Nakagawa, Paulson set to discuss crisis responses ahead of G-7

WASHINGTON, Oct. 10 Kyodo - Japanese Finance Minister Shoichi Nakagawa and U.S. Treasury Secretary Henry Paulson are set to talk Friday in Washington about responses to the ever-widening global financial crisis triggered by the U.S. subprime mortgage meltdown.

In the talks to be held just before a meeting of Group of Seven top financial
chiefs, Nakagawa is expected to tell Paulson about Japan's past injection of
massive public funds into its troubled banks to shore up their capital bases
and is expected to suggest that the United States take a similar approach.
Paulson is ''actively considering'' ways to infuse public money into embattled
U.S. financial institutions to shore up their capital bases and contain the
deepening global financial mayhem, the White House said Thursday.
''We will use all of the tools we've been given to maximum effectiveness,
including strengthening the capitalization of financial institutions of every
size,'' Paulson said Wednesday.
Upon arriving in Washington on Thursday night, Nakagawa said that he talked
with Paulson by phone earlier in the day and exchanged views on the fast-moving
development in global markets.
Nakagawa told reporters he welcomes Paulson's positive stance toward public
money infusion.
Finance ministers and central bank governors from Britain, Canada, France,
Germany, Italy, Japan and the United States are scheduled to gather Friday
afternoon for their regular meeting in a bid to show their resolve to quell the
current global financial turmoil.