Clinton talks trade with Japan

Washington (AP) - Japan's Prime Minister, Tomiichi Murayama, began talks with President Bill Clinton at the White House yesterday which were expected to deal extensively with Japan's trade surplus, especially in cars.

Many members of the new Republican-controlled Congress are upset over US-Japanese trade disputes and sceptical about an agreement entered into by the Clinton administration to provide North Korea with nuclear power plants financed partly by Japan.

Mr Murayama was expected to find Mr Clinton keen to shore up Japan's support for the light-water reactor, designed to head off nuclear weapons development by Pyongyang.

On the eve of the visit, Washington and Tokyo announced agreement to open up Japan's financial markets to foreign competition.