Drop Seen in Trade Deficit With Japan: Japan Urged to Buy Foreign Goods
T A Reagan administration official predicted yes-T terday that the United StatesÛª massive trade def-I icit with Japan is likely to decrease next year.</br></br>* But the official urged the Japanese to increase J their purchases of foreign goods and speed up a f reduction of their economyÛªs dependence on ex-- ports. -</br></br>Undersecretary of State Alan Wallis said the ÛÏdesperate straitsÛ of JapanÛªs export industry because-of the increase in the value of the yen</br></br>Nonetheless, Wallis reported after two days of talks with his Japanese counterparts that "The United States delegation was frank in pointing out that serious and unsustainable imbalances remain in our economic relationship with Japan, and that further actions by Japan are needed.Û</br></br>The United States runs its largest trade deficit with Japan: $48.5 billion in 1985 and approaching $70 billion this year. The monthly deficit with Japan has decreased during the past three months. Many analysts said Thursday after