JAPAN DENIES BREAKING SEMICONDUCTOR TRADE PACT

  Japan denied breaking a pact with the
  U.S. On semiconductor trade but said prices set out in the pact
  were too high and acknowledged difficulties in implementing the
  accord.
      "We are faithfully abiding by the ... Agreement but of
  course there are some problems," a spokesman for the
  International Trade and Industry Ministry told Reuters.
      He said the high semiconductor prices recommended by the
  agreement were leaving Japanese manufacturers piling up stocks
  of unsellable products. "We are aiming to reduce production in
  Japan but of course this takes time," he said.
      The spokesman said some Japanese companies were selling
  chips in Europe and Asia below stipulated prices, but added: "It
  is only a matter of time before we solve this problem."
      The eight month old pact aims to stop Japan selling large
  quantities of chips at knock-down prices to the United States
  and other countries and to increase U.S. Semiconductor sales in
  Japan.
      The U.S. Senate Finance Committee this week called on
  President Reagan in a non-binding resolution to retaliate
  against Japan for violating the agreement.
  

