U.S., EU are top donors in effort to rebuild Georgia

BRUSSELS, Belgium - Georgia's backers, led by the United States and the European Union, promised $4.5 billion in new aid at an international donors conference yesterday to help the former Soviet republic rebuild after its war with Russia.

The pledges raised exceeded the asked-for $3.2 billion based on an assessment made by the World Bank and the United Nations, despite the financial crisis that has forced many governments to pour billions into rescuing national banks and lending institutions over recent weeks.

Of the aid, $3.7 billion will go toward public expenditure, to fund mostly social and construction programs, and $850 million to the private sector to spur economic growth, officials said.

"This sends a very strong message to the Georgian population that we stand by our word and that we are also ready to provide not only strong political but also financial and practical support," said Benita Ferrero-Waldner, the EU's external-relations commissioner, who chaired the conference.

Russian planes and armored units bombed and shelled Georgian military installations, airfields and naval vessels in August. During the fighting, wildfires raged, turning forests and fruit orchards to cinders. Railroad tracks, bridges and roads were also hit, as were apartment blocks.

Adding to Georgia's economic woes, foreign direct investment has dropped nearly 50 percent from before the war.

The large pledges were seen as a new affront to Moscow by the United States and the EU, which opposed Russia's August invasion.

Georgian Prime Minister Lado Gurgenidze said the aid was generous and would be used wisely. "Every single euro, every single dollar . . . will make Georgia stronger, more prosperous, freer, more democratic, and more genuinely and growingly European," Gurgenidze said.

World Bank Vice President Shigeo Katsu warned Georgia that it now had to adhere to strict guidelines by which to spend the aid.

EU officials also stressed that more political reforms, including guarantees of an independent judiciary and free media outlets, were now expected.

The United States

and NATO are updating plans for defending allies near Russia and will consider increasing the number of military exercises with the Baltic states, the chairman of the U.S. Joint Chiefs of Staff said in the Lithuanian capital, Vilnius, yesterday.

Adm. Mike Mullen

said the move was in response to Russia's brief war in August with Georgia, its first post-Soviet military action beyond its borders, which especially alarmed NATO member states closest to Russian land.

He said it also reflected

a desire to incorporate lessons learned from coalition military operations in Iraq and Afghanistan into NATO planning. "Warfare is changing," Mullen said.

The effort to update

contingency plans, he said, should not be viewed as provocative to Russia but is part of the alliance's determination "to do everything we can to prevent and deter" attack by any potential aggressor.

The three Baltic

republics - Estonia, Latvia and Lithuania - were forcibly incorporated into the Soviet Union after World War II. They joined NATO after the Soviet Union collapsed.

Mullen's visit

to the region began with

a secretly arranged session just outside of Helsinki, Finland, on Tuesday with Gen. Nikolai Makarov,

chief of the Russian General Staff.

During their meeting,

their first face-to-face encounter, they aired agreements and disagreements, Mullen said. They concluded the session by acknowledging the need to continue their top-level dialogue despite tensions.

- N.Y. Times

News Service