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Kremlin yearns to improve trade ties with Japan

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The Kremlin seems to have a yen -- perhaps, billions of them -- to repair its tattered relations with neighboring Japan. A recent Soviet diplomatic overture, rebuffed in Tokyo, is being linked by Asian sources here largely to Moscow's desire for expanded trade with Japan.

Among the economically developed allies of the United States, Japan has been one of the most sympathetic to the American call for an embargo on high-technology exports to the Soviet Union, in protest over the Soviet invasion of Afghanistan.

Recently released Soviet figures show a slight increase in trade with Japan for 1980. But a commentary by the official Soviet news agency noted a sharp decline in the "rate of increase": Japan has dropped from second to fifth place as a source of Soviet imports from the noncommunist world.

In the short run, the Soviets seem interested in getting large-diameter Japanese steel components for a huge pipeline that would carry Siberian gas to Western Europe and to the European section of the USSR.

The project is a central pillar in a Soviet strategy to shift both domestic energy consumption and exports away from oil to natural gas and other energy sources

Diplomats here say the Soviet Union, now bargaining with West German and other European concerns over interest rates in financing the $10-15 billion project, also has shown signs it may seek Japanese help in this area as well.

"With the West Germans, the Soviets have begun playing what might be called the Japanese card," said on West European source who is following the progress on the mammoth gas venture.

Japanese sources here say a Soviet delegation is slated to visit Tokyo later this month for talks on the pipeline project. A second Soviet delegation is expected in Japan in April to discuss a new trade accord linked to Moscow's current fiveyear economic plan, for the years 1981 through 1985.

The problem for the Kremlin is to insulate commercial ties with the Japanese from an overall worsening of Soviet- Japanese relations.


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