BALLADUR INSISTS ON MAINTENANCE OF LOUVRE ACCORDS
French Finance Minister Edouard Balladur
issued a firm call for the continued faithful application of
the Louvre accords on currency stability by all major
industrial countries.
    Balladur, responding to weekend remarks by U.S. Treasury
Secretary James Baker that the U.S. Would take another look at
the accords, said "I firmly desire a faithfull and firm
adherence by all the major industrial countries to the Louvre
accords -- in both their letter and spirit."
    On Sunday, Baker said last week's rise in short-term West
German interest rates was not in keeping with the accords.

    The Louvre accords, agreed in Paris last February, called
for stability among the major currencies after a prolonged
dollar slide.
    The accords were reaffirmed by the Group of Seven Finance
Ministers in Washington last month.
    But Baker said at the weekend that the West German rate
rise was "not in keeping with the spirit of what we agreed to."
    "What I'm really saying is that they should not expect us to
simply sit back here and accept increased tightening on their
part on the assumption that somehow we are going to follow
them," he added.

 REUTER
