BONN CONFIDENT OF MAINTAINING CURRENCY STABILITY
U.S. Treasury Secretary James Baker met West
German Finance Minister Gerhard Stoltenberg and Bundesbank
President Karl Otto Poehl in Frankfurt on Monday, a Bonn
Finance Ministry spokesman said.
    After the meeting the spokesman quoted Stoltenberg as
saying he was confident that foreign currencies could be
stabilised at around current levels.
    The meeting came after Baker criticised West Germany for
increasing short-term money market interest rates. He had said
the rise was not in line with the spirit of the Louvre accord
aimed at stabilizing the U.S. dollar last February.
    The meeting had been arranged last week, the spokesman
said. Baker, Stoltenberg and Poehl had agreed to pursue the
policies agreed under the Louvre pact with reference to
currency stability and monetary policy.
    Earlier on Monday the Bundesbnak injected liquidity into
the West German money market in a move which money market
dealers interpreted as an attempt by the West German monetary
authority to curb interest rate rises.
    The spokesman described Monday's talks, which he called
private, as very positive.
 Reuter
