EC COULD DECIDE ON JAPAN TRADE MOVES IN LATE MAY
  The European Community (EC) has
  effectively given Japan six weeks to take moves to open its
  market to imports before it decides on possible tough
  retaliatory trade measures, EC diplomats said.
      They said EC foreign ministers will meet on May 25 and 26
  to review the state of trade relations between the two sides.
      The EC executive commission was asked by representatives of
  member states on Friday to propose a renunciation of some EC
  pledges to the world trade body, GATT, unless there are
  "adequate and early measures to open the Japanese market."
      Such a renunciation would be the first step to imposing
  stiff increases in duties, or quantitative limits, on Japanese
  exports.
      The diplomats said it was unlikely that the issue would be
  discussed in detail at the next meeting of EC foreign ministers
  on April 27 and 28 in Luxembourg as time was needed to prepare
  proposals for possible retaliatory action.
      They said the commission has powers to take some limited
  action before getting ministerial approval to prevent Japanese
  exports of electrical, photographic and other goods being
  diverted to Europe following of possible U.S. Tariff moves.
      In May, the ministers are also likely to discuss how to
  prevent Japan from getting an extra trading advantage as a
  result of Spain and Portugal joining the bloc, which obliges
  them gradually to reduce tariffs on many industrial goods.
      Japan's trade surplus with the Community has grown
  steadily, registering a record 2.13 billion dlrs in March.
  

