U.S. urging China to up value of renminbi

WASHINGTON, May 24 (UPI) -- The U.S. Treasury is warning China of impending protectionist measures unless Beijing boosts the value of its currency by at least 10 percent.

To ensure Chinese officials understand the imminence of the legislative threat, the White House has arranged for a high-profile entourage of dignitaries to personally convey the message, including Henry Kissinger and Brent Scowcroft, plus a handful of top U.S. bankers, the Financial Times reported Tuesday.

"Apart from any external pressure, I think that it is in China's own interest in the coming months to move towards a market-based interest rate regime, accelerate the opening of the capital account, and move to a more flexible exchange rate system," said one U.S. banker.

And a Treasury spokesman added: "We have made it clear that the interim step should be of sufficient magnitude and flexibility to quell speculative financial flows. I would say that it is important for the Chinese authorities to hear from respected individuals who can provide an accurate analysis of the American political environment on this issue."