KUALA LUMPUR. Sept 8: The United States on Tuesday again accused Japan of holding up a massive trade liberalisation plan for the Asia-Pacific region, reports AP.

"They are really standing in the way of a substantial package of liberalisation measures and this would be very unfortunate for APEC," said David L. Aaron, the US undersecretary of commerce for international trade.

Aaron was heading up the US delegation to the Asia-Pacific Economic Cooperation meeting of ministers for small and medium businesses."

They are sending the wrong signal at this time of crisis. Aaron told the AP. "We are hopeful that the new Japanese government will take a more positive approach. Up until now, everyone was very united, except Japan.

During an APEC trade meeting in June. Japan refused to sign on to the early voluntary sector liberalization plan.

The free-trade process would gradually lift tariffs and other trade barriers in the areas of environmental products and services, energy, fisheries.

forestry, toys. Jewelry medical goods, chemici products and telecommunications.

For months, trade negotiators have been debating the formidable plan, agreed to by heads of government at last November's APEC summit in Vancouver.

Officials hope to complete the plan for signing at the next summit in Kuala Lumpur in November.

Malaysian Trade Minister Rafidah Aziz said most of the 18 APEC members were on board.

"All of us believe the current turmoil isn't an excuse for not going forward with trade liberalisations." she said.

'The early liberalization plan would eliminate tariffs In all nine sectors by 2005, with tariffs on toys lifted as early as 2000. Developing APEC nations would have more time to ease tariffs so as not to adversely affect their smaller economies.

Western countries are at the forefront in pushing for market liberalization, saying that it's an important means to rescue Pacific-Rim economies from their economic slump.

They want specific dates and

tariff reductions set In the nine industries, representing Si.5 trillion in global trade.

During the meeting in June, senior delegates said Japan was trying to opt out of specific tariff reductions in the fisheries and forestry sectors.

Aaron is'also leading a US trade mission to identify business opportunities in Malaysia's hi-tech sector.

One-fifth of Malaysia's trade is with the United States, while new US investments here total 600 million dollars.

Aarop said US businesses have expressed concern over Malaysia's sweeping currency controls, announced last week, which effectively fix the ringgit at 3.80 to the US dollar.

"If you fix the exchange rate at a certain rate, that makes it unprofitable for companies to do business," he said.

APEC groups Australia, Brunei. Canada. Chile. China. Hong Kong. Indonesia. Japan. South Korea, Malaysia. Mexico. New Zealand. Papua New Guinea, the Philippines Taiwan, Thailand and the United States, Russia, Vietnam and Peru are scheduled for admission in November.