BRITISH MINISTER SAYS HE WARNED TOKYO OF SANCTIONS
A British minister said he had given the
Japanese government a clear warning of sanctions against
Japanese companies if Tokyo did not allow more access to its
internal markets "and it was clearly understood."
    Corporate Affairs Minister Michael Howard said on his
return from a visit to Japan he thought the Japanese were
beginning to appreciate the need to be "fair and open" about
access to their own markets.
    At an airport news conference Howard denied opposition
charges that his trip had been a failure because he had
returned empty-handed.
    "I did what I set out to do. I was sent to deliver a clear
message to the Japanese government, and I delivered it very
clearly, and it has been clearly understood."
    Howard said that under the Financial Services Act the
govenment had considerable flexibility in taking sanctions
against Japanese companies and finance houses operating in
Britain.
    "It is not simply a question of withdrawing or refusing
operating licences. We can ban firms from certain countries
from carrying out certain kinds of business, while allowing
them to carry out other kinds."
    "I hope we don't have to use these powers, but I made it
clear in Japan that if our timetable isn't met, we shall use
them."
    He said it would be unfortunate if Britain and Japan became
involved in a tit-for-tat exchange, adding that Japan gained
more than anyone else from an open trading relationship.
    "I think they are beginning to appreciate that if this
relationship is to continue, it is very important for them to
be fair and open about access to their own markets."
    On the question of the British firm Cable and Wireless Plc
<CAWL.L>, which is trying to win a significant share of
telecommunications contracts in Japan, Howard said he had told
the Japanese this was being widely regarded as a test case.
    He said there were signs of movement on the case. Cable and
Wireless was due to take part in talks in Japan next Tuesday,
he said.
    Earlier this week British Prime Minister Margaret Thatcher
said Britain could not go it alone on sanctions against Japan,
but would have to coordinate action with its European Community
partners.
    Community sources said after a meeting of trade officials
yesterday that the group might impose steep new tariffs on a
range of Japanese goods to prevent diversion from United States
markets if Washington imposes trade sanctions against Tokyo as
it has threatened.
 REUTER
