Japan preparing second phase of Asia assistance plan

Japan preparing second phase of Asia assistance plan

SINGAPORE (Reuters): Japan is preparing a second phase of its Asian assistance plan that would offer technical and developmental aid, a senior trade ministry official said on Saturday.

Hisamitsu Arai, Ministry of Trade and Industry (MITI) vice minister for international affairs, told Reuters the time was ripe for a "second stage" of the $30 billion Miyazawa plan.

"During the first year, the very important measure was to provide financing," he said.

"To have a stable economic recovery (in Asia), it is necessary for Japan to provide technical assistance or human resources development assistance or...in market restructuring."

He declined to say when the new phase would be announced or whether its need would be precluded by Asian economic recovery, but said Japan could do more.

"It's time for Japan to provide (for) those areas more than before."

Arai was visiting Singapore to meet Association of South East Asian Nations (ASEAN) economic officials.

Earlier, Japan said it was essential new ASEAN member nations - Vietnam, Cambodia, Laos and Myanmar - be supported in their transition to market economies and Arai said Japan was committed to regional training and promotional programs.

"If they (new members) have good economic stability, that will contribute to political stability in this region," he said.

In a separate press briefing, Arai sidestepped the question of financial support, saying it must be coordinated with organizations such as the Asian Development Bank and World Bank.

Under its Miyazawa plan, Japan had disbursed about $4 billion to Asian nations as of early August.