Clinton defends Asian bailout<\/p>\n
WASHINGTON (AP): Seeking to answer growing criticism of
\nmultibillion-dollar bailouts of reeling Asian economies, the
\nClinton administration warned of serious threats to the U.S.
\neconomy and the global financial system if the crisis is not
\ncontained.<\/p>\n
Both President Bill Clinton and his chief economic spokesman,
\nU.S. Treasury Secretary Robert Rubin, sought to counter
\ncomplaints in Congress that the more than US$100 billion in
\nemergency funds for South Korea, Indonesia and Thailand amount to
\nmultibillion-dollar bailouts for wealthy banks.<\/p>\n
In a televised PBS interview, the president said the United
\nStates had a \"plain, brutal, short-term economic interest\" in
\nhelping support Asian currencies so that cheap Asian goods didn't
\npush U.S. products out of world markets.<\/p>\n
Rubin, in a separate speech, said the administration plans
\nthis spring to convene an international meeting of finance
\nministers to search for ways to repair the world's financial
\nsystem.<\/p>\n
He put Japan on the spot, saying the world's second-largest
\neconomy had an \"especially crucial role to play\" to resolve the
\ncrisis by jump-starting its own economy. He welcomed recent
\npledges by Chinese officials that they will not devalue their own
\ncurrency.<\/p>\n
Rubin's remarks came on a day when separate reports showed
\nthat the Asian crisis has yet to affect America's trade deficit
\nbut is beginning to impact on the well-being of manufacturing
\nfirms.<\/p>\n
The Federal Reserve, in its latest survey of regional U.S.
\neconomic conditions, said Wednesday the Asian crisis is being
\nfelt in most parts of the country.<\/p>\n
\"Manufacturers and agricultural firms report weaker exports to
\nAsia, and there is some evidence of increased competition from
\nAsian products in U.S. markets,\" the central bank said. The
\neconomic status report will be used when Fed policy makers next
\nmeet on Feb. 3-4 to set interest rates.<\/p>\n
There is a widespread belief that the central bank will leave
\ninterest rates intact, believing that the dampening effects of
\nthe Asian crisis will be enough without rate increases to slow
\nU.S. growth and keep inflation in check.<\/p>",
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