G7 forex words are "agreed terms of reference": ECB

WASHINGTON (Reuters) - The position of the Group of Seven nations on foreign exchange as stated at a euro zone news conference on Friday is not part of the formal G7 communique, but is a "G7 agreed terms of reference" on the issue, the European Central Bank said on Sunday.

Finance ministers and central bankers from the United States, Canada, Japan, Britain, Germany, France and Italy issued a one-page communique at the end of their discussions on Friday describing only their decisions on joint action to overcome the financial market crisis.

But at a news conference after the G7 talks, ECB President Jean-Claude Trichet also read out a statement on foreign exchange rates, saying it was agreed on by the G7.

A U.S. Treasury Department spokesperson, asked whether the G7 had issued a separate statement on foreign exchange that was still considered to be part of the G7 communique, replied: "The one-page action plan was the entire communique. It did not include any addendums on foreign exchange or any other matters."

An ECB spokeswoman on Sunday confirmed that the statement on foreign exchange rates read out by Trichet was agreed on by G7 finance ministers and central bankers and said it should be called "G7 agreed terms of reference."

Two sources close to the G7 talks told Reuters the terms of reference on foreign exchange rates were not included in the final G7 communique so as not to draw attention away form the key issue of the G7 meeting, which was the financial crisis.

(Reporting by Jan Strupczewski; Editing By Tim Ahmann)