DURBAN, South Africa. July 6: Africa's debt-laden countries cannot expect the world's rich nations to write them a "blank cheque" on debt relief without a commitment to economic reform and governance, a senior US official said yesterday, reports Reuters.

"Countries who want to attract more investment cannot also be unwilling to address he consequences of their past practices," US Deputy Secretary of Commerce Robert Mallett told reporters in the Indfan Ocean port city.

Mallett is leading a US delegation to the Southern Africa Economic Summit where Third World debt relief has been a dominant issue.

Some believe the world’s seven wealthiest nations, among them former colonial powers in Africa, are obligated to forgive the debts of a continent which holds a quarter of the world's poorest countries.

But Mallett said this would send the wrong message to foreign investors the continent desperately needs.

"It's that sense of entitlement which must be corrected. It's that sense of entitlement that is discouraging to investors," Mallett sajd.

He touched a raw nerve among delegates earlier on Monday when he said a lack of urgency on trade integration prevented the Group of Seven (G7) from giving its full support to the region.

His warning drew an angry rebuke from South African Trade Minister Alec Erwin who said the GTs caution on debt relief "was criminal."

Mozambican President Joaquim Chissano said later that the hurdles to qualify for debt relief were too high and should be reviewed. Mozambique, among the poorest countries in the world, was rewarded last month for years of painful economic reforms with $3.7 billion in debt relief, or almost two-thirds of its external debt in net present value terms.

Mallett said it was not unreasonable for International lenders to make issues like corruption. social development and economic reform part of the conditions for debt relief.

Institutions wanted to know that the savings from lower debt servicing costs would be used for social development and not arms, he added.

"All these things matter. You. can't have it one way. You can't

write a blank cheque." Mallett said.

The Deputy commerce secretary said the summit's criticism of the proposed sale of International Monetary Fund (IMF) gold to finance debt relief programmes would be noted by his government.

G7 countries approved the sale of up to 10 million ounces of gold at their meeting in Germany two weeks ago. But the plan has been attacked by gold-producing countries in Africa where record low bullion prices already threaten thousands of mining Jobs and foreign exchange earnings.

South African President Thabo Mbeki opened the economic summit on Sunday with a dire warning that further gold sales would be disastrous for the world's biggest gold producer.

The IMF proposal needs the support of 85 per cent of the IMFs board. Since the US has a 17 per cent vote at the fund. Congress could effectively veto the pl ah. US Republicans have already introduced legislation to block the proposal, arguing that it would hurt 36 of the 41 countries targeted for debt relief under the programme.