Britain Picks 58 Japan Firms for Possible Ouster

LONDON —  Britain pressed Japan today to resolve a trade dispute, targeting at least 58 Japanese firms for possible expulsion within weeks and threatening to deny business licenses to applicants from that country.

Britain bought $8 billion worth of Japanese goods last year and sold $1.6 billion worth to Japan.

Prime Minister Margaret Thatcher’s Cabinet, at its regular meeting, agreed to expedite a provision of the Financial Services Act that empowers the government to oust the Japanese firms, Thatcher’s office said.

The provision would enable the Department of Trade and Industry to revoke licenses of Japanese banks and insurance companies and to reject petitions from new applicants, on the ground that their home country hasn’t allowed equal access to British firms.

58 Financial Firms

Brokerage and other types of Japanese firms would be affected at this point, the department said. There are 58 Japanese financial firms operating in London’s financial district.

The department said the provision would take effect in 21 days or sooner.

Thatcher’s aides would not comment on the prospects of the government enforcing the provision against the Japanese firms.

The provision had been due to take effect this summer but the Cabinet moved to accelerate the process because of a dispute surrounding Cable and Wireless PLC, a British firm seeking to enter Japan’s telecommunications market.

Tokyo Visit Slated

The Cabinet’s action appeared be aimed at increasing pressure on Japan before a Tokyo visit by the British minister of corporate and consumer affairs, Michael Howard. He will leave Saturday and return April 11.

On Wednesday, Trade and Industry Secretary Paul Channon summoned Japan’s ambassador to London, Toshio Yamazaki, and expressed Britain’s “deep concern” about persistent imbalances of trade, London news reports said.

The developments in the Cable and Wireless dispute indicated a fundamental attitude change by the Thatcher administration in its relations with Japan. Until recently, Thatcher’s government advocated free trade and criticized retaliation.