The Pacific : JAPAN

Call for Cut in Interest Rates Rejected: Some members of the Japanese parliament from the ruling party called for another cut in interest rates last week, and prominent party member Shin Kanemaru publicly endorsed a half-point cut, but Bank of Japan Gov. Yasushi Mieno rejected the idea. Mieno insisted that there is no sharp economic downturn in sight and no need to stimulate the economy. The LDP, whose candidate was battered by a Democratic Socialist in a Nara by-election, is showing growing nervousness about the economy. It faces an election for the upper house of parliament and possibly a general election this summer. The Bank of Japan has dropped its discount rate three times since last July.