President Reagan said he hoped the United States could lift trade sanctions against Japan soon. But he said the United States would do what is necessary to see that other nations lived up to their trade agreements. In a speech prepared for delivery to the U.S. Chamber of Commerce he said I hope that before long we can lift these (Japanese trade sanctions) and that this episode will be recorded as a small incident in the building of our relationship. But Reagan added we will do what is necessary to see that other nations live up to their obligations and trading agreements with us. Trade must be free. It must also be fair. Reagan said the decision to impose 100 pct tariffs on 300 mln dlrs worth of electronic exports to the United States sent a message it was time to complete a U.S.-Japan trade bridge. The final answer to the trade problems between America and Japan is not more hemming and hawing not more trade sanctions not more voluntary restraint agreements - though these may be needed as steps along the way - and certainly not more unfulfilled agreements he said. Reagan said the answer was genuinely fair and open markets on both sides of the Pacific - and the sooner the better. Reagan said the administrations tools for dealing with unfair trade practices met the need for both firmness and finesse. He said trade legislation pending in Congress would be dangerous because it would force the administration to use a steamroller against unfair practices every time no matter whether the steamroller would open the trade doors or flatten the entire house he said. Reagan said that ending every unfair trade practice in Japan would cut the U.S. trade deficit by only about 10 pct. If our trade deficit is to come down more must be done -- and is being done he said. The change in the dollars value is part of it and since the middle of last year the actual volume of our exports had been on the rise he said. He also said he believed Americas trading partners should cut taxes and regulations as the United States had done so that they could create jobs and buy more goods.
REAGAN HOPES TO LIFT JAPAN SANCTIONS SOON