Summers begins Asian tour to obtain feedback

Summers begins Asian tour to obtain feedback

SINGAPORE (AFP): U.S. Deputy Treasury Secretary Lawrence Summers launched a five-nation Asian tour here Sunday to get feedback on how the region was coping with a rapid economic slowdown caused by the prolonged financial crisis, officials said.

After Singapore, Summers will travel to Indonesia, China, South Korea and Japan during the trip spanning to Feb. 27, Thomas Gradisher, spokesman for the U.S. embassy here, told AFP.

Gradisher said the objective of the visit was to "discuss the economic situation" in the region.

Summers is scheduled to meet with President B.J. Habibie Monday morning.

Summers held separate talks with Singapore Prime Minister Goh Chok Tong and elder statesman Lee Kuan Yew immediately on arrival here for an overnight visit. He did not meet the media after the meetings.

Summers was earlier scheduled to make the trip last month but a Treasury official had said it was postponed due to "international economic developments."

At that time, the Brazilian financial crisis flared, stemming from the devaluation of the real currency which rocked world markets.

The United States, a key backer of the International Monetary Fund's bid to help ailing Asian economies, is concerned that a prolonged Asian slump would hurt its exports and cut jobs at home.

U.S. economic growth is also widely expected to be lower in 1999 due largely to problems ignited in Asia where a currency turmoil in mid-1997 slammed the brakes on rapid economic expansion and caused massive unemployment and chaos in financial and real estate markets.

Washington, concerned that the regional crisis would delay key financial reforms in Asia, is pushing hard to drive home the point that markets should remain open for progress.