LDP Approves Plan to Cut ODA to China
A main Japanese governing party has approved a government plan to end new yen loans to China by the 2008 Summer Olympic Games in Beijing.
Foreign Minister Nobutaka Machimura told a meeting of the Liberal Democratic Party on Thursday that Japan's official development assistance to China has contributed widely to social infrastructure building, human resources development and other areas.
But he noted that China's economic growth has reduced the need for financial assistance, and that the government has therefore judged it inappropriate to continue offering it in the same way.
Mr Machimura explained that in addition to ending new yen loans, which account for much of the official aid, the government plans to cut loans for fiscal 2004 through the end of this month by eleven percent from fiscal 2003.
LDP members approved the plan, though some members urged the government to seek China's understanding rather than cut off loans unilaterally.