JAPAN/U.S. WILL BE AT ODDS WHILE TRADE LOPSIDED

  Japan is doing all it can to solve its
  trade problems with the United States but the two nations will
  remain at odds as long as the trade account is lopsided in
  Japan's favour, a senior official said.
      "So long as there is an external imbalance there will be
  trade friction and ...Harsh words between the two governments,"
  the Foreign Ministry official told reporters.
      Last year, Japan racked up a 51.5 billion dlr surplus with
  the United States and economists said they do not see it
  falling significantly any time soon.
      Washington announced plans last week to slap up to 300 mln
  dlrs in tariffs on Japanese electronic goods, raising the
  spectre of a trade war between the two countries.
      "We take the current situation very seriously," said the
  official, who declined to be identified. "The basic stance of
  the Japanese government is to tackle the issues with all
  available resources."
      The United States has accused Japan of reneging on an
  agreement that called on it to stop selling cut-price computer
  microchips in world markets and to try to import more American
  semiconductors. Tokyo has denied the charges.
      The Foreign Ministry official refused to rule out Japanese
  retaliation if America went ahead with its threatened tariffs
  in the middle of this month. But he said that any response
  would be in accordance with international law and Japan's
  international obligations.
      He added that both Japan and the United States must take
  account of the impact of their dispute on their own and the
  world economy.
  

