G-7 SEEN FIGHTING TO KEEP CURRENCY PACT
  International monetary officials will 
  rush to paper over the deep cracks that have appeared in the
  Louvre accord on currency stability to prevent a dollar
  free-fall and to calm turmoil in world capital markets,
  economists and currency traders said.
      "I don't think the Louvre is dead because if it breaks up
  in an acrimonious way, the potential outcome is a rout of the
  dollar, higher interest rates and collapsing stock markets.
  It's in the Group of Seven's interest to calm things down,"
  said Douglas Madison, corporate trader at BankAmerica Corp.
     
      In a weekend television interview, U.S. Treasury secretary
  James Baker sharply criticised a recent rise in West German
  money market rates and said the eight month-old Louvre pact to
  foster exchange rate stability needs to be reviewed.
      His comments rocked the currency markets and helped send
  the already-fragile U.S. and overseas stock markets into a
  tailspin.
      The dollar lost more than two pfennigs in the U.S. to about
  1.7740/50 marks and about one yen to 141.25/35 yen. The Dow
  Jones Industrial Average slumped more than 200 points at one
  stage and U.S. Treasury bonds dropped about 1-3/4 points.
  

