Japan Envoy Asks Reagan to End New Tariffs Quickly

Amid signs that the Reagan Administration is trying to smooth its trade frictions with Tokyo, special Japanese envoy Shintaro Abe met Tuesday with President Reagan to urge him to lift trade sanctions against Japan “as quickly as possible.”

After the meeting, White House spokesman Marlin Fitzwater reiterated that tariffs on certain Japanese products, imposed last week, will not be lifted in time for the visit later this month of Japanese Prime Minister Yasuhiro Nakasone.

But another Administration official, who asked not to be named, said the $300-million worth of tariffs imposed by President Reagan on medium-sized color televisions, small personal computers and three kinds of power tools could be removed soon after Nakasone’s visit.

“I think we will find a way out of (the tariffs) within a month or two,” he said. In the meantime, he said, “having entered into it, I think we should enforce it.”

Moreover, this official disclosed that the $34-billion economic stimulus package being prepared by Japan’s ruling party could satisfy a U.S. request that Japan curb its reliance on exports for economic growth.

The United States, which is running an enormous trade deficit with Japan, wants Japanese consumers to buy more so that Japanese industry will not have to market so much of its output abroad.

Nakasone’s visit to Washington could help to resolve the internal Japanese debate over economic policy, Administration officials argue, suggesting that Tokyo may even be prepared to delay its plans to impose a sales tax, as part of its effort to revive the stagnant Japanese economy and boost consumption.

At the same time, the Administration is moving to put Congress on notice that Reagan will veto any trade bill requiring the White House to retaliate against Japan and other countries with large trade surpluses. Such a provision is expected to be adopted by the House during its trade debate next week.

Although Reagan rarely has threatened a veto in advance, the White House will send a letter to congressional leaders soon, warning that any measure containing a strong protectionist provision along the lines of an amendment proposed by Rep. Richard A. Gephardt (D-Mo.) would ensure a presidential veto. The Gephardt amendment would require the imposition of import tariffs against nations that have large trade surpluses with the United States and have failed to eliminate trade barriers to U.S. products.

Damage to Economy Feared

“The consequences for the world economy would be devastating if the U.S. goes protectionist,” the Administration official said. “So, if the bill is bad and the President vetoes it, we will have to pull together a coalition to sustain the veto.”

Although lawmakers continue to focus their anger over last year’s record $170-billion trade deficit almost exclusively on Japan, the Administration shows increasing signs of frustration over West Germany’s reluctance to stimulate its weak economy to help expand Europe’s consumption of the world’s goods.

“The Japanese philosophy has changed. The (governing party) now sees the importance of moving on these macroeconomic policies and I think you’re going to see some fundamental changes,” the Administration official said. “I wish I could say the same thing about the Germans.”

Continuing Effort

For more than a year, Treasury Secretary James A. Baker III has been leading an Administration campaign urging West Germany and Japan to stimulate their economies to ensure that global economic expansion will not falter as the U.S. government gradually reduces its budget deficits.

West Germany, however, has done little so far to accelerate tax cuts scheduled to take effect as late as 1990 to increase its consumers’ purchases. By contrast, Japan, which is far more dependent than West Germany on exports to the United States and consequently has been hit harder by the falling value of the dollar, finally appears willing to take the plunge.

Lawmakers, however, appear wary of Japanese promises that Tokyo actually will follow through on measures aimed at reducing the huge gap between its exports to the United States and its imports from this country.

Dole Foresees Tougher Law

Senate Minority Leader Bob Dole (R-Kan.), for instance, said he doubts that the Administration’s decision to impose sanctions on Japan will stop the momentum building in Congress for tougher trade legislation.

“It comes a little late,” Dole said after a meeting at the White House. “I think this has been brewing . . . for two or three years. I think coming now, when we’re on the eve of passing legislation in the House and may in . . . three months in the Senate, it comes a bit late.”

Abe, the former Japanese foreign minister whom Nakasone named as his special emissary to prepare the way for his meetings with Reagan and other officials on April 29 and 30, suggested that Japan is prepared to move quickly to respond to U.S. demands.

‘Outlined the Measures’

“It is Japan’s responsibility to discharge what is expected of it,” he said through an interpreter, “and I outlined the measures I have formulated before coming to Washington.”

Abe said Reagan told him that he “would like to discuss with the prime minister the broadly based relationship between Japan and the United States, not just trade but the entire breadth of our bilateral relationship.”

After the meeting, Fitzwater also sought to downplay the trade dispute with Japan.

Asked how long sanctions would remain in effect, Fitzwater said: “It may be there are mitigating actions that could be taken. We have tried to take a deliberate and well-considered approach to this subject and we take it with regret. . . . (We are) sympathetic to the disruption this causes” in Japan.

Staff writer Michael Wines contributed to this story.