BRITAIN WARNS JAPAN OVER TRADE ROW

  British corporate affairs minister Michael
  Howard told Japan to resolve the row over the U.K. Firm Cable
  and Wireless Plc's &lt;CAWL.L> shareholding in a new Japanese
  telecommunications company or face an abrupt deterioration in
  trade relations.
      In meetings with both the foreign and telecommunications
  ministers Howard said he expressed deep concern about the way
  Tokyo had handled the dispute and about the continuing trade
  imbalance between the two countries.
      "I put it to the (post and telecommunications) minister that
  I was sure he did not want to be responsible for an abrupt
  deterioration in the trading relations of our countries which
  would have widespread reverberations elsewhere in the world,"
  Howard told reporters.
      "He listened very carefully and I have little doubt the
  message got home," he added.
      British frustration over the lopsided trade balance -
  nearly six billion dlrs in Japan's favour last year - has
  reached boiling point over the telecommunications issue, Howard
  said.
      Howard has accused Japan of trying to shut out Cable and
  Wireless from having a major role in the international
  telephone market in Japan.
      "I want a fair crack of the whip for Cable and Wireless as I
  want a fair crack of the whip for Britain generally in trading
  relations," Howard said. "We simply aren't prepared to continue
  to accept the imbalance which has been the position for such a
  long time."
      Post and Telecommunications Ministry officials were unable
  to comment on Howard's meeting with their minister.
      But Foreign Ministry officials said Foreign Minister
  Tadashi Kuranari said that British exports to Japan are
  increasing, but acknowledged the continuing imbalance in trade.
      Kuranari said he wants everyone in the telecommunications
  dispute, including Cable and Wireless, to be satisfied.
      Howard told reporters that Britain was actively considering
  possible retaliatory measures if it did not get its way on the
  telecommunications issue.
      "There are measures which are under consideration if we
  continue to suffer from the imbalance in our trading relations,"
  he added, but gave no details.
      He said he had received a reassuring response from the
  Japanese he has spoken with.
      "But of course we've had reassuring signs from the Japanese
  for quite some time," he added. "What I've made plain is we
  expect to see action."
      Howard ruled out using powers in Britain's Financial
  Services bill to retaliate against unfair trade practices.
  Those powers, which allow London to ban foreign financial firms
  like banks from Britain, are designed to ensure U.K. Firms
  equal access to overseas financial markets.
  

