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France to cooperate with Japan in reform of global financial system

TOKYO: French Finance Minister Christian Sautter vowed on Saturday to cooperate with Japan on common issues including reform of the global financial system, a Japanese government official said.

Sautter made the promise in a 35-minute courtesy call on Japanese Finance Minister Kiichi Miyazawa shortly before a Group of Seven meeting of finance ministers and central bank chiefs in Tokyo.

Japan will also host a meeting of the Group of Eight leaders Ñ the G7 plus Russia Ñ in the southern island of Okinawa in July. The G7 groups Britain, Canada, France, Germany, Italy, Japan and the United States.

Sautter told Miyazawa he wanted to "exchange opinions towards the Okinawa summit because we, as G7 finance ministers, have many common issues of interest," the Japanese finance ministry official said.

One of the common issues mentioned was the strengthening of the international financial architecture, said the official, who spoke on condition of anonymity. Emerging from the meeting, Sautter told reporters the talks went well. "We had extremely interesting discussions on the full range of topics ÑÊgrowth, exchange rates and reform of the international financial system with a view to Okinawa," he said.

The Japanese official said both ministers had discussed currency issues but he refused to give details.

Japan's finance minister has said he would like the G7 to take a common position repeating its concern about the effects of an excessively strong yen against the dollar.

The appreciation of the yen, which is now at about 105 against the dollar compared to around 115 a year ago, has triggered fears it will hurt exports and threaten recovery in Japan, the world's second-biggest economy.

Miyazawa and Sautter failed to mention the question of a replacement for International Monetary Fund director general Michel Camdessus, who is to leave on February 16, the official said. AFP