BALDRIGE CONCERNED ABOUT KOREAN/TAIWAN DEFICITS Secretary of Commerce Malcolm Baldrige expressed concern about the continuing U.S. trade deficits with South Korea and Taiwan and said that without an adjustment in exchange rates there is little likelihood of improvement. Speaking to the President's Export Council, an industry advisory group, Baldrige said the trade deficit issue was under discussion with those countries. "I feel that unless we see an exchange rate adjustment we probably won't be able to see much of a change in the large surplus that Taiwan in particular has with us," he said. In a wide-ranging discussion on U.S. trade matters, Baldrige also repeated U.S. concern about an attempted takeover by Japan's Fujitsu company of Fairchild Computer. He said that the Japanese were resisting allowing U.S. companies into the giant computer business while at the same time attempting to acquire control of a U.S. company that does major computer business in the U.S. market. Lastly, Baldrige said that the United States was hopeful that it could complete a free market agreement with Canada by the autumn, but said major issues, including acid rain, remained unresolved.