EC WARNS U.S. AND JAPAN ON TRADE TENSIONS

  The European Community (EC) delivered
  warnings to both Japan and the United States over trade
  frictions which have hit relations between the Community and
  its main trading partners.
      EC foreign ministers meeting here issued a statement
  deploring Japan's continued trade imbalance and appealed for
  greater effort by the country to open its markets.
      Ministers also issued a statement saying they were
  disturbed by moves in the U.S. to limit imports of textiles and
  warned that the Community would react to any such moves.
      EC External Trade Commissioner, Willy De Clercq has already
  written to his U.S. counterpart, special U.S. Trade
  Representative Clayton Yeutter, outlining the EC's concerns.
      The ministers' said they were "very disturbed" by the U.S.
  moves, adding, "the adoption of such measures would not fail to
  have a negative effect on the process of multilateral
  negotiations just started as well as on bilateral relations."
      Any unilateral U.S. moves would leave the EC no option but
  to react according to the laws of the world trade body, the
  General Agreement on Tariffs and Trade (GATT), they said.
      In a separate statement on Japan, the EC ministers said
  they "deplore the continued aggravation of the imbalance in
  trade ... (and) expect Japan to open up its market more."
      The statement added that the EC continued to insist that
  the Japanese government must boost imports and stimulate
  demand.
      Ministers also called on the European Commission to prepare
  a report on U.S.-Japanese trade for July this year to enable
  them to take action where necessary.
      One diplomat said the call for a report showed ministers
  were determined not to let the Japanese question drop. "It wil
  be back on the table again and again," the diplomat said.
      De Clercq told journalists, "There is a certain nervousness,
  a growing impatience within the Community on trade relations
  with Japan."
      But diplomats said the Community is keen to continue
  talking with Tokyo to try and solve the problem rather than
  embark on a costly and damaging trade war.
  

