Old Disputes
Munich, Germany "It is time to turn away from the disagreements of the past," Secretary Rice said in France. "It is time to open a new chapter in our relationship, and a new chapter in our alliance." All over Europe, the media talked about Condi's "charm offensive" and the President's desire to invite more harmonious transatlantic ties. Yet, while the social atmosphere is improving, old and new disagreements between the Bush administration and European governments continue to persist. In London recently, the finance ministers of the largest, most industrialized countries (Britain, Canada, France, Germany, Italy, Japan, and the U.S.) met to discuss Prime Minister Blair's proposal to take over the debt payments--$9.5 billion annually--to the World Bank for the poorest countries. This would bring substantial relief to Africa in particular, and avoid depleting the funds the World Bank urgently needs for further loans to the neediest. Six of the seven ministers agreed to Blair's proposal. U.S. representative John Taylor, undersecretary of the Treasury, however, proposed to have the World Bank forgive all of the loans, even though such a move might exhaust the Bank's reserves. Taylor promised that if the World Bank were out of money, the U.S. would supply it with new funds. This response, however, met with skepticism because the U.S. has fallen billions of dollars behind in the Millennium Account the President launched in 2002, and because the huge expenditures for the war in Iraq makes more American foreign aid unlikely. At present, the U.S. spends 0.15 percent of gross national income on foreign aid. We now rank 22nd among all countries, and last among the bigger donor countries. To help reduce the national debt, the administration wants to cut foreign aid next year from a promised $5 billion to $3 billion. As the country that substantially aided the postwar recovery of Europe with its Marshall Plan, the United States has widely been admired as an exemplary donor. Former President Clinton was asked why Americans now are so reluctant to support the reduction of poverty worldwide. "Because," Clinton explained, "nobody will ever get beat for Congress or president for not doing it." The British Chancellor of the Exchequer, Gordon Brown, additionally proposed to have the International Monetary Fund (IMF) write off its outstanding loans to the poorest countries by selling part or all of its $43 million gold reserve. Secretary Taylor opposed this recommendation, too, and suggested that the IMF stop making loans to poor countries altogether. At the World Economic Forum in Davos, Switzerland, Germany's Chancellor Schröder and France's President Chirac sided with Prime Minister Blair to give the elimination of poverty worldwide top priority. President Bush differs. Repeatedly, he has stated that above everything else freedom from tyranny must top the agenda of the world's democracies. Although Blair continued to defend the Bush demand for aggressive promotion of democracy everywhere, he warned that "if America wants the rest of the world to be part of the agenda it has set, it must be part of their agenda, too." The agendas of the European Union (EU) and the Bush administration, however, differ substantially. The President wants the EU to train Iraqi soldiers and police inside, not just outside, Iraq. Germany, for example, is willing to increase its training program for Iraqis in the Emirates. The President leans toward regime change in Iran. The EU merely wants to persuade Iran to abide by the Nuclear Non-Proliferation Treaty. The President refuses to recognize any jurisdiction of the International Court of Justice (ICJ) over Americans. He has asked other countries to have persons charged with crimes by the U.S. extradited to the U.S. and tried by U.S. courts. The EU disagrees. It wants the ICJ recognized worldwide as the principal judicial organ of the United Nations. Last not least, the EU has now enacted the Kyoto Protocol on climate change. Yet, President Bush rejects it as too costly for the US economy. So much for trans-Atlantic unity. As Mao once pointed out," Two people who sleep in the same bed do not necessarily share the same dreams."

Wolf D. Fuhrig

Home

02-27-05

New Mood, Old Disputes