UNIONIST URGES RETALIATION AGAINST JAPAN

  William Bywater, president of the
  International Union of Electronic Workers, called on President
  Reagan to retaliate against Japan for unfair practices in
  semiconductor trade.
      He said in a statement a crash program was needed in the
  semiconductor industry to prevent the United States from
  becoming "one of the world's industrial lightweights."
      Bywater's remarks came as the White House Economic Policy
  Council prepared for a Thursday meeting to decide what
  sanctions if any should be taken against Japan for alleged 
  violations of a U.S.-Japanese semiconductors agreement.
      The pact, agreed to last July, called for Tokyo to end
  selling semiconductors at below cost and to open its home
  market to U.S. goods. In return, Washington agreed to forego
  antidumping duties on Japanese semiconductors.
      But U.S. officials have said that while Japan has stopped
  dumping in the U.S. market, it has not ended third country
  dumping; nor has it opened its market to U.S. semiconductors.
      Japan yesterday, in an effort to ward off U.S. action,
  ordered a cutback in semiconductors production as a way to
  force prices up and end the dumping.
      Bywater, in his statement, said he backed a Defense Science
  Board task force proposal to set up a consortium to develop new
  electronic products and manufacturing processes and make the
  U.S. industory more competitive.
      But he added the industry could not wait for legislation to
  pass and that action was required now to help the depressed
  electronic industry.
      Bywater said, "I urge the Reagan Administration to take full
  and severe action immediately against Japan by invoking the
  retaliatory steps that are permitted under U.S. law and GATT
  (General Agreement on Tariffs and Trade)."
  

