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To: John Rieman who wrote (28991)	1/31/1998 11:56:00 AM
From: CPAMarty	Respond to of 50808

from www.barrons.com page 28, 2/2/98 paper version Q: What is this deal you think has been cut in Asia? Biggs: We are pretty well convinced there is a deal on Asia -- although it's not all formalized, signed, sealed and that sort of thing. But when [Deputy Treasury Secretary] Larry Summers was over there recently, there were commitments made by China to not devalue the RMB and to hold the Hong Kong peg. And-by the U.S., the International Monetary Fund and the G7 ["Group of Seven" major industrialized nations] -- to stabilize the yen at a higher level. In other words, when the yen was trading at over 130, a commitment was made to get it down toward 120. There was also a commitment that South Korea's debt would be rolled over in some form to try to stabilize these Asian currencies. It is very important that China not devalue. And they seem to be going along. This is more than just supposition. I mean, Eisuke Sakakibara is, to a certain extent, a very wily operator. [Known on forex desks as "Mr. Yen," he's Japan's vice minister of finance for international affairs.] At a meeting in Tokyo last Thursday [January 22], he really laid all of this out. So far, the effort is just jawboning. But they suggested there would be intervention if the yen weakened too much.