Article: REAGAN PROMISES TRADE BILL VETO, BUT WON'T LIFT EXISTING SANCTIONS

WASHINGTON -President Reagan promised Prime Minister Yasuhiro Nakasone on Thursday he would veto legislation requiring trade retaliation against Japan, but he refused to lift sanctions already in place without evidence Tokyo has stopped unfair sales practices.

In a move that pleased U.S. officials, Nakasone told Reagan he had directed the Bank of Japan and the Finance Ministry to lower short-term interest rates.

Lower interest rates would stimulate economic growth in Japan, providing ``a major opportunity for increasing markets for U.S. goods, for increasing the buying power of Japan,'' said presidential spokesman Marlin Fitzwater.

``Anything that stimulates markets abroad is good ...

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