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US wants to cut its aid for third-world loans

In a major policy statement, the administration said Thursday it wants to cut future US contributions to low-interest loans made by international development banks to poor nations by 30 to 45 percent in ''real terms.''

The proposal was made in a 194-page position paper by the Treasury, State Department, and other agencies. Its main theme was that the administration wants to channel development aid toward countries that encourage free markets, emphasize private-sector development with minimal government involvement, and take economic steps to help themselves.

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