950829

China slams

Japan over aid freeze

BEIJING: Beijing expressed its deep regret on Tuesday over Japan's decision to freeze grant aid to China to protest against its nuclear testing, questioning the move as politically motivated and one that jeopardised bilateral ties.

"We deeply regret the decision by the Japanese government to freeze most of its grant aid to China in fiscal year 1995 on grounds of China's nuclear tests," Foreign Ministry spokesman Chen Jian said at a regular news briefing.

Japan should use the 50th anniversary of its World War Two defeat this year to "deeply self-examine its war crimes and conscientiously draw lessons from history", Chen said.

"Instead, it is trying to make a big issue of China's nuclear testing," Chen said.

"One cannot but wonder what its true political motives are. This Japanese move can be highly detrimental to the sound development of Sino-Japanese relations," Chen warned.

Japan on Tuesday announced a freeze on most of its grant aid, a small portion of its overall aid programme for China, to protest against Beijing's nuclear tests.

Describing China's nuclear arsenal as small, Chen said it was not directed at any country and posed no threat to Japan. The most recent test, on August 17, triggered a storm of condemnation around the world, including in Japan.

Military strategists have said China's nuclear testing was part of a process of miniaturising its nuclear warheads so they could be carried by a new class of ballistic missiles, some of which can reach Japan and even the U.S. West Coast.

In Tokyo, Trade Minister Ryutaro Hashimoto said Japan would continue to provide China only with humanitarian grant aid.

Japan's grant aid to China, which is provided for specific projects, amounted to 7.8 billion yen ($81.2 million) in 1994.

A Japanese Foreign Ministry official said it was likely to be frozen at 500 million yen ($5.2 million) this fiscal year.

Some Japanese politicians have said Japan's action should be even tougher and extend to low-interest yen loans, which make up the bulk of Japan's financial aid to China.

Political sources said negotiations were in progress between the three parties in Prime Minister Tomiichi Murayama's coalition, his Socialists, the Liberal Democratic Party and the Sakigake party, on whether further steps should be taken to protest against China's nuclear tests.

On Monday, Chief Cabinet Secretary Koken Nosaka told reporters a plan to freeze grant aid would be designed "to make a clear declaration of displeasure".

"It does not represent a change in Japan's basic policy to provide aid to China," Nosaka said.

Low-interest loans are designed to be provided over a period of several years, and Japanese Foreign Ministry officials have said they do not wish to cut yen loans that have already been officially pledged to China.-Reuter