Chief Cabinet Secretary Shinzo Abe told a news conference that the government reached the decision after "comprehensively considering" Japan's national interests.

The decision, which was to be approved by the governing parties and the Cabinet on June 9, was made at a meeting of the government's panel on foreign aid strategy chaired by Prime Minister Junichiro Koizumi, who skipped the session.

Abe, Foreign Minister Taro Aso, Finance Minister Sadakazu Tanigaki and Economy, Trade and Industry Minister Toshihiro Nikai attended the session and agreed it is important to "strategically further Japan's provisions of grants as well as assistance in technology and international finance to China."

Agriculture, Forestry and Fisheries Minister Shoichi Nakagawa, a nonmember, also attended the session but told a separate news conference that he could not understand the reason for Japan to extend its assistance to China.

Given China's rapid economic growth, the two nations reached a basic agreement in March, 2005, on Japan terminating the provision of new yen loans by the time Beijing hosts the summer Olympics in 2008.

The Japan Times Weekly: June 10, 2006
(C) All rights reserved