Japan Envoy Claims Tariffs Hurting West

Nobuo Matsunaga, the Japanese ambassador-designate to the United States, said Wednesday that Japan is so strong economically that the United States and Western Europe “can’t compete at all” under present tariffs.

Matsunaga made this highly unusual comment at the Japan National Press Club.

He said that, in golf terminology, the United States and Western Europe must have their handicaps raised in order to compete with Japan.

Japan took “the strongest blow in the world” as a result of the sharp rise in oil prices in 1973-74, he said, and has not only overcome the effects of that shock but has grown strong in the process.

“I think,” he went on, “the Japanese economy can cope with rather severe problems. . . . We should have more confidence in the strength of our economy. The time has come for Japan to pick up the flag of free trade and take the lead in pushing for a new round of multinational trade negotiations.”

Matter of Handicaps

It was then that he compared the economies of Japan, the United States and Western Europe in golfing terms, saying that “Japan’s skill has improved dramatically.”

“To continue play with the United States and Western Europe,” he said, “Japan must act to raise their handicaps. Without raising their handicaps, fair play is impossible.”

Matsunaga singled out tariffs, saying that “except for a tiny number of items,” Japanese tariffs have been reduced to at least the same or lower levels than tariffs in Europe and the United States.

“But our economic strength has changed dramatically,” he said. “Therefore, with the same or slightly lower tariff rates, the United States and Western Europe can’t compete at all. That is the condition which has developed. We Japanese should pay attention to it.”

Matsunaga, 62, who until late January was vice foreign minister, said the Japanese take seriously moves in the U.S. Congress to impose an across-the-board surcharge on imports and added that “we cannot help but strongly oppose” it.

“If such a surcharge is imposed,” he said, “there is no doubt that the world economy would move dramatically in the direction of constricting trade. . . . Great chaos would occur in the management of the world economy.”

No Radical Shift

He said Japan should respond to Reagan Administration pleas for “ammunition” to combat such protectionist moves in Congress.

But he said Japan will not be able to shift its policy 180 degrees overnight to open its markets completely in specific areas now at issue with the United States. He said these areas include forestry products, electronics, telecommunications equipment, medical equipment and pharmaceuticals.