Common Market Protests Dollar’s Fall

The 12 European Economic Community nations agreed Saturday to urge the United States to halt what they consider a deliberate effort to drive down the exchange value of the dollar, officials said.

The dollar’s latest decline, to its lowest level against the West German mark in five years, raised fears in many European countries of a loss of exports to America and thus a loss of jobs.

A fall in the dollar’s value against European currencies increases the price Americans pay for imported goods.

Meeting in a luxury hotel at the Gleneagles golf resort, Common Market finance ministers also rejected U.S. demands that West Germany, which has the strongest European economy, stimulate its growth by cutting interest rates.

Treasury Secretary James A. Baker III said Thursday that the dollar may have to fall further unless West Germany and Japan do more to increase their imports of U.S. goods. Baker said German and Japanese domestic demand could be stimulated by interest rate cuts.

The dollar fell sharply against the German mark in response to Baker’s comments, and now has lost about 17% of its value against the mark since the start of 1986.