EXCHANGE RATE BILL CLEARS U.S. HOUSE PANEL
The House Banking Committee adopted
legislation to direct the U.S. Treasury to begin negotiations
aimed at seeking regular adjustment of exchange rates by  
countries such as Taiwan and South Korea, whose currencies are
pegged to the value of the U.S. dollar.
    The measure was adopted as part of a wide-ranging trade
bill that will be considered by the full House in April before
it moves on to the Senate.
    The bill's many provisions also set as a priority for the
U.S. the negotiation of stable exchange rates and urge
government intervention as necessary to offset fluctuations.
    In addition, the Banking Committee bill would authorize
U.S. banks to use a variety of means to deal with the debt
problems of developing countries, such as lowering interest
rates on existing debt, renegotiating loans or debt
forgiveness. The bill would give a blanket waiver of any
federal banking regulations that bar such actions.
    The bill would direct Treasury Secretary James Baker to
discuss with debt-ridden developing countries the possibility
of the U.S. setting up a public debt management agency that
would purchase their debt at a discount and negotiate the
restructuring of the debt.
    The Banking bill authorizes U.S. participation in a
multilateral investment guarantee agency (MIGA) as requested by
the administration. Congress would approve an initial U.S.
subscription of 22 mln dlrs.
    And, it sets up a council on industrial competitiveness
composed of industry and administration members to explore ways
to make the U.S. more competitive in world markets.
 Reuter
