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U.S. port ban for Japanese ships delayed until Saturday
Lawyer: Japanese shippers have no plans to pay fine
October 17, 1997
Web posted at: 1:14 p.m. EDT (1714 GMT)In this story:
WASHINGTON (CNN) -- Negotiations to head off a ban of Japanese cargo vessels in U.S. ports resumed Friday, and Washington said any action would be delayed until Saturday. The sanction -- to be imposed because of unpaid fines -- originally was to take effect Friday afternoon.
An attorney for Japan's three largest shipping lines said Friday that the companies had no plans to pay $4 million in fines to avert a showdown, despite some reports to the contrary.
A ban would affect billions of dollars in products hauled back and forth between the world's two biggest economies. Japan called the port ban decision illegal but said it would monitor developments before deciding whether to retaliate.
President Clinton has the authority to prevent the port ban on national security grounds. But administration officials said they don't think he'll do that.
At issue: unpaid fines
The U.S. Maritime Commission said Thursday it would take the action because the three shipping companies failed to meet a deadline for paying fines it had imposed. The commission is an independent federal agency that enforces shipping regulations at U.S. ports.
It voted to direct the Coast Guard to keep Japanese ships out of U.S. ports, and to direct the U.S. Customs Service to detain Japanese ships already in those ports.
The sanction would be imposed in retaliation for what U.S. officials see as restrictive practices against U.S. shippers in Japanese ports.
Tokyo sources had told CNN that Japan probably would pay the fines, because it would be cheaper than the cost of rerouting shipments and delaying deliveries. However, an attorney for the shipping lines later denied that.
"We have no intention of paying the fines at this time," Ken Quinn told CNN. "We are hoping cooler heads will prevail and the situation will be settled."
At issue: unfair treatment
The United States argues that Japanese ports discriminate against non-Japanese ships and push up costs. The complaint is that Japan requires all shippers to receive prior approval for even the most minor operational changes in handling cargo at its ports.
U.S. negotiators were demanding that these restrictions be lifted, so American shippers would have the same privileges at Japanese ports that Japanese lines enjoy in the United States.
The Japanese government says the dispute is a private-sector matter, but admits that its port practices are in need of reform and that domestic shippers and exporters are unhappy with the current setup.
The shipping firms argue that the commission's quarrel is not with them but with the Japan Harbor Transport Association, which controls cargo handling.
The port operations are widely thought to be influenced by "yakuza" gangsters.
Japanese Transport Minister Takao Fujii denied that the ministry had failed to take stronger action due to fear of the yakuza. "We are not afraid, and there aren't such elements," he said.
Japan: U.S. action 'illegal'
In Washington, negotiators from both sides of the trade dispute met late into Thursday night at the Transportation Department and resumed talks Friday morning.
"The decision is deplorable and regrettable, coming when we are making last-minute efforts to resolve the dispute," Fujii told a Tokyo news conference on Friday. "The U.S. sanctions were illegal and I urged Washington to withdraw them."
The three companies -- Mitsui O.S.K. Lines, Ltd., Kawasaki Kisen Kaisha Ltd. and Nippon Yusen K.K. -- typically carry containers of boxes that can be loaded onto railroad cars. Their cargo excludes automobiles, grain or steel which usually are shipped in bulk.
Oil tankers also would not be affected by the port ban.
Tokyo Bureau Chief John Lewis and Reuters contributed to this report.
Related stories:
- Sources: Japan will pay fine in U.S. trade dispute - October 17, 1997
- Order bars Japanese ships from U.S. ports - October 16, 1997
- U.S. shipping sanction threat angers Japan - February 27, 1997
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