U.S. BOWS TO JAPANESE DEMAND ON TRADE TALKS

Walter Mondale, U.S. Ambassador to Japan, agreed under intense pressure from Japanese trade minister Ryutaro Hashimoto to a June 12 trade summit in Geneva, three days before the G7 summit begins in Canada. The United States had threatened toimpose $5.9 billion in punitive tariffs on Japanese luxury carsif no agreement on access to Japan's auto market were reached by June 28, and had offered to resume talks with Japan on June 20. Tokyo stepped up pressure on the U.S. by complaining to the World Trade Organization (WTO), betting that the international group would likely rule in Japan's favor.