The government and the ruling party on Tuesday adopted a new economic policy guideline aimed at meeting promises made in recent trade talks with the United States. The new guideline calls for opening Japan's markets to more foreign goods, making fiscal and budgetary policy changes to conform with other trading partners, and increasing foreign aid. ``We must push forward the adjustment of Japan's economic structure in order to improve the nation's standard of living and promote consumer benefits in accordance with world economic growth,'' said a government statement. The policy was adopted by the Government-LDP Economic Structural Adjustment Board, which consists of bureaucrats and lawmakers from the governing Liberal Democratic Party. It marks a major revision in the direction suggested for Japan's economy. A 1986 guideline, known as the Maekawa Report, urged a drastic shift from heavy reliance on exports to increased domestic demand to reduce the country's trade surpluses. In recent months, however, a number of government and LDP panels have called for less emphasis on expanding domestic demand and more on international cooperation and benefits for Japanese consumers, who now pay some of the world's highest prices. The new guideline suggests that Japan's economy already has been transformed to a domestic orientation and notes that its trade surplus has been decreasing. ``For us to assume a role and responsibilities compatible with our position in the international community, ... it is an extremely important theme for Japan to promote the adjustment of our economy to a more internationally cooperative style,'' it said. In addition to improved living standards, the guideline calls for shorter working hours and longer vacations. In its interim report on the U.S.-Japan Structural Impediment Initiative talks, released in April, Tokyo promised to streamline its complicated distribution system, tighten the anti-monopoly law and increase government spending on public works to help improve the nation's standard of living. The report said such measures would lead to a reduction of Japan's $49 billion surplus in trade with the United States. The new guideline, like the trade report, calls for easing the Large Scale Store Law, which U.S. trade negotiators say makes it hard for foreign stores to open outlets in Japan.
