	japan has little new to offer in microchip dispute the japanese government appears to have little new to offer to settle a dispute with the u s over computer chips  analysts and government officials said the u s has threatened to impose tariffs worth up to mln dlrs on japanese electronics exports to the u s in retaliation for japan s alleged failure to keep a pact on the microchip  signed last september a foreign ministry official told reuters japan has done what it can and now we must persuade the united states to wait for those steps to take effect the u s alleges that in defiance of the september agreement japan is still selling microchips at below cost in non u s markets and refusing to open japan further to u s chip sales u s tariffs are due to take effect on april analysts noted japan s ministry of international  and industry miti has already ordered chipmakers to cut production in order to dry up the source of cheap chips sold in third countries at non regulated prices i m not sure miti can do much more than it has said jardine fleming securities ltd analyst nick edwards a miti official said the ministry was not planning to call for production cuts beyond those already sought although it would continue to press chip users to buy more foreign goods spokesmen for some japanese electronics firms said they would consider buying more u s chips but a matsushita electric industrial co spokesman said a rapid increase in imports was not likely most analysts said japanese exporters would be hard hit if the united states did implement the tariffs which would be levied on consumer electronics products rather than on microchips themselves if the tariffs remain in place for any length of time there will be complete erosion of exports to the united states said tom murtha analyst at james capel and co the japanese electronics industry is too powerful to be stopped altogether but recovery for the industry will be delayed for another year he said some analysts said tariffs would also harm u s industry by stepping up offshore production and by reducing demand in japan for semiconductors u s firms are trying to sell here the american approach is full of contradictions jardine fleming s edwards said if they want to expand u s exports the last thing they want to do is hit the makers of the final products because that hurts the final market edwards said but other analysts said the dispute reflects not just u s concern over what it sees as a strategic industry but also frustration with japan s vast  surplus some analysts argued that to solve the semiconductor problem japan may have to take action beyond that pledged in the semiconductor pact carole ryavec an analyst at salomon brothers asia ltd said the major overall issue is to stimulate the domestic economy and move away from an export dependent economy reuter 
