U.S. Warns Japan on Delays Over Trade Accord : Commerce: Strongly worded letter criticizes stagnation on glass-sector and auto talks.

WASHINGTON — The United States has issued a strongly worded warning to Japan’s trade chief, underscoring the risks of continued economic squabbling.

Washington has been negotiating with Tokyo to finalize an agreement to open up the Japanese glass sector and has sought an accord on autos and parts--the single biggest component of the U.S. trade deficit with Japan.

But the talks have proved tough going.

Should no trade deal emerge in the glass sector by Monday, according to top officials in the Clinton Administration, the allies would find themselves in “a difficult situation.”

As for cars: “It is essential that we reach agreement,” the warning says.

The warning was directed to Japanese Trade Minister Ryutaro Hashimoto in a letter dated Oct. 25 from U.S. Trade Representative Mickey Kantor and Commerce Secretary Ronald H. Brown.

A copy of the letter, whose existence was first reported in a Japanese newspaper Friday, was obtained by Reuters.

Kantor and Brown wrote Hashimoto in reply to two letters he sent them earlier this month, thanking the Tokyo trade minister for his “candid comments.”

Official sources said Hashimoto had complained about a recent speech by the chief U.S. car negotiator, Commerce Undersecretary Jeffrey Garten, in which he outlined the advantages of private-sector cooperation.

“The Japanese took umbrage with that speech. This letter was in response,” one source said. No reply to the latest U.S. letter had been received, another official source said.

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But the U.S. side made clear that a long-sought deal on auto trade--which accounts for two-thirds of the $60-billion bilateral imbalance--is vital to improved relations.

“It is essential that we reach agreement,” they wrote. As for the glass sector, under negotiation this week, Kantor and Brown both voiced “concern at the pace of discussions in Tokyo. There are many issues left to resolve before the end of the month.”

The two sides struck an agreement in principle Oct. 1 to open Japan’s $4.5-billion flat-glass market and pledged to finalize the accord in 30 days.

“We cannot conclude an agreement that does not result in substantial opening of the glass distribution system. Failure to reach an agreement by the end of the month would create a difficult situation,” Kantor and Brown said.

They did not spell out what action the U.S. team might take if no accord emerges and reiterated that the Administration is not seeking “numerical targets” over glass.