U.S., Japan to Begin Talks Aimed at Easing Trade Rift

U.S. and Japanese officials will begin the groundwork today for formal meetings about a dispute over computer chip trade and forestalling millions of dollars of penalty tariffs on certain Japanese exports.

But U.S. officials held out little hope that any accord could be reached before the tariffs of 100%--up from about 5%--take effect April 17.

The technical meetings today and Tuesday will prepare for formal talks headed by Deputy U.S. Trade Representative Michael Smith and Japanese Trade and Industry Vice Minister Makoto Kuroda on Thursday and Friday.

Public hearings on the sanctions are set for April 13.

President Reagan imposed the penalties over Japan’s alleged failure to adhere to a July, 1986, agreement to stop selling semiconductors in third countries at below cost--a practice known as dumping--and to open its own market to U.S. chips.

U.S. firms had long argued that their overseas sales had been hurt by the unfair Japanese trade practices.

Reagan said on March 27 when ordering the tariffs that he hoped the Japanese would soon end their unfair practices in semiconductor trade and that sanctions could be lifted.

On Friday, Kuroda denied Japan was trying to dominate the world computer chip market and insisted that Tokyo was living up to its chip agreement with the United States.

The Customs Bureau last week started to levy a bond on the Japanese goods singled out by Reagan for penalties, which would be retroactive to March 31.

Japanese aides for the technical talks include Shigeru Muraoka, director-general of the Trade and Industry Ministry, and Masashi Yamamoto, deputy director-general of the Information and Machinery Bureau.

They will meet Glen Fukushima, director of the Japan office of the U.S. Trade Representative’s Office, and Jim Gradoville, of the Trade Representative’s Office of Industry and Services.