KANANASKIS, Alberta (Reuters) - The world's most powerful leaders, meeting behind well-guarded gates at a Canadian mountain resort, named Russia a full member of their exclusive club Wednesday and sought new ways to help stop terror groups getting their hands on nuclear bombs.
The Group of Eight industrialized nations, meeting in the shadow of the snow-covered Canadian Rockies, also offered a ray of hope to economies reviving from the slowdown of last year and promised an extra $1 billion for poor-country debt relief.
Russia, until now excluded from key parts of the annual meetings of the world's richest countries, would host the 2006 summit, the G8 said.
"The world is changing. Russia has demonstrated its potential to play a full and meaningful role in addressing the global problems that we all face," the G8 said in a statement.
"This decision reflects the remarkable economic and democratic transformation that has occurred in Russia in recent years, and in particular under the leadership of President (Vladimir) Putin."
Putin, who arrived in Canada a day after the other leaders, would also benefit from a possible deal to hand over up to $20 billion to help decommission weapons of mass destruction in the former Soviet Union.
Officials were working through the night on final details of the agreement, which could see Russia receiving $10 billion from the United States and $10 billion from other countries over the next 10 years, a Canadian official said.
Western nations have worried that militant groups like al Qaeda, which Washington blames for the Sept. 11 suicide attacks on the United States, might get their hands on nuclear arms, perhaps from poorly guarded Russian atomic sites.
POLITICS AND THE ECONOMY
The summiteers, guarded by police, tanks and anti-aircraft missiles in the biggest security operation Canada has ever seen, are discussing political and economic issues against a backdrop of poverty in Africa, crisis in the Middle East and faltering stock markets after a new U.S. accounting debacle.
Chretien said things were looking up for economies hit by the Sept. 11 suicide hijackings in the United States.
"People all agree that the situation is better in 2002 than it was in 2001, and it will be better in 2003," he said.
Economic issues took on new significance on Wednesday as markets stumbled in response to news that long-distance carrier WorldCom Inc. had improperly boosted its profits in a $3.8 billion accounting scandal.
The tech-heavy Nasdaq stock index slumped to a 3 1/2 year low before recovering and the U.S. dollar fell, prompting U.S. reassurances that its "strong dollar" policy remained intact.
President Bush, responding to the WorldCom fiasco, said he was "mad as hell" about the lack of corporate responsibility in America, and promised a full investigation.
The G8 will also discuss Bush's controversial U.S. peace proposal for the Middle East.
The plan seeks a new Palestinian leadership, democratic reforms and a security deal that Israel can trust. But other G8 countries have expressed deep reservations, not least because it is so unclear who would win a free and fair election there.
AWAY FROM THE PROTESTS
Chretien held the meeting in Kananaskis to avoid the violent protests that dogged previous international gatherings. But delegates admit they dislike the tight controls, which are restricting access to Kananaskis itself.
"I'd hoped there would be a few more of you here, but the law is the law," French President Jacques Chirac told the dozen journalists who were allowed into his news conference.
Demonstrators blocked a road leading to the mountain retreat, and chanted and banged drums both in Calgary -- some 55 miles away -- and in a rain-drenched Canadian capital Ottawa, half a continent away.
But there was little sign of trouble beyond traffic jams and angry commuters. A "die-in" in a Calgary city park looked more like a mass sun-bathing session than a serious protest.
Activists said they were angry that G8 leaders were making decisions about key issues such as development, trade and the economy without input from ordinary people.
Chretien, as chairman, has steered the agenda for the summit toward aid for Africa. Several African leaders arrived on Wednesday, ready to join the second day of talks.
The super-tight security at the summit extends to the local wildlife, with bears fitted with radio transmitters to avoid any nasty surprises for the troops on guard.
One bear was accidentally killed when it got too close, Italian Prime Minister Silvio Berlusconi said.
"The bear didn't want to leave the protected zone. They fired a tranquilizer dart at it. Unfortunately instead of hitting a muscle, because of an abrupt movement, they hit its heart and the bear died," he said.
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