Ambassdador Bruton:

There is a danger to the recovery of the economies of continental Europe from a rapid appreciation in the euro relative to the dollar. However, it is important to say that the asset values in Europe are very strong. The average household in terms of asset values in Italy is wealthier in net terms than the average household in the US, which is quite surprising. They have scope to spend if they have the confidence to do so.

Ambassdador Bruton:

I am not privy to the thinking of the European Central Bank but to the extent that it has raised interest rates, it has more scope to reduce them. If there were to be any rapid change in the position as a result of a too rapid increase in US savings, a too rapid decline in the dollar or both, the European Central Bank then has more scope to cut rates from its current level than it would have if it had kept the rates at a very low level. This is the kind of thing that central bankers do. I do not know much more than this but I think they would make this sort of calculation.

Ambassdador Bruton:

In respect of Africa, it is important to state that no US Administration has made larger commitments to aid to Africa than the current Bush Administration. The level of assistance and expenditure by the US Administration on the AIDS issue and aid to Africa in general has been far higher in the last five or six years than it was previously. I am aware that this is quite different from the caricature but it is the reality. This is not to say that enough is being done because US aid in general, as a proportion of US gross domestic product, GDP, is far lower than European aid as a proportion of European countries' GDP. However, one should acknowledge that a very substantial effort has been made as far as Africa is concerned.

Ambassdador Bruton:

I am not as familiar with Africa as I am sure many Members of this House are. One aspect of Africa which stuck in my mind was the fact that it costs more to transport a product from the interior of Tanzania to the port at Dar es Salaam than it does to transport that product from Dar es Salaam to New York. The problem of internal infrastructure in Africa is awful, as are the problems of roads and the disruption caused to transport by war. Africa must be allowed or encouraged to redress these problems.