US embassy cable - 05LILONGWE267

UNCLAS LILONGWE 000267 
 
SIPDIS 
 
FOR AF/PD, AF/S, AF/RA 
 
E.O. 12958: N/A 
TAGS: PTER, ASEC, KMDR, KPAO, MI, Media 
SUBJECT: REACTION - WESTERN AID, LILONGWE 
 
 
1."Africa: But Where is the Money?" 
 
2.The independent weekly, "The Sunday Times" of March 13, 
2005, featured an opinion item "Africa: But Where is the 
Money?" written by Sunjay Suri, Inter Press Service News 
Agency's London correspondent. Suri argues that past aid 
packages rich nations gave to Africa were frustrated in one 
way or another.  He wonders if the same fate doesn't await 
the new `Commission for Africa' British aid package. 
Excerpts follow: 
 
3.".The United States has pointedly stayed away from recent 
British proposals including the International Finance 
Facility (IFF) that wants government to raise money from the 
market and borrow from their own future lending to increase 
aid. 
 
The United States has set up the Millennium Challenge 
Account to provide aid grants - in exchange for its 
requirements to meet democratic standards and a commitment 
to a `war on terror'.  And the United States is not about to 
increase its aid budget on the recommendations of a British 
commission. 
 
The United States has also opposed plans for any automatic 
and across-the-board cancellation of debt.  British moves 
for such debt cancellation were rebuffed last month at a 
meeting of finance ministers of the G7. 
 
.The 400-page report of the commission titled `Our Common 
Interest' does more than call for more aid and debt 
cancellation. 
 
.The Commission for Africa has generated enthusiasm in 
Britain and in African countries but not beyond where it 
could really matter." 
 
Gilmour