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To: PaulM who wrote (8020)	3/3/1998 8:30:00 PM
From: goldsnow	Respond to of 116764

FOCUS-Japan's Mr Yen says Asia recovering 06:01 a.m. Mar 03, 1998 Eastern By Reme Ahmad KUALA LUMPUR, March 3 (Reuters) - Japan's top financial diplomat said on Tuesday Asian countries affected by a regional currency turmoil are firmly on a recovery track and promised greater help from Tokyo to help the process. In Malaysia at the start of a three-nation regional tour, Eisuke Sakakibara said Japan was also ready to explore ways to help Indonesia cope with its worst economic crisis in decades. ''I think we see light at the end of the tunnel and recovery is in sight. We are now about to overcome the quote unquote crisis in the region,'' the Japanese Vice Finance Minister for International Affairs said at a news conference after a meeting with Malaysia's Deputy Prime Minister Anwar Ibrahim. Sakakibara, who is also dubbed Mr Yen for his ability to influence the Japanese currency, said his country would do whatever was necessary to help the recovery process. ''We have taken necessary measures and continue to address the problem recognising that Japan is the anchor economy in the region. We will do whatever is necessary to restore the confidence and achieve the robust economic recovery in Japan and in the region,'' he said. ''Being Asian we tend to be a little bit more reserved than other G7 (Group of Seven) countries, but we intend to increase our presence in this region and continue to cooperate very closely with Malaysia and other ASEAN (Association of South East Asian Nations) and Asian countries.'' He said one of the reasons for the economic crisis facing the region was an excessive dependence on the U.S. dollar. He suggested that nations of the region make more use of the Japanese yen and other local currencies. ''Use of local currencies for intra-regional trade, I think, is an effective counter-measure to cope with the situation. For the Japanese, ASEAN trades (with) more use of the yen may be commendable and we will investigate ways to use more yen in trade with Japan.'' The Japanese official said about 80 percent of Japan's imports from Asian countries were denominated in U.S. dollars, and close to 50 percent of its exports were transacted in yen. ''There is some kind of imbalance between Japanese imports and exports. This imbalance could be corrected by the use of yen in Japanese imports from the region,'' he said. He gave a clean bill of health to Malaysia's economy and said the ringgit was undervalued. He also promised to help Malaysia in the currency's recovery. ''Given the underlying strength of the Malaysian economy, I think the ringgit is still somewhat undervalued...I discussed with the deputy prime minister the ways in which Japan could contribute to the further strengthening of the Malaysian ringgit,'' he said. ''I think that Malaysian fundamentals are now very strong. I was very much impressed with the soundness of the Malaysian financial sector,'' he said. Sakakibara said Japan was ready to explore ways to help Indonesia cope with its economic troubles. ''We are ready to explore various ways to have successful resolution of the problem in Indonesia,'' the Japanese official said. ((Kuala Lumpur newsroom, +60 3 201-4813 fax +60 3 232-6752, kuala.lumpur.newsroom+reuters.com)) ^REUTERS@

To: PaulM who wrote (8020)	3/3/1998 8:38:00 PM
From: goldsnow	Respond to of 116764

Japan ready to take new steps on economy if needed 05:35 a.m. Mar 03, 1998 Eastern By Madhav Reddy KUALA LUMPUR, March 3 (Reuters) - Japan's Vice Finance Minister for International Affairs Eisuke Sakakibara said on Tuesday his country was prepared to take fresh measures to ensure a robust recovery in the domestic economy and the region. ''We have taken necessary measures and continue to address the problem recognising that Japan is anchor economy in the region,'' Sakakibara told a news conference in the Malaysian capital. ''We will continue to do whatever is necessary to restore the confidence and achieve a robust economic recovery in Japan and the region,'' he added, without giving further details. Sakakibara is on a three-nation tour of Southeast Asia to discuss ways out of the economic crisis facing the region. He defended Japan's economic management after recent criticism by the Group of Seven (G7) and said its economic fundamentals were quite strong and had been underestimated. ''We are doing whatever we could to strengthen the domestic economy. I do not share the G7 criticism of the Japanese economic management,'' he said in response to questions after a meeting with Malaysian Deputy Prime Minister Anwar Ibrahim. Japan has been under pressure from its fellow G7 to liberalise its economy and open up to more imports. G7, led by the United States, has been trying to persuade Tokyo to take fiscal steps to stimulate its stagnant economy and help the rest of Asia recover from economic turmoil. Earlier on Tuesday, Sakakibara declined to comment on the yen's recent strength against the U.S. dollar. ''Any exchange rate should reflect the fundamentals of the economy and I think the fundamentals of the Japanese economy are quite strong. In the past couple of months the fundamentals of the Japanese economy have been underestimated,'' he said at the news conference when asked what was a good level for the yen. He said Japan would play a greater role than before in helping crisis-ridden economies of Asia, particularly members of the Association of South East Asian Nations (ASEAN). Sakakibara said one of the reasons for the financial sector driven problems of the region was the excessive dependence on the U.S. dollar. He advocated greater use of the yen and other Asian currencies in regional trade. ''Use of local currencies for intra-regional trade, I think, is an effective countermeasure to cope with the situation,'' he said. The Japanese official said that about 80 percent of Japan's imports from Asian countries were denominated in U.S. dollars, and close to 50 percent of its exports were transacted in yen. ''There is some kind of imbalance between Japanese imports and exports. This imbalance could be corrected by the use of yen in Japanese imports from the region,'' he said. ''Being Asian we tend to be little bit more reserved than other G7 (Group of Seven) countries, but we intend to increase our presence in this region and continue to cooperate very closely with Malaysia and other ASEAN and Asian countries,'' he said. ((Kuala Lumpur newsroom, +60 3 201-4813 fax +60 3 232-6752, kuala.lumpur.newsroom+reuters.com)) ^REUTERS@

To: PaulM who wrote (8020)	3/3/1998 8:43:00 PM
From: goldsnow	Read Replies (1) \| Respond to of 116764

FOCUS-Fresh investigation ordered on Japan Mr Yen 11:26 a.m. Mar 03, 1998 Eastern By Yoko Kobayashi TOKYO, March 3 (Reuters) - Japan's finance minister said on Tuesday he was reopening an investigation into the past conduct of top financial bureaucrat Eisuke Sakakibara, after questions were raised in parliament about his alleged influence peddling. ''I will take an interest and look at the facts by looking at the materials of the past investigation,'' Finance Minister Hikaru Matsunaga said during a question and answer session of the budget committee of the Lower House of parliament. ''It's better to clarify whether the ministry's findings were accurate or whether (Sakakibara) demonstrated such conduct as alleged by a member of parliament,'' Matsunaga said. An opposition member of parliament earlier demanded information on reports Sakakibara was entertained over 15 times by a friend in the private sector and that he persuaded Daiwa Securities Co to compensate his friend for investment losses. After Sakakibara intervened, Daiwa Securities had provided 220 million yen ($1.74 million) in compensation for losses incurred by the friend through warrant transactions made through the brokerage, said opposition MP Shozo Kusakawa. Kusakawa, a 69-year-old former labour leader who has been a parliamentarian for 21 years, roiled financial markets with his lengthy allegations about Sakakibara's conduct. The 56-year-old Sakakibara, who is vice finance minister for international affairs, is currently on a tour of Malaysia, Thailand, and Singapore and could not be reached for comment. But a ministry official who spoke to him after the committee session said he believed Sakakibara had been informed of the parliamentary questioning. ''He was unmoved, just his usual self,'' the official said. Almost at the exact moment he was coming under fire in parliament, Sakakibara trumpeted Japan's economic policy to Asian counterparts -- saying Tokyo was prepared to take fresh steps to ensure robust recovery. ''We have taken necessary measures and continue to address the problem recognising that Japan is anchor economy in the region,'' Sakakibara, who returns to Tokyo on Friday, told a news conference in Kuala Lumpur. Ministry of Finance Deputy Vice Minister Toshiro Muto told the same committee that the MOF investigation in 1991 had found that there was no wrongdoing in Sakakibara's relationship with the acquaintance. Prime Minister Ryutaro Hashimoto, who has relied on the outspoken Sakakibara to articulate Japan's economic policies abroad, demurred from making a direct comment, saying only: ''Investigations should be carried out as necessary in order to avoid public distrust towards civil servants and to thoroughly enforce official discipline.'' As the cloud of doubt descended upon Sakakibara, dubbed ''Mr Yen'' for his successes in moving currencies, the dollar briefly touched 126 yen. Before the parliament discussions, it was trading around 125.60 yen. Currency traders said the focus was now on whether Hashimoto would defend Sakakibara, who is considered a key figure in Japan's foreign exchange and external economic policies. ''If the allegations are true, then it would become a huge problem. He is going to be out of the game,'' said Shigenori Okazaki, a political analyst at SBC Warburg in Tokyo. While analysts said his position could be in jeopardy if the allegations proved to be true, legal experts said they were unsure what laws, if any, he might have broken. ''Merely calling a brokerage and asking them to compensate losses for somebody else is not illegal,'' said Tokyo lawyer Isao Ashindo. ''But if one is asked by somebody to prevail on a brokerage to compensate for losses and the person does it, that could mean the caller is an accomplice,'' he told Reuters. It is not the first time the high-profile Sakakibara has got himself into hot water. Last week, he was lambasted in parliament for having agreed at a Group of Seven meeting last month to a statement saying Japan needed to increase spending to boost its economy. He admitted Tokyo did not agree completely with the communique. Earlier, he was scolded by Matsunaga for denigrating the nation's parliamentary system. Beyond the trouble his mouth has landed him in, Sakakibara is also a top figure in a ministry under fire. Two bank inspectors from the ministry have been arrested recently on suspicion of taking bribes in the form of lavish entertainment from leading banks in return for leaking information about the dates and contents of inspections. ($1-126 yen) ((Tokyo Newsroom +81-3 3432 8022 tokyo.newsroom+reuters.com)) ^REUTERS@