Clinton, Robertson and Bono call on Congress to approve debt relief

In an unprecedented meeting on Monday October 2^nd, President Clinton joined Pat Robertson, the preacher and former Republican presidential candidate, Bono, lead singer of the Irish pop group U2 as well as Democrat and Republican lawmakers and religious leaders in calling on Congress to approve funding to pay for debt relief. "I imagine this is the most amazing group of Americans that is gathered together here in this room since Theodore Roosevelt inaugurated it in 1902," Clinton told those seated in the White House Cabinet room.

"It shows you the depth and breadth of commitment of congressional, religious and civic leaders to convince Congress to appropriate the entire $435 million that we pledged in debt relief," Clinton added. "It's not often we have a chance to do something that economists tell us is a financial imperative and religious leaders say is a moral imperative."

An unusual coalition of activists, pop stars, conservative Christian leaders, multinational corporations and President Clinton have joined forces in the last week to push the Republican-led U.S. Congress to approve $435 million as well as the sale of IMF gold for debt relief. This would finally fund the U.S. share of the HIPC debt relief initiative that was agreed at the Cologne G7 Summit in June 1999. Congress has so far failed to provide the full amount that the White House has sought, with the House of Representatives approving $225 million and the Senate $75 million.

"The money the poorest countries want to spend on hospitals and health care and schools, they're sending to the United States and Europe on interest payments," Bono told reporters after the White House meeting. "It's kind of a no-brainer."

"These countries are in desperate poverty but they have been saddled with insupportable debt," said Robertson.

The meeting on Monday was followed by an open statement on Wednesday by US business and financial organisations calling on Congress to provide the necessary finance for the debt relief initiative for the world's poorest countries. The group, which included Goldman Sachs, Motorola, Bechtel, Caterpillar and Merck said: "While the US is responsible for less than 4 per cent of the total cost [of the initiative], the rest of the world is waiting for full US participation."

President Clinton has been showing strong personal commitment to debt relief in the final few months of his presidential tenure. At a Prayer Breakfast on September 14, he made a passionate plea for debt relief, asking: “How can we sit here on the biggest mountain of wealth we have ever accumulated, that any nation in all of human history has ever accumulated and not enact debt relief?”

Clinton also praised the unique alliance of those on the left and the right who have come together in a coalition for debt relief.

“You know, we have a lot of Democrats who represent inner city districts with people who have roots in these countries - allied for the first time in their entire career with conservative, Republican, evangelical Christians who believe they have a moral responsibility to do this, because it's ordained... it's given us a coalition that I would give anything to see formed around other issues... And it could really -- if we can actually pull it off, it can change the nature of the whole political debate in America because of something they did together that they all believe so deeply in.”

Representative John Kasich, the Ohio Republican who chairs the House Budget Committee, took part in the White House meeting on October 2^nd and said he expected the House and Senate to pass the full $435 million when they hold a conference to reconcile their versions of the bill. However there still remains strong opposition to voting for debt relief from many Congressmen in the House of Representatives. Some Republicans argue that there is not enough money to fund the initiative fully, while others are determined to push for reforms to the IMF and World Bank before financing debt relief.

Jubilee 2000 USA has said that while reforms to the International Financial Institutions are clearly needed, no progress can be made until the USA at least fulfills its commitments made at the G7 Summit in Cologne in June 1999. Marie Dennis, a Jubilee 2000/USA board member, said:

“Members of Congress must not leave Washington before honoring this promise by appropriating the entire $435 million and approving use of the remaining 5/14ths of the earnings from off-market sale of IMF gold for debt cancellation. Every dollar the U.S. contributes will leverage $27 dollars from other international creditors. But if the US Congress fails to act now -- that is, unless all creditors act in concert to cancel the debt -- the entire plan could unravel.”

• Full Transcript of President Clinton at Religious Leaders Breakfast
• Full Statement by Jubilee 2000/USA