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CNN Live At Daybreak

America's New War: U.S. is Forgiving Pakistani Debt

Aired September 24, 2001 - 08:28   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
PAULA ZAHN, CNN ANCHOR: Right now, we go to Christiane Amanpour, who joins us from Islamabad, Pakistan.

Christiane, CNN has learned the U.S. is forgiving Pakistan's debt. Any new detail on that?

CHRISTIANE AMANPOUR, CNN CORRESPONDENT: Well, yes, indeed. There was a signing ceremony here in Islamabad, the capital, between the U.S. Ambassador Wendy Chamberlin and the Pakistani finance minister.

What essentially has happened is that an agreement they were coming to back in January was today enacted, and that is to reduce and relieve a small segment of Pakistan's foreign debt to the United States. In all, Pakistan owes the U.S. about $3.1 billion, and this signing today lifted the burden off about 375 million of those dollars. The finance minister and the U.S. ambassador saying that definitely at this critical time Pakistan needed breathing space.

(BEGIN VIDEO CLIP)

WENDY CHAMBERLIN, AMERICAN AMBASSADOR TO PAKISTAN: The United States agreed last January to provide this relief, because of the strong economic reform program of the government of Pakistan had put into place. Concluding this agreement at this critical time is a public endorsement of the Pakistani government's management of its economic recovery. It will also result in lifting another set of U.S. economic sanctions based on debt payment arrears, the so-called Brook (ph) Sanctions.

SHAUKAT AZIZ, PAKISTANI PRIME MINISTER: Pakistan and the United States are major trading partners. The U.S. is the biggest market for our exports. Private sector is looking forward to enhancing these relationships, and Pakistan clearly wants to be considered as a reliable supplier of goods and services to the U.S. market.

(END VIDEO CLIP)

AMANPOUR: So Pakistan is clearly welcoming this economic shot in the arm. Pakistan also welcoming statements from the United States that they will provide evidence to their allies in this coalition against terror. Many people here in Pakistan and around other parts of the world feel that some kind of public presentation of evidence will be required in order for them to really properly sell any kind of military action to their very restive people on the streets of some of these countries.

In addition, a U.S. military delegation has arrived here in Pakistan ahead of any military cooperation and is currently conducting consultations and negotiations with their Pakistani counterparts -- Paula.

ZAHN: Thanks so much, Christiane -- see you a little bit later on this morning.

A quick note here: The Pakistan prime foreign ministry spokesperson, Riaz Kahn, is saying that Pakistan has pulled out all of its diplomatic staff from Afghanistan as of today.

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