An Interview with Nakasone

"The U.S. and Japan are bound by destiny to help each other"

Despite the long hours that he is putting in at his new job, Yasuhiro Nakasone was relaxed last week in his spartan but spacious office in the 1920s-style official Prime Minister's residence in Tokyo. On the eve of his first meeting with Ronald Reagan, Nakasone, nattily attired in a well-cut gray suit and soft black leather loafers, discussed a wide range of U.S.-Japanese concerns with TIME's Tokyo bureau chief Edwin Reingold. Highlights:

On U.S.-Japanese friction: Japan has become the second largest economy in the free world, after the U.S., and it is inevitable that there should be friction between two such economic giants. It would be extraordinary if there were no friction. The major task for business and government leaders is how to deal with it. I see opportunities for experts in both countries to share their wisdom and resources for coexistence. In some sectors, on some subjects, it might be quite feasible to conduct joint research or joint enterprises so that we can open the way for a competitive but cooperative kind of relationship. Both of us would be advised to plan very far ahead for cooperation on high technology.

On protectionism: Protectionism motivated by short-range selfish interests will only cause a chain reaction of protective measures. This creates the grave danger of accelerating the recession into a 1930s-like depression. If that happens, Japan is the country with the most to lose. Therefore, by employing every means at our disposal, we must shatter this tide of protectionism and guard free trade. If there is a depression, the country that will be the most pleased will be the Soviet Union.

On trade: It is important to solve the problems of trade one by one. Since last May, Japan has reduced tariffs substantially, or abolished or otherwise liberalized imports on some 300 items. We have recently taken more urgent action—though you might say somewhat belatedly, somewhat tardily—on tariffs on tobacco products, chocolate and other items. We shall continue to make these efforts to solve individual problems.

On opening Japan's markets to more imports: This is the most important point. There are various standards and requirements, safety examinations and testing, that are going to be improved—drastically. I have ordered such efforts. For example, on boats there are still complex procedures for import inspections that might be taken as harassment, and I have ordered drastic measures to simplify those procedures. I have also ordered an investigation into procedures for certifying the acceptability of products at the manufacturing site overseas. By approving the factory itself, all products from that factory could be imported freely into Japan. I want to do this on every possible product. I am ordering a comprehensive study of across-the-board legislation to handle all these problems. I should have a report within a month.