Tackling Toshiba

In view of that, why is Ronald Reagan being softer on the Japanese than Congress is? Because more is at stake than simply punishing wayward businessmen in an allied country.

The Toshiba sale brings up the question of how a free-trade country like America grapples with the dilemma of export controls. “A country that believes in free trade should be allowed to trade with others,” says a member of the Administration involved with export policy, “but it should not export the rope by which it will be hanged.” Hence the agreement—which Japan signed—not to sell shared technology without U.S. approval.

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John McLaughlin

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In view of that, why is Ronald Reagan being softer on the Japanese than Congress is? Because more is at stake than simply punishing wayward businessmen in an allied country.

The Toshiba sale brings up the question of how a free-trade country like America grapples with the dilemma of export controls. “A country that believes in free trade should be allowed to trade with others,” says a member of the Administration involved with export policy, “but it should not export the rope by which it will be hanged.” Hence the agreement—which Japan signed—not to sell shared technology without U.S. approval.