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September 17, 2007

US Treasury Secretary Upbeat Following Recent Market Turmoil
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http://enews.voanews.com/t?ctl=19884DC:A6F02AD83191E1607F7529BA7E12AB4B9574F7DCC14957C0 Henry Paulson
spoke with reporters following morning meeting with French counterpart
Christine Laguarde U.S. Treasury Secretary Henry Paulson sounded an
upbeat note on the world economy Monday, despite the recent turmoil
roiling the markets. Paulson's remarks came during a trip to Paris.
Lisa Bryant has more from the French capital.







Henry Paulson talks to reporters after meeting with French President
Nicolas Sarkozy, 17 Sep 2007Following a morning meeting with his
French counterpart Christine Laguarde, the U.S. Treasury Secretary
cautioned against against any quick decisions for more market
regulation. He said the world's economic underpinnings remained
financially sound - despite turmoil in capital markets that began in
the United States.

"Although this will be with us for a while - it's going to take a
while to work through this turbulence in the capital markets - we're
doing so against a backdrop of a strong global economy," he said. "And
unlike certain periods of turbulence we've gone through in the past
that have been precipitated by the real economy - issues that have
been precipitated by bad lending practices - we'll work through this
in some markets quicker than in others (and) we're already seeing a
modest reduction in the strain in certain markets."

Secretary Henry Paulson's remarks come as Europeans worry the current
market turmoil may have a longer-term impact on their banks and on the
region's economic prospects. French and German leaders want to
increase market transparency as a result.

The U.S. Treasury Secretary also spoke positively about the candidacy
of former French finance minister Dominique Strauss-Kahn as the new
head of the International Monetary Fund.

"I very much appreciated his views. He's a very strong candidate and I
look forward in the weeks ahead that this election process be
finalized," he said. "So again, I'm very positive on Dominique
Strauss-Kahn."

Paulson was to discuss Strauss-Kahn's bid during a meeting later
Monday with French President Nicolas Sarkozy. The I.M.F. head is
traditionally a European, although European Union officials say they
might consider a non-European candidate in the future.


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