US agency scraps deal for big Chrysler repairs

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A government agency has taken the unusual step of scrapping an agreement its own staff worked out with Chrysler Corporation under which the car company would have reimbursed customers about $7 million for the repair of 38,000 cars built in Japan.

The sources said the decision to reject the agreement reflected FTC concern that tough actions of this kind would upset the business community and the conservative Reagan administration.

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