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Wednesday, February 16, 1994
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Retaliation against Japan planned in trade dispute
U. S. officials made clear that the retaliation planned in the telephone case was just the first in a series of hard-line actions that would be taken following the breakdown of market-opening "framework" talks Friday.
WASHINGTON — The Clinton administration accused Japan yesterday of a "clear-cut and serious" violation of a cellular phone trade agreement and took the first step toward imposing millions of dollars of punitive tariffs.
The Associated Press
U. S. Trade Representative Mickey Kantor refused to discuss what other retaliation was being contemplated, but he left no doubt that the administration planned to keep pressure on Japan to lower its $60 billion trade surplus with America.
"All we're asking for is a two-way street, that their markets be comparably open to our markets," Kantor said.
In the cellular case, Kantor said he had determined that Japan had failed to live up to the terms of a 1989 agreement in which it had
promised to open its cellular phone market to Motorola Inc.
Motorola President Christopher B. Galvin estimated that his company was suffering from $250 million to $300 million annually in lost sales because of Japan's barriers. He praised the administration's actions and expressed hope that Japan would relent so that sanctions would not be necessary.
Kantor said the United States would publish in the next 30 days a list of Japanese products that could be subject to punitive tariffs of up to 100 percent. He refused to say what products would be targeted but said the total would be "several hundred millions of dollars" equal to the sales lost by Motorola.
The higher tariffs would not go into effect until American consumers had a chance to comment on the proposed product list. This will give U.S. and Japanese negotiators a second chance to reach agreement, but U.S. officials say if the issue is not resolved in the next two months, the trade sanctions will take effect.
North Korea to allow review of nuclear work
The Associated Press
VIENNA, Austria — Bowing to increasing international pressure, North Korea agreed yesterday to allow outside inspections of its declared nuclear program under conditions set by a U.N. watchdog agency.
But the deal did not cover two sites that Western intelligence agencies suspect are doing nuclear work, and inspectors cautioned that meant that they could not settle the debate about whether North Korea was developing atomic weapons. Negotiations on that issue have made no headway.
The hard-line Communist regime in Pyongyang contends its nuclear program is devoted to peaceful uses of atomic power. But suspicions about North Korea's refusal to allow inspections have increased tensions with South Korea and raised fears of a military confrontation.
The inspection agreement was announced by the International Atomic Energy Agency a week before its board of governors was expected to advise the U.N. Security Council to invoke sanctions on North Korea.
Hans Meyer, representative for the Vienna-based U.N. agency, said North Korea's agreement came after
North Korea had argued that only it should determine when and how inspections be conducted at the seven sites it has identified as part of its nuclear program. The U.N. agency has always made those decisions for inspections in other nations.
months of little progress in talks over terms for the inspections.
"This appears to be a step in the right direction," White House Press Secretary Dee Dee Myers said.
The Clinton administration, which conducted much of the negotiations with North Korea, urged quick inspections to ensure the North Koreans do not secretly divert fissionable nuclear material to weapons work.
"It is a necessary step for the agency to be able to reassure the international community that there has been no diversion of nuclear material," said Michael McCurry, the State Department representative.
He said North Korea also must resume discussions with South Korea about ensuring that nuclear weapons were kept off the Korean peninsula before Washington would resume talks on political and economic ties.
Less formal talks between the United States and North Korea were to resume later yesterday in New York.
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February 16 Danforth Chapel
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Incidental Music to Goethe's Play *Egmont*
Cello Concerto in A Minor
Variations on an Original Theme (*Enigma*)
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