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

DATE: FRIDAY, May 28, 1993                   TAG: 9305280326
SECTION: BUSINESS                    PAGE: A-7   EDITION: METRO 
SOURCE: 
DATELINE: WASHINGTON                                LENGTH: Short

U.S. TO SLAP EUROPE WITH TRADE SANCTIONS

The Clinton administration said Thursday it will impose trade sanctions against the 12-nation European Community in a dispute over government contracts for phone equipment.

The EC condemned the U.S. action and threatened to move quickly, perhaps in the next two weeks, to retaliate against U.S. companies.

The long-simmering dispute involved EC rules that give preferential treatment to European companies for sales of telecommunications equipment to state-owned enterprises in Europe.

The administration has been silent on what it would do if Europe does retaliate.

But the prospect of such an action raises the specter of a potential trade war between the United States and its biggest trading partner at a time when the administration is working hard to get EC support for a united front to pressure Japan to do more to reduce its giant trade surpluses.

- Associated Press

by CNB