Canadian PM Meets Kufuor and...

...pledges more foreign aid in budget

OTTAWA (CP) — There will be more money for foreign aid in next month's federal budget, says Prime Minister Jean Chretien.

"We intend to continue to invest in our aid program," Chretien said today after a meeting with John Kufuor, the president of Ghana.

"How much, that will depend on the financial situation. But I'm sure it will increase in the budget — by how much we'll tell you in December."

Chretien also reiterated that relations with developing nations, and especially Africa, will remain at the top of his list of priorities for the G-8 meeting of wealthy nations next year in Kananaskis, Alta.

"The African file will still be the dominant element — after the (general) economic discussion, of course," said the prime minister. "It was the mandate I've received and I intend to deliver (on) the mandate."

The G-8 countries agreed at their last summit in Genoa, Italy, in July that poverty reduction and education in the developing world would be a focus for the next conference.

Meanwhile, Finance Minister Paul Martin has been hinting broadly that his December budget — although it will concentrate heavily on security and military spending to cope with the international terrorism crisis — will also include some foreign aid initiatives.

The Liberal government has long promised to raise Canadian aid to 0.7 per cent of gross domestic product but has never been able to achieve that goal.

Martin is to play host later this month in Ottawa to finance ministers from the G-20, a group of developed and developing countries looking for ways to bridge the economic gap between rich and poor.

Kufuor was clearly anxious that the anti-terrorism agenda that has preoccupied western countries since Sept. 11 not be allowed to overshadow economic development issues.

"All right-thinking people around the globe should be disturbed about the terrorist activities we have all suffered," he said.

"But we are counting on the leadership of the advanced parts of the world to appreciate there is more to life than just fighting terrorism. Life must go on."

He said many African countries still need money for basic infrastructure like roads and ports. But most want to move beyond handouts to boost trade and investment.

"Africa is trying to outgrow receipt of aid. Africa would prefer more trade."