Nakasone Warns U.S. to Avoid ‘Japan Bashing’

Former Japanese Prime Minister Yasuhiro Nakasone Tuesday cautioned Americans against “Japan bashing” and urged that the two nations resolve their trade differences through negotiation and cooperation.

“I am against protectionism,” Nakasone said in a lecture at Johns Hopkins University’s School of Advanced International Studies here. “I am against the trade bill as it stands now.”

He acknowledged in reply to questions that Japan maintains barriers to its domestic markets while calling on other nations to practice free trade, but he said that the government is working to increase access by foreign firms. He noted that the U.S. trade deficit with Japan had decreased by $10 billion in the last year.

Nakasone, who left office last November, made his appeal as Congress waits for President Reagan to act on the trade bill, which provides for tougher U.S. action against allegedly unfair trade practices by other nations. Reagan has said he will veto the bill.

Treasury Bonds Cited

Nakasone reminded the audience of businessmen, officials and scholars that Japanese investors’ purchases of U.S. Treasury bonds are an important factor in controlling inflation in the United States.

He cited Japan’s contribution to the U.S. tourism industry also. Two million Japanese tourists visited the United States last year, but only 200,000 American tourists went to Japan.

Nakasone said Americans should be aware that U.S. multinational corporations have established plants in South Korea, Taiwan, Singapore and other Asian nations that sell to the Japanese market. He said that those U.S. industries increased their exports to Japan by 60% last year.

While U.S. leaders are criticizing Japan’s trade surplus with the United States, he said, there is concern that the United States “may be developing trade imbalances with other Asian nations, particularly the newly industrialized countries,” like South Korea and the Philippines.