Japan Admits It ‘Erred’ in Hiking Car Exports to U.S. : Misjudged Reaction--Premier

TOKYO —  Prime Minister Yasuhiro Nakasone said today that his decision to raise the quota of Japanese auto exports to the United States was an “error of judgment” resulting from a misreading of potential American reaction.

Also today, the Ministry of International Trade and Industry announced a five-point plan to increase foreign imports of manufactured products, and Minister Keijiro Murata appealed to Japanese consumers to buy more foreign goods.

Nakasone, addressing foreign journalists at a luncheon, said, “With the benefit of hindsight, maybe we should have studied the situation more in advance” of raising the auto quota. “But we hope it is understood that we acted in sincerity and good faith.”

Increases Announced

The government announced March 28 that auto shipments for the fiscal year beginning April 1 would be 2.3 million, up from the 1.85 million sent in fiscal 1984 when Japanese auto makers were under “voluntary restraint” on exports to the United States.

Nakasone called that decision, which boosts exports to the United States by 24.3%, an “error in judgment about the attitude in the United States.”

The U.S. Congress, angered by Japan’s $36.8 billion trade surplus and what it perceived as Japanese cars flooding the U.S. market, subsequently passed a non-binding resolution to retaliate against Japan if it refused to open its markets to more American competition.

Nakasone said Japan should not have specified a new auto quota, but rather should have “observed the situation” to make sure that the lifting of the restraints did not allow auto exports to go out of control.

Imports ‘Important to Us’

At the luncheon, Nakasone held up a poster bearing his picture and the slogan, “Never before have imports been so important to us.” He said it was part of a nationwide campaign to boost the purchase of imported goods.

Japan released its monthly figures today, showing that, on an unadjusted basis, Japan’s trade surplus with the United States came to $2.343 billion in March. Exports to the United States decreased 0.2% from a year earlier, to $4.681 billion, while imports rose 2.8%, to $2.338 billion.

A news release from the Ministry of International Trade and Industry said it will call on 60 leading Japanese companies, including automobile, electronic and machinery manufacturers, trading houses, department stores and supermarkets, to make special efforts to promote imports.

Other Promotions Planned

Among the 60 firms are Toyota Motor Corp., Nippon Steel Corp., Matsushita Electric Industrial Co., Sony Corp., Mitsubishi Co. and Mitsui & Co., ministry officials said.

Besides the appeal to promote imports, the five-point ministry plan provides for import fairs, conferences for foreigners doing business in Japan, the expansion of trade in certain products, upgrading financial aid to importers and a publicity campaign to increase awareness of the importance of buying foreign goods.