World leaders agree to aid Russia in dismantling weapons

AP Economics WriterKANANASKIS, Alberta (AP) -- The United States and its wealthy Group of Eight partners agreed Thursday to spend $20 billion over 10 years to help Russia dismantle its nuclear, biological and chemical weapons stockpiles, The Associated Press has learned.

World leaders had feared the materials could fall into terrorist hands if not properly protected and disposed.

A senior U.S. official, speaking on condition of anonymity, said President Bush and Russian President Vladimir Putin sealed the deal in their one-on-one talks Thursday as an economic summit of the world's industrial powers drew to a close.

Putin told Bush that Russia would abide by a series of conditions under which the United States and leaders from Europe, Japan and Canada would put up the money.

Under the proposal, which was being announced later Thursday at the leaders' isolated summit site in the Canadian Rockies, the United States would spend $1 billion a year for 10 years on the program.

U.S. partners from Europe, Japan and Canada would contribute a similar amount over the same time period, the official said, on condition of anonymity shortly after the Putin-Bush meeting broke up.

The leaders had reached tentative agreement Wednesday on the money issue, but their aides negotiated late into the night and Thursday morning over Russia's obligations.

Russia agreed to provide its new G-8 partners access to disposal sites, such as facilities where nuclear submarines are dismantled, the official said. Moscow also has ensured adequate auditing and oversight authority to its partners.

The agreement, long sought by the United States, is part of a broader campaign to increase cooperation between the United States and Russia on international issues such as nuclear proliferation. Bush and Putin recently agreed to reduce their nuclear stockpiles.

In Thursday's talks, Bush hailed Putin as a "strong ally" and the pair committed their countries to a united fight against terror.

"Unfortunately, terrorism is of a global nature," said Putin. "... Joint efforts are essential if we want to be successful in this fight."

Bush called Putin "an ally -- a strong ally in the war against terror and his actions speak louder than his words."

As heads of state from the world's industrial powers closed two days of meetings, they also turned attention Thursday to Africa and a far-reaching program to provide billions of dollars of assistance to the world's poorest continent.

But talk here was also preoccupied with Bush's three-day-old Middle East peace plan and his allies' hesitance to embrace the United States position that an independent Palestine is only possible if Palestinians replace Yasser Arafat as their leader.

Bush, as he opened meetings with Putin in a small windowless room, said: "I'm very pleased with the response to my proposal on the Middle East. The response has been very positive."

Earlier this week, Putin said bluntly that it would be "dangerous and mistaken" to remove Arafat, saying such an action risked a "radicalization of the Palestinian people." On Thursday, Putin's foreign policy adviser, Sergei Prikhodko, reiterated the Russian view: "We must work with the leadership in place, including Arafat."

Putin heads home to Moscow having won Russia full-fledged membership in the elite G-8, made up of the United States, Britain, Canada, France, Germany, Italy, Japan and now Russia.

Russia was placed in the rotation to serve as host for a summit for the first time in 2006.

Bush had far less success winning support for the new Middle East peace plan he announced on Monday, which demanded the removal of Arafat.

Bush said he "won't be putting money into a society" dominated by corrupt leaders and he said "I suspect other countries won't either." Two senior officials said Bush was referring to the promise of a robust international aid package if democratic reforms are enacted, not the $100 million in humanitarian aid currently going to Palestinians, which they said is not in jeopardy.

Other countries did not endorse Bush's call for the ouster of Arafat, though British Prime Minister Tony Blair came closest to the U.S. position. French President Jacques Chirac, echoing comments of other European leaders, said, "It is for the Palestinian people, and them alone, to choose their representatives."

The G-8 leaders also pondered how to offer assurances to global financial markets, which were sent tumbling Wednesday with WorldCom Inc.'s announcement that it had disguised $3.8 billion of expenses.

Putin said Bush, in the summit's private meetings, paid a lot of attention to corporate accounting scandals, reassuring counterparts that his administration would investigate and prosecute wrongdoers.

"For me and my other colleagues it was very important to listen to the president's opinion because under the circumstances of the globalized community and world, a lot depends on the state of the U.S. economy these days," Putin said.

The remote mountain location 65 miles west of Calgary sharply reduced the number of anti-globalization protesters, a marked and mostly peaceful contrast from last year when thousands of demonstrators violently clashed with police in Italy.

The agenda for the final day was discussion of a new aid compact with impoverished African countries. The world's wealthy nations would provide billions of dollars in new aid and corporate investment to African nations who promise to root out government corruption and pursue free-market reforms.

The leaders were being joined for the discussions by U.N. Secretary-General Kofi Annan and the presidents of four African countries -- South Africa, Algeria, Nigeria and Senegal.

The nations scored an initial victory on Wednesday when the G-8 agreed to increased support by $1 billion for an initiative launched at the Cologne summit in 1999 to provide debt relief for the world's poorest nations.

The African countries were hoping for a commitment that 50 percent of future aid increases would be devoted to their region, but the United States and Japan were raising objections to setting such a specific target.

------On the Net:

Canadian summit site: http://www.g8.gc.ca