- The Washington Times - Friday, March 21, 2008

ASSOCIATED PRESS

The Bush administration said yesterday that Abu Dhabi and Singapore agreed not to use their huge government investment funds to further their political goals.

A set of policy principles was released after Treasury Secretary Henry M. Paulson Jr. met with officials from Abu Dhabi, United Arab Emirates, home to the world’s largest government investment fund, and Singapore, which also controls a sizable investment fund.

“We had a good discussion today on the issues surrounding sovereign wealth funds,” Mr. Paulson said. He said the principles that had been agreed to would further efforts to develop a set of best practices to govern how the funds operate.

The funds have raised concerns about the potential threats that large amounts of foreign investment could pose to the U.S. economy and other industrial countries.

The International Monetary Fund and the Paris-based Organization for Economic Cooperation and Development are working to develop a voluntary set of best practices to address issues that have been raised.

The administration has sought to walk a fine line on the issue, reflecting the fact that the United States must depend on foreign investment to finance its huge trade deficits.

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