Japan is doing all it can to solve itstrade problems with the United States but the two nations will
remain at odds as long as the trade account is lopsided in
Japan's favour, a senior official said.
    "So long as there is an external imbalance there will be
trade friction and ...Harsh words between the two governments,"
the Foreign Ministry official told reporters.
    Last year, Japan racked up a 51.5 billion dlr surplus with
the United States and economists said they do not see it
falling significantly any time soon.
    Washington announced plans last week to slap up to 300 mln
dlrs in tariffs on Japanese electronic goods, raising the
spectre of a trade war between the two countries.
    "We take the current situation very seriously," said the
official, who declined to be identified. "The basic stance of
the Japanese government is to tackle the issues with all
available resources."
    The United States has accused Japan of reneging on an
agreement that called on it to stop selling cut-price computer
microchips in world markets and to try to import more American
semiconductors. Tokyo has denied the charges.
    The Foreign Ministry official refused to rule out Japanese
retaliation if America went ahead with its threatened tariffs
in the middle of this month. But he said that any response
would be in accordance with international law and Japan's
international obligations.
    He added that both Japan and the United States must take
account of the impact of their dispute on their own and the
world economy.
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