Japan’s ’94 Trade Surplus at Record $121.17 Billion : Commerce: Its imbalance with U.S. hits high of $54.96 billion. But year-on-year rise is lower.

Japan’s trade surplus in goods hit a record $121.17 billion in 1994, and the surplus with the United States, a source of persistent tension between the two countries, hit an all-time high of $54.96 billion.

The figures, reported Tuesday by the Finance Ministry, mark the fourth straight annual increase. But the 0.8% year-on-year rise was sharply lower than the 13% increase in 1993 and the 37% jump in 1992.

The need for vast amounts of rebuilding materials to recover from last week’s earthquake in western Japan could reduce the surplus in 1995, but that prospect remains unclear.

The surplus in merchandise trade with the United States was up 9.5% in 1994, 15% in 1993 and 14% in 1992.

Washington has long pressed Tokyo to broaden U.S. business access to Japanese markets. The confrontational rhetoric has been toned down recently with the signing of several partial agreements covering glass imports, financial services and other areas.

U.S. statistics show a bigger American deficit; the Commerce Department calculates trade using methods different from those of Japanese authorities.

When calculated in yen terms, the surplus fell for the second straight year, because the value of the yen has risen substantially. That supports the view of the Japanese government and private economists that the surplus is in a declining trend.

The yen averaged 102.37 to the dollar in 1994, compared to 111.39 in 1993--an 8.8% increase in value.

Elsewhere, Japan’s surplus with the European Union fell 16%, after a decline in 1993 as well. The surplus with Asia soared 15%, the fifth consecutive year-on-year increase.

Japan’s surplus in trade with the world last year was boosted by higher exports of semiconductors and other electronics, motors and auto parts. But exports of assembled vehicles fell 4.2% in dollar terms and 13% in volume.

Helped by the strong yen, which makes foreign goods cheaper in Japan, imports grew sharply in dollar terms. Apparel imports were up 21%, and imports of office machinery, autos, semiconductors and other electronics also climbed.

It remains uncertain how the quake that devastated the port of Kobe could affect Japan’s trade balance in 1995.

Rebuilding, which is estimated to cost $30 billion to $100 billion, could create an enormous need for imported machinery and building materials. On the other hand, the Japanese could produce much of those themselves.