Summers gave no details of how new plans might work. The administration was clearly surprised at the hostility toward gold sales in Congress and anxious to find new ways to raise extra money for the IMF debt relief initiative. On Thursday, a senior Treasury official said the administration of President Bill Clinton was looking at alternative ways to mobilise the IMF's gold reserves to pay for debt relief. But he said a deal needed the backing from other IMF countries, and noted that selling IMF gold was the only "viable option" so far with broad international support.

Theadministration has long backed the IMF's plan to sell some 10 million ounces of gold to pay for debt relief and low-interest loans for poor countries. While Congressional leaders say they are committed to the debt relief, many fear that gold sales would depress the already-low gold price further and hurt mining industries in the countries that the IMF wants to help. Representative Jim Leach, chairman of the House of Representatives Banking Committee said on Thursday that he did not expect Congress to back the plan.

"Debt relief is a societal, indeed moral imperative, but care must be taken not to jeopardise the mining industry that provides many of the most stable jobs in the developing world," the Iowa Republican said. The sale of IMF gold needs the backing of countries with 85 percent of votes at the IMF, and it cannot go ahead without congressional backing because the United States has 17 percent of votes. The IMF has been mulling the idea of gold sales for years, but the plan only got off the groundwhen Germany, a long-term opponent, dropped its opposition.

IMF experts say politically tricky bilateral contributions from member states are the only alternative to selling gold, although the fund also insists that it will conduct these sales in a way which does not disrupt the market.

It is examining different options, including selling gold to central banks, and says its proposed sales of 10 million ounces -- some 310 tonnes -- amount to just four weeks of total world demand.

But the lobby for gold sales admits its case has been badly dented by the sharp impact on Financial markets from Britain's decision to sell 415 tonnes from its gold reserves.