Newspaper article THE JOURNAL RECORD

Japanese Agree to Stop Selling `Underpriced' Computer Chips

Newspaper article THE JOURNAL RECORD

Japanese Agree to Stop Selling `Underpriced' Computer Chips

Article excerpt

WASHINGTON (AP) - Japan agreed minutes before a U.S. deadline to stop selling computer chips at below-market prices in the United States and to allow American chip makers a larger share of the Japanese market, the Reagan administration announced Thursday.

The pact could mean $2 billion a year in sales to American semiconductor producers, U.S. Trade Representative Clayton Yeutter told a White House briefing.

In exchange for the concessions, the United States will drop a series of cases accusing Japan of ""dumping'' its semiconductors in this country, cases that could have led to hefty penalties on Japanese imports.

The administration had said it would impose those duties if an agreement was not reached by midnight Thursday.

President Reagan said in a statement that the agreement ""shows that vigorous enforcement of existing laws can open markets. To succumb to the temptation of protectionism will benefit no one.''

Under the chips agreement, the U.S. government will monitor the prices of Japanese computer memory chips, which are shipped into this country in large volumes.

Japanese trade officials will be primarily responsible for monitoring prices on other semiconductor products shipped in lesser amounts, although U.S. officials will generally keep tabs on these as well.

""The U.S. government will monitor every shipment of Japanese semiconductors. If there is any dumping, we will reinstitute the cases,'' Commerce Secretary Malcolm Baldrige said.

The pact covers all semiconductor trade with Japan for the next five years, including any new generations of so-called ""super'' memory chips manufactured by Japanese companies, Baldrige said.

Under the agreement, U. …

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