Opposition to Frozen Sushi in Japan Thaws : Trade: Japanese officials say they won’t stop an Escondido food processor from exporting the fast-food product, but the sushi must meet food regulations.

The brief Japan-American sushi war appears to be over.

Frozen sushi to be produced in Escondido may soon join airplanes, soy beans and ice cream among America’s few successful exports to Japan.

The Ministry of Finance and the Department of Agriculture said Friday that they would not keep out frozen sushi that an Osaka-based restaurant chain wants to import from California food processors if the slice of fish that lies on top of the ball of rice in every piece of sushi makes up more than 20% of its total weight.

However, the final decision on the fate of a sample of 960 pieces of frozen sushi impounded Thursday will be made after an inspection by Japan’s National Food Agency, officials said. Official comments Friday indicated that future shipments would also undergo careful inspections for adherence to Japanese food regulations.

The flap began when Sushi Boy, a 44-chain operation known for serving sushi on conveyor belts, said it would attempt to reduce its cost by importing ready-made sushi from California, where rice is cheaper.

Rice is a sensitive issue in Japan, where the ruling Liberal Democratic Party relies heavily on farmers for votes in return for protecting them from cheap foreign rice.

Talks on the Uruguay Round of the General Agreement on Tariffs and Trade, aimed at expanding world trade, are expected to pick up speed next month, which would revive pressure on Japan to open its rice market.

If the sushi sample now in Japan passes muster, it could be a boon for an Escondido frozen pizza factory that has been equipped to make the initial production runs of 30,000 pieces a day of Japan’s favorite delicacy for Sushi Boy.

Sushi Boy restaurants serve two-piece plates of sushi on conveyor belts for 80 cents. Haruhiko Saito, vice president at Sushi Boy, says if the company can lower costs, the restaurants will begin offering three-pieces for the same price. Sushi Boy has ambitious expansion plans. It wants to sign 200 to 300 franchisees nationwide.

“Eventually we will import 1 million to 2 million pieces of sushi a day,” says Saito. He boasts that the company will use tons of California rice and provide dozens of jobs to Americans.

Watching events in Japan with more than detached interest is Jim Scudder, president of Gourmet Quality Foods, the Escondido pizza maker waiting to supply Sushi Boy’s needs.

He’s been hoping the trade dispute would be settled so he can make the sushi at his factory, freeze the delicacy with liquid nitrogen, then ship the food to Japan where it would be defrosted and served.

Costing less than domestic sushi, Sushi Boy believes the American-made product would catch on. Scudder believes if that happens, he could find himself increasing his current 60 person pizza-making work force by another 20 to handle the demand for sushi.

Ultimately, Scudder envisions cranking out 100,000 or more pieces of sushi a day on an automated assembly line.

The sushi that has been impounded was exported by the California Rice Center of Los Angeles, which shipped the food to determine whether the Japanese would allow it to enter the country.