Article: Tokyo Discounts Warnings on Yen; Japan Believes Surge Will Wane

Alarms are sounding almost everywhere in Japan, warning that the economy is heading for fresh trouble unless Tokyo shows firm resolve to shrink its massive trade surplus and curb the soaring yen.

Everywhere, that is, except within the government's powerful bureaucracy, which sees little reason to change the economic course it has set for the country.

Business executives are howling that the recent bout of endaka -- the strong yen -- is severely undermining the competitiveness of their exports. Mazda Motor Corp. announced last week that it will cut exports by half during the current quarter because of plunging sales abroad. Economic forecasters are warning that the yen's strength may well ...

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