BANGEMANN CALLS FOR CURRENCY CALM
West German Economics Minister Martin
Bangemann urged a halt to the talking down of the dollar by
both official and private institutions in the U.S., Saying calm
was needed on the foreign exchanges.
    Speaking at the opening of the 40th Hanover Industry Fair,
Bangemann said radical changes in foreign exchange parities had
left their mark on exports and investments. He added that
without these external difficulties, West Germany's economy
would have grown by 3.5 pct last year instead of the 2.5 pct
reported.
    Bangemann said he could not deny that the economic climate
in West Germany had cooled, but he stressed the country was not
in a downtrend.
    The minister also criticised state subsidies, which he said
mainly favoured large companies and created a tax burden for
smaller and medium sized firms.
    Bangemann referred specifically to subsidies in the steel
industry, which he said had to be fought with all legal means
when they did not correspond to European Community guidelines
on grants.
    He added that in light of the declining demand for steel
capacities had to be adjusted, saying the Bonn government would
not successfully be able to stand in the way of any change in
this industry.
    Bangemann also spoke out against protectionism and called
for more competition, citing as an example the Federal Post
Office.
    The Post Office enjoys a monopoly in West Germany,
especially as far as deciding who is able to provide
telecommunications equipment.
 REUTER
