Bush’s Comments on Rice Trade Anger Japanese Officials

Government officials vowed Friday that Japan will not open its market to foreign rice imports, and expressed outrage that Vice President George Bush would support a petition from American rice farmers seeking to sell in Japan.

Japanese officials, stunned by Bush’s comment, said the Republican presidential candidate has gone back on a promise made by Cabinet members not to raise the issue of rice liberalization between the two countries.

A senior Foreign Ministry official, who asked not to be identified, said the promise was conveyed by Secretary of State George P. Shultz, Agriculture Secretary Richard E. Lyng and U.S. Trade Representative Clayton K. Yeutter.

On Wednesday, during a campaign trip in California, Bush urged Yeutter (rhymes with fighter ) to take action on the rice growers’ petition “so we can maintain the pressure against barriers to our exports around the world.”

“It appears he (Bush) will resort to any means to win the election,” said Trade Minister Hajime Tamura. “We have a promise not to discuss rice liberalization.”

The complaint was filed by the U.S. Rice Millers’ Assn., which represents 11,000 American rice growers. It demanded that Japan allow foreigners to provide 10% of its annual rice consumption of 10 million tons within four years.

The petition was based on a section of the recently passed omnibus trade law, which requires the President to retaliate against a country deemed protectionist by Congress. The Trade Representative’s office has 45 days to decide whether to accept the petition before it starts investigations.

The Rice Millers’ Assn. filed a similar complaint in 1986, but it was turned down. Tokyo has sought arbitration at the General Agreement on Tariffs and Trade, an international body that governs world trade.

“The two governments have agreed not to negotiate this matter on a bilateral basis,” Agricultural Minister Takashi Sato said at a news conference. “We regret such a complaint was filed in spite of the agreement.”

Japanese fear that rice could become the next hot trade issue in a series of U.S. efforts to open Japan’s markets. Virtually all rice in Japan is produced domestically with government subsidies that push the price to as much as 10 times the world market price.

“Rice should be a serious concern to all Japanese,” Economic Planning Agency chief Eiichi Nakoa told a Japanese Cabinet meeting Friday. “Every Cabinet member should take this matter seriously and protect domestic rice production.”

Nakao’s remarks were quoted in a statement from the agency.

The ruling Liberal Democratic Party is expected to pass a resolution next week firmly stating that Japan will not open its rice market.

Tokuo Matsumoto, the executive director of the largest agricultural cooperative, met with U.S. Ambassador to Japan Mike Mansfield to express his group’s concern.

“Rice is the very underpinning of Japanese society,” Matsumoto said. “To take up this issue very casually in the presidential election will leave very serious problems for the future.”

Mansfield’s spokesman said the ambassador understood Matusmoto’s concern and would convey it to Washington.

“If the U.S. government does not turn down the petition,” Matsumoto said, “they will find themselves in a very difficult situation with the Japanese.”