PRESIDENT BUSH has laid bare his opposition to the flagship initiative of Tony Blair’s term at the helm of the group of eight leading industrialised nations.

Mr Bush said he could not sign up to Mr Blair’s ambitious aim to double aid for Africa in the next decade. “It doesn’t fit our budgetary process,” Mr Bush said. But he promised to work constructively with Mr Blair on African aid when the G8 convenes in Gleneagles next month.

Washington has made clear to London over recent weeks that Mr Bush could not sign up to the figures being put forward by Mr Blair. But the President’s blunt response when asked if he was prepared to increase US aid to the levels on the G8 agenda cast a shadow over preparations for the gathering.

As host of this year’s G8, an annual economic summit involving the seven largest industrialised economies and Russia, Mr Blair has placed the plight of Africa at the top of his list of priorities. The aim is to meet the UN target that countries should spend 0.7 per cent of their national output on aid.

European Union leaders agreed last week to meet the target of 0.7 per cent of their GDPs by 2015.

But the US has long rejected the goal on the ground that it already spends far more money on aid — $7.5 billion a year — than any other country. That amounts to 0.16 per cent of US GDP. It also excludes the large amount of private US aid and therefore undervalues overall American aid, US officials say.

Italy gives only 0.15 per cent of its GDP in foreign aid, and is also dragging its heels on Mr Blair’s proposals. British officials insisted that Mr Bush’s remarks were no surprise and expressed confidence that the G8 would agree to substantial increases in African aid.

The US spends $1 billion (£536 million) a year on African aid. Mr Bush has vowed to spend $15 billion to combat Aids worldwide by 2009, most of it in Africa.

This year’s proposed budget requests $2.8 billion from Congress to fight Aids. But Washington objects to Mr Blair’s approach, in part because it concentrates on setting goals for money going into Africa rather than goals for its outcome.

Mr Bush’s Millennium Challenge initiative in Africa targets aid to countries which show good governance and prove they are serious about tackling corruption.

Mr Bush said that he was travelling to Scotland in good faith. “I’ve made it clear to the Prime Minister I look forward to working with Great Britain and other countries to advance the African agenda that has been on the G8’s agenda ever since I’ve been President.”

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