BAKER SAYS U.S. WANTS TO STABILIZE EXCHANGE RATES

  Treasury Secretary James Baker said
  the United States and other nations were willing to cooperate
  to stabilize foreign exchange rates at the levels that existed
  at the time of an international agreement last month.
      "Our position with respect to the dollar goes back to the
  Paris Agreement that the currencies were within ranges broadly
  consistent with underlying economic conditions," Baker told a
  Senate committee.
      Baker continued, "We said further that we and others are
  willing to cooperate closely to foster stability in exchange
  rates around those levels."
      He referred to a February agreement by six leading
  industrial nations to cooperate on monetary matters.
      Baker refused to answer a question whether Japan and
  Germany had done enough to stimulate their domestic economies
  for the United States to support the dollar.
      "I will not comment because the foreign exchange market
  reads more or less than is intended in my statements," Baker
  said.
      Baker said that the other signatories recognized that they
  must carry their share of the load of correcting external
  imbalances that have hindered the world's economy.
      He cited news reports that Germany would increase a
  proposed tax cut for 1988 by about five billion marks to
  stimulate domestic growth.
      Japan also agreed to consider stimulative measures after
  the Japanese budget was made final.
      Baker said those nations were stimulating their economies
  in a manner consistent with gains against inflation.
  

