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To: Bobby Yellin who wrote (18555)	9/12/1998 8:27:00 AM
From: goldsnow	Read Replies (1) \| Respond to of 116786

Yes Bobby I am coming to the conclusion that as Japanese beggining to feel good about themselves in comparison to USA the sentiment and re-inflation efforts should bear the fruit....Yen below 125? Why not? U.S. seeks ''fair shake'' in Japan public spending 03:09 p.m Sep 11, 1998 Eastern By Donna Smith WASHINGTON, Sept 11 (Reuters) - The top U.S. trade envoy said on Friday she wants to be sure U.S. and other foreign firms get a ''fair shake'' at Japan's public works spending that is part of a programme to boost its flagging economy. U.S. Trade Representative Charlene Barshefsky said she will raise the issue during three days of talks next week in Japan designed to help lay the groundwork for a meeting later this month between President Bill Clinton and Japanese Prime Minister Keizo Obuchi at the United Nations in New York. She said she plans to stress ''the administration's continuing concern and resolve with respect to market access and deregulation issues.'' U.S. officials have become increasingly frustrated by Japan's slow response to calls from Washington and other capitals for Tokyo to do more to stimulate its domestic economy and rapidly deregulate its markets to allow more foreign access and competition. The United States and others believe that as the world's second largest economy, it is important Japan pull itself out of recession and help the rest of Asia out of financial crisis. ''The situation is acute and it is important that Japan understand the seriousness and the gravity with which we take the current situation,'' Barshefsky said. As the Asian crisis has deepened, the U.S. trade deficit with the region and Japan has grown rapidly this year largely due to a sharp drop in exports to the region and tensions over the widening gap are expected to grow. Barshefsky said the deficit will be part of the discussions and that she will repeat U.S. concerns that Japan not try to export its way out of economic trouble. U.S. steelmakers and workers on Thursday complained about a doubling of steel imports from Japan during the first half of the year along with rapidly rising imports from other economically distressed countries in Asia as well as Russia. Industry leaders and labour representatives urged U.S. trade officials to take action to limit the imports and Barshefsky said she would raise the issue with her counterparts in Japan next week. She said the talks will also focus on long-standing concerns about existing trade agreements covering insurance deregulation in Japan, flat glass and automotive trade. The United States has repeatedly urged Japan to move quickly to deregulate its primary casualty insurance market to allow more foreign access, which she argued would help lower prices and stimulate more demand for insurance policies. U.S. trade officials are also concerned, she said, about the slow pace of deregulation in Japan's auto repair market. U.S. and Japanese officials plan to review the 1995 auto trade agreement during a meeting next month in San Francisco. A major part of the talks next week, though, will focus on trade agreements covering government procurement, which have taken on particular significance since Tokyo plans to spend billions of dollars over the next two years on public works projects and updating computers and other technology. Barshefsky said the United States has five trade agreements with Japan covering public procurement and that she plans to review those with Japanese officials. ''A fair shake is what we want for U.S. companies, what we want for foreign companies and that is what the bilateral agreements are designed to provide,'' she said. She said she does not expect Clinton's political problems over the Monica Lewinsky scandal will undermine her talks next week. ''Japan plainly looks to the United States for its views,'' Barshefsky said. ''The views of the United States are and will always be of substantial importance to the global community and the views of the president will continue to be a substantial concern to the Japanese government and the Japanese prime minister.'' Copyright 1998 Reuters Limited.

To: Bobby Yellin who wrote (18555)	9/12/1998 8:44:00 AM
From: goldsnow	Read Replies (2) \| Respond to of 116786

Bobby are we missing something..What is there to save Brazil (read USA dollar) Are'nt defenders of "new paradigm" in urgent need for a shrink session? Debt-hit Brazil begs G7 for lifeline By Philip Delves Broughton, in Brasil <Picture>City: Fears rise over growing debt crisis BRAZIL raised its main interest rates by over 20 points to 49.75 per cent yesterday after spending another $1.9 billion of its foreign reserves and pleading with the leaders of the G7 for help to protect its currency, the real. The economy is now in danger of grinding to a halt as unemployment rises, wages stagnate and the currency, so carefully protected over the past four years, heads towards a forced devaluation. The crisis could not have come at a worse time for the government, which faces elections on Oct 4. The Congress is not sitting for the duration of the election campaign. President Fernando Enrique Cardoso, who was coasting towards a second term on a record of good financial stewardship, may see his achievements washed away, and with them his re-election hopes. His main opponent, Luiz Inacio Lula da Silva, of the Workers Party (PT), has found renewed energy in the economic meltdown, peddling a reactionary economic nationalism. He advocates rigid exchange controls, the blocking of non-essential imports and the repatriation of profits made by foreign companies. The demagogic "Lula", as he is known, has come within single digit range of Mr Cardoso in opinion polls, and while it is still highly unlikely that Mr Cardoso could lose the election, he could be pushed into an embarrassing run-off. Most outside observers agree that it would be a disaster for Brazil if he were obliged to deal with a more economically reactionary Congress. The fiscal deficit now stands at seven per cent of GDP, and the debt to foreign banks and governments requires maintenance and interest payments of up to $75 billion. The only means of tackling the debt is the implementation of a more effective tax system, the possible imposition of VAT and a serious pruning of the lavish pension system. In a country of 160 million people only five million pay fixed income taxes. Mr Cardoso has succeeded in implementing the biggest privatisation programme in the world. His education and health reforms have been effective in bringing poor children out of work and into schools and providing basic levels of health care. He has failed, however, to persuade Congress to implement the necessary fiscal reforms. Mr Cardoso and his economic team are aware that raising interest rates is a short term and probably ineffective response. But with his foreign reserves disappearing at more than a $1 billion a day and still three weeks to the election, he is in a race against time. 11 September 1998: Brazil teetering on the edge of financial chaos telegraph.co.uk