European Stars And Stripes (Newspaper) - April 12, 1987, Darmstadt, Hesse                                Semiconductor Industry which Washington accuses of dumping computer chips Al cult Roal prices to kill Orf . Manufacturers. At the same Lime the Reagan administration has looked Lor help in the currency Markel. In the Early 1980b, the yen waa undervalued against other currencies spurring japanese exports by making them relatively inexpensive in Dollar terms. But since september 1685, when the United Stales Japan end other Western allies agreed to pull Down the Dollar s value the yen s Exchange rate has jumped 60 percent the Impact on Trade has lagged however. Trie . Japanese imbalance was first expected to show Sharp improvement by the end of 1983. Now economists talk about a turnaround by the end of 1987. Japanese Export prices have not climbed As expected. Automakers have boosted Dollar prices Only 17 percent not by the 60 percent needed to recover their yen losses. You have to keep your customers. Otherwise you re finished a top executive at Nissan Japan s no. 2 automaker explained privately. The disappointing Trade figures drive the debate in Washington. San. Lloyd Belsen finance committee chairman complained in an interview that Japan la draining other nations wealth. They have to realize he said it is tremendously important to the democratic nations of the world to have a Strong United  electronics Trade in billions of dollars. Top suppliers to . Japan $23.78 total . Imports $503 Union total . Exports Chicago Tribune graphic source electronics industries association Piuto options before Congress Range from president Reagan s Competti Ness package of Money for research and worker retraining to proposals by some congressmen to slap import surcharges on japanese goods. Tough . Legislation could touch off a protectionist Cycle crippling to the world trading network. The Prospect deeply troubles the japanese. 8ut they Ere not without leverage Ollie or own. Much of the s221 billion  Federal budget deficit is underwritten by Japan s insurance companies and other institutions which buy up to one third of new  government Bonds a withdrawal of japanese Money would damage the , Economy. But it is an economic weapon the japanese have not yet used. When the . Treasury auctioned securities in february the japanese dutifully bought $9 billion Worth. The finance ministry whispered to them not to do anything drastic respected Tokyo economist Elro Tokuyama old a. Reporter. On both sides of the Pacific leaders Ere Locking for solutions. The japanese Are trying to further diversify their Trade partners. Some la a Loo. Of putting voluntary quotas on additional exports beyond the cars steel and machine tools they now limit. The . Side is considering lighting Back with japanese style government business consortium in the semiconductor Industry for example. The americans also demand that the Tokyo government stimulate the Domestic Economy primarily through rebuilding Japan s cramped housing since More consumer spending would turn Japan s productive capacity inward. Ideas Lor Halfway solutions abound. Bui time and again those interviewed both japanese and american mentioned one Root cause of the tension Between the economic superpowers. It s the s in this equation one japanese economist said As he scrawled out a formula in which the a represented american savings. Americans save less than 5 percent of disposable income. The japanese save 16 percent. Trade negotiator smart in Washington acknowledged that eliminating at the alleged unfair Nesses of Japan s Trade system would not eliminate the Frado deficit. The Traft imbalance s Basic cause he sad is the Inadequacy Al american savings to fund both the private investments needed to develop our Economy and the net government deficit in such a situation the United slates borrows Iram Japan and the japanese. To gel those dollars sell goods to the United Stales Ordinary japanese like Steelworker Massalo Korematsu Leal maligned. Japanese products were accepted by the americans this Trade friction is not Alt our Dull Korematsu told a visitor to his Milt a Plant of Nippon steel corp., whose exports have been hit hard by the rising yen the sturdy Mil worker s suggestion i Hope the two countries will talk it Oul. I Hope the United states will be  the growing yen for Manhattan by mar Taketa associated press. Rowing numbers of japanese vacationers lured by new York cily s image of sophistication Ara dying 7 000 Miles to Spand their newly powerful Yon on Broadway shows and package inns. That Oher an exciting neg he in Harlem. Aboul 300,000 japanese visited new Voik Fly in 1986, up 36 percent in two years according to the new York convention and visitors Bureau the payoff Lor new York has been significant. In general the japanese Are heavy duty shoppers and expect to spend Money on a vacation said John Clark of the . Commerce department s travel and tourism administration. Thay spent $964 million in the United states in 1985 three Timss our surplus with Canada when Kuna Kogure spent eight Days in new York City task december she spent More than $500 on Christmas decorations records cassette Lapes. Jewelry accessories and souvenir t shirts. She was on a Low budget. New York is very exciting and a Tittle bit  said the 25-year-old Tokyo Ollick worker. A 10-year-old to love new York promotion has been one Factor in changing japanese perceptions of the once forbidding cily attracting tourists who until recent years went mainly to Hawaii Guam and the West coast Nina Sakazaki or Multi rights management in Tokyo which licenses the i love new York logo in Japan said new York previously was regarded in Japan As a dangerous place and. A financial  before when they thought of the United states ii was Disneyland she said. But Ever since the i love new York Campaign everybody talks about the new disco thai just opened up in new York. It s no longer just a financial  claim said a Sharp increase in japanese tourism to new York Degan Lour or five years ago Wii before major Western countries began forcing the yen up and the Dollar Down to reduce the . Trade deficit. The yen has soared by More than go percent against the Dollar in the past 16 months lowering the Cost of overseas travel and giving japanese tourists Lar greater buying Power abroad week Long package Tours to new York cos the equivalent of $2.000, some offering optional Day trips such As the american life a visit with an Ordinary american  and the exciting night a trip to Harlem. Japan air lines which bought the rights to Ihu i love new York Togo in 1978 and began the first direct Tokyo new York lights three years later reports annual passenger increases of 4 in 32 percent on the route since 1979. Japanese television commercials for products As diverse As cigarettes and Contact lenses have featured the Manhattan Skyline recently. Two Minuto television spots called new parking have aired nightly on the major Asahi network Lor the past 18 months the spots feature Blue leaned new yorkers in heir 20s waving at the camera and speaking in a blend of English and japanese viewers see nightclubs curio shops a pasta party and a cram school for aspiring try cleaners ilium i that Young people like to do on weekends Saiu Sakazaki who created the promotions. An executive of the Troia by Marui department store Chain which sponsors the spots. A d. We re not Selling new York goods we re Selling the new York image. Ii gives Marui an image of being sup Madern " sunday april 12, 1987 the stars and stripes Page 17