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Japan freezes grant

aid to China over N-tests

TOKYO: Japan announced on Tuesday it was freezing most of its grant aid to China, the smallest part of its loans to the communist nation, to protest against Beijing's nuclear tests.

"The foreign minister (Yohei Kono) said that Japan would only provide China with humanitarian grant aid, and that it would freeze the rest of its grant aid to China," Trade Minister Ryutaro Hashimoto told a news conference after a regular cabinet meeting.

Grant aid, provided for specific projects, amounted to 7.8 billion yen in 1994, but so far this year only about 500 million yen has been disbursed.

Beijing has carried out nuclear test blasts twice this year -- earlier this month and in May -- provoking angry protests from Japan and other countries.

Japan announced a trimming of grant aid to China shortly after the May test.

For Japan's grant aid to China in the fiscal year to March 31, 1995, which the government has decided on, only its aid to help stamp out polio and for areas damaged by floods will be provided, Hashimoto said.

"We will freeze the rest of our grant aid to China," he said.

"The foreign minister said we will continue in this way as long as China continues its nuclear testing," Hashimoto said.

He said he wants current key cabinet ministers to attend the summit meeting of the Asia-Pacific Economic Cooperation (APEC) forum in Osaka in November with their present portfolios.

Asked if Japan will go into the APEC summit with Tomiichi Murayama as prime minister, Yohei Kono as foreign minister and himself as trade minister, Hashimoto said: "I am not in the position to make such a decision, but I hope that I will be able to play my role with the cabinet in that form."

Hashimoto is likely to be elected leader of the Liberal Democratic Party (LDP) after Kono, the incumbent president, announced on Monday that he would not seek a second term in a party election due on September 22.

The LDP is by far the largest partner in the three-party coalition government, headed by Socialist leader Murayama.-Reuter