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.