Japan, India to work towards tighter economic cooperation
Japan, India to work towards tighter economic cooperation
Reuters, Tokyo
Japan and India agreed on Monday to boost bilateral ties through cooperation in a wide range of fields, with particular emphasis on the economy in the wake of Tokyo's suspension of sanctions against India.
In a meeting between Indian Prime Minister Atal Behari Vajpayee, who is on a five-day visit to Japan, and Japanese Prime Minister Junichiro Koizumi, the two nations also reaffirmed their commitment to joint efforts in other areas, including eliminating nuclear weapons.
"I am grateful that Japan decided to lift the economic sanctions," a Foreign Ministry official quoted Vajpayee as telling Koizumi.
Japan suspended sanctions on India and Pakistan on Oct. 26, clearing the way for fresh economic aid in a show of support for the two nations during U.S.-led strikes on Afghanistan.
Japan froze all new loans and grants except for humanitarian aid after India and Pakistan carried out tit-for-tat nuclear tests in May 1998.
In a joint statement issued after their meeting, the two leaders emphasized the importance of greater economic ties.
"We affirmed that broadening and deepening our economic connection is an essential foundation for strengthening the relationship between our two nations," they said in the statement.
Noting that both nations are working to carry out a broad range of economic and structural forms, they said: "We realized our opinions are identical on the need to promote economic growth through bilateral trade and investment while also paying attention to environmental preservation."
Earlier on Monday, during a meeting with Finance Minister Masajuro Shiokawa, Vajpayee said revoking sanctions would allow the two nations to plan their economic ties from a long-term perspective, a Finance Ministry official told reporters.
According to the official, Shiokawa told Vajpayee that Koizumi had recognized the need to put more emphasis on Japan's relations with the rest of Asia, not just with nations in Southeast Asia.
In line with this, Koizumi formally informed Vajpayee on Monday that Japan will extend some 56 billion yen (US$446.1 million) in low-interest loans to India.
The yen-denominated loans will help finance two existing projects, a subway construction project in New Delhi and a coal thermal power plant construction project in southeastern India.
Vajpayee and other Indian officials have repeatedly urged Japan to increase investment in the giant South Asian nation since arriving on Friday.
In the statement, the two leaders also recognized the need to hold regular talks at senior governmental levels and to continue dialogue in the security and military fields, including on disarmament and nuclear non-proliferation.
Koizumi was quoted as urging India to sign the Comprehensive Test Ban Treaty, a global ban on nuclear testing.
The pact, which has been signed by 161 states, has not taken effect because it must be ratified by 44 specific states deemed nuclear-arms capable, of which only 31 have done so.