JAPANESE SHIPYARDS TO FORM CARTEL, CUT OUTPUT Japan's ailing shipyards have won approval from the Fair Trade Commission to form a cartel to slash production to about half of total capacity for one year, effective April 1, industry sources said. The approval follows an act of parliament passed last week designed to help the industry regroup and shed 20 pct of capacity by March 31, 1988, Transport Ministry officials said. The cartel, comprising 33 yards capable of constructing ships of more than 10,000 gross tonnes, will limit newbuilding output to a maximum of three mln compensated gross registered tonnes in 1987/88, the Shipbuilders Association of Japan said. Industry sources said the 33 will seek to renew the cartel in 1988/89 in the belief demand will remain sluggish. Last week's temporary act of parliament also allows shipbuilders to receive favourable taxation terms plus up to 50 billion yen in compensation for liabilities incurred through job losses and the sale of excess capacity. Up to 30 billion yen has been allocated for purchasing redundant land and equipment from shipbuilders. The Ministry will start drawing up its restructuring guidelines from April 1 and the yards will implement the guidelines from September, industry sources said.