Worried agricultural lawmakers support bailout of IMF (fwd)

[Robert Weissman <rob@essential.org>]

>Wednesday, February 18, 1998
>                               Worried agricultural lawmakers support
>bailout
>                               of IMF
>
>                               BY WILLIAM ROBERTS
>                               JOURNAL OF COMMERCE STAFF
>
>                                WASHINGTON -- The White House is beginning
>to win limited support for its
>                               plan to replenish the International Monetary
>Fund as farm-state lawmakers come to
>                               the administration's aid.
>
>                                House Agriculture Committee leaders issued a
>statement late last week supporting
>                               nearly $18 billion in new funds for the IMF,
>which is needed after several
>                               high-profile financial rescue programs in
>Asia.
>
>                                The lawmakers' backing came following a
>closed briefing by Treasury Secretary
>                               Robert E. Rubin and Agriculture Secretary
>Daniel R. Glickman.
>
>                                "A prosperous Asia is vital to the farmers
>and ranchers of the Pacific Northwest,"
>                               Rep. Bob Smith, R-Ore., Agriculture Committee
>chairman, said in a statement
>                               supporting IMF funding.
>
>                                "In 1997 alone, Oregon exported more than $3
>billion worth of agricultural goods,
>                               primarily to Asian countries. This committee
>will not stand idly by and watch while
>                               America's farmers and ranchers lose their key
>export markets," Rep. Smith said.
>
>                                The impact of currency devaluations in Asia
>of 40% to 80%, which have the effect
>                               of dramatically increasing export prices of
>U.S. goods, is not merely limited to lost
>                               sales. Products not sold in Asia must be
>unloaded in other markets, thus pushing
>                               down domestic prices.
>
>                                "There is a weakness of American commodity
>markets in large part because of the
>                               uncertainty in Asia," Mr. Glickman said.
>
>                                House agriculture leaders were urged to
>support the administration's IMF funding
>                               request as a way to stabilize Asian markets
>and soften the economic blow to U.S.
>                               agriculture exports.
>
>                                The request, in two parts totaling $17.7
>billion, is controversial and is likely to be
>                               opposed by lawmakers on both sides of the
>aisle, who view it as a bailout for big
>                               international banks.