FROM THE OFFICE OF PUBLIC AFFAIRS

Let me begin by saying a few words about today's meeting, and then I will be happy to answer questions.

Our discussion today essentially divided into two parts: our review of global economic conditions and prospects; and the broad agenda for international financial reform.

With the maintenance of a strongly supportive macro-economic environment, we are now seeing improved prospects for global growth. At the same time, we all recognize that continued improvement is not inevitable, and will depend crucially on proactive policy. At a time of dramatic advances in technology, we must all seize this moment of opportunity to create an environment for strong and more balanced growth across all our economies.

In view of the importance of this point I would like to quote in full the formulation in paragraph three of the Statement:

As far as exchange rates are concerned, let me quote what we said in the Statement:

Let me also note that our policy with respect to the dollar remains unchanged: a strong dollar is in the interest of the United States.

We also talked about our broad agenda for international financial reform going forward. Let me highlight three areas that are especially important to us:

First, on the reform of the international financial architecture, we have made real progress since our meeting in September, including a successful inaugural meeting of the G-20 Finance Ministers and Central Bank Governors in Berlin in December. Obviously what is most important now is translating the consensus that has been reached into real change: for example, with regard to broader implementation of internationally agreed codes and standards, and working to find the right ways to ensure private sector involvement in forestalling and resolving crises.

In this context, we also agreed on the importance of measures to strengthen the functioning of the IMF to make sure that it is better able to meet the challenges of the 21^st century. We agreed that there was a particular need for a greater focus on promoting the flow of information to markets and reducing liquidity and balance sheet vulnerabilities, and a comprehensive review of IMF facilities. In addition, we agreed to expand our discussions to include an examination of how the role of Multilateral Development Banks ought to evolve in a changing global environment.

Second, implementation of the HIPC (Heavily Indebted Poor Country) Initiative. We agreed that countries seeking relief under the Initiative should move quickly to put in place the more participatory process for developing national poverty reduction strategies that we have supported in this context. This will be crucial for meeting the target we set today, of three-quarters of the eligible countries qualifying for relief under this initiative by the end of 2000.

Third, we agreed that a priority for the Summit would be stepping up the international effort to combat financial crime, which poses a growing threat to the credibility and integrity of the international financial system. Especially important will be the Financial Action Task Force (FATF) moving quickly to complete its identification of non-cooperative jurisdictions; greater progress in implementing the OECD Anti-Bribery Convention; and continued IMF and World Bank efforts to strengthen governance and anti-money laundering safeguards in their programs with member countries.

Let me conclude by noting that we all expressed our deep gratitude to Managing Director Camdessus for his thirteen years of valuable service as the IMF's Managing Director and for his contributions to these G-7 meetings.