Lee warns of yuan devaluation<\/p>\n
SINGAPORE (Reuters): Singapore Senior Minister Lee Kuan Yew
\nsaid further depreciation of the Japanese yen against the dollar
\ncould pressure China eventually into letting the yuan fall, state
\ntelevision said on Saturday.<\/p>\n
Lee, the republic's prime minister from 1959 to 1990, was on
\nan official visit to Tokyo when he spoke of the effects of the
\nAsian economic crisis on China at a conference.<\/p>\n
He said even China's massive foreign reserves might prove
\ninsufficient in certain circumstances.<\/p>\n
\"The Chinese are committed to defending (the yuan) to the best
\nof their ability. The question is, though, what is the best of
\ntheir ability?\" he was quoted saying.<\/p>\n
Lee told government and business leaders China would be able
\nto defend the yuan, also called the renminbi, for at least a
\nyear.<\/p>\n
\"If the yen goes to 150 (to the dollar), 160, 170, then the
\nrenminbi will be (in a) difficult (situation), as Chinese exports
\nbecome relatively more expensive, investment flows into China
\nslow and the economy begins to slow,\" Lee said.<\/p>\n
The yen has stumbled badly against the greenback for the past
\nfew months and was on Friday quoted around 140 to the dollar.<\/p>",
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