LONDON, Nov 17: US Treasury Secretary John Snow on Wednesday cited a "shared responsibility" to fight global economic imbalances while acknowledging that big US deficits need to be tackled.

In what was billed as a major economic speech in London, Snow reiterated themes he has long been stressing: that stronger growth and free markets will cure most of the ills facing the global economy.

Mr Snow, speaking at London's Chatham House, also stuck with the same message about the dollar that he has issued in recent months - that while markets should set exchange rates, Washington is not seeking to weaken its currency.

"No one has ever devalued their way to prosperity," he said. "Let me be clear: our policy is for a strong dollar. Our dollar policy remains unchanged because a strong dollar is in both the national and international interest."

In response to questions about possible currency market intervention, Mr Snow brushed aside the suggestion. "The history of efforts to impose non-market solutions (to currency values) is at best unrewarding and chequered," Mr Snow said.

Facing criticism in Europe and elsewhere about what some call a dangerous path of deficits that has weighed on the dollar, the treasury secretary acknowledged that the United States was less than perfect in some areas but said other nations must help remedy the problems, mainly by boosting economic growth.

"This isn't the US preaching to Europe and Japan," he stated. "This is acknowledging the shared responsibility we have to make the world a better place." His comments came as the dollar slid to a record low against the euro.

Mr Snow dismissed questions about whether the strong dollar policy has any meaning. "Why do I continue to espouse a strong dollar policy? Because it's our policy," he said. Pressed further on the effectiveness of this, he stated: "The policy is the policy."

The weak dollar has prompted increasing calls for Washington to deal with the so-called "twin deficits" of the budget and current account, which reflects trade and certain investment flows.

Mr Snow said the United States was serious about tackling its budget deficit, which hit a record $413 billion (318 billion euros) in the most recent fiscal year. This deficit, which saps a large chunk of global capital, "from my perspective, is our most pressing issue," he said in remarks prepared for the speech to The Royal Institute of International Affairs.

"It is too large and needs to be brought down. As a lifelong deficit hawk, I want to make it clear that the budget deficit is unwelcome. I also want to make it clear that it is being addressed."

He said the proposed federal budget outline would cut the shortfall in half over the four years, "bringing the deficit to less than two percent" of gross domestic product.

As for the current account deficit, Snow maintained that this was a sign of US economic strength, not weakness, and that it would diminish as other countries grow more rapidly.

"The current account deficit is a shared responsibility," he said. He said Washington hoped to ease some of this deficit by encouraging more US savings, but that the trade gap will come down only when the economies of US partners start growing more quickly.

While critics of US policies talk about the twin US deficits, Snow argued that more attention should be paid to the "growth deficit," or the disparity between economic growth in the United States and key economies, especially Europe.

"Economic expansion is not as balanced as it could be," Mr Snow said. "Where countries are growing too slowly, they need to adopt pro-growth policies ... In today's interconnected global economy where products and services, information and capital flow freely, stronger growth rates in those places are critical if we are to achieve economic prosperity for all."

Mr Snow also argued that a more flexible currency scheme in China would help ease imbalances, and that Beijing appears to be moving in that direction, albeit not as quickly as he would prefer.

"I don't want to put a firm timetable" on China to shift towards a more liberal currency policy, he said. "I think we'll get a much better result through quiet diplomacy." -AFP