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About The daily Nebraskan. ([Lincoln, Neb.) 1901-current | View Entire Issue (May 1, 1989)
Bereuter promotes development plan By Jerry Guenther Staff Reporter President George Bush’s ad ministration is taking steps to implement its “kinder and gentler philosophy’’ by promoting a pro gram that takes the debts of devel oping countries and uses them to promote worthwhile projects, Rep. Doug Bcrcuter said Friday. Bercutcr, R-Neb., said that under a new dcbt-for-devclopment concept, host nations such as the United States are giving the debts of developing countries to chari table organizations. The charitable organizations then use the loans from the host countries to promote economic development within the develop ing country, he said. Bcrcuter, who spoke on U.S. foreign policy to about 40 people at the Regency Suite of the Ne braska Union, said debt servicing obligations of underdeveloped countries absorb many of the re sources available to debtor coun tries. Because often times debtor countries default on their loans, Bercutcr said, solutions arc needed to assist developing countries with debt reduction. For example, Bercutcr said, the Bank of the Midlands iathc United Kingdom loaned $800,000 to Su dan. When the loan became due, Bercutcr said, Sudan had “no chance” of repaying the debt. Instead of writing the debt off, the Bank of the Midlands gave the loan to UNICEF, he said, and al lowed Sudan to pay the debt off with its own currency instead of silver. UNICEF then used the money to drill water wells in Sudan, he said. Bercutcr said that under the dcbi-for-dcvclopmcnt concept, the U.S. government may forgive loans to such countries as Costa Rica, Ecuador and Brazil. Those nations would be re quired to use the debt to set up such projects as national parks to pro tect rain forests, he said. Bercutcr said the Internal Reve nue Service will give tax breaks to U.S. banks that give their loans to less developed countries for chari table works. “It’s getting a lot of attention now,” he said. During the Bush’s first 100 days in office, Bereuter said, the president has taken a “let’s stop and look’’ foreign policy altitude, resulting in media criticism for lack of an overall policy goal. But, Bereuter said, part of the problem has been that Bush’s political appointments have been slowed by FBI checks and the review process on his nomina tions. Bereuter said he personally is opposed to enacting economic sanctions against Panama and South Africa. “Economic sanctions almost always end up hurting us (the U.S.),” he said. If the United States were to eliminate its trade with South Af rica, Bereuter said, West Ger many, Japan and the United King dom would “pick up the slack” from such U.S. trade elimination. 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