Japan’s Trade Barriers Stir Congress to Anger : Senate Votes to Ask Reagan to Retaliate

WASHINGTON — Congressional anger at Japan’s hesitation in opening its markets to American goods erupted Thursday on both sides of Capitol Hill, with the Senate calling on the Reagan Administration to strike back and a powerful House committee chairman saying: “We should deal with the Japanese the same way we deal with the Russians . . . .”

U.S. trade officials hope that the growls from Congress will have an immediate effect on tense negotiations to give American companies access to a new $10-billion market in Japan for telephone and communications equipment and services.

Frustrated by the growing trade deficit with Japan, the Senate voted 92 to 0 Thursday for a resolution asking the President to retaliate within 90 days against Japan’s barriers to American products. America “can’t go on playing Ann Landers and letting the world cry on our shoulders when it comes to foreign trade,” said Sen. Lawton Chiles (D-Fla.).

Signal for Japan

Although the resolution has no binding power on the President, it will “send Japan a signal that this is only the beginning,” Sen. Bob Dole (R-Kan.), the Senate majority leader, said.

Members of Congress are awaiting the announcement of purchasing standards on April 1, when Nippon Telephone & Telegraph Co., now a government agency, will become a private company, able to buy telecommunications equipment from any source. In the past, the company has bought virtually all Japanese products.

U.S. and Japanese negotiators are wrangling here over the terms under which American firms will be allowed to sell equipment to the newly private Nippon Telephone.

The issue, with importance far beyond the telecommunications business, could become a landmark in economic relations between the United States and Japan. Telecommunications is a business in which the United States is considered the world’s leader, boasting the most advanced manufacturing techniques and products.

“We regard this as a key test to see if the Japanese are serious about opening their markets in a business in which the U.S. considers itself to be a strong competitor,” said a U.S. trade official, who asked not to be identified.

“The Japanese need to change their mentality,” the official said. “They think of themselves as a small island nation dependent on exporting. But instead they are really a mature and developed country and a powerful force in the world economy.”

Dingell’s Denunciation

Japanese “protectionism” was denounced by Rep. John D. Dingell (D-Mich.), chairman of the House Energy and Commerce Committee.

“We should deal with the Japanese the same way we deal with the Russians: accept only agreements that are self-enforcing,” Dingell said at a meeting of his committee’s transportation subcommittee. “You can’t rely on good faith for implementation.”

Dingell extracted a promise from Lionel H. Olmer, deputy secretary of commerce, to supply the committee with a “scorecard” of progress in the efforts to get American telecommunications equipment into Japan. The Japanese negotiators have delayed their departure at Olmer’s request and were meeting with U.S. officials Thursday night at the Commerce Department.

Japanese Import Surge

Administration officials and members of Congress are making no direct links between the difficulty in selling American goods to Japan and Wednesday’s reports that Japanese automobile shipments to the U.S. will rise by 450,000 vehicles this year.

The import surge, up from 1.85 million under the current voluntary ceiling imposed by the Japanese, does not show any “significant restraint” by Tokyo, White House officials said Wednesday.

Although disappointed by the prospect of a big jump in auto shipments here, the Administration is not planning any retaliatory actions. Instead, officials emphasize that they are concerned only with opening Japanese markets to American goods.

President Reagan repeatedly has praised Japanese Prime Minister Yasuhiro Nakasone for cooperating in efforts to reduce trade barriers, noting that Nakasone must overcome internal political obstacles to increased imports.

Congressmen’s Threats

However, congressmen’s threats of retaliation against Japan are seen as helpful to the Administration in its negotiating efforts.

“I think these expressions of concern by Congress have been extremely useful,” Olmer told reporters during a recess in the hearings. “There is a broad consensus that we are not getting equal access to Japanese markets,” he said.

“I believe that is now widely understood in Japan.” However, Olmer said he is “persuaded that the political leadership (in Japan) is committed to liberalizing the market.”