Fate of Auto Import Quotas ‘Up to Japan’

The Reagan Administration insisted today that it will be up to Japan whether to extend its “voluntary” quotas on car exports to the United States for the fifth year.

The statement, issued by White House spokesman Larry Speakes, was in keeping with the Administration’s position that the restraints are imposed unilaterally by Japan without pressure from the United States.

In fact, however, the quotas were put in place as a result of arm-twisting by the Reagan Administration and pressures from Congress. The fourth year of the import quota program expires at the end of March.

Secret Recommendation

Speakes said that a Cabinet council on commerce and trade conferred on the subject at the White House today and adopted a single recommendation to make to Reagan. He refused to disclose the recommendation, although other officials have hinted that the Administration is willing to let the quotas lapse, particularly in view of the recovery in the domestic auto industry.

Speakes said Reagan will take the issue under consideration in the next few days but emphasized that “the matter has not gone before the President yet.” He said it might turn out that Reagan thinks he does not have to make any decision.

“We’re not required to take a decision because it’s voluntary on the part of the Japanese,” Speakes said.

The quotas, first imposed in 1981 in the depths of the recession, were intended to provide a temporary respite for the U.S. auto industry by limiting imports of Japanese cars and trucks. Under continuing pressure from Washington, the quotas were extended by Japan.