TAIWAN COMPLAINS ABOUT SIZE OF RESERVES

  Taiwan's foreign exchange reserves,
  swollen by strong trade surpluses to a record 53 billion U.S.
  Dlrs, are becoming a problem, government officials said.
      Official figures show the latest level compares with the
  previous record of 51 billion dlrs on March 4 and about 26
  billion in late March 1986.
      Central bank Governor Chang Chi-cheng told reporters the
  increase in reserves was the result of heavy intervention by
  the bank on the local interbank market. It bought nearly two
  billion U.S. Dlrs between March 5 and 23, he said.
      Wang Chao-ming, vice chairman of the government's Council
  for Economic Planning and Development, told Reuters the rising
  reserves were "a big headache for Taiwan."
      He said the government expects heavier pressure from the
  U.S., Where protectionist bills are being proposed against
  nations such as Taiwan and Japan with large trade surpluses
  with the U.S.
      Wang said the government would launch new measures within
  the next two months to further reduce import tariffs and open
  the market wider to foreign products, especially those from the
  U.S.
      Wang said the measures aim at helping reduce Taiwan's trade
  surplus, which rose to 2.73 billion U.S. Dlrs in the first two
  months of 1987 from 2.02 billion a year earlier. Nearly 90 pct
  of the surplus was with the U.S.
      Vice Economic Minister Wang Chien-shien agreed with Wang's
  remarks and said efforts to avert U.S. Protectionism were
  running out of time. "We must do it quickly or face retaliation
  from Washington," he said.
      He said the measures would include removal of trade
  barriers on insurance and inland services for U.S. Companies.
      Chang Chi-cheng said the central bank could not stop buying
  U.S. Dollars because of heavy sales by local exporters who fear
  the strong local dollar will cause them exchange losses.
      He said the bank is studying revision of the foreign
  exchange rules in hope of further reducing currency controls,
  but declined to give details.
      The Taiwan dollar has risen about 15 pct against the U.S.
  Dollar since September 1985. It opened at 34.38 to the U.S.
  Dollar today and is expected to rise further to 33 in June and
  to 32 by end-year, some foreign bankers said.
  

