Months from now or next year, according to many economists, more erosion of the dollar will be required to assure further shrinkage of the trade imbalances.

The two state administrations have yet to produce a full blueprint of how far the cutbacks should go, but there is no doubt further shrinkage lies ahead.

The further shrinkage in the economy - deflation - is particularly worrisome because the Government has been trying to increase growth through public spending.

But any further shrinkage of the company is certain to be greeted with dismay by creditors and could intensify the already bitter battles among creditor groups.

This small surplus was obtained notwithstanding a further shrinkage in revenue.

In its budget request for 1988, the Administration is forecasting a further shrinkage in the budget deficit, to $107.76 billion.

"There seems to be a bottom line we've hit where we keep hold against further shrinkage," he said.

But the crisis is not expected to reverse the sharp decline in Pentagon spending or prevent further shrinkage of the weapons business.

A river inflow of 30 cubic kilometers is needed just to prevent further shrinkage.

There also ought to be a hard look at further shrinkage in Government programs, accompanied by tax reductions.