Nakagawa not to broach forex issue at Rome G-7 meet+

TOKYO, Feb. 13 Kyodo -
Japanese Finance Minister Shoichi Nakagawa said Friday he has no intention of
bringing up the currency issue at an upcoming two-day Group of Seven meeting,
which will open later in the day in Rome.

''I have no plan to broach the (forex) issue,'' Nakagawa said at a press
conference before leaving for the Italian capital.
''I have been saying that rapid fluctuations in the currency market are not
desirable and if I'm asked, I will convey that basic stance to my American and
European counterparts.''
He said the sharp drop in foreign demand for products manufactured in Japan
amid the ongoing economic crisis, not the yen's appreciation, is ''the biggest
factor'' hurting Japanese exporters.
Nakagawa said the yen's recent strength relative to other major currencies has
benefited the Japanese economy somewhat with lower energy and food import
prices.
The finance minister also called the rising protectionist movement in the world
''absolutely evil'' and called for blocking the trend ''at any cost.''
Bank of Japan Governor Masaaki Shirakawa also told reporters Friday morning
that G-7 policymakers ''share awareness that it is extremely important to avert
protectionism.'' He made the comments at the central bank before departing for
Rome.
Nakagawa said his French counterpart, Christine Lagarde, proposed in a G-7
finance ministers' teleconference Monday that they discuss the ''Buy American''
provision in the U.S. economic stimulus bill.
''Protectionism is a reverse of international cooperation. What is good for
respective country will be harmful as a whole,'' the Japanese minister said.
The ''Buy American'' provision would limit the use of steel, iron and
manufactured goods in infrastructure projects funded by the stimulus package to
products made in the United States.
U.S. Treasury Secretary Timothy Geithner will reassure his counterparts that
Washington will comply with its World Trade Organization anti-protectionism
obligations, according to a senior Treasury official.
Nakagawa said he expects that the G-7 economies will hear Geithner's
explanations on the country's latest efforts to stabilize the financial system.
The G-7 is likely to reaffirm that it will continue to carry out coordinated
efforts to fight the global economic downturn, he added.
The finance minister said Japan will make some concrete proposals during the
G-7 talks, which will be held in the run-up to a financial summit of Group of
20 advanced and emerging economies slated for April 2 in London. But he
declined to elaborate on those suggestions before the start of the Rome
gathering.
Shirakawa lauded the efforts by the United States to stabilize its financial
system, saying the country has been tackling the crisis ''with strong
resolve.''
The central bank chief said he will talk about the backgrounds and significance
of the BOJ's ''unconventional'' crisis responses, such as outright purchase of
commercial paper issued by companies to facilitate corporate financing, and a
decision to resume the purchase of stocks held by banks.
The G-7 groups major industrialized countries of Britain, Canada, France,
Germany, Italy, Japan and the United States.
The London summit, a follow-up session to the first financial summit in
Washington in November, will bring together leaders from the G-7 economies plus
Australia, Argentina, Brazil, China, India, Indonesia, South Korea, Mexico,
Russia, Saudi Arabia, South Africa, Turkey and the European Union.
==Kyodo