JAPAN REBUFFS BRITAIN IN TELECOMS ROW
Japan has reiterated it has no plans to
bow to pressure to give foreign telecommunications companies a
major role in a planned new firm.
    An official at the Ministry of Post and Telecommunications
told Reuters the ministry's position is unchanged despite
mounting pressure from London and Washington. He declined
comment on local press reports which said the ministry would
back a plan aimed at cooling British anger on the issue.
    The press reports said Fumio Watanabe, head of the
Federation of Economic Organisations, would propose that
Britain's Cable and Wireless Plc be given a five pct stake in a
telecommunications firm and a seat on the board.
    Watanabe was unavailable for comment. He has the tacit
backing of the government in his efforts to merge two
telecommunications companies into one competitor to Kokusai
Denwa Denshin (KDD), which has a monopoly on international
telephone services here, industry analysts said.
    In London yesterday, a Cable and Wireless spokesman said
the latest reported proposals are unacceptable.
    Cable and Wireless has a 20 pct stake in one of the two
companies involved in the mooted merger.
    British Prime Minister Margaret Thatcher has personally
taken up the company's cause, charging that Japan is
discriminating against foreigners.
    The United States also has vented its anger at what it sees
as Japanese attempts to limit foreign participation.
    Watanabe originally proposed Cable and Wireless be given up
to 3.0 pct of the merged firm. The press reports said this
could be raised to 5.0 pct, equal to the largest share of any
Japanese firm. Britain opposes the proposed merger. REUTER
