U.S. CURRENT ACCOUNT DEFICIT 36.84 BILLION DLRS The U.S. current account deficit widened to a record 36.84 billion dlrs on a balance of payments basis in the October-December fourth quarter of 1986 from a revised 35.29 billion dlrs in the third quarter, the Commerce Department said. Previously, the department said the third-quarter deficit was 36.28 billion dlrs. For the full year 1986, the current account, a broad measure of trade performance, was in deficit a record 140.57 billion dlrs after a 117.68 billion dlr deficit in 1985. The department said an increase in the merchandise trade deficit during the fourth quarter to 38.4 billion dlrs from 37.1 billion dlrs in the third quarter was the main reason for the worsening deficit. Net service receipts declined to 5.5 billion dlrs in the final quarter from six billion dlrs in the third quarter. The current account includes trade in merchandise and services as well as U.S. financial transactions with the rest of the world. The department said the merchandise trade deficit for all of 1986 grew to 147.7 billion from 124.4 billion dlrs in 1985. Net service receipts were 22.3 billion dlrs in 1986, compared with 21.7 billion dlrs in 1985, the department said. Net unilateral transfers during the fourth quarter last year, covering foreign aid and government pensions, were down to 3.9 billion dlrs from 4.2 billion dlrs in the third quarter because of fewer U.S. government grants to Mideast countries. Liabilities to foreigners reported by U.S. banks rose 35.3 billion dlrs between October and December after increasing 30.1 billion dlrs in the third quarter. For the full year, these liabilities grew 77.4 billion dlrs after rising by 40.4 billion dlrs in 1985. The department said inflows were boosted in the fourth quarter by international activities of Japanese banks and strong demand within the United States to finance acquisitions. Net foreign sales of U.S. Treasury securities by foreigners were 2.7 billion dlrs in the quarter after purchases of 500 mln dlrs in the third quarter. Net foreign purchases of securities other than U.S. Treasury securities in the fourth quarter were 11.8 billion dlrs, compared with 17.2 billion dlrs in the third quarter. For all 1986, foreign purchases of securities excluding U.S. Treasury securities were a record 70.7 billion dlrs, surpassing the previous record 50.9 billion dlr total in 1985. Claims on foreigners reported by U.S. banks in the fourth quarter rose 29.9 billion dlrs after a 19.3 billion dlr third-quarter increase. U.S. sales of foreign securities rose to 2.7 billion dlrs from 300 mln dlrs in the third quarter because of a sharp selloff of foreign stocks and bonds, the department said. Outflows for U.S. direct investment abroad fell to 5.7 billion dlrs from eight billion dlrs in the third quarter. Foreign direct investment in the United States increased 14.4 billion dlrs in the fourth quarter, compared with 5.6 billion dlrs in the previous quarter, because of stepped-up acquisitions, the department said. Foreign official assets in the United States increased 800 mln dlrs between October and December after rising 15.4 billion dlrs in the third quarter. For the full year 1986, foreign official assets grew 33.4 billion dlrs after a 1985 decrease of 1.9 billion dlrs as foreign monetary authorities intervened heavily in exchange markets late in the year as the dollar fell, commerce said.