Nakasone Hopes U.S. Visit Will Help end Trade row

Prime Minister Yasuhiro Nakasone said he hopes his visit to Washington later this week will help resolve Japan’s severe trade problems with the United States.

Nakasone leaves on his sixth official visit to the United States on Wednesday, only weeks after President Reagan imposed punitive tariffs of 300 mln dlrs a year on Japanese electronic goods for alleged violation of a semiconductor pact.

Japan also faces more possible sanctions amid calls in the U.S. Congress for further action to help improve trade imbalances.

Japan’s trade surplus with the United States reached a record 58.6 billion dlrs in 1986.

Nakasone told reporters that special envoy Shintaro Abe, who has just returned from Washington, told him protectionist sentiment in the United States is severe.

“We are well aware of a movement in the United States to enact legislation,” Nakasone said.

He said friends at home and abroad have advised him not to go to the United States but it is now more important than ever that he express Japan’s view and carefully listens to the views of the United States.

“My visit to the United States at this time will be the most important visit of all,” Nakasone said.

While in Washington, he said he hopes to have candid and frank discussions with President Reagan and Congressionl leaders. He said he plans to discuss exchange rate stability, economic cooperation to developing countries and U.S.-Soviet disarmament and arms control.

On the recently imposed trade sactions, Nakasone said he would present evidence that Japanese semiconductor imports are increasing and that Japan is monitoring exports to third countries.

“We have full confidence we can present clear evidence,” he said. “(Therefore), we will request that the sanctions be lifted at the earliest possible time.”

On the trade imbalance, Nakasone said Japan has already taken action. The volume of exports to the United States has been cut, while U.S. Imports have increased.

But Japanese imports from Europe and other Asian nations have recently surged, those from the United States remain weak, indicating a lack of U.S. Competitiveness, he said.

Nakasone said Japan will continue to strive to improve the trade imbalance but the United States will have to become more competitive and improve its huge budget deficit.

He said he will also discuss the forthcoming Venice summit of the seven major industrial nations in June.

“We can further enhance the efforts for improving peace, disarmament and the world economies as a whole through solidarity,” Nakasone said.