JAPAN DENIES BREAKING SEMICONDUCTOR TRADE PACT Japan denied breaking a pact with the U.S. On semiconductor trade but said prices set out in the pact were too high and acknowledged difficulties in implementing the accord. "We are faithfully abiding by the ... Agreement but of course there are some problems," a spokesman for the International Trade and Industry Ministry told Reuters. He said the high semiconductor prices recommended by the agreement were leaving Japanese manufacturers piling up stocks of unsellable products. "We are aiming to reduce production in Japan but of course this takes time," he said. The spokesman said some Japanese companies were selling chips in Europe and Asia below stipulated prices, but added: "It is only a matter of time before we solve this problem." The eight month old pact aims to stop Japan selling large quantities of chips at knock-down prices to the United States and other countries and to increase U.S. Semiconductor sales in Japan. The U.S. Senate Finance Committee this week called on President Reagan in a non-binding resolution to retaliate against Japan for violating the agreement.