President Reagan warned the U.S. Congress in his weekly radio address against passing what he called dangerous protectionist trade legislation that would tie his hands in trade negotiations with Japan and other countries. Reagan who will hold talks with Japanese Prime Minister Yasuhiro Nakasone here this week said he would lift tariffs imposed last week against some Japanese products as soon as Tokyo complied with a U.S.-Japanese pact on semiconductors. U.S. Officials gave the same message to former Japanese Foreign Minister Shintaro Abe in meetings in Washington last week. In his weekly radio address on Saturday Reagan said he would tell Nakasone: We want to continue to work cooperatively on trade problems and want very much to lift these trade restrictions as soon as evidence permits. Reagan said the 100 pct tariffs he imposed on some 300 mln dlrs worth of Japanese goods was a special case of trade retaliation and did not signal a shift in what he called his staunch anti-protectionist policies. In imposing these tariffs we were just trying to deal with a particular problem not begin a trade war he said. But Congress is ready to approve tough trade legislation to try to turn round the record U.S. Trade deficit which has cost millions of U.S. Jobs and closed thousands of factories. A vote on a trade bill sponsored by Congressman Richard Gephardt is expected to come during Nakasones visit. It would penalise nations with large trade surpluses and which are alleged to use unfair trade practices. Reagan warned Congress that such action would undercut his ability to negotiate on trade issues with Nakasone and others. With my meeting with Prime Minister Nakasone and the Venice economic summit coming up its terribly important not to restrict a presidents options in such trade dealings with foreign governments he said. Unfortunately some in the Congress are trying to do exactly that he said. Reagan said he would keep the American people informed on this dangerous legislation because its just another form of protectionism and I may need your help to stop it.
REAGAN WARNS CONGRESS ON PROTECTIONISM