INTERNATIONAL

Japan Posts Record Trade Surplus: Japan reported a record monthly trade surplus of $10.98 billion in March, bringing the surplus for the full fiscal year to $88.35 billion, a potential source of trade problems for the Japanese government. The surplus for the year was close to the record $89.7 billion for fiscal 1986, and prompted Trade and Industry Minister Kozo Watanabe to promise to rekindle domestic growth in an attempt to halt export expansion, a source of recurring friction with the United States. Japan’s economic slowdown was reflected in the 29.3% increase in the March surplus, as imports fell 8.2% from a year earlier to $19.3 billion, while exports rose 2.6% to $30.3 billion. For the year, exports rose 8.1% to $320.5 billion, while imports dipped 4.2% to $232.2 billion. Japanese imports of U.S. products rose 1.2% for the year, but the bilateral deficit still rose for the first time in five years, reaching $38.4 billion, up from $38.1 billion a year earlier.