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AAMA Welcomes Bank of Japan's Yen Intervention

10 April 1998

AAMA Yen Reaction

    WASHINGTON, April 9 -- The following is a statement by Andrew
H. Card, Jr., President and CEO of the American Automobile Manufacturers
Association (AAMA) in reaction to today's announcement by the Bank of Japan to
strengthen the Japanese yen:

    "The Bank of Japan's intervention in foreign exchange markets to
strengthen the yen is a most welcome action.  This has been a long time in
coming.  In recent months, the yen has continued to fall against the dollar,
as the world financial community's concern with Tokyo's paralysis has grown.
    "Secretary Rubin's comments about the continuing fall of the yen clearly
underscore the United States' growing concern with Japan's serious problems
and the need for bold action.  AAMA has been warning about the dangers of the
excessively weak yen for more than a year.
    "Prime Minister Hashimoto's announcement today of his government's
economic stimulus program, including much needed tax cuts, is long overdue.
After more than a year of denial, the Japanese government is finally
acknowledging the seriousness of its economic problems and is taking action to
address them.  I want to echo Secretary Rubin's warning that Japan must move
quickly.  The world's financial leaders will be waiting for the Prime
Minister's report at the next G-7 summit in May."

SOURCE  American Automobile Manufacturers Association