BAKER SEES LOWER JAPANESE TRADE SURPLUS

  U.S. Treasury Secretary James Baker
  said the Japanese trade surplus would begin to decline this
  year.
      He told the National Newspaper Association "You're going to
  see a reduction in the Japanese trade surplus -- some of it
  this year".
      But he said the reduction would be due principally to the
  exchange rate shifts since the Plaza Agreement, and these
  shifts would take a long time to work their way through the
  system.
  

