G-8'S SECOND DAY FOCUSES ON CRIME, DRUGS, POVERTY ... AND SPORTS

BIRMINGHAM, England (CNN) -- In the secluded splendor of a 17th century
estate, leaders from eight industrial nations gathered away from the
media's gaze to discuss addressing cross-border crime, drugs and Third
World debt.

The Irish peace process, nuclear tensions in South Asia, and the domestic
crisis in Indonesia also continued to dominate the agenda for the heads of
state from the United States, Russia, Japan, Great Britain, France,
Germany, Italy and Canada, officially dubbed the Group of Eight.

On Saturday, the G-8 released a statement which "warmly welcomed" the April
10 peace settlement for Northern Ireland.

"We commend all those involved in achieving an outcome which reflects the
fundamental aspirations of both parts of the community in Northern Ireland
and secures their rights," the statement read.

The G-8 statement also said the group realized the agreement had to win the
endorsement of the people in the North and in the Republic of Ireland.

On the upcoming vote, the group said: "...we hope it will achieve the
widest possible support, not only as a basis for political stability and
peace but also as an opportunity for economic development and prosperity
for all Northern Ireland's people."

Drug crimes grow 'faster than our cooperation'

In their discussions on cross-border crime and drugs, the leaders watched
police videos on high-tech crime and international arms trafficking.

Barry Penrose, the director general of Britain's National Crime Squad,
warned the group that they are on the threshold of a high-tech boom in
cross-border crime.

The G-8 also sifted through a batch of statistics on the growth of the
illegal drug trade. French President Jacques Chirac demanded a zero
tolerance policy toward soft as well as hard drugs.

"This scourge is advancing faster than our cooperation," a spokesman quoted
Chirac as saying about the illegal drug trade.

A draft communique, to be issued Sunday, is expected to pledge action on
Internet crimes, money-laundering, corruption and the illegal manufacturing
and trafficking of firearms.

Poverty relief

In central Birmingham, away from the quiet of the Weston Park retreat, tens
of thousands of people gathered to urge the G-8 members to help eradicate
Third World debt.

The protesters formed a six-mile long human chain at least four people deep.

"No more debt!" they chanted, while blowing whistles and banging drums.

The protesters in Birmingham would like to see the world leaders write off
debt from the world's poorest nations.

At Weston Park, where British Prime Minister Tony Blair and his guests
discussed relieving poverty in Africa, the G-8 had a different vision of
debt relief.

Officials said the G-8 is expected to encourage creditor nations to
possibly accelerate a debt-relief initiative agreed to two years ago.

Blair, who has promised to meet with the Jubilee 2000 protesters in
Birmingham, said the G-8 was concerned about debt-ridden poorer nations but
that there was no magic solution.

Debt relief goes hand-in-hand with good development policies and sound,
honest government, Blair said in a response to the protesters' demands.

Time out

The G-8 attendees also set aside time for the business of serious fun.

They wrapped up talks at the secluded retreat in time for Blair, Clinton,
Canadian Prime Minister Jean Chretien and Italian Prime Minister Romano
Prodi to watch the kick-off of the English soccer cup final between Arsenal
and Newcastle United.

Japanese Prime Minster Ryutaro Hashimoto, Russian President Boris Yeltsin
and German Chancellor Helmut Kohl opted for the 20-mile ride back to
Birmingham.

But Hashimoto did send along a handwritten good-luck note to the Newcastle
players. It accompanied one from Blair, who supports the team.

Earlier Saturday morning, Chretien and Clinton took time for the Canadian
leader to make good on a bet over who would win the Washington Capitals vs.
Ottawa Senators National Hockey League playoff series.

The morning after the Capitals eliminated the Senators from the series,
Clinton presented Chretien with a Capitals' jersey. Chretien put it on for
reporters -- a condition of the bet -- and joked in French it was
embarrassing to don the jersey of the American team.

Clinton accepted a Senators' jersey from Chretien, and the two leaders
exchanged hockey sticks autographed by their respective teams.

Correspondents Wolf Blitzer and John King, The Associated Press and Reuters
contributed to this report.

Checked-by: Mike Gogulski