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JAPAN AUTOMOBILE MANUFACTURERS ASSOCIATION: U.S. TRADE FRAMEWORK NEGOTIATORS OFF COURSE

 WASHINGTON, Dec. 1 /PRNewswire/ -- The success of the U.S.-Japan trade framework discussions is "seriously threatened by negotiations that have gone off course," Yutaka Kume, chairman of the Japan Automobile Manufacturers Association (JAMA) and Nissan Motor Co., said today in Tokyo.
 "U.S. negotiators have strayed dangerously from the framework's original goals," Kume said. "Our two countries agreed to increase opportunities to sell American autos and auto parts, not to guarantee the sales themselves. In free markets, the consumer makes the final decision, not the government."
 Kume's remarks came as JAMA released a position paper on the framework talks. In the paper, JAMA points out that the United States is proposing to intervene in the private sector "in ways that are neither considered nor advisable in a free enterprise system" and that "JAMA member (companies) are not prepared to accept government interference in the legitimate corporate activities of private, multi- national businesses."
 In its position paper, JAMA lists specific concerns with the U.S. proposal, including objections to the following:
 -- Language calling for "quantitative indicators" and "specific expectations" governing trade of autos and auto parts, which clearly reflects U.S. support for numerical targets and managed trade rather than free and fair competition.
 -- The U.S. request that Japanese auto makers give "special consideration" to "non-Japanese U.S. auto parts," which demonstrates U.S. support for policies that discriminate against U.S.-based companies with any amount of Japanese ownership.
 "Our two countries have agreed to work toward reducing the trade deficit, but not by abandoning the principles that have led to half a century of global economic expansion. Government-imposed mandates that ignore the consumer and reduce competition would fail as they have wherever they have been tried. This policy wouldn't sell more cars, but it would raise bilateral tensions while dragging down the economies of both Japan and the United States," Kume said.
 The JAMA position paper also questions whether some aspects of the U.S. proposal are even legal under U.S. and international law. Seeking to deprive U.S.-based companies of sales based on their affiliations -- in an obvious attempt to benefit fully American-owned companies -- violates the principle of national treatment laid out in multilateral treaties signed by both the United States and Japan. Requiring companies incorporated under U.S. law and holding U.S. nationality to submit to guidance from the Japanese government -- as the U.S. proposal does -- raises clear legal questions regarding national sovereignty and extraterritorial authority, JAMA says.
 -0- 12/1/93
 /NOTE TO EDITORS: To request a copy of JAMA's Trade Framework Position Paper or for more information, call the contact below./
 /CONTACT: Melissa Lack for the Japan Automobile Manufacturers Association, 202-879-4109/ CO: Japan Automobile Manufacturers Association ST: District of Columbia IN: AUT SU:


DT-MH -- DC015 -- 9170 12/01/93 10:30 EST
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Date:Dec 1, 1993
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