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CORRECTED: Japan ready to discuss China's currency policy at ADB meeting

TOKYO, April 28 Kyodo

Japan is ready to discuss China's pegged-currency policy with China and other Asian partners if the topic comes up on the sidelines of an annual meeting of the Asian Development Bank in Istanbul on May 4-6, Finance Minister Sadakazu Tanigaki said Thursday.

''As Asian economies are closely linked to each other, they have an interest in the issue,'' Tanigaki told reporters. ''If the topic were raised, I think it would be necessary to discuss it in an open-minded manner.''

However, Tanigaki, who will represent Japan at the ADB gathering, said it is up to China to decide how best to reform its dollar-pegged currency system after taking into account its market and economic conditions.

The finance ministers of Japan, China and South Korea are scheduled to hold talks on the sidelines of the Istanbul meeting. The finance ministers from the ASEAN-plus-three grouping are to meet separately to discuss regional economic and financial issues.

Tanigaki said that during these meetings, he wants to reaffirm the importance of regional financial cooperation and study ways to strengthen it to prevent a recurrence of the 1997-1998 Asian financial crisis.

The ASEAN-plus-three group consists of the 10 members of the Association of Southeast Asian Nations -- Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam -- and Japan, South Korea and China.

China has pegged its currency at around 8.28 yuan to the U.S. dollar. U.S. officials say the yuan is undervalued and gives Chinese exports an unfair advantage. China has said it will reform its currency system but has yet to present a timetable.

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