BRITISH MINISTER SAYS HE WARNED TOKYO OF SANCTIONS
  A British minister said he had given the
  Japanese government a clear warning of sanctions against
  Japanese companies if Tokyo did not allow more access to its
  internal markets "and it was clearly understood."
      Corporate Affairs Minister Michael Howard said on his
  return from a visit to Japan he thought the Japanese were
  beginning to appreciate the need to be "fair and open" about
  access to their own markets.
      At an airport news conference Howard denied opposition
  charges that his trip had been a failure because he had
  returned empty-handed.
      "I did what I set out to do. I was sent to deliver a clear
  message to the Japanese government, and I delivered it very
  clearly, and it has been clearly understood."
      Howard said that under the Financial Services Act the
  govenment had considerable flexibility in taking sanctions
  against Japanese companies and finance houses operating in
  Britain.
      "It is not simply a question of withdrawing or refusing
  operating licences. We can ban firms from certain countries
  from carrying out certain kinds of business, while allowing
  them to carry out other kinds."
      "I hope we don't have to use these powers, but I made it
  clear in Japan that if our timetable isn't met, we shall use
  them."
      He said it would be unfortunate if Britain and Japan became
  involved in a tit-for-tat exchange, adding that Japan gained
  more than anyone else from an open trading relationship.
      "I think they are beginning to appreciate that if this
  relationship is to continue, it is very important for them to
  be fair and open about access to their own markets."
      On the question of the British firm Cable and Wireless Plc
  &lt;CAWL.L>, which is trying to win a significant share of
  telecommunications contracts in Japan, Howard said he had told
  the Japanese this was being widely regarded as a test case.
      He said there were signs of movement on the case. Cable and
  Wireless was due to take part in talks in Japan next Tuesday,
  he said.
      Earlier this week British Prime Minister Margaret Thatcher
  said Britain could not go it alone on sanctions against Japan,
  but would have to coordinate action with its European Community
  partners.
      Community sources said after a meeting of trade officials
  yesterday that the group might impose steep new tariffs on a
  range of Japanese goods to prevent diversion from United States
  markets if Washington imposes trade sanctions against Tokyo as
  it has threatened.
  

