Tokyo will seek cuts in electric power, gas and water supply costs amid concerns it might have to foot bills in relation to the anticipated realignment of U.S. forces, including costs for relocating U.S. military facilities in Okinawa, the sources said.

The government began providing these funds to the U.S. military forces in 1978, in response to an escalation in commodity prices. They are earmarked for costs that include fringe benefits and utility charges.

The bilateral agreement, concluded in 2000, calls for a reduction of about ¥3.3 billion per year in its allocation of utility fees. The total amount covering fiscal 2004 stands at ¥244.1 billion.

In its proposed budget for fiscal 2005, Japan has set aside ¥237.8 billion for the sympathy budget.

The Japan Times Weekly: Feb. 19, 2005
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