TRREASURY'S BAKER SEES NO TRADE WAR OVER TARIFFS
Treasury Secretary James Baker said
the U.S. imposition of tariffs on Japanese goods over
semiconductor trade does not signal the start of a trade war.
    He also played down the significance of the precipitous
stock market decline earlier this week.
    "I don't think this action should be interpreted in any way
as the start of a trade war," he said in response to a question
from a House Appropriations subcommittee.
    He said a drop in stock market prices of the magnitude
experienced Monday was not so unusual.
    "I don't think it is particularly unusual to see those kinds
of days" on Wall Street, Baker said.
    Since Monday, he added, "The stock market has rebounded
rather vigorously."
    He urged lawmakers to move cautiously on trade legislation
to avoid overly protectionist moves which might aggravate world
trade tensions.
    "You're not going to legislate this (trade) deficit away," he
told the panel.

 Reuter
