NO CLEAR EVIDENCE TRADE GAP REVERSED - VOLCKER
  Federal Reserve Board Chairman Paul
  Volcker said current data does not give a clear sign that the
  deterioration in the U.S. trade balance has yet been reversed.
      "The data we have in hand do not provide clearcut evidence
  that the deterioration in the trade balance has yet been
  reversed," Volcker said in remarks prepared for delivery to a
  luncheon for community leaders here.
      However, Volcker said there are encouraging signs,
  particularly the rising volume of exports over the past year,
  achieved despite relatively slow growth abroad.
      Volcker warned it is not sustainable from an economic
  perspective to pile up foreign debt while failing to make the
  investment needed to generate growth and earn the money to
  service the debt.
      He said the process of restoring external balance to the
  U.S. economy requires dealing with the budget deficit. He said
  needed economic adjustment will require a relative shift of
  financial and real resources into internationally competitive
  industry. "More of our growth will need to be reflected in net
  exports and business investment and less in consumption,"
  Volcker said.