President Reagan said a further decline in the value of the dollar could be counterproductive. In written answers to questions put by Japans Asahi Shimbun newspaper he noted Treasury Secretary James Baker had said all seven major industrial nations were committed to cooperating in fostering stability of exchange rates. We all believe a further decline of the dollar could be counterproductive Reagan said. Reagan said the best way for the United States to reduce its trade deficit was to export more. He said Japan could make a major contribution to reducing external imbalances and sustaining world economic growth by adopting policies to promote stronger domestic demand in the short-run and in the long-run implementing structural reforms to ease Japanese dependence on exports as a source of growth.
REAGAN WARNS ON FURTHER DOLLAR FALL