U.S. Criticizes France’s Currency Plan

On the eve of a visit from French President Jacques Chirac, the Clinton administration threw cold water on his proposal to link the world’s major currencies as a way to prevent future global currency crises. Treasury Secretary Robert Rubin said that while the idea of creating more stability among the U.S. dollar, the Japanese yen and the new European euro is appealing in theory, the practical problems of implementing it are “enormous.” But Chirac said he plans to use his Washington visit to promote the currency plan in meetings today with officials at the International Monetary Fund and World Bank and in discussions Friday with President Clinton. While France has received support for its ideas from Germany and Japan, the plan is unlikely to advance given the strong opposition of the United States.