Japan unveils $500m aid package for SE Asia

Japan unveils $500m aid package for SE Asia

MANILA (AP): Japanese Prime Minister Keizo Obuchi announced
Sunday a new US$500 million aid package for Southeast Asia
focusing on training and development of human resources.

Tokyo formulated the package of grants, dubbed the "Obuchi
Plan", after a high-level Japanese mission visited Southeast Asia
in September and concluded that the key to sustained economic
growth in the region was the development of human resources.

Obuchi also announced that Japan would contribute money to the
World Bank and Asian Development Bank to tackle poverty, Japanese
officials said. The amount of the fund, which is still awaiting
budgetary approval, was not disclosed.

With Asian economies now on a recovery track, Japan's focus
has shifted to helping build the foundation for medium- to long-
term stability in the region, officials said.

"Obuchi is looking at establishing a more stable footing for
the countries in the future," said the prime minister's deputy
press secretary, Akitaka Saiki.

The package also includes assistance aimed at narrowing the
gap between recently admitted members of the Association of
Southeast Asian Nations (ASEAN) - Vietnam, Laos and Cambodia -
and more advanced countries through dispatch of legal and
administrative experts.

ASEAN leaders met Sunday in an informal summit, which was also
attended by leaders from Japan, South Korea and China.

Other key projects in Japan's $500 million package include:

-- The dispatch of financial experts, including bankers and
auditors, for technical support to Indonesia, Thailand and
Malaysia.

-- Support for establishing institutions to promote higher
education in economic development, engineering and research.

-- Dispatch of manufacturing experts as senior volunteers.

-- Cooperation in setting up a network of non-government
organizations aimed at helping poverty-stricken children.

-- Acceptance of more exchange students from the region into
Japanese universities.

Japan already has pledged $82 billion in loans to Asian
countries hit by the regional financial crisis that began two
years ago. Of that, $30 billion came under the so-called Miyazawa
Fund, originally planned for two years to help ease liquidity in
five Asian countries hit by the regional currency crisis.

ASEAN countries have asked Japan to make the Miyazawa Fund a
permanent facility.

Japanese officials said Sunday Tokyo was in favor of
establishing a long-term aid fund to support economic stability
in Asia, but believes any such initiative should also involve the
U.S.

"As regards the extension of the Miyazawa fund or something
else, we will definitely go into a second stage of cooperation,"
Akitaka Saiki told Dow Jones on the sidelines of a summit of
Asian leaders. "This will be long-term."

The idea of a permanent fund is sensitive because it could
limit Asia's dependence on the International Monetary Fund, which
is heavily under the influence of the U.S.

Saiki said Japan would shoulder the "larger share of
responsibility" for any Asian financial facility, but added that
the U.S. should also play a role.

"We are not the only player in the region - we shouldn't
discourage the U.S.," Saiki said. "To some extent, we have to
involve the Americans." He didn't elaborate on the nature of any
long-term fund.

ASEAN comprises Thailand, Indonesia, Singapore, Malaysia,
Philippines, Brunei, Vietnam, Laos, Myanmar, and Cambodia.