APEC to push for revival of world trade talks

HANOI, Sep 7 (Reuters) Saving world trade talks and bolstering global financial systems against fiscal crises were the focus of finance ministers of the United States, China and other Pacific Rim economies meeting in Vietnam on Thursday.

Officials said ministers of the 21-member Asia-Pacific Economic Cooperation (APEC) forum were to work on a statement to be issued at the end of the two-day conference on Friday that would push to rescue World Trade Organisation talks.

The Doha round of trade liberalisation talks stalled in July after five years of stop-start negotiations.

''I can't think of anything... that can have a more positive impact on the global economy than trade liberalisation,'' U.S.

Treasury Secretary Henry Paulson told reporters.

APEC, which says it accounts for 47 percent of all world trade and includes 2.6 billion people, believes it can influence the so-called Doha round aimed at reducing trade barriers.

U.S. officials travelling with Paulson said trade imbalances and efforts to close bank accounts linked to North Korea, which Washington suspects is developing a nuclear weapon, were among the issues he would raise.

TRADE IMBALANCES ''You can't come here with this group without discussing how to manage the global imbalances and the adjustment process,'' Paulson said.

''If you look at who's sitting around the table, there are a number of countries where there are asymmetrical adjustments,'' he said.

Rich countries are looking to Asian countries to reduce the region's hefty current account surpluses by spurring domestic demand and letting their currencies rise in value.

A record U.S. trade deficit with China has roused the ire of U.S lawmakers in particular, prompting them to call for the Asian giant to let its currency rise at a faster pace.

But ironing out global imbalances was a joint responsibility and not the job for any one country or region, Chinese Vice Finance Minister Li Yong said on Thursday, on the sidelines of preparatory meetings.

A senior finance official from host Vietnam has said fiscal policy to deter money-laundering and terrorism were on the agenda, but other officials said financial reforms to prevent a fiscal crisis such as the one that rocked the region in 1997 were also important.

''The realisation is that, by maintaining a stable, sound and resilient banking sector and financial system, you can reduce the risk of currency and financial crisis,'' said Masahiro Kawai, a senior official of the Asian Development Bank, which has a seat at the conference. ''This meeting focuses on this very important issue.'' The annual gathering is one of a series this year leading up to November's APEC summit, which will be the biggest international event hosted by the Vietnamese capital and a coming-out party of sorts for the poor, underdeveloped Southeast Asian country.

Vietnam, one of the few communist-run countries in the world, was asked by Washington in July to check bank accounts opened in Vietnam by its fellow communist ally North Korea for possible weapons dealing and money-laundering. Officials said they were investigating.

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