Statement by the President on the Secretary of the Treasury's Report on the Balance of Payments Problem.

I AM gratified by Secretary Fowler's report on our progress in dealing with our balance of payments problem.

Our position improved because of:

--a huge inflow of capital by investors the world over, who showed renewed confidence in the strength and prospects of our economy;

--reduced capital outflows by the American business and financial community, which cooperated fully with our balance of payments program;

--successful negotiations with our allies to neutralize the foreign exchange cost of our military expenditures abroad, as we maintain our national security interests;

--reductions and economies in civilian government expenditures abroad.

There is dearly much work to be done-as our disappointing trade balance shows. But we have set corrective forces in motion and they should soon show results.

Our first and most important asset is the tax bill. It puts us in position to restore price stability at home and a strong competitive position abroad.

We must also make creative and bold use of our new and improved export financing, export promotion, and tourist promotion machinery.

Our balance of payments program has joined public and private action and has enjoyed bipartisan support. It must not be otherwise. The strength of the dollar is important for all Americans. It is also the foundation for a strong and stable international monetary system and a means of encouraging the growth of world trade and an expanding world economy.