BRITAIN CALLS ON JAPAN TO INCREASE IMPORTS Britain today called on Japan to increase foreign imports or risk the rise of protectionism and the harm it would bring to it and other trading nations. British Trade and Industry Secretary Paul Channon said Japan must heed a report issued by a Japanese government advisory body in December calling for faster domestic demand to help cut its trade surplus and restructure its economy. "I recognise that the strong yen has brought problems to Japan's domestic economy," he told a group of Japanese businessmen in London. "But these short term difficulties should not be allowed to deflect Japan from the fundamental reforms necessary," he said. "It is not just a domestic issue for Japan. If import propensity does not expand very soon there is a real risk from protectionist lobbies, particularly in the U.S. With whom Japan has so massive a surplus," he said. "They may well succeed in securing action by governments which would be highly injurious to trading nations like Japan and the U.K." Channon said there had been substantial growth in the volume of trade between Japan and Britain, amounting to 6.2 billion sterling (9.8 billion dlrs) last year. But he added: "Regrettably too much of it was in one direction, with the Japanese selling us 3.7 billion sterling (5.8 billion dlrs) more than we sold them."