WASHINGTON, Nov 18: The US Treasury warned on Tuesday that a boost to the economy will not come quickly despite a massive bailout and automakers pleaded for more help to save them from disaster in a global economic meltdown.

Japanese prospects also suffered a fresh blow when the country's economics minister Kaoru Yosano said he had “no confidence at all” that the world's second-biggest economy would grow next year.

Testifying to Congress on progress of his $700 billion bailout package, US Treasury Secretary Henry Paulson warned it was “not a panacea”, as economic woes continued to deepen worldwide.

“The crisis in our financial system had already spilled over into our economy and hurt it. It will take a while to get lending going and repair our financial system, which is essential to an economic recovery,” Paulson said.

“The purpose of the financial rescue legislation was to stabilise our financial system and to strengthen it. It is not a panacea for all our economic difficulties.”

The chiefs of the “Big Three” US automakers were due in Congress on Tuesday to plead with lawmakers to save their treasured American industry.

The chairmen and CEOs of General Motors, Ford and Chrysler were to testify to a Senate committee as Democrats mounted a long-odds bid to pass a 25-billion-dollar rescue package.

Millions of jobs are threatened as the industry's crippling losses are exacerbated by the deepening economic crisis.

Senior Democratic party members condemned the reluctance of the White House and Republican leaders to siphon off the money from the 700-billion-dollar finance industry bailout.

“All it would take is one stroke of a pen and that problem would be solved,” Senate Majority Leader Harry Reid said.

“We are seeing a potential meltdown in the auto industry, with consequences that could directly impact millions of American workers and cause further devastation to our economy.” —AFP