G-7 WANTS TO SHOW MARKETS ITS RESOLVE - MIYAZAWA
Japanese Finance Minister Kiichi
Miyazawa said the Group of Seven (G-7) countries reaffirmed
their Paris accord on stabilising currencies to convince the
market of their resolve.
    At a news conference after today's G-7 meeting, Miyazawa
said the ministers and central bank governors did not believe a
totally new statement was needed.
    The speculative selling did not reflect economic
fundamentals, and since the fundamentals had not changed only a
reaffirmation of the goals of the Paris accord was needed, he
said.
    He also noted that this test of the G-7 nations resolve had
concentrated on the yen, while other currencies, especially the
mark, had remained stable.
    Miyazawa said any change in economic conditions since the
Paris accord was not worth being called fundamental.
    "As I said at a time of Louvre (agreement), the expression
of 'current level' is rather vague idea," he said.
    The yen's movement in the past several weeks is within the
range agreed in Paris in Febraury, he said.
    It was better to give a vague expression than pin-pointing
a level, which could have an adverse impact on the market,
Miyazawa said.
    Asked why only Japan was committed to fresh measures in the
statement, he said Japan was exceptional among the seven
because the yen appreciated against the dollar while other
major currencies largely have been stable.
    He also said Japan's ruling Liberal Democratic Party has
justed adoped a package to reflate the economy while other
nations are not supposed to produce new measures in a short
period since the Paris agreement.
    Miyazawa also said the U.S. sanctions against Japanese
semiconductor products was not discussed through the G-7
meeting and did not affect the currency talks.
    The seven nations discussed the debt problems of developing
countries and ways to proceed in line with the debt initiative
outlined by U.S. Treasury Secretary James Baker 18 months ago.
 REUTER
