Finance Minister Kiichi Miyazawa and Bank of Japan Gov. Masaru Hayami will attend a meeting Saturday of the Group of Seven industrialized nations in Washington, at a time when policy coordination over the yen's rapid rise against the dollar is being closely watched.

The G7 meeting of finance ministers and central bank governors is expected to discuss whether the other G7 members — particularly the United States — will join Japan's efforts to stem the yen's rise. Miyazawa said the issue will likely be on the agenda in his talks with U.S. Treasury Secretary Lawrence Summers.

The U.S. is reportedly demanding that the BOJ further relax its monetary policy as a condition to accommodate Tokyo's request for concerted action.

But the BOJ Policy Board decided Tuesday to leave its monetary policy unchanged, clouding prospects for Japan-U.S. coordination. In a news conference Wednesday, Miyazawa indicated he was not optimistic.

Miyazawa and Hayami have said they share the view that the yen's excessive appreciation is harmful to the economy, which is finally showing signs of recovery after a prolonged slump. A strong yen can hurt export-oriented companies by making the prices of their goods higher abroad.

To his G7 counterparts, Miyazawa is expected to argue that a collapse of Japan's economic recovery will not only hurt other parts of Asia that want Japan to buy more from them but the rest of the world as well.

The yen's surge, apparently reflecting market expectations for an economic upturn, gained momentum when April-June gross domestic product data released Sept. 9 showed growth for the second straight quarter.

Miyazawa will probably explain Tokyo's plan to compile a supplementary budget this fall aimed at securing a domestic demand-led economic recovery.

The G7 meeting is scheduled prior to semiannual conferences of the International Monetary Fund and the World Bank, which will be held in Washington through Tuesday. Miyazawa and Hayami will participate in these meetings.

The G7 consists of Britain, Canada, France, Germany, Italy, Japan and the United States. In recent years, Russia has joined G7 meetings as an observer when relevant issues are being discussed. A recent allegation of Russian money-laundering through the Bank of New York may be taken up this time.

The series of economic meetings come as the world economies look much more stable than a year ago. Last fall, a financial crisis threatened all parts of the globe. Japan was singled out as a major concern with its banking system crisis and deepening recession.

This time, although the yen's fast-paced rise is a source of concern, the Japanese economy is unlikely to dominate the upcoming meetings.

The IMF Interim Committee meeting will discuss the so-called international financial architecture, from stabilization of foreign exchange systems to regulation on hedge funds. Discussion will focus on how to put into practice what was agreed on at a June G7 summit meeting in Cologne, Germany.

The participants are expected to agree to set up an informal dialogue mechanism on the currency system, with emerging economies included as members. They are also likely to agree to upgrade the Interim Committee to a standing organ.

The 24-member IMF committee, including the G7, will meanwhile discuss the need for a temporary facility to provide loans to developing countries in connection with the Year 2000 computer problem. This is because some developing economies are expected to have difficulties raising funds before Jan. 1. Many throughout the world will try to keep abundant amounts of cash on hand in case of banking problems.

IMF and World Bank meetings will examine ways to finance the expanded debt-relief plan for heavily indebted poor countries, or HIPCs.

The G7 agreed in June to waive all official development assistance loans and reduce non-ODA loans by more than 90 percent.

Japan, the largest bilateral creditor to HIPCs, has insisted on fair burden sharing among rich countries. Miyazawa will thus argue that Japan should bear a smaller burden to finance the IMF, the World Bank and other multilateral institutions for their debt-relief plans, a Japanese official said.