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Worldwide Chorus Urges Economic Action in Japan

17 April 1998

Worldwide Chorus Urges Economic Action in Japan

    WASHINGTON, April 17 -- The following statement was issued by
Andrew H. Card, Jr., President & CEO of the American Automobile Manufacturers
Association (AAMA):

    "Figures on the mounting U.S. trade deficit released today confirm the
impact of Japan's economic policy failures on the U.S. economy.  February's
$12 billion trade deficit increased 16% over February of last year.  This
deterioration was led by a $1 billion -- or nearly 20% -- increase in the
monthly trade deficit with Japan, from $4.3 billion in 1997 to $5.3 billion
this past February.  And most predictions indicate that the trend will
continue and worsen throughout the year.
    "Japan's policy of exporting its problems to the U.S. and its other
trading partners, while failing to aggressively address those core structural
problems, has become the subject of worldwide criticism.  The statement of the
Finance Ministers of the G-7 earlier this week left no doubt that the leaders
of the world's industrialized countries are seriously concerned with the
continued weakening of Japan's economy and the yen's excessive depreciation.
    "The Ministers bluntly put the onus on Japan to take urgent action to
stimulate its economy, halt the fall of the yen, and recognize its
responsibility to its trading partners around the world.  Two days later, the
financial markets have rendered their verdict on the likelihood of such swift
action based on Japan's past performance, as the yen has fallen another Y2
against the dollar.
    "Japan's problems have become everyone's problems in the industrialized
world. Japan owes it to its G-7 partners and its neighbors in Asia to open its
market, cut taxes and deregulate -- and to do so immediately.  Japan can no
longer afford to ignore what has become an almost deafening worldwide chorus."

    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