U.S. HOUSE PANEL TAKES FIRST TRADE BILL VOTES

  House trade lawmakers took their
  first votes on measures designed to toughen U.S. trade laws but
  held over until tomorrow the most difficult votes on
  controversial plans to protect American industries.
      Meeting in closed session, the House Ways and Means Trade
  Subcommittee failed to resolve one of the most sensitive issues
  in the bill--whether they will force major foreign trading
  partners to severely cut their trade surpluses with the United
  States.
      The subcommittee is considering a toned-down version of
  Democratic-sponsored trade legislation that aims to open
  foreign markets but which drops last year's effort to force
  President Reagan to retaliate with quotas or tariffs.
      Congressional aides who asked not to be identified said the
  lawmakers intend to wrap up their proposals tomorrow and will
  consider a proposal to mandate retaliation without setting
  specific trade penalties.
      The legislation faces another hurdle in the full Ways and
  Means Committee next week before the full House votes on it.
      Rep. Richard Gephardt, a Missouri Democrat who is seeking
  his party's 1988 presidential nomination, said he may offer an
  amendment to call for reductions in the trade surpluses of
  those countries with barriers to imports of U.S. goods.
      This would be a moderated version of his earlier plan to
  force a mandatory ten per cent annual cut in the trade surplus
  with the United States by Japan, South Korea, Taiwan, West
  Germany and other countries with the largest trade imbalances.
      "My criteria for a good amendment sets a standard for
  getting the trade deficit down," he told reporters.
      The trade law changes are to become part of a major
  congressional and administration effort to turn around the
  record U.S. trade deficit of 169 billion dlrs last year by
  opening up foreign markets and making U.S. products more
  competitive.
      House Speaker James Wright, a Texas Democrat, said again
  today he expects the full House will approve the trade bill by
  May and that Reagan will accept the final congressional bill.
      "I expect whatever is reported (by the Ways and Means
  Committee) will pass. We will have a good bill and an effective
  bill," he told reporters.
      The comprehensive trade bill will include work by other
  committees to ease export controls on high technology, to aid
  U.S. workers displaced by foreign competition, to stimulate
  research and development, to remove foreign trade barriers and
  to improve education and worker training.
      The lawmakers agreed that for the first time a U.S.
  industry could charge foreign producers with unfair competition
  if they deny basic worker rights such as collective bargaining,
  safety rules and payment of a minimum wage appropriate to the
  country's economic development.
      They transferred to U.S. Trade Representative Clayton
  Yeutter the powers now held by Reagan to decide whether to
  retaliate against foreign violations of fair trade rules and
  whether an injured industry deserves import relief.
      They agreed to make it easier for a company to get
  temporary relief from import competition but agreed the
  industry should provide a plan to become competitive.
      The administration has not announced its support but
  Yeutter said yesterday, "I am cautiously optimistic," that the
  Democratic-led House will come up with an acceptable bill.
  

