G-7 OFFICIALS TO DECIDE ON SUMMIT AGENDA
Senior officials from the Group of
Seven (G-7) countries will meet next week to decide an agenda
for the body's June summit scheduled to be held in Venice,
Japanese officials said.
    The meeting will provide senior government officials with
their first chance to discuss the recent sharp drop of the
dollar, although the main focus of the gathering is longer
term, they said.
    Deputy Finance Ministers, including Japanese Vice-Finance
Minister Toyoo Gyohten, will attend. The meeting will be held
in Italy, they said, but gave no other details.
    The leaders of the G-7, the United States, Britain, Canada,
France, Italy, Japan and West Germany, are expected to discuss
ways of improving economic policy coordination in Venice.
    The hope is that increased coordination will help reduce
the huge imbalances in world trade and calm volatile currency
markets. But economists say the strategy has so far not worked.
    Japanese officials admitted there is little more they can
do on their own to stem the dollar decline, which last week saw
the currency plunge to a post-war low below 140 yen.
    The officials said they expected sentiment against the
dollar to change soon, once the U.S. Trade deficit starts to
fall and the Japanese surplus begins to shrink.
    "We have already seen some signs of improvement (in the
trade picture), but the market does not appreciate it yet," one
said.
    Last week's passage of the Japanese government budget by
parliament's Lower House also paves the way for Tokyo to take
additional action to stimulate its sagging economy and boost
imports, the officials said.
 Reuter
