US SOURCES contend Japan is violating a 1991 agreement, which requires the Japanese to buy 20 per cent of its computer chip needs from USA. A third-quarter assessment in 1992 shows the US share of the Japanese chip market is still only 15.9 per cent.

Responding to US commerce secretary Ronald H Brown's threats to enforce the accord, Japanese economic counsellor Hidaki Domichi warned in Washington that this would be unwise as sanctions would only endanger US-Japanese cooperation.

Brown insists on flexibility in adherence to free trade principles and wants Japan to respect the pact. He says the Clinton administration is seeking agreements to boost US semiconductor sales abroad.