BAKER SAYS G-7 WANTS TO HALT DOLLAR FALL
Treasury Secretary James Baker said
the Group of Seven leading industrial nations is fully
committed to halting a further decline in the dollar.
    "Let me emphasize that all seven major industrial nations
remain fully committed to strengthening policy coordination,
promoting growth and cooperating to foster stability of
exchange rates," he told the American Enterprise Institute.
    "We all believe a further decline of the dollar could be
counter productive to our efforts (to promote growth)," he said.
    Baker also said that after meeting Japanese special envy
Shintaro Abe, "it's clear that Japan intends to take strong
steps to stimulate its economy to meet its committments under
the Louvre Accord."
    Baker said in the past two years he has worked to promote
greater coordination of economic policies and important
progress has been made.
    "Substantial exchange rate adjustments have also been
accomplished over the past two years so that today we are
better positioned to promote growth and reduce external
imbalances," he said.
    Baker pointed out that in February the seven agreed to
foster stable exchange rates and those commitments were
renewed recently.
     In a speech largely devoted to discussing trade and
competitiveness, Baker again warned of the dangers of
protectionist trade legislation, saying it would harm the U.S.
standard of living.
    Baker stressed adminstration trade policy sought to remove
foreign barriers to trade and via forthcoming GATT talks will
focus on agriculture, services and intellectual property.
    The Treasury Secretary said that as well as trade issues he
had to focus on macroeconomic issues as well which encompass
the trade picture.
    "The world economy today is really one constantly flowing
circle of capital and goods. Trade accounts catch and measure
that flow at only one spot on the circle," he said.
 Reuter
