YEUTTER SAYS DLR LEVEL BASED ON ECONOMIC POLICY

  U.S. Trade Representative Clayton
  Yeutter said that whether the exchange rate of the dollar would
  fall or rise in the coming decade would depend on nations'
  financial, monetary and tax policies.
      But, he said, in a speech and remarks to the Heritage
  Foundation, that in the end "the marketplace will ultimately
  rule the day."
      Asked about the future of the dollar, he said that whether
  or not it would rise or fall depended on economic policies and
  coooperation among trading nations.
      Yeutter said "if nations do the right kinds of things in
  financial, monetary and tax policies, then a lesser burden of
  adjustment is placed on exchange rates, and one could envision
  a situation of the major trading nations moving back far closer
  to what most of us would consider equilibrium and exchange
  rates becoming relatively stable."
      But he said, on the other hand, that if nations did not
  exhibit greater self discipline and international cooperation,
  "It is simply inevitable that the exchange rates will make that
  adjustment."
  

