G-7 ISSUES STATEMENT AFTER MEETING
  Following is the text of a statement
  by the Group of Seven -- the U.S., Japan, West Germany, France,
  Britain, Italy and Canada -- issued after a Washington meeting
  yesterday.
      1. The finance ministers and central bank governors of
  seven major industrial countries met today.
      They continued the process of multilateral surveillance of
  their economies pursuant to the arrangements for strengthened
  economic policy coordination agreed at the 1986 Tokyo summit of
  their heads of state or government.
      The managing director of the International Monetary Fund
  also participated in the meeting.
      2. The ministers and governors reaffirmed the commitment to
  the cooperative approach agreed at the recent Paris meeting,
  and noted the progress achieved in implementing the
  undertakings embodied in the Louvre Agreement.
      They agreed, however, that further actions will be
  essential to resist rising protectionist pressures, sustain
  global economic expansion, and reduce trade imbalances.
      In this connection they welcomed the proposals just
  announced by the governing Liberal Democratic Party in Japan
  for extraordinary and urgent measures to stimulate Japan's
  economy through early implementation of a large supplementary
  budget exceeding those of previous years, as well as
  unprecedented front-end loading of public works expenditures.
      The government of Japan reaffirmed its intention to further
  open up its domestic markets to foreign goods and services.
      3. The ministers and governors reaffirmed the view that
  around current levels their currencies are within ranges
  broadly consistent with economic fundamentals and the basic
  policy intentions outlined at the Louvre meeting.
      In that connection they welcomed the strong implementation
  of the Louvre Agreement.
      They concluded that present and prospective progress in
  implementing the policy undertakings at the Louvre and in this
  statement provided a basis for continuing close cooperation to
  foster the stability of exchange rates.
  

