TRADE ISSUES STRAINING EC'S PATIENCE WITH JAPAN Member states of the European Community are starting to run out of patience with Japan which they believe has repeatedly promised major initiatives to open its market to imports, but as often made only minor moves. Diplomatic sources here said several recent actions by EC countries bear witness to a new disillusionment with the willingness, or at least the ability, of the Japanese government to reduce its massive trade surplus with the EC. However, they said an all-out trade war may be far off, as EC states know they would suffer almost as much as Japan. Senior EC diplomats gave a generally favourable reaction to an EC executive commission proposal under which the EC could raise tariffs on a range of Japanese products if the U.S. Carries out a threat to make a similar move on April 17. The EC tariffs, which would involve renouncing obligations entered into with the world trade body GATT, would be designed to stop a diversion of exports to the EC market from that of the U.S. The diplomats were meeting as Tokyo announced that the EC's trade deficit with Japan reached a record 2.13 billion dlrs in March, up from 1.94 billion in February. In 1986, Japanese exports to the EC totalled 30.67 billion dlrs, up 4.5 pct from 1985, while EC exports to Japan fell one pct to 12.43 billion dlrs. In Paris, trade minister Michel Noir said France has decided to give Japan a taste of its own medicine. Burgeoning imports of microwave ovens and of frozen Coquilles St Jacques will be restricted by a strict application of French quality standards -- something EC states say often happens to their own exports entering Japan. Britain has threatened to withdraw the licences of Japanese banks and insurance companies to operate in the City of London, because the British Cable and Wireless company lost out in competition for a Japanese telecommucations contract. However, British officials in London have said that the government may have gone too far in implying that it would take immediate drastic action unless the contract was reopened. By contrast, West Germany, with the EC's most successful economy, has never threatened Tokyo with sanctions, preferring to rely on firm diplomacy and encouragement of its own industries to surmount obstacles to export to Japan. The EC Commission itself has switched its tactics in recent years, substituting general calls for action by Japan to open its market with specific demands for moves in key areas. At present, it is, for instance, pressuring Japan to end allegedly discriminatory taxation of imported wines and spirits, to ensure EC companies have a chance to win contracts for the building of a new international airport, and to simplify certification and safety checks on imported cars. EC officials say these tactics yield some benefits, but often the Japanese announce modifications of their non-tariff barriers which open the door to imports by only a token amount. They stress, however, that any action must be taken by the EC as a whole to stop beggar-my-neighbour action. One of the problems Britain could face if it were to withdraw licences for Japanese banks would be that the bankers would be welcomed with open arms in Frankfurt or Amsterdam, they point out.