Announcement by the Chief Cabinet Secretary on Discontinuation of Measures in Response to Nuclear Testing Conducted by India and Pakistan

26 October 2001

  1. In response to the nuclear tests conducted by India and Pakistan in May 1998, Japan took the following measures as announced by the Chief Cabinet Secretary on 13, 14, and 29 May 1998.

    (1) Grant aid to India and Pakistan for new projects will be frozen, except emergency and humanitarian aid and Grant Assistance for Grassroots Projects.

    (2) Yen-loan to India and Pakistan for new projects will be frozen.

    (3) The Government will cautiously examine the loan programs to India and Pakistan by multinational development banks.

  2. Japan has repeatedly expressed its position to both India and Pakistan regarding nuclear disarmament and non-proliferation issues. Consequently, both India and Pakistan have been maintaining their moratoria on further nuclear tests for the past three years and declaring their intention to maintain it. Furthermore, both countries have stated that they will ensure strict controls of nuclear and missile related goods and technologies. To that extent, Japan's measures have obtained due achievement.
  3. Japan highly values India and Pakistan's efforts to contribute to strengthening the international coalition against terrorism. It is vitally important that Pakistan remains stable and cooperative with the international society in this combat against terrorism. In this context, Japan recognises, from the medium to long-term point of view, a genuine need to support Pakistan, particularly in view of Pakistan's difficult domestic situation. At the same time, it is imperative for Japan to strengthen its positive engagement with India that is expected to play an important role in tackling terrorism and in enhancing stability in the Southwest Asia region.
  4. In view of the above points, Japan decided to discontinue the measures on India and Pakistan taken in May 1998. In due course, Japan will examine specific plans of Official Development Assistance with regard to both countries.
  5. Japan will continuously urge India and Pakistan to make progress in the field of nuclear non-proliferation, including signing of the CTBT. Should the situation concerning nuclear non-proliferation deteriorate in India and/or Pakistan, Japan will consider taking appropriate measures including restoring of the discontinued measures.

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