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 Under Title VII, Japan was cited for discrimination in procurement of construction, architectural and engineering services. Kantor continued the identification of the European Community pending EC approval of the recent agreement on heavy electrical equipment and the outstanding dispute on telecommunications equipment. He also noted procurement practices of concern in Australia, China, and Japan.

Because of grave U.S. government concern that Japan may not be adhering to the terms of the U.S.-Japan Supercomputer Agreement, Kantor announced that USTR will undertake a special review of Japanese actions under the Agreement, pursuant to section 306 of the 1974 Trade Act. Based upon this review and the conduct and outcome of procurements scheduled in the coming months, USTR will determine whether or not Japan is in compliance with the terms of the Agreement. If USTR determines that Japan is not in compliance, it will initiate trade action against Japan under section 301.

Kantor today identified Brazil, India and Thailand as "priority foreign countries" under the "special 301" provisions of the Trade Act of 1974 (Trade Act). These countries deny adequate and effective protection for U.S. intellectual property (such as patents, trademarks and copyrights) or fair and equitable market access for relevant U.S. products.

Kantor also announced placement of ten trading partners on the "priority watch list". In a departure from previous practice, Kantor stated that the Administration will take new steps to resolve outstanding intellectual property rights problems by: initiating "immediate action plans" for Hungary and Taiwan; conducting "out-of-cycle" reviews for Korea, Argentina, Egypt, Poland and Turkey; and intensifying consultations with Australia, the European Community and Saudi Arabia. He also announced that seventeen other countries had been placed on the "watch list".

Kantor noted that significant progress has already occurred this year as ten countries have enacted new copyright, patent or trademark legislation, or strengthened their existing legislation, since January. These nations are Switzerland, Taiwan, Colombia, Canada, China, Greece, Malta, Cyprus, and Jamaica, and the most recent addition, Russia, which adopted a copyright law yesterday.

"These actions show a growing commitment to intellectual property protection around the world, which we believe will contribute to a strong intellectual property text in the Uruguay Round, and the successful completion of the Round itself," Kantor stated.