
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: THURSDAY, April 5, 1990                   TAG: 9004041267
SECTION: NATIONAL/INTERNATIONAL                    PAGE: A-1   EDITION: METRO 
SOURCE: Los Angeles Times
DATELINE: WASHINGTON                                LENGTH: Medium

U.S., JAPAN TENTATIVELY AGREE ON TRADE TERMS

U.S. and Japanese negotiators reached tentative agreement Wednesday on the major elements of a set of sweeping new measures to help reduce the $49 billion U.S. trade deficit with Japan - including significant concessions by Japan toward opening its market to more imports.

The 50-page document, which officials said still included a few, relatively minor "loose ends," will be reviewed by the Japanese Cabinet in time for another, presumably final negotiating session today.

If Japan approves the proposals, the two sides expect to make the recommendations public sometime today. President Bush and Japanese Prime Minister Tokishi Kaifu are expected to welcome the accord as a major step toward resolving U.S.-Japanese trade frictions.

Officials familiar with the report say it contains some major concessions by Japan on many of the suggestions that the Bush administration has made for fundamental changes in longstanding Japanese economic policies and business practices.

The proposals include:

Significant deregulation of Japan's complex goods-distribution system, to make it easier for foreigners to sell products in Japan. The move includes a gradual relaxation of current restrictions on the establishment of large retail stores - a law that has impeded import sales.

Stepped-up enforcement of antitrust laws and tougher penalties to discourage bid-rigging and collusive practices by corporations. U.S. officials say those practices have prevented foreigners from competing against domestic Japanese companies.

A "major commitment" - though apparently without a specific target figure - for sharply increased government spending for public works projects. That is expected to help stimulate domestic demand and spur more purchases of foreign goods.

A promise by Tokyo to require Japanese businesses to disclose publicly transactions that result from interlocking relationships among companies - known in Japanese as "keiretsu" - a practice that U.S. officials say shuts foreign companies out.

According to sources in Washington, the document also includes dozens of detailed proposals that, while less dramatic-sounding on the surface, are expected to have an important impact in opening the way for more sales by foreign companies.

One example is a proposed Japanese promise to speed the clearance of imports through the customs and distribution process - a move that could help reduce business costs for non-Japanese companies. Another is to provide more warehouses and airport facilities.

White House officials said Tokyo also proposed a possible solution for resolving a narrower trade dispute involving Japanese restrictions on the import of foreign-milled finished lumber products - one of three specific trade complaints that Washington filed one year ago.

The two sides already have agreed in principle on proposals for settling the two other narrow complaints - involving prohibitions on purchases by the Japanese government of foreign satellites and super-computers. Japan would face sanctions if these were unresolved.

by CNB