Sunday Herald 18. March 2007

US government files reveal conflict over African debt

TONY BLAIR and Gordon Brown were split on a key part of the UK’s G8 strategy, according to papers released by the US government. Files claim the two Labour rivals were in “conflict” on how to increase aid to Africa, and signal that the prime minister was closer to president George Bush on the issue.

The tensions at the G8 summit, which was held in Gleneagles in 2005, are revealed in cables sent from the US ambassador in London to his bosses in Washington on the eve of the event.

Brown’s big idea on African debt was to create an International Financing Facility (IFF) as a way of mobilising more foreign aid for the continent.

But the US government sunk the scheme after arguing it did not fit in with its “budgetary process”. The chancellor eventually settled for a “mini-IFF” on immunisation.

It had been presumed the prime minister backed his chancellor’s plan and was trying to persuade the US president of its merits up until the start of the June summit.

However, a fax sent from the London embassy to the US secretary of state’s office in January 2005 reveals the two Labour heavyweights were at odds over the aid plan.

It states: “PM Blair commented in parliament on the IFF, saying it is one way - but not the only way’ - to increase global aid flows. His conflict with Gordon Brown may also be behind this new rhetoric: Brown’s line has been that IFF represents the only feasible way to double global assistance.”

Another part of the G8 cable fell under the heading: Impact Of Blair-Brown Feuding. However, its content was not made available due to its sensitive nature.

A separate fax from the US embassy in London, dating from May 2005 and copied to the White House, was also edited, but came under a headline in the form of a quote from the UK government: “We understand that you can’t support IFF, but ”

The same document also revealed the anger of the US administration when officials in the Department of Trade and Industry (DTI) made public details of an energy meeting between G8 countries: “The UK DTI unilaterally issued a workshop press release one day after the workshop concluded. The US protested this breach of trust and UK DTI officials apologised.”

The dispute is interesting because it confirms that the disagreements between Blair and the chancellor extended to foreign policy.

The pair clashed over issues such as university top-up fees and foundation hospitals, but little has been written about their diverging views on international aid.

It also demonstrates that the prime minister is closer to Bush on areas of foreign policy than he is to members of his own cabinet.

SNP leader Alex Salmond said the files “spoke volumes” of the tensions inside the government.

“This indicates that the Blair-Brown feud knows no boundaries, as it even extends into the crucially important area of how we meet our international obligations to developing countries,” Salmond said. “These documents reinforce the case for Scotland to take more of a direct role in supporting international development.”

A spokesman for Downing Street said: “It shouldn’t be a surprise that there were discussions about this policy, but the bottom line is that the prime minister and chancellor are very proud of what we achieved at Gleneagles.”

By Paul Hutcheon