U.S. Promises Japan Fast Action on Trade : But American Negotiators Fail to Win Similar Assurance From Tokyo at Talks

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Sept. 5, 1989 12 AM PT

from Reuters

TOKYO — The United States promised Japan today that it will attack its deep-rooted economic problems quickly but it failed to win a similar assurance from Tokyo.

At the end of two days of high-level talks, U.S. officials said Washington agreed with many of Japan’s proposals for cutting their huge trade gap, including the need for more U.S. savings.

“We agreed with a great deal of the suggestions of our Japanese colleagues,” Undersecretary of State Richard T. McCormack told reporters. “We would hope that they would entertain our . . . proposals with the same seriousness.”

But Japanese ministers sounded less conciliatory.

“Bilateral talks like this are not meetings where Japan follows what the United States says,” Finance Minister Ryutaro Hashimoto told reporters.

Japanese Economic Planning Minister Sumiko Takahara added: “Washington is more responsible for the U.S.-Japan trade imbalance than Tokyo.”

Series of Talks Planned

Washington proposed the talks after countless negotiations on Japanese import barriers and big changes in currency rates failed to cut the $50-billion trade gap.

This week’s talks were the first in a series of discussions planned over the next nine months aimed at cutting the trade imbalance.

At today’s session, Japan urged the United States to take a number of steps to become more competitive--promote exports, do away with needless government regulations, expand manufacturing capacity and improve training.

U.S. officials said Washington needs quick results from the talks.

“It is absolutely essential we have results,” Commerce Department Undersecretary Michael Farren said. “They (the talks) must have some very specific impact on the trade imbalance.”

The Bush Administration is under increasing pressure from Congress for action to cut the big trade gap with Japan.

Japanese Problems

Domestic politics argue against quick action by Japan.

With the ruling Liberal Democratic Party floundering in the polls and a crucial general election due by next summer, this is hardly the best time for the Japanese government to advocate radical change, Tokyo officials have said.

U.S. officials tried to get around those political difficulties by portraying their demands as good not only for U.S. businessmen but also for Japanese consumers. Quick action by Japan would both reduce the country’s trade surplus and benefit Japanese consumers by giving them greater choice and lower prices, they said.

“The Japanese people have worked long and hard,” McCormack said. “Ordinary Japanese consumers should basically have a better shake.”