Prime Minister Jean Chretien has come up with a debt relief plan to help the poorest nations in the world. He is calling on the world's richest countries to forgive all of the debt owed to them by the world's poorest.

Chretien wants to see new loans to Third World governments that show dedication to improving the lives of their people. That means the money must go to health and education -- not weapons.

Chretien made the remarks to the Canadian Club of Winnipeg Thursday. He intends to present the plan to a meeting of the Group of Seven nations in June.

Chretien warns that wealthy nations must show charity toward the world's poor or risk the consequences.

"It is in our own self-interest to understand that now that our own house is in better repair it is time to refocus our attention on helping our less fortunate neighbours in the global village," he said.

In the speech, he set out a four-part plan that calls for the G-7 to provide total loan forgiveness for what are technically known as the "Heavily Indebted Poor Countries". Under the plan, future loans and loan forgiveness would be linked to the poor nation's spending on human development. Nations which violate human rights or destabilize their neighbours would not receive relief.

Chretien did not say what the proposals would cost, but proudly noted that Canadian governments have forgiven $1.3 billion in foreign debt over the last 20 years.