Brasília - President Luiz Inácio Lula da Silva continues to make telephone calls to leaders of developed nations. During the conversations, Lula asks them to support changes in International Monetary Fund policy regarding fiscal restraint in developing nations. The idea is to allow governments in poor nations to spend on infrastructure so they can grow.

So far, Lula has spoken the leaders of the United States, England, Germany, Spain and France. The next scheduled conversation will be with Silvio Berlusconi of Italy.

According to presidential aide, Marco Aurelio Garcia, the objective of the changes in IMF policy is not just to help Argentina. "Other countries are going through difficulties. Peru and Ecuador are being harshly punished. They are paying what they cannot pay. We want a change in the accounting procedures on infrastructure expenditures. They should be seen as investments, not as spending, when fiscal responsibility is calculated. It is in the interest of Brazil to help not only Argentina, but all of South America where there are many difficulties," said Garcia.

In his telephone conversations, Lula has called for the creation of an emergency fund to protect Latin American countries in cases of turbulence on international markets.

According to Garcia, the Brazilian government has not decided what its position will be if Argentina defaults on a US$3.1 billion debt payment which is due this week. Argentina insists it will only pay if the IMF revises the terms of its loan agreement. (AB)