
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: TUESDAY, June 12, 1990                   TAG: 9006120469
SECTION: NATIONAL/INTERNATIONAL                    PAGE: A/1   EDITION: EVENING 
SOURCE: Associated Press
DATELINE: WASHINGTON                                LENGTH: Short

QUARTERLY TRADE DEFICIT NATION'S LOWEST IN 6 YEARS

The deficit in the broadest measure of U.S. trade shrank to $22.94 billion from January through March, the lowest quarterly imbalance in six years, the government reported today.

The Commerce Department said America's current account trade deficit narrowed by 14 percent in the first three months of the year, compared with a $26.69 billion deficit in the final three months of 1989.

The improvement was credited to a record level of sales of American products overseas, which helped to reduce the merchandise trade deficit.

U.S. earnings on overseas investments and payments by foreigners for services such as travel and tourism also played a part in reducing the current account imbalance.

Even with the improvement, the United States is beginning the new decade in a far different position than it began the 1980s.

Ten years ago, America was the largest creditor nation. It ran surpluses in its current account as the earnings on overseas investments were enough to offset perennial deficits in merchandise trade.

But as Americans handed over billions of dollars to foreigners in payments for imported cars and televisions, the investment cushion eroded. It disappeared altogether in 1985, when the United States became a net debtor for the first time in 71 years.

That means foreigners now own more in U.S. assets than Americans own overseas, a development that has led some to say the United States is losing control over its economic destiny.

by CNB