FMC BACK TO SQUARE ONE ON JAPAN PORT REFORM

   Though the U.S. Federal Maritime Commission has officially ended sanctions
against Japan’s three containership lines, the commission is "dissatisfied
with the lack of progress" coming out of Japan, the FMC’s chief attorney
said.
   The FMC has told Japanese lines "K" Line, Mitsui O.S.K. and NYK Line,
along with U.S.-flag lines APL and Sea-Land Service, to file biannual
reports on Japan’s efforts to reform its port practices.
   But because the FMC has dropped the sanctions — which dated back to
1997 — any further action would have to go back through the traditional
procedures that led to the showdown with Japan two years ago, said Tom
Pannebianco, the commission’s chief counsel.
   Nonetheless, he said that if the shipping lines reports show that the
Japanese government has failed to follow through on reforms promised in
February 1997, the FMC would use the reports to renew action against the
Japanese lines — which could include new sanctions.
   The reports are to include the status of Japan’s efforts to reform its
prior consultation system, which requires any non-Japanese carrier to seek
approval for every operational change it wanted to make.