TOKYO - UNITED States Treasury Secretary Henry Paulson has ruled out the use of public money to shore up ailing financial institutions, a newspaper reported.

Mr Paulson also said in an interview with the Nikkei business daily on Saturday that he supported a strong dollar, and he called on China to allow a faster appreciation of its currency.

Asked if the US government will eventually have to use taxpayer money to bail out financial institutions, Mr Paulson said: 'I can't speak for other countries. But, with regard to the US, I don't see it that way.'

Mr Paulson, who is now in Tokyo for a meeting of Group of Seven finance chiefs, said he would continue to stress the need for banks and other financial institutions to make their own efforts to weather a credit crunch.

'If there's any doubt that they will not have enough capital, they should go out and get capital where it is available,' he said.

Mr Paulson backed a strong dollar, saying it was 'in our nation's interest'. He added: 'Our economy, like any others, goes through its ups and downs, but the economic fundamentals are solid, and I believe that we're going to continue to grow, and that these fundamentals will be reflected in our currency.'

He also prodded China on currency reform. 'I don't believe that they (the Chinese authorities) are ready to have a market determined currency. We note that it (the yuan) has been appreciated. We would like it to move a little faster than it has been appreciated.'

Critics say the currency is undervalued, which benefits Chinese exports and is contributing to a trade imbalance between China and the United States. -- AFP

Is this article useful to you?