TAIWAN SAID CONSIDERING CURRENCY LIBERALISATION Taiwan's central bank is considering proposals to ease currency restrictions to reduce foreign exchange reserves of 51 billion U.S. Dlrs, a local newspaper reported today. The China Times, which has close ties with the government, quoted central bank governor Chang Chi-cheng as saying the government had agreed in principle to liberalise financial restrictions. The bank was considering proposals to allow firms and individuals to hold foreign exchange and invest in foreign stocks for the first time, Chang was quoted as saying. All foreign exchange must now be handed to local banks and exchanged for local currency. Firms and individuals may only invest in foreign government bonds, treasury bills and certificates of deposit. Central bank and other government officials were not available to comment on the report. Economists said it was likely that the government would ease foreign exchange controls, but only gradually. They said vast foreign currency reserves, earned mainly from huge trade surpluses with the United States, made Taiwan a target for U.S. Protectionism. Taiwan's trade surplus with the U.S. Rose to 13.6 billion U.S. Dlrs last year compared with 10.2 billion in 1985. "The central bank has to go in this direction," said Su Han-min, chief economist with the International Commercial Bank of China. "If they don't quicken the pace, Washington could retaliate and really damage Taiwan."