FROM THE OFFICE OF PUBLIC AFFAIRS

It is a pleasure to join all of you this afternoon and to welcome you to Washington as representatives of countries from around the world, for what I believe are very important discussions on some of the most important issues facing us in today's global economy. As you know, President Clinton pledged at the APEC meeting in Vancouver last November that the United States would organize a gathering of finance ministers and central bank governors to explore the implications of the financial situation in Asia and to discuss ways to deal with challenges in the international financial system.

We live in an era marked by the global economy and global financial markets --an era that presents enormous opportunities for workers, farmers and businesses around the globe. But with the opportunities come risks, as demonstrated by the events in Asia over the last several months. I know that all of you in this room are involved in these issues one way or another on a daily basis, working for your ministers and governors.

It is enormously important to the economic well-being of all of our nations that we work together to strengthen the architecture of the international financial system so that we can make the most of the opportunities and minimize the risks.

As we all know, this is a task that presents many challenges and is a very complex process, yet it is critical that we move forward, and in doing so, learn from each others' perspectives and experiences.

Our discussions in the coming months will be wide-ranging. Among the topics that I expect will be an initial focus are:

• promoting efficient functioning of global markets;
• steps to increase disclosure and transparency;
• strengthening financial systems, both globally and in individual economies;
• national policy management to help avoid crisis and deal with crises that occur;
• the role of the international community in financial crises; and
• appropriate burden-sharing by the private sector, especially with respect to the so-called moral hazard problem, so that investors and creditors bear the full consequences of their decisions.

As I said a moment ago, these are complex and difficult topics. By working together --in this group as well as in other international fora --and by taking into account the range of views and experiences of countries around the world, the international community can move towards consensus on how to strengthen our global system so that all can benefit. Thank you very much, and good luck with your discussions.