G8 Summit Ends, Leaders Upbeat on Global Growth

Leaders of the Group of Eight ended their annual summit on Sunday hailing the strength of the world economy and papering over deep divisions on the safety of genetically modified food.

In a communique issued after a final session of talks on this southern Japan sub-tropical island, the G8 also agreed to do their best to launch a new round of world trade talks by the end of the year.

President Clinton, attending his final summit before his term of office ends in January, left immediately for the airport to return to Middle East peace talks he is brokering at Camp David near Washington.

Just before boarding Air Force One, Clinton held up his hand with his fingers crossed.

Earlier he said Israeli and Palestinian negotiators had continued to make progress in his absence but declined to say whether they might clinch a final peace accord.

Making Middle East Headway

``Since I left there has been a lot more sort of systematic effort in the groups on a lot of the issues,'' Clinton told reporters. ``So whatever happens, I think they have continued to make headway.''

The long-running transatlantic GM row was settled with a compromise in the communique upholding the principle -- affirmed most strongly by the United States -- of a science-based approach to policy on the new foods while respecting the safety-first stance preferred by most European countries.

Commonplace and uncontroversial in the United States and Canada, genetically modified crops have been dubbed ''Frankenstein foods'' by opponents in Europe, who fear environmental and health concerns are taking a back seat to commercial priorities.

To Washington, the ``precautionary principle'' invoked by European governments to block imports of GM foods about which they have doubts smacks of disguised protectionism.

``This tends to be billed as an issue of the interests of the agri-business companies making big profits against food safety. That is not the real issue here. The issue is how we can get the best food to the greatest number of people at the lowest price -- if it's safe,'' Clinton told reporters earlier on Sunday.

Clinton Bows Out Off G8

British Prime Minister Tony Blair, who like Clinton and German Chancellor Gerhard Schroeder rushed off to the airport without holding a traditional post-summit news conference, paid warm tribute to the U.S. leader, a good political friend.

``Last night all the leaders of the G8 spoke not just of our affection for President Clinton personally but also of our respect and admiration for his leadership over the last few years. I wouldn't want to go without underlining that. It is the universal feeling of all the G8,'' Blair said before talks with Clinton.

In contrast to their disagreement over GM food, the leaders of the Eight -- the United States, Japan, France, Italy, Britain, Germany, Canada and Russia -- had no difficulty calling for a new round of world trade talks to start before the end of the year.

Many diplomats are skeptical negotiations can be launched so soon after the acrimonious failure of an agenda-setting meeting of the World Trade Organization in Seattle last December, which was disrupted by rampaging anti-globalisation protesters.

But the leaders said they were determined to try.

``We agreed to intensify our close and fruitful cooperation in order to try together with other WTO members to launch such a round during the course of this year,'' they said.

Bridging The Digital Divide

The communique summarized the sprawling array of long-term issues, from eradicating disease in poor countries to the consequences of aging societies, that the leaders discussed over three days to make the world a safer, prosperous place.

``A new era dawns. Let us move forward together, with hope, toward a 21st century of greater prosperity, deeper peace of mind and greater stability,'' the communique declared. This was the lofty theme of the summit proclaimed by host government Japan, which angered debt-reduction campaigners by splashing out $750 million on the event and two preparatory ministerial meetings.

The G8 struck an upbeat note about the recovery in global growth since a financial crisis swept Asia, Russia and many parts of the developing world in 1997 and 1998.

``The world economy will grow strongly this year, and we are particularly encouraged by the strength of recovery in crisis-affected countries,'' the communique said.

``While the pace of recovery varies across Asia, trade is expanding and indeed some countries have achieved dynamic growth,'' they added.

The leaders also reaffirmed their commitment to kick-start a stalled initiative to ease the debt burden of the world's poorest countries and to help developing countries reap the benefits offered by new information technologies. However, concrete details on both issues were conspicuous by their absence.

To show they themselves are not being left behind by the digital age, the leaders said they had agreed to set up their own e-mail network.

Next year's summit will be in Genoa, Italy.





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