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Subject: Reuters-INTERVIEW-Asian currency no help now -Singapore 

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INTERVIEW-Asian currency no help now -Singapore=20
01:22 a.m. Nov 27, 1999 Eastern=20
MANILA, Nov 27 (Reuters) - A pan-Asian or even a global currency is a =
good long-term goal but no help with the problems that afflict East Asia =
now, Singapore Finance Minister Richard Hu said on Saturday.=20

Dismissing talk of moves towards an East Asian common currency in =
anything but the very long-term, Hu said East Asia was far too disparate =
and diverse to align its markets sufficient to support such a unit.=20

``It is obviously a very desirable objective. But it is not a feasible =
short-term solution to our current problem,'' Hu told Reuters Television =
on the sidelines of an Asian summit.=20

He noted it had taken Europe half a century to come up with the euro and =
even then several of the members of the 15-nation European Union had =
still retained their own currencies.=20

``The European experience is the best model. It has taken them 30, 40, =
50 years to produce a European common currency and not all members are =
there.=20

``So there are obviously going to be much larger problems because of the =
fractured nature (of East Asia),'' he said.=20

``But of course, long-term, I think we should have a common currency, =
not only for Asia but for the whole world. But we don't solve short-term =
problems with long-term proposals.''=20

Hu was in Manila to attend ministerial meetings ahead of a summit of the =
10-member Association of South East Asian Nations (ASEAN) on Sunday and =
joint meetings of leaders of ASEAN and China, Japan and South Korea.=20

``EAST ASIAN COMMON MARKET''=20

East Asia is increasingly coordinating its economic and financial =
policies as it struggles out of two-and-a-half years of economic crisis =
and recession.=20

There has been increasing talk, prompted by comments by host nation the =
Philippines, that East Asia might create a ``common market'' to increase =
trade and investment.=20

This might eventually lead to a common currency, some ministers say, as =
the interests of the region's countries converge.=20

But Hu said East Asia -- spanning the first world powerhouses of Japan =
and Singapore to the impoverished, largely agrarian economies of Laos =
and Myanmar -- was too varied to adopt a common currency soon.=20

``We are not a continental market and we have such wide disparities in =
relative income and economic status and whatever the Europeans achieve =
would be much more difficult,'' he said.=20

``The issues will be firstly political convergence and then economic =
convergence, fiscal convergence and you can see the measure of the =
problems we are likely to face having to achieve such a development.''=20

``My own view is, let us set this as a very long-term target.=20

``But meanwhile, let's do some of the things that have to be done in =
order to reach it, such as opening up free trade, removing tariffs, =
facilitating increased trade within the region, cooperation on the =
financial sector.=20

``All these are little incremental steps which lead to the final goal. =
Why not start it now? But don't expect that goal to solve your problems =
short-term.''=20


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<DIV><FONT face=3DArial size=3D2><FONT size=3D+1><STRONG>INTERVIEW-Asian =
currency no=20
help now -Singapore</STRONG></FONT> <BR>01:22 a.m. Nov 27, 1999 Eastern=20
<P>MANILA, Nov 27 (Reuters) - A pan-Asian or even a global currency is a =
good=20
long-term goal but no help with the problems that afflict East Asia now, =

Singapore Finance Minister Richard Hu said on Saturday.=20
<P>Dismissing talk of moves towards an East Asian common currency in =
anything=20
but the very long-term, Hu said East Asia was far too disparate and =
diverse to=20
align its markets sufficient to support such a unit.=20
<P>``It is obviously a very desirable objective. But it is not a =
feasible=20
short-term solution to our current problem,'' Hu told Reuters Television =
on the=20
sidelines of an Asian summit.=20
<P>He noted it had taken Europe half a century to come up with the euro =
and even=20
then several of the members of the 15-nation European Union had still =
retained=20
their own currencies.=20
<P>``The European experience is the best model. It has taken them 30, =
40, 50=20
years to produce a European common currency and not all members are =
there.=20
<P>``So there are obviously going to be much larger problems because of =
the=20
fractured nature (of East Asia),'' he said.=20
<P>``But of course, long-term, I think we should have a common currency, =
not=20
only for Asia but for the whole world. But we don't solve short-term =
problems=20
with long-term proposals.''=20
<P>Hu was in Manila to attend ministerial meetings ahead of a summit of =
the=20
10-member Association of South East Asian Nations (ASEAN) on Sunday and =
joint=20
meetings of leaders of ASEAN and China, Japan and South Korea.=20
<P>``EAST ASIAN COMMON MARKET''=20
<P>East Asia is increasingly coordinating its economic and financial =
policies as=20
it struggles out of two-and-a-half years of economic crisis and =
recession.=20
<P>There has been increasing talk, prompted by comments by host nation =
the=20
Philippines, that East Asia might create a ``common market'' to increase =
trade=20
and investment.=20
<P>This might eventually lead to a common currency, some ministers say, =
as the=20
interests of the region's countries converge.=20
<P>But Hu said East Asia -- spanning the first world powerhouses of =
Japan and=20
Singapore to the impoverished, largely agrarian economies of Laos and =
Myanmar --=20
was too varied to adopt a common currency soon.=20
<P>``We are not a continental market and we have such wide disparities =
in=20
relative income and economic status and whatever the Europeans achieve =
would be=20
much more difficult,'' he said.=20
<P>``The issues will be firstly political convergence and then economic=20
convergence, fiscal convergence and you can see the measure of the =
problems we=20
are likely to face having to achieve such a development.''=20
<P>``My own view is, let us set this as a very long-term target.=20
<P>``But meanwhile, let's do some of the things that have to be done in =
order to=20
reach it, such as opening up free trade, removing tariffs, facilitating=20
increased trade within the region, cooperation on the financial sector.=20
<P>``All these are little incremental steps which lead to the final =
goal. Why=20
not start it now? But don't expect that goal to solve your problems=20
short-term.'' </P></FONT></DIV></BODY></HTML>

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