SHULTZ WELCOMES TOKYO ECONOMIC PACKAGE
  U.S. Secretary of State George Shultz said
  the 6,000 billion yen economic package announced by Tokyo last
  week went further than the U.S. Had expected.
      But he said the U.S. Would not lift the selective economic
  sanctions it imposed on Japanese imports in April until Tokyo
  changed its sales policies concerning computer microchips.
      Speaking in a televised news conference linking several
  European capitals, Shultz said it was heartening that the
  Japanese had confronted the problem of stimulating domestic and
  global demand.
  
      "There is an even greater amount of stimulus than was
  originally thought," said Shultz, speaking from Washington.
      "It is a lot more than nothing. It is more than was talked
  about when (Prime Minister Yasuhiro) Nakasone was here.
      "It involves a major reduction in tax rates and we believe
  that getting the tax burden down is one way of stimulating the
  economy," he added.
      But asked by Japanese reporters, also linked into the news
  conference, whether the positive reaction meant the U.S. Might
  decide at next week's Venice summit to lift its sanctions on
  some Japanese electronic goods, Shultz replied:
      "These sanctions were undertaken on the basis of an
  agreement that had been reached between the United States and
  Japan on various sale practices and prices relating to the chip
  market.
      "They will be lifted as the facts of change by Japan to the
  agreement that it made become evident."
      He said U.S. Officials had only been able to monitor the
  situation for a month and that it was impossible to determine a
  trend on only one month's data.
      The U.S. Imposed 100 pct import duties on personal
  computers, colour televisions and power tools, alleging that
  Japan had violated last September's bilateral agreement by
  selling computer chips at below fair market value.
      Shultz said West Germany and other nations would also do
  well to look at what they could do to stimulate demand.
      Asked whether the U.S. Could reasonably ask its allies to
  take action to stimulate the world economy without a bold
  American initiative to reduce the size of the federal budget
  deficit, Shultz said moves were already underway to tackle the
  problem.
      He said by the end of the current fiscal year the deficit
  would probably be reduced by around 35 billion dlrs against
  last year, and that the budget being worked on this year would
  contain a major reduction.
  

