	shultz welcomes tokyo economic package u s secretary of state george shultz said the billion yen economic package announced by tokyo last week went further than the u s had expected but he said the u s would not lift the selective economic sanctions it imposed on japanese imports in april until tokyo changed its sales policies concerning computer microchips speaking in a televised news conference linking several european capitals shultz said it was heartening that the japanese had confronted the problem of stimulating domestic and global demand there is an even greater amount of stimulus than was originally thought said shultz speaking from washington it is a lot more than nothing it is more than was talked about when prime minister yasuhiro nakasone was here it involves a major reduction in tax rates and we believe that getting the tax burden down is one way of stimulating the economy he added but asked by japanese reporters also linked into the news conference whether the positive reaction meant the u s might decide at next week s venice summit to lift its sanctions on some japanese electronic goods shultz replied these sanctions were undertaken on the basis of an agreement that had been reached between the united states and japan on various sale practices and prices relating to the chip market they will be lifted as the facts of change by japan to the agreement that it made become evident he said u s officials had only been able to monitor the situation for a month and that it was impossible to determine a trend on only one month s data the u s imposed pct import duties on personal computers colour televisions and power tools alleging that japan had violated last september s bilateral agreement by selling computer chips at below fair market value shultz said west germany and other nations would also do well to look at what they could do to stimulate demand asked whether the u s could reasonably ask its allies to take action to stimulate the world economy without a bold american initiative to reduce the size of the federal budget deficit shultz said moves were already underway to tackle the problem he said by the end of the current fiscal year the deficit would probably be reduced by around billion dlrs against last year and that the budget being worked on this year would contain a major reduction reuter 
