TOKYO, March 24 (Reuters) - Nippon Steel's ( NISTF )

negotiations with the U.S. government regarding its planned

acquisition of U.S. Steel are still ongoing, President

Tadashi Imai said on Monday.

Imai said a mutual understanding is developing that the deal

would bolster the U.S. steel industry. Talks will continue and

aim to reach an agreement on conditions for equity purchase and

capital spending, among other aspects, he added.