P.M. BRIEFING : Talks on U.S.-Japan Air Links Fail as Tokyo Trims American Proposal

Talks to expand air links between the United States and Japan halted after Tokyo cut in half a proposal Washington had found inadequate five months ago, a U.S. negotiator said today.

“We were taken by surprise,” said the negotiator, who requested anonymity. Talks are scheduled to resume in July, he said.

U.S. and Japanese airlines want to expand service on the lucrative and busy passenger and cargo air routes. Seven million passengers traveled between the two countries in 1988--a 25% increase over the previous year--and about a quarter of all U.S.-Japan trade in goods moves by air, the official said.

In December, Washington proposed 16 new services for Japanese carriers and 13 new services for U.S. carriers, while Japan countered with 10 new lines for Japanese carriers and six for U.S. carriers.