IRAQ: President Bush brought his father's former right-hand man James Baker out of political retirement yesterday and appointed him special envoy for the restructuring of Iraq's $120 billion debt.
As secretary of state in the administration of the senior Mr George Bush, Mr Baker enjoyed good relations with US allies, which was evidently a consideration in making the sensitive appointment.
"Secretary Baker will report directly to me and will lead an effort to work with the world's governments at the highest levels, with international organisations and with the Iraqis in seeking the restructuring and reduction of Iraq's official debt," Mr Bush said.
The Iraqi Governing Council had asked for help with debt relief, and he chose Mr Baker due to his past government connections and experience with the region during the first Gulf War, Mr Bush added. "The future of the Iraqi people should not be mortgaged to the enormous burden of debt incurred to enrich Saddam Hussein's regime," he said.
Iraq's debt costs almost $8 billion a year to service. Some $40 billion is owed to the US, France, Germany, Japan, Russia and other countries in the 19-nation "Paris Club" which conducts debt negotiations, and $80 billion is owed to other Arab countries and nations outside the Paris Club.
