Press Conference by the Press Secretary 12 March, 1999

1. Extension of Official Development Assistance (ODA) loans by Japan to the Republic of the Philippines, the Republic of Indonesia and the Kingdom of Thailand
2. Visit to Japan by Prime Minister Phan Van Khai of the Socialist Republic of Vietnam from 28 to 30 March
3. Accession of the Republic of Poland, Czech Republic and the Republic of Hungary to the North Atlantic Treaty Organization (NATO)
4. Future implementation of the New Miyazawa Initiative
5. Negotiations on extension of oil concessions in the Kingdom of Saudi Arabia
6. Prospects for the extension of Official Development Assistance (ODA) by Japan to the Islamic Republic of Iran

1. Extension of Official Development Assistance (ODA) loans by Japan to the Republic of the Philippines, the Republic of Indonesia and the Kingdom of Thailand

   Deputy Press Secretary Masaki Okada: Good afternoon. Last week, I explained to you our assistance to Asian countries. I would like to add some more information to the previous explanation. The Government of Japan decided to extend to the Philippines an Official Development Assistance (ODA) loan of up to 36.3 billion yen for its Metro Manila Air Quality Improvement Sector Development Program, a co-financing program with the Asian Development Bank (ADB), to assist the country's efforts for social and economic development. Notes to this effect were exchanged the day before yesterday, namely on Wednesday, 10 March in Manila.

   There are two other exchanges of notes which will be signed this afternoon. One is concerning Japan's ODA loan to Indonesia. The Government of Japan has decided to extend to Indonesia an ODA loan of up to 80.48 billion yen in total, with a view to continuing its support for Indonesia's efforts to overcome economic difficulties, helping improve Indonesia's international balance of payments, and meeting the demand for the funding needed to implement assistance including that for the socially vulnerable and the improvement of the health and nutrition sector. Notes to this effect will be exchanged today, in a few hours, in Jakarta.

   The other note is concerning our assistance to Thailand. We decided to assist Thailand by extending an ODA loan of up to 30 billion yen for the improvement of the country's international balance of payments, which is indispensable for smooth advancement of its economic structural reform. This loan also aims at supporting measures for the socially vulnerable and for effective public works to create employment. The notes to this effect will be exchanged in Bangkok this afternoon. All these three forms of assistance are within the context of the so-called New Miyazawa Initiative. As you might remember, the New Miyazawa Initiative was announced last autumn and the amount which we explained at that time was US$30 billion. Until now, including these three different types of assistance to these three countries, the materialization of the US$30 billion under the New Miyazawa Initiative is very much advancing and now we can report to you that approximately US$ 14.5 billion has already materialized and been concretely implemented. The New Miyazawa Initiative is to be fully implemented in two years. This is the first portion of the two year program.

   Related Information (Japan's ODA)
   
2. Visit to Japan by Prime Minister Phan Van Khai of the Socialist Republic of Vietnam from 28 to 30 March

   Deputy Press Secretary Masaki Okada: My second announcement concerns the visit to Japan of Prime Minister Phan Van Khai of the Socialist Republic of Vietnam, and Mrs. Nguyen Thi Sau, wife of the Prime Minister, who, accompanied by a suite, will pay an official working visit to Japan from Sunday, 28 March to Tuesday, 30 March, 1999. During their stay in Japan, Prime Minister Khai and Mrs. Sau will be received in audience by Their Majesties the Emperor and Empress of Japan. Prime Minister Khai will hold official talks with Prime Minister Keizo Obuchi. Prime Minister Obuchi and Mrs. Obuchi will host a dinner in honor of Prime Minister Khai and Mrs. Sau. The Government of Japan sincerely welcomes the visit of Prime Minister Khai and Mrs. Sau, which will further strengthen the friendly relations existing between Japan and Vietnam.

   Related Information (Japan-Viet Nam Relations)
   
3. Accession of the Republic of Poland, Czech Republic and the Republic of Hungary to the North Atlantic Treaty Organization (NATO)

   Deputy Press Secretary Masaki Okada: My last announcement relates to the accession by three Central European countries to the North Atlantic Treaty Organization (NATO). At the NATO Summit meeting held in Madrid in July 1997, the decision was taken to accept Poland, Czech Republic and Hungary as members. We understand that after that decision, necessary procedures have been taken and these three countries, Poland, Czech Republic and Hungary, will formally accede to NATO today, 12 March. We recognize that this enlargement of NATO will contribute to enhancing peace and stability in Europe through promotion of the sharing of the best values such as freedom and democracy. On the other hand, we hope that NATO will further deepen its dialogue and cooperation with non-member countries so that those countries will not feel alienated from this NATO enlargement process.

   Related Information (Japan-Europe Relations)
   
4. Future implementation of the New Miyazawa Initiative

   Q: Concerning the New Miyazawa Initiative, do you have any plans for the rest of the ODA assistance? You mentioned that US$14.5 billion has been distributed so far. Do you have any idea about the recipients of the rest?

   Mr. Okada: We are continuing to consult with the countries concerned. As I told you, the New Miyazawa Initiative shall be fully implemented in two years -- this year and next year. This US$14.5 billion is the amount for this year. We think we can also materialize the other portion of the US$ 30 billion in the future.

   Related Information (Japan's ODA)
   
5. Negotiations on extension of oil concessions in the Kingdom of Saudi Arabia

   Q: I read in a Reuters dispatch that Saudi Arabia gave Japan a deadline to finalize the negotiations regarding the Arabian oil company's rights in the oil fields. Is that right? Can you describe it as a deadline given to Japan officially or is it just --

   Mr. Okada: That is a commercial negotiation between a Japanese company and the Saudi Arabian authority. From our viewpoint, it is basically an issue of a private business matter. First of all, the negotiations or the talks between the parties concerned shall be deepened further. Concerning the extension of the concession given to a Japanese company, we hear that the negotiation is going on between the parties. Therefore, we do not think it is very appropriate for the Government of Japan to make any comment on the ongoing negotiations between the parties.

   Q: The dispatch said that this deadline was given to State Secretary for Foreign Affairs Machimura. It was not through the private sector.

   Mr. Okada: I cannot make any comments as I have no information on that.

   Related Information (Japan-Saudi Arabia Relations)
   
6. Prospects for the extension of Official Development Assistance (ODA) by Japan to the Islamic Republic of Iran

   Q: This concerns ODA loans to Iran. Recently, I think some Japanese banks decided to reschedule some loans or some debts to Iran. Does that mean that the Government of Japan is going to extend the next installment of yen loans to Iran in the near future?

   Mr. Okada: The general atmosphere concerning Iran is improving. President Mohammad Khatami of the Islamic Republic of Iran visited recently in Italy and also met Pope John Paul II. We welcome this move on the side of the Iranian Government. As for Japanese assistance to Iran, we are still consulting and it is still premature to give you any clear indication what we are going to do in the future. We are taking into consideration all these new developments.

   Related Information (Japan-Iran Relations)