The visit this week by a special Japanese envoy has done little to defuse Japans trade frictions with the United States U.S. and congressional leaders say. White House and congressional leaders took a wait-and-see stance after a series of meetings with former Japanese Foreign Minister Shintaro Abe who was here paving the way for the April 29-May 2 visit of Prime Minister Yasuhiro Nakasone. They are withholding judgment until Nakasones visit with one senator saying Japan had promised to stimulate its economy and open its markets to foreign goods in the past but it was time now for action. The U.S. trade deficit last year was a record 169.8 billion dlrs with more than one-third of it in trade with Japan. Congress is ready to approve tough trade legislation to try to turn around the deficit which has cost millions of U.S. jobs and closed thousands of factories. Much of the anger has been directed at Japan. U.S.-Japan trade friction was further fueled by President Reagans April 17 decision to impose 100 pct tariffs on 300 mln dlrs worth of Japanese goods in retaliation for unfair practices in semiconductor trade. Reagan said he imposed the tariffs on personal computers television sets and hand tools because Japan failed to keep an agreement to end dumping semiconductors in world markets at less than cost and to open its home market to U.S. products. Abe had asked Reagan to end the tariffs quickly but U.S. officials said the curbs would not be dropped until Japan had shown it was honoring the pact which could take several months. White House spokesman Marlin Fitzwater asked if Nakasones visit might help to defuse trade tensions said whether progress can be made depends on how you want to measure it. He added I would expect progress to be made. If you want to measure that in terms of lifting the sanctions thats more doubtful. Congressmen were equally skeptical. Abe met Senate and Democratic leaders active in trade legislation telling them of Japans plan to spur domestic spending by 34 billion dlrs and open its markets to a wide range of goods including supercomputers and farm products. Sen. John Danforth a Missouri Republican said after the meeting We have heard promises in the past but the question now is whether there will be real action. Abe also met House leaders pressing for a tough trade bill including Congressman Richard Gephardt a Missouri Democrat. Gephardt is sponsoring legislation to penalize nations with large deficits and which are guilty of unfair trade practices. Gephardts legislation would hit Japan as well as Taiwan South Korea and West Germany. The bill is expected to pass the House next week - coinciding with Nakasones visit - but its fate in the more moderate Senate is uncertain. A bipartisan group of senators however told Nakasone in a letter released as Abe was holding Senate meetings that fresh Japanese-U.S. trade strife would erupt if Japans markets were not soon opened to American goods. The signers included Democratic leader Robert Byrd of West Virginia Republican leader Robert Dole of Kansas and others ranging from moderate to hardline on trade issues. They said in the letter there was growing U.S. sentiment that Japan was fighting opening its markets and evidence to the contrary is necessary to combat this perception or it is likley that additional efforts will be attempted to close off the American market to Japanese goods.
U.S., JAPAN TRADE TIES REMAIN HOSTILE