The 21 members of the Asia-Pacific Economic Cooperation (APEC) forum, whose economies account for some 60 percent of world trade, issued a statement here Saturday demanding deep cuts in European Union farm subsidies.

They said that Europe's refusal to make concessions threatened to derail World Trade Organization (WTO) talks scheduled for Hong Kong next month.

But by Sunday, Japan had already threatened to break ranks and take a pragmatic stand alongside Europe in the subsidies dispute in Hong Kong.

"APEC is APEC, WTO is WTO," said a Japanese official, adding: "We are still willing to join hands with the EU on a necessary basis during the WTO meeting in Hong Kong next month."

European trade officials are upset at the finger-pointing from the Asia-Pacific body, some of whose members operate more lavish protectionist systems than the EU.

Japan and South Korea offer massive support to their farmers, and neither looks ready to make the kind of concessions APEC wants from Europe, the European officials say.

Some APEC members, aware of the contradictions, have been calling on their own members to fall in line on the issue of subsidy reduction.

Australian Prime Minister John Howard grouped the EU and Japan, as well as others he declined to mention by name, together when he called for farm subsidy cuts here.

"I think, of course, of the European Union in particular. I think also of Japan and of others that have high levels of agricultural protection," he said here Friday.

Canadian Prime Minister Paul Martin had also singled out Japan. But Tokyo plans to dig in its heels, according to a Japanese official.