Even more USA getting paranoid...
<<<U.S. Treasury Secretary Robert Rubin met on Friday in San Francisco with Japan's Finance Minister Kiichi Miyazawa. They agreed it was vital for Japan to beef up its weak economy and help prevent the world from plunging into a financial disaster>>
U.S. urges Japan to take concrete economic actions
09:55 a.m. Sep 06, 1998 Eastern
WASHINGTON, Sept 6 (Reuters) - U.S. Deputy Treasury Secretary Lawrence Summers urged Japan on Sunday to go beyond economic promises and take concrete steps to repair its sick economy.
''What will be crucial is the steps and actions, not just the plans and the proposals, but what concrete actions Japan is able to take going forward to stimulate its economy to fix its banking system,'' Summers told Fox News Sunday.
U.S. Treasury Secretary Robert Rubin met on Friday in San Francisco with Japan's Finance Minister Kiichi Miyazawa. They agreed it was vital for Japan to beef up its weak economy and help prevent the world from plunging into a financial disaster.
But the two ministers offered no major new initiative designed to help calm the turmoil in financial markets that many fear could have devastating effects on both emerging and developed economies.
''What happens in Japan is profoundly important for the Japanese people, for Asia and for the global economy,'' Summers said. ''So whether it grows, the health of its finances -- given how interconnected we are -- is terribly, terribly important.''
Washington has urged Tokyo since the Asian financial crisis took hold last year to clean up its debt-ridden banking sector and boost domestic demand to help its Asian neighbours.
With a financial and political crisis now raging in Russia, and Latin American countries coming under increasing financial pressure, U.S. frustration with Japan has risen dramatically.
''There's no question that over the last months Japan has taken some additional measures that are related to these issues, but it is a deteriorating economic situation in Japan,'' Summers said.
Copyright 1998 Reuters Limited. |
