DATE=04/20/02

TYPE=CORRESPONDENT REPORT

TITLE=GROUP OF SEVEN (S)

NUMBER=2-288941

BYLINE=BARRY WOOD

DATELINE=WASHINGTON

VOICED AT:

INTRO: Finance ministers of the seven richest industrial nations ended two days of talks Saturday in Washington declaring that a global economic recovery is under way. V-O-A's Barry Wood reports.

TEXT: The Group of Seven finance ministers say the world economy is recovering from a slowdown aggravated by the September 11th terrorist attacks in the United States. The greatest risk to continuing recovery, they say, comes from higher oil prices and continuing economic stagnation in Japan.

Paul O'Neill, the U-S Treasury Secretary who hosted the meeting of his counterparts from Europe, Canada and Japan, said differences were narrowed concerning a U-S proposal to turn more World Bank loans into grants.

///O'Neill Act///

I think we're coming together. We're not quite at a final conclusion point. But I think we're in agreement that certain categories of assistance that should be the subject of grants instead of loans.

///End Act///

These, said Mr. O'Neill, include assistance for HIV/Aids and education in the world's poorest countries.

The ministers also agreed to greater cooperation in tracking down the financial assets of terrorist organizations.(signed)

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