CORP ACFT HAS NMAC WITH SMA ON APCH WHICH GAVE WRONG POS.

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I WAS APCHING TIX TO LAND. I RPTED TO THE TWR 10 NW. THE TWR ADVISED ME OF ACFT Y TFC TO LAND ON 180 AND INSTRUCTED ME TO CALL ON A 3 MI R BASE. THE ACFT Y PLT RPTED A 3 MI FINAL FOR 18 AS MY LORAN SHOWED ME TO BE 7 NW. I ADVISED THE TWR I WAS SHOWING 7 NW. I CONTINUED APCHING THE ARPT AT 1000 FT ON A WIDE R BASE AND WATCHING FOR THE ACFT Y WHICH HAD RPTED A 1 1/2 MI FINAL. I REMAINED AT 1000 FT BECAUSE I DID NOT HAVE VISUAL CONTACT. AS I APCHED THE POINT AT WHICH I SHOULD TURN FINAL 3 MI OUT I ASKED THE TWR FOR SPACING INFO. NO TFC WAS VISIBLE ON A 1 1/2 MI FINAL. THE TWR TOLD ME NOT TO TURN FINAL AND I CONTINUED E AT 1000 FT. I HEARD THE ACFT Y PLT RPT THAT I HAD CUT HIM OFF. I WAS 3 MI N OF THE THRESHOLD FOR 18 AT 1000 FT AND WAS LOOKING FOR TFC WHICH HAD RPTED A 1 1/2 FINAL. THE TWR CLRED ME TO MAKE A L TURN AND REENTER FINAL. AS I AGAIN STARTED TO TURN S; THE ACFT Y WAS THEN ON ABOUT A 1 1/2 MI FINAL. CONTRIBUTING FACTORS WERE: MY ACFT HAD BEEN RPTED IN SIGHT BY THE TWR AND I MAY HAVE HAD THE IMPRESSION THAT POSITIONS WERE BEING MONITORED. THE ACFT Y PLT MAY HAVE HAD THE SAME IMPRESSION. THE PLT OF THE ACFT Y SPOKE BROKEN ENGLISH. HIS INITIAL CONTACT WITH THE TWR HAD RPTED 4000 FT OVER THE FIELD FOR LNDG. THE TWR HAD LENGTHY CONVERSATION WITH HIM TO MAKE HIM UNDERSTAND THAT HE COULD ENTER EITHER A R OR L DOWNWIND FOR 18. HE FINALLY RPTED AGAIN N OF THE ARPT AND WAS CLRED STRAIGHT IN TO 18. AT THAT TIME I RPTED MY LORAN READING OF 7 NW OF THE 18 THRESHOLD TO THE TWR WHICH TOLD ME I WAS IN SIGHT. THE ACFT Y HAD RPTED A 3 MI FINAL AND MY ATTN WAS ON THAT AREA. MORE ACCURATE POS AWARENESS AND CORRECT POS RPTS CAN CORRECT THIS TYPE PROBLEM.