US CONGRESS FINALLY WAKES UP ON THIRD WORLD DEBT RELIEF

Jubilee 2000 Press Release, 13 July 2000

(Washington, DC) The House of the Representatives today took a giant step

towards funding the US contribution to the international debt relief HIPC programme

The House passed, by a whisker, an amendment proposed by U.S. Representative Maxine Waters (D-CA-35) to provide a total of $225 million for debt cancellation for the 2001 budget.

If the Senate accepts the amendment in August, the US will finally be able to contribute money to the international HIPC trust fund. Last year, President Clinton pledged to put in $600 million over 3 years, but so far Congress has refused to release the funds.

Jubilee 2000 are still hoping to get another $210 million included in the budget for this year, so that the Bill will also cover last year's missed contribution.

The lack of US money in the HIPC trust fund is constantly given as a cause of delay in getting countries through the HIPC process, and has caused international tension between the US and other creditors who have already coughed up money for the HIPC Trust fund.

Dan Driscoll-Shaw, Coordinator of Jubilee 2000 USA said: “Earlier this week Jubilee 2000 USA delivered to Congress 500,000 petitions signatures in support of debt cancellation for the poorest countries. It is our great hope that the Senate will follow the House's lead and elevate the final figure. We are losing 19,000 children a day due to the indebtedness of the poorest; that is not only inexcusable, but more importantly, preventable".

Before the vote today, the President Clinton had threatened to veto the Foreign Operations Bill if it did not include funds for debt cancellation. Clinton's international credibility has been tarnished by Congress's refusal to fund his pledge, and the decision today is a timely one – next week Clinton will meet his G8 counterparts in Japan for their annual meeting where debt cancellation is a major agenda item.

Ann Pettifor, Director of Jubilee 2000 said: "After a year of shameful stalling, the US are at last coming into line on funding for debt cancellation. The question now is whether Clinton and his G8 colleagues, meeting next week, will finally cancel the debts of the poorest countries so that they actually have something to use the money for."

For more information, contact Jamie Shor in the US on +1 301 320-3192 or Sarah Finch in the UK on +44 (0) 20 74077447 ext 265. ext 229.