U.S.-Japan Accord Ends Ports Dispute

The Federal Maritime Commission on Monday reached a compromise agreement with Japanese shipping lines that appeared to bring an end to a dispute that had threatened to close U.S. ports to Japanese ships.

Under the agreement, the Japanese carriers agreed to pay $1.5 million of an original $4-million fine the commission had imposed after the Japanese government refused to reform its port practices.

At issue was the stranglehold the Japan Harbor Transportation Assn. maintains over port operations. U.S. officials said inefficiencies in those operations had substantially increased the costs to American carriers of their export business in Japan.

Earlier this month, the commission issued an order to deny Japanese carriers access to U.S. ports, triggering concern about prospective shortages of cameras, stereos and computers just before the holiday shopping season.

But the order was never implemented because U.S. and Japanese officials reached a breakthrough in the talks.

Until Monday, however, there was no agreement on whether the fines imposed by the commission would remain in effect. Monday’s action clears the way for the U.S. and Japanese governments to proceed with a plan to alter Japan’s harbor practices and resolve the original complaint that led to the fines.

That accord has been agreed to by negotiators from the Japanese government and the U.S. departments of State and Transportation; it now awaits formal approval from Japan’s ship owners, stevedores and unions.

Maritime commission Chairman Harold J. Creel said he hopes the agency’s action helps “create a constructive climate” that will lead to the ratification of the accord, which would “open trade in Japan’s ports and liberalize access for U.S. firms.”

Complete details of the accord weren’t available, pending the additional approvals. The accord would allow U.S. firms to establish their own loading and unloading operations in Japan and is intended to cut the costs of ship lines operating there.

Resolution of the dispute has been held up for more than a week over Japanese reluctance to pay any of the fines, and over the role the maritime commission will play in policing the accord.