Daily Press Cuttings

Press Monday 31^st July

FT: G8 summit/Debt: Letter from Ryuichiro Yamazaki, spokesman for the Ministry of Foreign Affairs of Japan, which defends the high cost of the Okinawa summit. The letter attacks Gillian Tett's recent article which suggested that the money would have been better spent on debt relief. The writer accounts for the enormous cost by describing the logistical needs of the summit; 250000 additional telephone circuits, mobilisation of 20000 police from all over Japan, upgrading roads etc. and of course stresses that the summit was successful. Mr Yamazaki goes on to state that Japan is the leading G8 country in debt relief performance with a contribution more than three times that of the UK. Japan has committed itself to up to $200 million to the World Bank's HIPC Trust Fund and in 1999 provided $15.3 billion official development assistance (36 per cent of ODA contributions by G8 countries). Sovereign Debt: Vincent Boland reports in the Companies and Markets section under the headline “Sovereign debt solutions.” He suggests there is both bad and good news for investors in sovereign debt. The bad news being that more countries are defaulting now that any time for the past 50 years eg. Russia, Ecuador and Côte d'Ivoire. The good news is that investors are more likely to sue defaulters. However by using the example of Ecuador, he suggests that suing defaulters is not a productive option as they have no spare cash to pay and court cases would take years to resolve. Defaults are more likely to affect domestic debt as countries usually go to great lengths to avoid upsetting the international markets. Zimbabwe: Report from Tony Hawkins in Harare that the Zimbabwe government has threatened to take over nearly 3000 commercial farms under a controversial resettlement programme. Peru: President Fujimori has named Carlos Boloña, a champion of free markets and structural reforms in the early 1990's, as new economy minister.

Guardian: Haiti: Report from Owen Bowcott on two grenade attacks in Port-au-Prince, one near the former UN civilian mission, which have reinforced Haiti's international isolation. No one has claimed responsibility but the ruling party have been fiercely contesting the international community's refusal to ratify controversial election results. Japan has suspended £9 million in aid this month, the EU is reviewing a five-year aid package and both Canada and the US are threatening further aid cuts. UN sanctions: Article by Peter Preston questioning whether sanctions work under the title “An enemy to the innocent, best friend to dictators.”

Japan/Corruption: A corruption scandal has forced Japan's top regulator to resign putting pressure on unpopular prime minister Yoshiro Mori.

IHT: Peru: Report by Clifford Krauss that organisers of the weekend demonstrations, which left six people dead, may face prosecution. Thousands of people converged on the capital Lima on Saturday to protest at President Fujimori's inauguration.

Independent: Venezuela: Polls suggest that President Chavez will be re-elected by a large margin and win a new six year term in office. UN sanctions/Iraq: Comment from Yasmin Alibhai-Brown that sanctions and bombings are creating a new generation of young Iraqis who hate the west.

Times: Liberia: The United States has warned President Taylor of Liberia to stop arming rebels in Sierra Leone or face international sanctions.

The Voice: G8 summit/Debt: Small piece in the Africa News section which reports that Christian Aid have condemned the failure of G8 nations to discuss the cancellation of Third World debt. Côte d'Ivoire: Under the headline “The People's Choice” a report which states that 90 per cent of the voters in last week's referendum want the military to hand back power to a democratically elected parliament.

Philippines Press: IMF: Following a meeting last Friday the IMF is expected to approve an instalment of $325 million for the Philippines under the existing $1.4 billion standby loan. The government had to explain a budget deficit blamed on poor tax collection and low privatisation proceeds. The high cost of government troops fighting with Muslim separatist rebels has also impacted on annual budget targets.

Weekend papers

FT: IMF/Kenya: Following a dispute over corruption and mismanagement which resulted in a three-year suspension of loans, Kenya and the IMF have agreed a new three-year loan of $198 million. Although the first part of $18m will be paid immediately, the country will have to meet certain performance criteria before receiving further instalments. The IMF agreement may pave the way to a resumption of World Bank funding and the release of a £30m loan from Britain. IMF: Managing Director Horst Kohler favours a more streamlined role for the institution rather than acting as a lender of last resort. Specific measures will become clearer in the run-up to the annual meetings in September. Peru: Picture and report of the mass protest against President Fujimori.

IHT: AIDS/Asia: Report by Michael Richardson on the rapid spread of AIDS in South East Asia which is threatening to undermine health, security and economic growth in the region. Peru: More coverage of the weekend protests which claims that the turnout at rallies was lower than expected. Sierra Leone: The US has asked the UN Security Council to establish a special court to try rebel leader Foday Sankoh and others accused of atrocities.