WHITE HOUSE PANEL SAID URGING JAPAN RETALIATION

  The White House Economic Policy
  Council decided to recommend trade sanctions against Japan for
  violations of the U.S.-Japanese semiconductor agreement,
  industry sources said.
      They would give no details, noting that the White House had
  not commented on the decision. The administration has been
  under pressure to retaliate.
      There was no immediate announcement on the council's
  decision, but U.S. Officials said it was likely the senior
  policy group's move on curbs reflected growing American
  frustration over alleged unfair Japanese trade practices.
      U.S. Officials said President Reagan would probably act on
  the recommendations in a day or so, after consulting with aides
  on the foreign policy implications of retaliation.
      The officials said Reagan might delay retaliation for a
  last try to persuade Japan to abide by the agreement reached
  last July governing trade in semiconductors.
      Under a pact reached last July, Japan was to stop dumping
  semiconductors in world markets and to open its own market to
  U.S.-made semiconductors.
      In return, the U.S. Agreed to hold up imposing anti-dumping
  duties on Japanese semiconductor shipments.
      The United States said that dumping has stopped in the U.S.
  Market but has continued in third countries, and that the
  Japanese market remains closed.
      The pressure on Reagan to retaliate included a unanimous
  call by the Senate last week to impose penalties on Japanese
  high technology products containing semiconductors.
      A call for retaliation also came from the semiconductor
  industry and from its chief trade union.
      U.S. Officials said the most likely move against Japan
  would involve duties on semiconductor-based goods, such as
  televisions, video cassette recorders and computers.
  

