SHULTZ WARNS ASEAN OF LOOMING TRADE PROBLEM
U.S. Secretary of State George Shultz
warned members of the Association of Southeast Asian Nations
(ASEAN) they could no longer rely on increased exports to the
U.S. For growth.
    "Given the importance of exports, particularly export
manufactures, to all of your countries, you are going to have
to work hard to diversify your markets," he said.
    "While you may be able to maintain your current market share
in the U.S., You clearly will not be able to look to the U.S.
To take major increases in your exports," he added.
    Shultz told the foreign ministers of Brunei, Indonesia,
Malaysia, the Philippines, Singapore and Thailand the U.S.
Would cut its huge foreign trade deficit more rapidly than many
now believed.
    He said ASEAN's looming trade problems would not
necessarily stem from protectionist legislation now being
contemplated by Congress, "but simply because of the adjustments
the U.S. Economy will have to make in order to service our
large and growing external debt."
    Shultz said the U.S. Deficit had resulted not from falling
exports but from higher imports that had fuelled world growth.
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