In a message dated 7/22/99 5:26:51 PM Central Daylight Time, AOL News writes: << Subj: Chairman Opposes IMF Gold Sale Plan Date: 7/22/99 5:26:51 PM Central Daylight Time From: AOL News BCC: Ahab42 Chairman Opposes IMF Gold Sale Plan .c The Associated Press By HARRY DUNPHY WASHINGTON (AP) - In a blow to debt relief for the world's poorest countries, the House Banking Committee chairman said Thursday it is unlikely his panel will approve selling some of the International Monetary Fund's gold reserves to finance the effort. Rep. Jim Leach, R-Iowa, said that in early September he would propose an alternative to the plan to sell 10 million ounces of IMF gold. A senior Treasury official, acknowledging the mounting opposition in Congress, said the administration is considering other ideas, but ``at this point ... it is the only viable option that has broad international support.'' The official, who spoke on condition of anonymity in a telephone interview, said the administration wants to work closely with lawmakers to gain broad support. Any alternative, the official said, could not upset the world gold market and would have to win acceptable by the IMF's 182 member nations. It also would need to ``mobilize adequate financing'' for a new debt initiative program the United States and six other wealthy nations announced last month. One option said to be under consideration would mean selling part of the IMF gold to central banks instead of on the open market, which could drive gold price even lower. Leach said before the committee hearing that it was ``highly unlikely'' the committee would endorse the administration's proposal that would permit the IMF to sell 10 percent of its gold reserves to finance debt relief for the world's poorest countries. ``Debt relief is a societal - indeed moral imperative - but care must be taken not to jeopardize the mining industry that provides many of the most stable jobs in the developing world, '' he said. Leach gave no details on his proposal. President Clinton, the leaders of the other major economic powers and Michel Camdessus, the IMF's managing director, want the IMF gold sales to fund the $2.7 billion cost of helping cut debt burdens among developing countries. Before the U.S. representative on the IMF board can vote in favor of the gold sales plan, Congress must give its approval. The IMF board plans to hold a vote on the gold sales proposal in late September, but the tight congressional timetable in the weeks ahead might make that difficult. AP-NY-07-22-99 1826EDT Copyright 1999 The Associated Press. The information contained in the AP news report may not be published, broadcast, rewritten or otherwise distributed without prior written authority of The Associated Press. To edit your profile, go to keyword <A HREF="aol://1722:NewsProfiles">NewsProfiles </A>. For all of today's news, go to keyword <A HREF="aol://1722:News">News</A>. >>
Chairman Opposes IMF Gold Sale Plan .c The Associated Press By HARRY DUNPHY WASHINGTON (AP) - In a blow to debt relief for the world's poorest countries, the House Banking Committee chairman said Thursday it is unlikely his panel will approve selling some of the International Monetary Fund's gold reserves to finance the effort. Rep. Jim Leach, R-Iowa, said that in early September he would propose an alternative to the plan to sell 10 million ounces of IMF gold. A senior Treasury official, acknowledging the mounting opposition in Congress, said the administration is considering other ideas, but ``at this point ... it is the only viable option that has broad international support.'' The official, who spoke on condition of anonymity in a telephone interview, said the administration wants to work closely with lawmakers to gain broad support. Any alternative, the official said, could not upset the world gold market and would have to win acceptable by the IMF's 182 member nations. It also would need to ``mobilize adequate financing'' for a new debt initiative program the United States and six other wealthy nations announced last month. One option said to be under consideration would mean selling part of the IMF gold to central banks instead of on the open market, which could drive gold price even lower. Leach said before the committee hearing that it was ``highly unlikely'' the committee would endorse the administration's proposal that would permit the IMF to sell 10 percent of its gold reserves to finance debt relief for the world's poorest countries. ``Debt relief is a societal - indeed moral imperative - but care must be taken not to jeopardize the mining industry that provides many of the most stable jobs in the developing world, '' he said. Leach gave no details on his proposal. President Clinton, the leaders of the other major economic powers and Michel Camdessus, the IMF's managing director, want the IMF gold sales to fund the $2.7 billion cost of helping cut debt burdens among developing countries. Before the U.S. representative on the IMF board can vote in favor of the gold sales plan, Congress must give its approval. The IMF board plans to hold a vote on the gold sales proposal in late September, but the tight congressional timetable in the weeks ahead might make that difficult. AP-NY-07-22-99 1826EDT Copyright 1999 The Associated Press. The information contained in the AP news report may not be published, broadcast, rewritten or otherwise distributed without prior written authority of The Associated Press. To edit your profile, go to keyword <A HREF="aol://1722:NewsProfiles">NewsProfiles </A>. For all of today's news, go to keyword <A HREF="aol://1722:News">News</A>.
