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Agence France Presse

TOKYO, March 31 (AFP) - Japan on Friday denounced a US plan to complain to the World Trade Organisation (WTO) about Japan's telecommunications regime, saying Tokyo does not violate WTO rules.

"The announcement was one-sided, which is regrettable," Post and Telecommunications Minister Eita Yashiro told a news conference.

"Japan calculates telephone rates based on the WTO agreement," the minister said, adding that there was no violation of WTO rules.

"We cannot hold diplomatic talks if they take action saying things are not suited to their ideas," the minister said.

In Washington, US Trade Representative Charlene Barshefsky said Thursday that Washington may file an official complaint about Japan's telecommunications market with the WTO.

"Japan's failure to implement cost-oriented interconnection rates calls into question its adherence to its WTO commitment to ensure cost-based interconnection rates and regulate its market in an impartial manner," Barshefsky said.

She said she would make a decision by the end of July on whether to take action against Tokyo.

Current Japanese proposals to open the market to competitors of Nippon Telegraph and Telephone Corp. are inadequate, a US official said, commenting on Japan's proposal last week to cut NTT's interconnection charges by 22 percent over four years.

Washington wants a cut of 25-50 percent over two years, the US official said.

Interconnection fees are paid by NTT's competitors to link into Japanese networks, of which NTT controls 96 percent.: