UNIONIST URGES RETALIATION AGAINST JAPAN William Bywater, president of the International Union of Electronic Workers, called on President Reagan to retaliate against Japan for unfair practices in semiconductor trade. He said in a statement a crash program was needed in the semiconductor industry to prevent the United States from becoming "one of the world's industrial lightweights." Bywater's remarks came as the White House Economic Policy Council prepared for a Thursday meeting to decide what sanctions if any should be taken against Japan for alleged violations of a U.S.-Japanese semiconductors agreement. The pact, agreed to last July, called for Tokyo to end selling semiconductors at below cost and to open its home market to U.S. goods. In return, Washington agreed to forego antidumping duties on Japanese semiconductors. But U.S. officials have said that while Japan has stopped dumping in the U.S. market, it has not ended third country dumping; nor has it opened its market to U.S. semiconductors. Japan yesterday, in an effort to ward off U.S. action, ordered a cutback in semiconductors production as a way to force prices up and end the dumping. Bywater, in his statement, said he backed a Defense Science Board task force proposal to set up a consortium to develop new electronic products and manufacturing processes and make the U.S. industory more competitive. But he added the industry could not wait for legislation to pass and that action was required now to help the depressed electronic industry. Bywater said, "I urge the Reagan Administration to take full and severe action immediately against Japan by invoking the retaliatory steps that are permitted under U.S. law and GATT (General Agreement on Tariffs and Trade)."