FED'S JOHNSON URGES STRONGER ALLIED GROWTH

  Federal Reserve Board Vice Chairman
  Manuel Johnson said that the U.S.'s main industrial partners
  should expand their domestic growth.
      In a speech to a women's group here, Johnson said, "There is
  room for stronger domestic growth in those countries ... strong
  enough to absorb growth in U.S. export markets."
      Johnson also said there was a better alignment of exchange
  rates now and the Paris agreement to stabilize currencies has
  brought western nations a long way towards establishing that
  goal.
      Johnson said, "The Fed supports this pattern of exchange
  rates ... and we'll see if it leads to a convergence in trade.
  Quite possibly it can be achieved."
      Johnson said the Paris agreement achieved a better
  alignment of exchange rates in exchange for stimulus by the
  major surplus countries.
      He said this was "a major improvement and a step in the
  right direction" and added U.S. allies look very strongly to a
  U.S. budget deficit cut. "There will always be a potential risk
  of breakdown in international cooperation" without a budget
  deficit cut.
  

