We need a balanced and coherent trade and industrial policy, based on these principles:

* The president must take the lead in making trade and industrial competitiveness a national priority. The tools to make an industrial policy work are in the executive branch.

* The injurious effects of foreign industrial policies must be neutralized. Whether we call this effort an industrial policy or whether we create a Department of Trade isn't important. What is important is unifying and building upon existing policies.

* We must give high priority to lowering interest rates by reducing deficits as the best way to bring the dollar back into line with other currencies and make our products more attractive.

We can stabilize exchange rates in the international marketplace by coordinating our fiscal and monetary policies and providing adequate levels of international lending. This may also require cooperative intervention in exchange markets.

* We must promote American exports by providing adequate Ex-Im Bank financing at competitive rates, changing the tax code to encourage export activity and reviewing our antitrust laws to ensure they are not antitrade. A special effort must be made to encourage smaller firms to export.

* We must not be shy about restricting blatantly unfair foreign imports that violate the spirit of fair trade and which are dumped, subsidized or threatening to our national security. The GATT General Agreement on Trade and Tariffs permits such actions, and it's time we took them.

* We must build on our strengths in agricultural and services trade, bring services trade under the GATT and control agricultural export subsidies.

* We must restore our historic commitment to education, research and development--the keys to keeping us competitive in the future.