ROANOKE TIMES

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

DATE: THURSDAY, July 8, 1993                   TAG: 9307080153
SECTION: NATIONAL/INTERNATIONAL                    PAGE: A1   EDITION: METRO 
SOURCE: From The Associated Press, Knight-Ridder/Tribune and Newsday
DATELINE: TOKYO                                LENGTH: Medium


CLINTON HAILS PACT ON TRADE BUT SOLUTION FOR BOSNIA NOT WITHIN LEADERS' GRASP

After a first-day accord on free trade, leaders of the world's seven richest industrial countries reaffirmed their commitment to Bosnia's territorial integrity today but shied from threatening force to end the ethnic conflict, as they did last year.

The modest statement in the political communique issued at the Group of Seven economic summit reflected deep divisions over a response to "ethnic cleansing" in the former Yugoslav republics that has horrified the world but defied efforts by President Clinton and others to forge concerted action.

"The discussion just went round and round in circles despite substantial time spent," Japanese Foreign Ministry official Katsuya Suzuki said Wednesday night. He said several leaders expressed frustration that the world community could not do more.

The nations described the situation in Bosnia as "rapidly deteriorating" and said a settlement of the war should not be imposed "at the expense" of the besieged Muslims.

Clinton hailed the trade agreement reached on the summit's first day. He said, "While there are difficult negotiations ahead, [the] agreement breaks the logjam" on the seven-year negotiating effort by 114 nations to lower trade barriers.

The United States, the European Community, Japan and Canada preliminarily agreed to slash tariffs on trade in 18 categories of industrial goods.

Under the deal, tariffs would be eliminated entirely for eight industrial sectors: pharmaceuticals, medical equipment, construction equipment, steel, beer, furniture, farm equipment and distilled spirits.

Peak tariffs would be cut by up to 50 percent in four other sectors: ceramics, glass, textiles and apparel. Tariffs would be cut at least 33 percent in five other sectors: electronics, scientific equipment, wood, paper and nonferrous metals.

Wednesday the leaders also urged Israel to respect U.N. resolutions calling for withdrawal from lands occupied in the 1967 Mideast war and said they would pressure Iraq and Libya to cooperate with the United Nations.



 by CNB