TOKYO — Prime Minister Yasuhiro Nakasone said Monday that Japan "will correct any causes of trade imbalances for which it is responsible" but added that its efforts must be matched by "comparable efforts by our trading partners."
Nakasone said the United States and other countries that have trade deficits with Japan should reduce their budget deficits and make their products more competitive. The U.S. trade deficit with Japan is heading toward $50 billion this year.
"The imbalances in the world economy today . . . cannot be (corrected) by any one country acting alone," he said in a speech that he read, in English, to the foreign press.
He said he welcomed a strengthening of the yen's value, which will make Japan's exports more costly and its imports less costly, as a result of an American-initiated meeting Sept. 22 in New York of the so-called Group of Five, the finance chiefs of five industrialized nations. Since then, he noted, the dollar has fallen in value against the yen by about 12%, and he said: "I highly appreciate and welcome this development."