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Entries in Bretton Woods (1)

Tuesday
Mar032009

Obama, Brown Weigh Financial Overhaul

The latest incarnation of the “special relationship” between the United States and Great Britain was on display Tuesday, as President Obama welcomed British Prime Minister Gordon Brown to the White House for a two-day visit.

Obama said ties between Washington and London were strong and would stay that way, calling it “a
a bond that will not break.” He said it was critical to the security and economic well being of both nations.

For his part, Brown said “It’s a partnership of purpose that is driven forward now by the need for us all to work together in unity to deal with the world economic problems.”

Those problems – which have engulfed the global economy – dominated the meeting between the two men, their first since Obama’s inauguration. White House officials said the two leaders have begun to outline a new set of financial regulations that they hope will help stabilize the global economy. Brown, in fact, has called for a new Bretton Woods agreement, referring to the 1944 conference that established global monetary and financial order after World War II.

The meeting laid the stage for next month’s Group of 20 Summit meeting, which Brown will host in London. The G20 is comprised of financial ministers and central bankers from 19 countries and the European Union.

STRAINED TIES DENIED

Reports the two men would hold a formal joint news conference were unfounded, causing some correspondents to wonder if somehow Brown was being slighted – pointing out that President Bush always held news conferences with Brown and his predecessor, Tony Blair. A top White House aide denied it, and Obama appeared to address the issue directly saying “I’d like to think our relationship is terrific.”

RUSSIA AND IRAN

Meantime, Obama knocked down a New York Times report saying he had offered an explicit deal to Russia in which the United States would halt the deployment of an anti-missile shield in Poland in return for Kremlin help in getting Iran to stop its “commitment to nuclear weapons."

Obama admitted sending Russian President Dimitri Medvedev a letter, but said the Times “didn’t accurately characterize” it.

The president said the letter, which was “very lengthy,” dealt with a broad range of issues of concern to both Washington and Moscow, including Afghanistan, terrorism. He added there was nothing in the letter that he hadn’t spoken of publicly, “which is that the missile defense that we have talked about deploying is directed towards not Russia but Iran. That has always been the concern, that you had potentially a missile from Iran that threatened either the United States or Europe."

Russia has deep business ties with Iran, including Kremlin assistance in building two nuclear reactors for Iran at Bushehr; Moscow is also weighing the sale of its sophisticated S-300 surface-to-air missile to Tehran. A Russian newspaper reported in February that the sale is on hold, at least until the G20 meeting in London, when Obama and Medvedev will meet for the first time.


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