Bochum, Germany, Feb 14: German Chancellor Gerhard Schroeder has backed a plan by the president of Germany's central bank, Ernst Welteke, to use interest earnings from gold reserve sales to fund research and development. Speaking at a Social Democrats regional conference in the western town of Bochum on Saturday, Schroeder said it was vital the government continue its drive to boost research funding. "Maybe the government and the Bundesbank together will manage to put the income from the gold sales that have been discussed into a fund, where all the profits will be put into research and development," said Schroeder. Bundesbank President Ernst Welteke has said he favours selling some of the central bank's gold and using the proceeds to fund education and research projects but it is not clear if the Bundesbank's board would support the sales and no decision has been taken. Some German politicians have said it is not for the Bundesbank to decide how the funds will be used. A proposal to sell gold and invest the proceeds in interest-bearing securities to fund education and research would require a change in the current law governing Bundesbank profits, which are normally transferred to the government and used to pay down public debt. Welteke has already said that there would be no majority on the Bundesbank's board for outright gold sales without such a change in the law. Any change to the law governing the Bundesbank is a decision for parliament rather than the Bundesbank itself, the central bank said. The Bundesbank, the world's second largest holder of gold with over 3,400 tonnes in its vaults, has sold only small amounts in recent years but has recently said it wants to join other central banks in selling gold reserves if a 1999 accord limiting European central bank sales is renewed. The Bundesbank said last month it would like an option to sell 120 tonnes of gold per year under the new accord, or four percent of its total stock. Bureau Report