EU/JAPAN: BRITTAN AND YOSANO COLD ON FIXING EURO-YEN RATE.

Summary:

European Trade Commissioner Sir Leon Brittan and Japanese Trade Minister Kaoru Yosano poured cold water on suggestions that the exchange rates between the US dollar, the EU's Euro and the Japanese Yen should be fixed, even in a very loose manner, when they met in Brussels on January 7. While both the Minister and the Commissioner hailed the successful launch of the Euro, they said exchange rates should reflect economic fundamentals. The two also proclaimed a joint front on global trade negotiations, with Mr Yosano offering his support to the idea of a 'Millennium Round' of packaged trade issues. Sir Leon reminded the Minister of the European Union's list of 200 policy recommendations for deregulation in the Japanese economy, while Mr Yosano pointed to 50 Japanese requests of the EU.

According to Sir Leon, interest in the Euro is as strong in Japan as it is in the European Union. But after the successful fixing of currency rates for the 11 Euro members, there was no talk of doing the same - even in the most informal manner - for the Euro, the Yen and the dollar. Japanese Prime Minister Keizo Obuchi, also visiting Europe, said on January 6 that a 'tripolar' system linking Japan, the United States and the EU...