BRITISH MINISTER SAYS HE WARNED TOKYO OF SANCTIONS A British minister said he had given the Japanese government a clear warning of sanctions against Japanese companies if Tokyo did not allow more access to its internal markets "and it was clearly understood." Corporate Affairs Minister Michael Howard said on his return from a visit to Japan he thought the Japanese were beginning to appreciate the need to be "fair and open" about access to their own markets. At an airport news conference Howard denied opposition charges that his trip had been a failure because he had returned empty-handed. "I did what I set out to do. I was sent to deliver a clear message to the Japanese government, and I delivered it very clearly, and it has been clearly understood." Howard said that under the Financial Services Act the govenment had considerable flexibility in taking sanctions against Japanese companies and finance houses operating in Britain. "It is not simply a question of withdrawing or refusing operating licences. We can ban firms from certain countries from carrying out certain kinds of business, while allowing them to carry out other kinds." "I hope we don't have to use these powers, but I made it clear in Japan that if our timetable isn't met, we shall use them." He said it would be unfortunate if Britain and Japan became involved in a tit-for-tat exchange, adding that Japan gained more than anyone else from an open trading relationship. "I think they are beginning to appreciate that if this relationship is to continue, it is very important for them to be fair and open about access to their own markets." On the question of the British firm Cable and Wireless Plc <CAWL.L>, which is trying to win a significant share of telecommunications contracts in Japan, Howard said he had told the Japanese this was being widely regarded as a test case. He said there were signs of movement on the case. Cable and Wireless was due to take part in talks in Japan next Tuesday, he said. Earlier this week British Prime Minister Margaret Thatcher said Britain could not go it alone on sanctions against Japan, but would have to coordinate action with its European Community partners. Community sources said after a meeting of trade officials yesterday that the group might impose steep new tariffs on a range of Japanese goods to prevent diversion from United States markets if Washington imposes trade sanctions against Tokyo as it has threatened.