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US-Japan trade talks

Hata welcomes breakthrough
TOKYO. May 25: Prime Minister Tsutomu Hata welcomed an agreement to resume stalled Japan-US trade talks, saying he was confident the two nations would iron out remaining differences, reports AP.
"Not only Japan, but the whole world is watching. I am absolutely confident that we will find a way." Hata told reporters after the world's two largest economies agreed Tuesday to return to negotiations that had collapsed in February.
The breakthrough In the three-month deadlock averts the possibility of an ail out trade war between the woukl's two largest economies It also gives Hata a welcome boost as he struggles to keep afloat his wobbly coalition government.
Japanese officials praised a US agreement to drop demands that numerical targets for sales of American products
to Japan be included In the trade talks
That Issue was a key sticking point in the trade talks that broke down on February 11 during a summit between President Clinton and then Prime Minister Morihiro Hosokawa
Since taking office April 25. Hata, who served as Hosokawa's foreign Minister, has lobbied hard to resolve the issue
Tuesday s accord, reached in Washington after five days of negotiations, provides for no specific increase in any US export Instead. It calls for setting qualitative and quantitative measures to be used in assessing whether progress is being made In opening spe cific Japanese markets.
Foreign Minister Joji Kakizawa said he believed the compromise would minimize the possibility of US trade sanctions against Tokyo.
"We re convinced that sanctions will not be Implemented". he said
But Kakizawa conceded that the two allies and trading partners were still at the "starting line, not the goal "
Although the trade Impasse had rattled global financial markets, the overnight break through had little Impact Wednesday in Tokyo
The 225 issue Nikkei Stock Average slipped 5.90 points, a statistically insignificant amount, to 20.616.22 by midday. while tn currency dealings. the dollar was mixed against the Japanese yen.
Dealers said the news quickly played out In the market. and investors remained cautious, aware that the threat of US trade sanctions remains.
US Trade Representative Mickey Kantor pointedly noted that US trade laws could still be used to force action.