Grant Aid to the Palestinian Interim Self-Government Authority to Increase Food Production

December 13, 1998

1. The Government of Japan has decided to extend to the Palestinian Interim Self-Government Authority a grant aid of up to 350 million yen to increase food production. Notes to this effect were exchanged on December 12 (Japan time 13) in Gaza between Mr. Yutaka Kawashima, Japanese Ambassador to Israel, and Dr. Nabi Sha'ath, Minister of Planning and International Cooperation of the Palestinian Interim Self-government Authority.
   
   
2. The West Bank and the Gaza Strip, whose major industry is agriculture, produce enough fruits and vegetables but have to import most staples, such as wheat and barley. With the number of returnees increasing and the population growing naturally, the population growth rate exceeds 5 %. Production of staples is important in order to secure enough food to feed the growing population and saving foreign currency.
   The Agriculture Ministry, therefore, gives the highest priority to improving the food self-sufficiency rate by increasing food production. As one concrete measure, it is trying to raise agricultural productivity by expanding arable land, using fertilizers, and promoting mechanization.
   As part of that effort, the Palestinian Interim Self-Government Authority has requested grant assistance from the Government of Japan to purchase fertilizers and agricultural machinery, such as tractors, with a view to increasing food production.
   
   
3. Since 1993, Japan has extended a total of about 380 million dollars to the Palestinian Interim Self-Government Authority, including assistance through international organizations and the grant aid this time. Japan intends to continue to extend positive assistance for the Middle East peace process.
   
   

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