According to Nikkei' s report on March 13, the Japanese government made an initial decision to cut the yen loans to China in the loaning year 2004 (i.e. from April 1, 2004 to March 31, 2005 ) by about 10 percent, 2005. Japan' s yen loans to China in the loaning year 2003 stood at 96.6 billion yen, less than half of the peak amount.

It is learned that the amount of the yen loans to China will be determined by the end of the loaning year of 2004 but the schedule to carry it out depends on specific situation. Nikkei reported that the voices advocating a severe reduction of the yen loans to China are high in Japan' s ruling party, but the government held that the move is likely to further affect Japan-China relations.

In a timetable set for the yen loans to China to be ended, the Japanese government has planned to terminate the loans after the loaning year of 2008. The Japanese government has informed the Chinese side about the plan and extended its hope for China' s understanding and cooperation.

However, the Chinese side held that the yen loans were a mutually-beneficial capital cooperation launched under a special political and historical background and China and Japan should properly deal with the issue with an attitude of being responsible to the general interest of the bilateral relations.

Japan' s Ministry of Foreign Affairs recently held a meeting concerning the Official Development Assistance (ODA), at which the future implementation of the ODA was discussed. Concerning the termination of the yen loans to China, which was also one of the items of the meeting, the majority opinion was that, proceeding from the general interest of the bilateral relations, Japan should adopt a phased reduction instead of a sudden ending.

By People' s Daily Online