U.S. TREASURY POLICIES SAID UNCHANGED BY DEPARTURE

  The departure of James Baker's
  closest aide, Deputy Treasury Secretary Richard Darman, will
  not change the course of Washington's domestic and
  international economic policies, U.S. officials said.
      Darman, who has worked alongside Baker for six years, was
  widely credited with helping him mastermind initiatives on
  currency management and international economic cooperation.
      U.S. Officials said Darman also played a key role in
  shepherding President Reagan's sweeping tax reform plan through
  the U.S. Congress.
      But they flatly dismissed suggestions that his departure,
  to the investment banking firm of Shearson Lehman Brothers,
  signaled the Baker team was breaking up, or that the Treasury
  Secretary himself might leave soon.
      "It really does not mean that, he took the opportunity as it
  came up," one official said.
      Another commented, "Baker will miss him, but he's not going
  to stand in his way."
      There has been widespread speculation since last autumn
  that Darman sought a Wall Street job.
      Officials said Darman felt the passage of tax reform late
  last year marked an appropriate moment to bow out.
      Baker acknowledged Darman would be sorely missed.
      "Dick Darman has contributed mightily to the success of this
  administration over the past six years and his departure
  represents a substantial loss," he said.
      U.S. Officials admitted Darman's absence would be an
  undoubted blow to Baker, who has relied on him for policy
  advice, both at the White House and, in Reagan's second term,
  at the Treasury. One aide once described Darman as
  "indispensable" to Baker.
      Baker is widely thought to want a more stable currency
  system and Darman is generally credited by officials of other
  nations as Baker's leading theorist on this issue, favouring
  target zones to limit currency fluctuations.
      Earlier this year, monetary sources said the U.S. Treasury
  unsuccessfully sounded out allies on a target zone system.
      But a U.S. Official disputed the assessment that, with
  Darman gone, Baker would abandon international initiatives.
      Baker's work as head of Reagan's Economic Policy Council,
  spearheading trade policy, and his skills in negotiating with
  the Democrat-controlled Congress will go on as before.
      Darman's strength was not as an economist, but as a
  political strategist "and that's Baker's strength too," the
  official said.
      There were already indications that Baker, who throughout
  his time in government has relied on a closely-knit circle of
  advisers, has moved swiftly to find a successor.
      One possibility is that Baker might turn to George Gould,
  who holds the number three Treasury position of
  Under-Secretary.
      Gould, another close confidante, has known Baker for years.
      Before joining the Treasury in November 1985, Gould was a
  partner at the Wall Steet firm of Wertheim and Co and formerly
  headed Donaldson, Lufkin and Jenrette Securities Corp.
      The Darman announcement came on the eve of the semi-annual
  meetings of the International Monetary Fund and the World Bank,
  where many policies Darman helped shape will be debated.
      He helped Baker devise the September, 1985 Plaza Agreement,
  when the United States, Japan, West Germany, France and Britain
  curbed the dollar's strength. The pact was a major turning
  point in U.S. Policy, ending a period of disdain for economic
  cooperation and intervention in currency markets.
      Darman also worked on some other Baker initiatives, like
  the Tokyo Summit agreement to intensify coordination of
  economic policies among the leading industrial countries and
  the recent Paris Agreement to stabilise currencies and
  stimulate global growth.
      These policies are collectively aimed at redressing the
  huge gap between Japan and West Germany's trade surpluses and
  the United State's massive trade deficit.
      That policy goal still remains a prime objective of the
  Reagan Administration and will not change with Darman's
  departure.
  

