GORDON BROWN, the chancellor, yesterday claimed global backing for an action plan to ease world poverty, despite America’s refusal to back his “Marshall plan” for Africa.

After chairing a meeting of G7 finance ministers and central bankers at Lancaster House in London, Brown said that the meeting would be remembered as the “100% debt relief summit”.

“It is the rich countries hearing the voices of the poor . . . showing that no injustice can last for ever,” he said.

The G7, in a statement, committed itself to offering up to 100% relief on the debt of the poorest countries. It also said that the International Monetary Fund would examine selling some of its gold reserves in order to write off the debt of the poorest countries.

America failed to back Brown’s Marshall plan, the so-called International Finance Facility (IFF). But the chancellor said that a work programme on the IFF, together with a Franco-German proposal for a new tax on aviation fuel to fund development, would go forward. Treasury officials said this amounted to an action plan leading up to the world economic summit at Gleneagles in July.

Details of the action plan have still to be worked out and critics will say that the outcome may be no more than a face-saver for Brown.

“There’s been some very tough talking but we think we are back on track,” said a senior Treasury official.

The IFF, under which poor countries can borrow money on international capital markets against the security of future aid receipts, is backed by Germany, Italy and France.

However, John Taylor, the US treasury under-secretary, said yesterday: “It’s not so much that we oppose the British using the IFF, or others, but it does not work for the US because we have means for providing support for poor countries that is working for us.”

Hilary Benn, the international development secretary, said: “You don’t need everyone on board to launch the IFF. What is inconceivable is that the world will come to Gleneagles without finding ways of raising the additional money that we know is needed.”

The G7 meeting also called for action by big oil-producing countries to increase supply and bring down prices, which are still about $45 a barrel. It said that oil consuming nations should take action to improve energy efficiency as well.

No new currency initiatives were announced, despite fears over the dollar. Alan Greenspan, chairman of America’s Federal Reserve Board, said gloom over the US trade deficit was overdone. A commitment was endorsed to avoid “excess volatility and disorderly movements” in currency markets.

Explore UK News

• Crime News

• Education News

• Health News

• Science News

• Scotland News

Times Recommends

• Donor organ allowed child’s own heart to heal
• Michael Jackson: Not the final chapter
• Brüno toned down for 15 rating