WHITE HOUSE PANEL SAID URGING JAPAN RETALIATION
The White House Economic Policy
Council decided to recommend trade sanctions against Japan for
violations of the U.S.-Japanese semiconductor agreement,
industry sources said.
    They would give no details, noting that the White House had
not commented on the decision. The administration has been
under pressure to retaliate.
    There was no immediate announcement on the council's
decision, but U.S. Officials said it was likely the senior
policy group's move on curbs reflected growing American
frustration over alleged unfair Japanese trade practices.
    U.S. Officials said President Reagan would probably act on
the recommendations in a day or so, after consulting with aides
on the foreign policy implications of retaliation.
    The officials said Reagan might delay retaliation for a
last try to persuade Japan to abide by the agreement reached
last July governing trade in semiconductors.
    Under a pact reached last July, Japan was to stop dumping
semiconductors in world markets and to open its own market to
U.S.-made semiconductors.
    In return, the U.S. Agreed to hold up imposing anti-dumping
duties on Japanese semiconductor shipments.
    The United States said that dumping has stopped in the U.S.
Market but has continued in third countries, and that the
Japanese market remains closed.
    The pressure on Reagan to retaliate included a unanimous
call by the Senate last week to impose penalties on Japanese
high technology products containing semiconductors.
    A call for retaliation also came from the semiconductor
industry and from its chief trade union.
    U.S. Officials said the most likely move against Japan
would involve duties on semiconductor-based goods, such as
televisions, video cassette recorders and computers.
 REUTER
