Posted January 30, 2002 Manufacturing News Treasury Secretary O'Neill Asks Japan to Deal with its Economic Problems U.S. Treasury Secretary Paul O'Neill's strong remarks stressing that steps to artificially devalue a nation's currency cannot repair underlying economic problems such as productivity or non-performing bank loans were "right on the money," said Jerry Jasinowski, President of the National Association of Manufacturers (Washington; www.nam.org). In a speech in Tokyo, O'Neill called on Japan to take aggressive action to deal with its economic problems, and said that an under-valued yen was not a viable solution. "Those who have tried to fix underlying economic problems with protectionist measures - artificially depreciating the currency is one of those - actually weaken their own economy," O'Neill said. Frank Vargo, NAM Vice President for International Economic Affairs, stressed that the dollar has risen 30 percent against other major currencies since 1997 and is beginning to rival the overvaluation of the 1980's. "American companies are the most productive in the world, but even they can't overcome what in effect is a 30 percent tax on their exports and a 30 percent markdown for their foreign competitors in the U.S. market," Vargo said. The Manufacturing Report © Copyright 2002 by Lionheart Publishing, Inc. All rights reserved. E-mail Editorial Dept: tmr-editorial@lionhrtpub.com Lionheart Publishing, Inc. 2555 Cumberland Parkway, Suite 299, Atlanta, GA 30339 USA Phone: 770-431-0867 | Fax: 770-432-6969 E-mail: lpi@lionhrtpub.com