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The Honorable William J. Clinton
President of the United States
The White House
1600 Pennsylvania Avenue, NW
Washington, DC 20500

Dear Mr. President:

Your Export Council believes there are serious economic implications to the U.S. resulting from the Asian financial crisis, and that a viable and vital International Monetary Fund is critical towards Asia's recovery. The economic prosperity of the U.S. has been achieved, in substantial part, because of the global economy. In just the last four years, nearly a third of America's economic growth has been due to exports, of which 40% have come from Asia. Analysts are forecasting a reduction in growth in 1998, and some estimate a serious increase in the trade deficit because of the Asian situation. Should current problems intensify, the U.S. could witness a reversal of recent improvements in export competitiveness and related job growth.

Growth abroad has produced new markets for American exports - exports that produce jobs and higher standards of living for our citizens in every state. Exports worldwide currently provide jobs for over 11 million Americans.

As a multinational organization, the IMF is able to require financial reform conditions that no single contributing nation could require on its own, and has guided markets to become more open and transparent. The U.S. is in a position to insist that the IMF also be aware of the non-financial reforms which can equally affect the financial stability of a country.

The U. S. Must use the means at its disposal to change IMF policies so as to assure that the IMF, while dealing with financial crisis and financial institutions, take into consideration the social consequences of its proposed remedies. Short-term austerity measures, which are proposed as conditions for financial assistance, should be equally borne by all segments of the population. In particular, conditions should reflect concerns that labor/human rights and environmental protections are not ignored.

The IMF should be especially sensitive that its remedies do not induce a situation in which Asian countries export their way out of the crisis. The IMF needs to guard against trade policies which counter the rule-based system of the WTO.

The financial disruption in Asia only highlights the importance of having a multinational organization ready to rapidly deploy corrective and effective responses to global financial crises. As recent events have depleted the Fund to its historically lowest level, it is urgent that America moves decisively on its share of the Fund's replenishment, without unworkable preconditions.

Fifty years ago, America had the wisdom and took the leadership in establishing the International Monetary Fund. American prosperity has been achieved, in part, because of the open and stable global economy that has been fostered by the IMF. However, recent U.S. international policies have sent a negative message that America's interest in our global leadership is waning. America must reaffirm our belief and commitment to the global community as we move towards the promise of the next millennium.

We urge you to vigorously support full replenishment of the U.S. funding for the International Monetary Fund.

Sincerely,
C. Michael Armstrong,
Chairman

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