EXCHANGE RATE BILL CLEARS U.S. HOUSE PANEL

  The House Banking Committee adopted
  legislation to direct the U.S. Treasury to begin negotiations
  aimed at seeking regular adjustment of exchange rates by  
  countries such as Taiwan and South Korea, whose currencies are
  pegged to the value of the U.S. dollar.
      The measure was adopted as part of a wide-ranging trade
  bill that will be considered by the full House in April before
  it moves on to the Senate.
      The bill's many provisions also set as a priority for the
  U.S. the negotiation of stable exchange rates and urge
  government intervention as necessary to offset fluctuations.
      In addition, the Banking Committee bill would authorize
  U.S. banks to use a variety of means to deal with the debt
  problems of developing countries, such as lowering interest
  rates on existing debt, renegotiating loans or debt
  forgiveness. The bill would give a blanket waiver of any
  federal banking regulations that bar such actions.
      The bill would direct Treasury Secretary James Baker to
  discuss with debt-ridden developing countries the possibility
  of the U.S. setting up a public debt management agency that
  would purchase their debt at a discount and negotiate the
  restructuring of the debt.
      The Banking bill authorizes U.S. participation in a
  multilateral investment guarantee agency (MIGA) as requested by
  the administration. Congress would approve an initial U.S.
  subscription of 22 mln dlrs.
      And, it sets up a council on industrial competitiveness
  composed of industry and administration members to explore ways
  to make the U.S. more competitive in world markets.
  

