Baker Says U.S. Economy Must Remain Leader

The Reagan Administration is pushing to reassert U.S. leadership in international economic matters, knowing “we can’t run and we can’t hide” in a world of economically connected nations, Treasury Secretary James A. Baker III said Thursday night.

In modern times, he said, “economic dynamics have shifted from the national economy--even one as large and powerful as the United States--to the world economy.”

However, he added: “We know that other nations are forging ahead. In my view, America must remain out front--for the common good and our own good.”

Promote Economic Freedom

By vigorously promoting economic freedom, by cooperating with other nations in various actions and by working hard to make sure U.S. companies remain competitive, “we have set out on a path to reconstitute American leadership,” he said.

Baker made his remarks in a speech to the Chicago Economic Club. A copy of the speech was released earlier in Washington.

He renewed the Administration’s criticism of those who would pass laws restricting the importation of foreign goods into the country, dismissing such protectionist legislation as dangerous for American international economic leadership as well as “foolish domestic economic policy.”

“The international flows of materials, goods, capital, information, knowledge and people are too extensive and influential to resist,” he said. “America’s business, social and political leadership should beat the drum for a quick-step forward march, not a mournful retreat.”

Baker said that what he termed “the new American leadership” in international economic matters is taking three forms:

--President Reagan has persistently challenged other developed nations on issues of economic freedom, encountering “skepticism, even tones of derision” at first but now seeing “a common march toward freer markets and economic incentives for individuals.”

--U.S. leaders, through their support of greater cooperation among nations on major economic actions, have become, “in effect, the stewards of an ongoing negotiation for balanced international growth and prosperity.”

--In addition to fending off “negatives like protectionism,” the United States needs to strengthen its own economy by closely examining such sensitive subjects as the structure of management and business and “the opportunities for working men and women to profit from their employers’ success.”