U.S. TRADE OFFICIAL SAYS JAPAN ACTION FOOLISH
A high level U.S. trade official
said it would be foolish for Japan to strike back against the
United States for its sanctions on Japanese semiconductor
electronics products.
    Asked by reporters if Japan was expected to retaliate
against U.S. exports, Deputy Under Secretary of Commerce Bruce
Smart replied, "That would be the height of foolishness."
    In addition, he doubted Japan could show enough progress in
meeting the conditions of the agreement to avoid the actual
imposition of the 300 mln dlrs in tariffs on April 17.
    Japan's 58.6 billion dlr trade surplus with the United
States last year has come under fire in Congress concerned
about the loss of jobs to foreign competition and with the
record 169 billion dlrs U.S. trade deficit in 1986.
    President Reagan's sanctions decision won praise today from
the two Democratic leaders of Congress.
    "I think it's about time," Senate Democratic Leader Robert
Byrd of West Virginia told reporters. House Speaker Jim Wright
of Texas told reporters before the opening of the House
session, "It just shows we were right all along when we said
something needs doing."
    Smart testified before a Senate Labor Committee hearing
that last Friday's U.S. trade action would help U.S.
negotiations on access to Japan for U.S. auto parts.
    Since last August Smart has been leading talks to open up
Japan to purchases of more U.S.-made automotive parts. Last
year, Japan racked up a 3.6 billion dlr trade surplus with the
United States in these products.
    Both countries expect to conclude the talks by August 1987.
    "It's amazing to me that the Japanese were surprised. I
hope it will persuade them we're serious," Smart said of the
White House trade sanctions.
    The United States has tried to convince Japanese car
companies of the quality of American-made parts and to draw
them away from their traditional Japanese suppliers.
    "All we ask is a chance. We have a job to do persuading them
we can do better than our reputation seems to be," he said.
    Measured per car, each American-made car contained about
700 dlrs in Japanese auto parts while each Japanese-made car
contained about 26 dlrs in U.S. auto parts, Smart said.
 Reuter
