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IMF Aid Sparking Asian Reforms, Say America's Car Companies

3 February 1998

IMF Aid Sparking Asian Reforms, Say America's Car Companies

    WASHINGTON, Feb. 3 -- America's Car Companies told the House
Banking Committee today that the auto industry strongly supports efforts by
the International Monetary Fund (IMF) and the U.S. government to help restore
financial stability in Asia.
    In written testimony to the committee, American Automobile Manufacturers
Association (AAMA) President & CEO Andrew H. Card, Jr. said that those
efforts, "are unleashing a wave of much-needed and long overdue reforms of
many economic, industrial, and financial policies."
    For instance, Card said, IMF involvement already has led to Indonesia
canceling its "national car" program, which discriminated against imports.
However, he called on the U.S. to "monitor and share its views with the IMF on
whether Korea and other recipients of the IMF financial assistance meet their
stated commitments to reforms." Card also called on Japan to provide more
regional leadership.
    Card recommended that three conditions must be met for IMF assistance to
be effective:  first, the immediate adoption of meaningful financial reforms;
second, commitments to open protected markets; and finally, the assurance that
reforms will be permanently enforced.
    "The world expects the international financial support package to spur
positive market-oriented reforms in Asia that ultimately will benefit the
entire global economy," said Card.

    AAMA is the trade association whose members are Chrysler Corporation
, Ford Motor Company and General Motors Corporation
.  Visit AAMA's site on the World Wide Web at http://www.aama.com.

SOURCE  American Automobile Manufacturers Association