The World - News from Aug. 2, 1987

An impasse between Latin America and the industrial powers over the $1 trillion in Third World debt was apparently broken as diplomats at the U.N. Conference on Trade and Development in Geneva sketched out a new draft accord on the subject. Officials said the document rejected proposals that governments of industrial countries encourage banks to write off old debt and cut interest rates. But the text gave tacit support to debtor countries’ view that existing debt strategy was not working, the officials said. The conference was expected to close today, two days behind schedule.