THE COLD WAR IS OVER, BUT AN ECONOMIC HOT WAR IS IN FULL SWING

The Cold War is over, but an economic Hot War is in full swing. No nuclear weapons or fighter aircraft are involved, but there is just as much flag-waving fervor. All nationalities, Americans and Japanese included, thrive on combat, whether real or metaphysical. There must always be something to fear including fear itself. There is no better catalyst for national pride and xenophobic spirit than facing off against a fearsome Public Enemy #1.

In the 21st century, there will be three superpowers. The United States will be the economic guardian angel of the Western Hemisphere. The Japanese will be the industrial suzerains of the Asian Pacific rim. The reunited Germany will be the financial overlord of the European Community.

We haven't yet begun to fully vent our fear of Germany, but will in time. We are not at all upset that Europe buys precious few American made cars. We grumble a bit about Europe's egregious discrimination against American agricultural products. But what the heck, as President Bush pointed out in a burst of candor, we exclude Australian farm products just as devoutly. "Nobody's pure in this protection business," he pointed out.

But our fear of Japan is abiding and intensifying. President Bush thought he could make political points by having the giants of the American car industry beat up on Japan's Prime minister. The plan backfired and the Big Three chairmen were more successful in beating up on Bush when they came back.

Many Americans are resentful of Japanese commercial enterprise, the relentless drive to export and the ability to saturate and overwhelm almost any market they target. As of now, we are still more productive than the Japanese, but that will change by 1995 if present trends continue.

The Cold War has ended for them as well. Japan is no longer an American military protectorate. Tokyo faces no external threat and is poised to dominate East Asia economically if not militarily. The Japanese finally achieved their World War II aim: the Greater East Asia Co-Prosperity Sphere.

Sadly for our national psyche, the Japanese do not in many trade areas view us as competition much worth worrying about. They see us as being beset with illiteracy, lower intelligence, irresponsible in our attitudes towards credit, having a second-rate educational system and drug-infested cities. They ridicule us because our nation's capital is also the murder capital of the world. They laugh at us when GM gives a bonus to its CEO for firing 70,000 workers and leading GM to a decline in market share. The Japanese overstate the degree to which these ills afflict us even as we underestimate the negative impact our shortcomings are having on our ability to compete.

America carries a permanent and growing underclass of ill-educated and ill-trained individuals incapable of being employed in the competitive environment of the 21st century. The Japanese do not.

We are justifiably offended at falsifications and epitaphs hurled against us by Japanese politicians newly liberated from Cold War military dependency. Nevertheless, we should take stock of ourselves and figure out how it is we will compete with Japan and Europe in the 21st Century. Japan-bashing, grumbling and wringing our hands aren't the answers.