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Rudd delivers strong warning on global recess -

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Reporter: Chris Uhlmann

LEIGH SALES, PRESENTER: The Prime Minister has raised the spectre of a 1930s-style Depression if
countries don't work together to fight the global recession.

Kevin Rudd made the warning in the first major speech of his overseas tour, ahead of next week's
G20 Summit in London.

But one of the leaders who'll be there has played the race card. Brazil's President has blamed
"blue-eyed white people" for causing the financial crisis. From Washington, political editor Chris
Uhlmann reports.

CHRIS UHLMANN, REPORTER: Rhetoric and reality sometimes do collide.

KEVIN RUDD, PRIME MINISTER: The challenges are great; the urgency is great; the obstacles are
substantial.

CHRIS UHLMANN: Kevin Rudd warns that next week's meeting of the world's 20 largest economies must
not go the way of the failed London conference of 1933. Then, nations didn't grasp that they were
standing on the edge of an abyss.

KEVIN RUDD: World leaders today are challenged through the forum of the G20 not to repeat the
mistakes of the London conference of three quarters of a century ago.

CHRIS UHLMANN: He's continuing to press others to prop up demand with government spending.

KEVIN RUDD: It is an almost unprecedented response to an almost unprecedented crisis. For the
future, countries must be prepared to do more as required. As I said before, the IMF has estimated
that a further stimulus of two per cent of GDP will be required for 2010.

CHRIS UHLMANN: It's a view shared by the United States and Britain, but some are clearly growing
tired of advice from the Anglo-sphere.

LUIZ INACIO LULA DE SILVA, BRAZIL PRESIDENT (voiceover translation): This crisis was not created by
blacks, nor Indians, nor poor people. It was a crisis that was created and spread throughout the
world due to the irresponsible behaviour of white people, blue-eyed people that thought they knew
everything, but are now showing they knew nothing.

CHRIS UHLMANN: The Prime Minister's last day in Washington was largely spent in meetings with
economic heavyweights, including the heads of Treasury and the Federal Reserve. But there was time
to pause and remember the Americans who volunteered to help fight the Victorian bushfires.

KEVIN RUDD: I say a very big personal thank you, mate.

CHRIS UHLMANN: To ensure there's help available to struggling economies, Kevin Rudd's pushing for a
huge increase in the International Monetary Fund's resources, now set at US$250 billion.

KEVIN RUDD: We should aim to at least double and if necessary treble the pre-crisis level of the
IMF's resources.

CHRIS UHLMANN: In 1933, self-interest triumphed and nations imposed beggar-thy-neighbour policies
which turned a bad situation into a catastrophe. Self-interest still rules, but in today's
globalised world there's some hope that it's in everyone's interest to act together. Chris Uhlmann,
Lateline.