ECUADOR ADOPTS AUSTERITY PROGRAM

  Ecuador announced an austerity program
  and a price freeze on key consumer goods as a result of last
  week's earthquake which killed at least 300 people.
      Presidency Minister Patricio Quevedo said in a televised
  address that the budget would be cut by five to 10 pct,
  government hiring would be frozen and salaries of top
  officials, including the president and cabinet, would be
  reduced.
      He also said a price freeze would be imposed on 20 basic
  consumer items, mainly food staples, while the price of petrol
  would rise by between 69 and 80 pct and bus fares would rise by
  20 pct. Petrol supplies would also be limited.
      Information Ministry officials said the price freeze was
  aimed at protecting poor Ecuadoreans from a wave of
  specualtion. Violators would be severely punished, according to
  the price freeze order, signed by five cabinet ministers.
      The items for which prices were frozen included rice,
  sugar, cooking oil, potatoes, salt, wheat flour, cigarettes,
  soft drinks, school supplies and several kinds of vegetables.
      Ecuador's consumer price inflation was 23 pct in 1986.
      The price of 92-octane petrol rises to 110 sucres a U.S.
  Gallon from 65 sucres. Eighty-octane petrol increases to 90
  sucres from 50.
  

