Alex-- Do you think we will write a check for this? Watch for the big injection of paper nothing! Or maybe we could send them our "worthless" gold. >>Rubin sees need for fast resolution of Asia crisis
NEW YORK, Oct 27 (Reuters) - U.S. Treasury Secretary Robert Rubin said that there is ''clearly a
serious issue'' with respect to finanical instability in Southeast Asia that needs to be resolved as soon
as possible.
In a taped interview with the Nightly Business Report aired in New York, the Treasury Secretary
said, ''We have to work with the World Bank, the IMF and countries in the region to re-establish
financial stability as quickly as possible,'' referring to the International Monetary Fund.
The interview was taped earlier Monday.
Later, in a live statement, Rubin confirmed that he was in touch with financial officials around the
world and that the United States would continue to monitor financial markets.
In the taped intervew, Rubin said it was in the interest of every party -- the United States, Japan, the
global trading community -- to ''focus with great intensity'' in restoring stabilty to Southeast Asia.
Stock markets worldwide fell sharply on Monday. A 5.8 percent drop in Hong Kong's Hang Seng
Index paved the way for a 7.2 percent plunge in the Dow Jones Industrial Average. The Dow
plummeted 554 points, the most ever, in a session halted twice when the drop triggered circuit
breakers on the New York Stock Exchange.
Rubin also called on China to keep an open policy on Hong Kong -- where much of the recent
turmoil has occurred.
''I think the overwhelming message ... is that sound policy and open markets lead to growth,'' Rubin
said. ''What we have to do is stay on the path and not get off the path.''
Meanwhile, Rubin said Japan still needed to fix its huge trade surplus.
''Prime Minister Hashimoto said at the beginning of the year that his objective was to have
domestic-led growth and also to avoid sustained significant increases in their trade imbalances and
that is a challenged that has not been met,'' Rubin said.
''And I think it is very imporant they meet that challenge. It's important for themselves and important
for the rest of the world,'' he said
The Treasury Secretary praised Germany for ''getting back on the growth path.''
''It makes the point that in all these countries, it is in the enormous interest to re-establish a
successful domestic economy,'' he said. |
