Trade: Japan Heads Off a Showdown

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When Senator John Danforth of Missouri led a congressional delegation on a trip to Japan last month, he delivered a letter from 13 Senate colleagues to Prime Minister Yasuhiro Nakasone and Michio Watanabe, the Japanese Minister of International Trade and Industry. In it was a blunt warning: "This would be an especially unfortunate time for Japan to further increase its auto imports to the U.S."

The message was apparently received. Last week the Japanese government announced that it would extend voluntary quotas on car exports to the U.S. for the sixth consecutive year. In the twelve months beginning with April, shipments will be held to 2.3 million vehicles, the same limit as in the previous year.

Nakasone may have feared that the U.S. Congress, angered by America's record $49.7 billion trade deficit with Japan last year, was ready to pass protectionist legislation. Moreover, he was not eager to become embroiled in a new trade dispute with the U.S. shortly before he welcomes President Reagan and other leaders of the major industrial nations to the annual economic summit, which will be held in Tokyo in May.