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The
US on Thursday indicated its determination to press on with making the
reconstruction of Iraq a focus of this weekend's international
financial meetings in Washington.
But
the drive met some reluctance, as the World Bank said it could not get
involved in Iraq without a mandate from its governing board and
possibly the United Nations.
John
Snow (pictured), US Treasury secretary, told Fox News that he
would bring up debt relief for Iraq at Friday's meeting of finance
ministers of the Group of Seven rich countries. "Certainly the
people of Iraq shouldn't be saddled with those debts incurred through
the regime of the dictator who's now gone," he said. Paul
Wolfowitz, US deputy defence secretary, called on Germany, France and
Russia to write off their Iraqi debts. Russia will attend part of the
G7/G8 meeting on Friday.
Clare
Short, UK international development secretary, said in London that
Iraq would need debt relief.
But
the other elements of the US's strategy appeared to be encountering
more resistance. Mr Snow said he would ask the World Bank to start
work on reconstruction. But James Wolfensohn, the bank's president,
said on Thursday that even offering technical assistance might be
impossible without a UN Security Council resolution.
The
bank's view that it could not lend to Iraq without an internationally
recognised government, sealed by a UN mandate, has been accepted by
the US.
But
it said that given the sanctions on Iraq under UN resolution 661, even
sending a team to assess the needs on the ground could be problematic.
"There are articles in [resolution] 661 which prevent any member
countries from spending resources in Iraq," said Jean-Louis
Sarbib, the bank's vice-president for the Middle East and North
Africa, on Thursday. "Our legal department is continuing to look
at what room we would have to go and make a technical
assessment."
Mr
Snow said he was "baffled" by the bank's reluctance, and
said he hoped Mr Wolfensohn would reconsider. The bank's management is
also insisting on a mandate from the bank's governing board before
offering even technical help.
Some
officials said privately that the bank management's insistence on
legal proprieties reflected mainly a desire to wait for political
unity before acting. One official said the UK, French and German
representatives on the bank's board appeared to be working together to
establish the need for consensus and consultation with the UN.
On
Thursday morning, Mr Wolfensohn said he had received no formal request
from the US to work in Iraq. The board discussed the issue on Tuesday
and agreed with the bank management's cautious approach.
Mr
Snow also confirmed on Thursday that the US opposed the International
Monetary Fund's plan for a judicial mechanism for bankrupt
governments.
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