Japanese Foreign Minister Nobutaka Machimura said at the Foreign Relations Committee of the Liberal Democratic Party that Japanese loans to China during the 2004 fiscal year would be reduced by 11 percent and by the fiscal year 2008 Japan would stop providing new yen loans to China.

Nobutaka Machimura said as the Chinese economy develops and with its fundraising capability growing considerably the need of large-scale fund cooperation between the Japanese and Chinese governments has diminished. Japan plans to stop new yen loans to China by the fiscal year 2008.

In addition, Japan has made preliminary decision to reduce yen loans to China in the fiscal year 2004 by 11 percent, to 85.9 billion yen. This is the fourth consecutive year in which Japan reduces the loans.

By People's Daily Online