PAPER SAYS U.S. MAY SEEK TO CURB FOREIGN TAKEOVERS
The Reagan administration will
consider curbing foreign takeovers of security-sensitive
industries such as semiconductors and computers, the New York
Times said, quoting an unnamed senior administration official.
    "I think there's a strong sentiment here that some
industries are not totally up for grabs," the paper quoted the
official as saying.
    "Two of the most visible (industries) are semiconductor and
computer companies," said the official, who the newspaper said
was a central figure in the opposition to Japan's Fujitsu Ltd
<ITSU.T> takeover bid for <Fairchild Semiconductor Corp>.
    The Fairchild-Fujitsu deal was abandoned on Monday, and
industry analysts said the move was a victory for the Reagan
administration in its drive to beat back Japanese competition
in the important computer chip manufacturing industry.
    Officials told Reuters last week that Commerce Secretary
Malcolm Baldrige and Defence Secretary Caspar Weinberger fought
the planned sale of Fairchild by French-controlled Schlumberger
Ltd <SLB> to Japan's largest computer maker because it could
have left the U.S. Military dependent on foreign sources for
vital technology.
    The New York Times quoted Baldrige as saying the time had
come to limit takeovers in security-sensitive areas.
    "Everybody wants an open investment policy, but there have
to be some exceptions for the national interest," Baldrige was
quoted as saying.
    The newspaper said Baldrige and Weinberger are expected to
bring the takeover issue before a top-level interagency
policymaking group, such as Treasury Secretary James Baker's
Economic Policy Council or the president's National Security
Council.
 REUTER
