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

DATE: THURSDAY, April 26, 1990                   TAG: 9004260369
SECTION: NATIONAL/INTERNATIONAL                    PAGE: A-1   EDITION: METRO 
SOURCE: The New York Times
DATELINE: WASHINGTON                                LENGTH: Medium

TRADE STAND ON JAPAN DISPUTED

Japan should not again be cited for unfair trading practices, Carla Hills, U.S. trade representative, told Congress on Wednesday. She disclosed that Washington and Tokyo had reached an agreement on the last major item on their current trade agenda.

Japan has "moved further this year than any other country" in opening its markets, Hills said.

Citing Japan again under the "Super 301" provision of the tough 1988 trade law would impede further progress, she said.

Hills' comments to the Senate Finance Committee elicited challenges from most of the senators present who said that only constant pressure yielded results.

The accord announced Wednesday - the culmination of a process set forth by that law - involved wood products and is expected to raise U.S. exports to Japan by $1 billion a year. Under earlier accords, which are expected to lift annual exports by $700 million, Japan agreed to open its markets for U.S. supercomputers and satellites.

Sen. Lloyd Bentsen, D-Texas, who is chairman of the panel and was one of the sponsors of the 301 provision of the trade law, argued that the administration would be "ignoring" the law and could "poison the well" for congressional consideration of trade accords it is expected to seek later with the Soviet Union, Czechoslovakia, China and members of the General Agreement on Tariffs and Trade, a Geneva body that promotes trade liberalization and resolves disputes.

Bentsen, who takes a hard line on Japan, issued an unusually stern rebuke, contending the constitutional form of government "cannot work if the administration refuses to implement laws."

On the other hand, both Sen. Max Baucus, D-Mont., Democrat who heads the Finance Committee's trade subcommittee, and Sen. Bob Packwood of Oregon termed the wood products pact "significant."

Because of the prominence of wood-producing industries in their states, both had taken leading positions demanding Japanese liberalization.

President Bush has been caught between his reluctance to offend powerful lawmakers and his desire to reward his new friend, Prime Minister Toshiki Kaifu of Japan. Kaifu's undertakings at a meeting with the president last March have led to the spate of accords including Wednesday's.

In addition to the successful conclusion of trade agreements, the administration's tilt against branding Japan results from changing political dynamics, many analysts believe.

While many Americans still think Japan does not play fair in world trade, the resentments are not as intense as last year, analysts say.

According to William T. Archey, vice president, international, of the U.S. Chamber of Commerce, "What's different this time round is the political imperative doesn't have the same oomph."

by CNB