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US Welcomes French, German Commitment to Reduce Iraqi Debt

The United States on Tuesday welcomed commitment by France and Germany to restructure and reduce Iraqi debt.  

"We appreciate the commitment by France and Germany to work to restructure and reduce the debt burden on the Iraqi people. We all share the same goal of helping the Iraqi people build a better future, a future that is free and prosperous," White House spokesman Scott McClellan said.

 

"The Iraqi people can not be saddled with the debt of the former regime," McClellan said.

 

The leaders of Germany and France have told James Baker, US envoy on Iraqi debt issue and former US secretary of state, they are willing to help relieve the US$120 billion owed by Iraq.

 

A joint statement issued by the leaders of the United States, France and Germany earlier in the day said: "Debt restructuring and reduction is critical to helping the Iraqi people build a free and prosperous nation."

 

"Therefore, France, Germany, and the United States agree that there should be substantial debt reduction for Iraq in the Paris Club in 2004, and will work closely with each other and with other countries to achieve this objective," the statement said.

 

What specifically constitutes "substantial" debt reduction will be determined by future agreement between the parties, it added.

 

(Xinhua News Agency December 17, 2003)

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