TWO U.S. SENATORS WHO HAVE FOR MONTHS ADVOCATED TOUGH MEASURES AGAINST CHINA'S ARTIFICIALLY LOW CURRENCY ON TUESDAY PROPOSED CREATING A FULL-TIME TREASURY DEPARTMENT POSITION TO HANDLE INTERNATIONAL TRADE AND CURRENCY ISSUES. SENATE FINANCE COMMITTEE CHAIRMAN CHARLES GRASSLEY (REPUBLICAN FROM IOWA) AND SENATOR MAX BAUCUS (DEMOCRAT FROM MONTANA) PROPOSED A BILL THAT WOULD CREATE THE NEW ASSISTANT SECRETARY POST AT THE TREASURY. THE NEW OFFICIAL WOULD WORK WITH ORGANIZATIONS LIKE THE INTERNATIONAL MONETARY FUND TO DEVELOP A SYSTEM OF ARBITRATION IN CURRENCY DISPUTES, AS WELL AS OUTLINE METHODS FOR PUNISHING COUNTRIES THAT REFUSE TO FREELY-FLOAT THEIR CURRENCIES. MANY CONGRESSMEN HAVE ATTACKED CHINA FOR KEEPING THE VALUE OF ITS CURRENCY, THE YUAN, ARTIFICIALLY LOW TO STIMULATE ITS EXPORT-DRIVEN ECONOMY. AS A RESULT, THE AMERICAN TRADE DEFICIT WITH CHINA HAS SWELLED AS U.S. CONSUMERS CONTINUE TO SCOOP UP CHINESE EXPORTS. 'THERE IS A VERY REAL SENSE AMONG AMERICANS THAT OUR TRADING PARTNERS-CHINA IN PARTICULAR-DO NOT PLAY BY THE RULES,' BAUCUS SAID IN A STATEMENT. 'THE U.S. GOVERNMENT IS NOT DOING ALL THAT IT CAN TO MAKE SURE THAT CHINA AND OTHER COUNTRIES DO.' SENATORS CHUCK SCHUMER (DEMOCRAT FROM NEW YORK) AND LINDSEY GRAHAM (REPUBLICAN FROM SOUTH CAROLINA)-BOTH RECENTLY RETURNED FROM A FACT-FINDING AND PUBLICITY TOUR OF CHINA-HAVE RECENTLY SOFTENED THEIR POSITION ON THE CURRENCY ISSUE. SCHUMER, WHO FAMOUSLY PROPOSED A 27 TARIFF ON CHINESE GOODS, SAID ON MONDAY THAT HE WOULD CONSULT WITH THE TREASURY DEPARTMENT BEFORE MAKING ANY FINAL DECISIONS ON HOW TO PROCEED. A VOTE ON THE SCHUMER-GRAHAM TARIFF IS EXPECTED BY THE END OF WEEK.
