JAPAN-SOUTH ASIA: After U.S., Tokyo Lifts Economic Sanctions

By Suvendrini Kakuchi Reprint | | Print |

Suvendrini Kakuchi

TOKYO, Oct 26 2001 (IPS) - Japan on Friday lifted economic sanctions against rival nations India and Pakistan to help them contribute to the U.S.-led ‘war against terrorism’, but critics say it is another sign of U.S. influence over Tokyo’s foreign policy.

Chief Cabinet Secretary Yasuo Fukuda issued a statement announcing the lifting of the sanctions three years after they were imposed on the two countries for conducting nuclear tests.

The sanctions, imposed in May 1998, included a freeze on all grants and yen loans for new projects except for those for humanitarian purposes.

Japan has approved the rescheduling of more than 500 million dollars’ worth of Pakistan’s loans and approved 40 million U.S. dollars in aid for Islamabad, Pakistan state radio said. Some reports say Tokyo plans to give new yen loans henceforth.

The sanctions were applied under the principles outlined in the new charter of the Japanese government’s Overseas Development Assistance (ODA) programme, which has made the military spending of aid recipients a criteria in its disbursement checklist.

Fukuda explained the government decision is based on the fact that both India and Pakistan “have been maintaining their moratorium on further nuclear tests for the past three years”.

“Furthermore,” he told the Japanese press, “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.”

The Japanese government’s decision comes after the United States made a similar move after the Sep. 11 terror attacks in New York and Washington.

It also reflects the change in geopolitical and strategic considerations since the U.S.-led strikes on Afghanistan began in early October, one that is now prompting rich governments to ‘help’ countries in South Asia, including those like Pakistan that are frontline states.

Indeed, analysts say Japan’s decision reflects American pressure on Tokyo’s ODA policy.

“The government policy is pretty obvious. While the Americans bomb Afghanistan, the Japanese are pouring in money to support the American campaign by giving money to governments that support the United States,” said Rieko Inoue, an ODA expert at the Pacific Resources Centre here.

Fukuda also issued a statement that said Japan sees the need to support Pakistan, whose stability and cooperation is important for the global ‘battle’ against terrorism, marked by more than two weeks of bombing against Afghanistan.

The Japanese government’s decision came after recent calls by Islamabad for the lifting of sanctions.

Pakistan President Gen Pervez Musharraf asked for this in a telephone conversation with Prime Minister Junichiro Koizumi last week, saying Islamabad needs economic support to offset negative economic impact around the world caused by the Sep. 11 terrorist attacks.

He also called for the cancellation of Pakistan’s debts, and Tokyo has said the request will be considered after looking into Pakistani opinions.

Japan is the largest lender to Pakistan and has a total of 870 billion in yen-denominated loans (8.36 billion dollars). Islamabad still owes Tokyo 5.77 billion dollars.

Reflecting Tokyo’s desire meantime not to offend India — New Delhi and Washington have been competing for roles in the anti-terrorism effort while clashes in disputed Kashmir have grown — the Japanese government also said it believes it should boost “positive engagement” with India.

New Delhi is expected to play an important role in tackling terrorism and enhancing stability in the region, Fukuda said.

Diplomatic activity between Japan and South Asia is also on the rise. The Foreign Ministry announced Friday that Pakistani Finance Minister Shaukat Azizi will make a four-day visit to Japan starting Wednesday as a special envoy of Musharraf.

Aziz, who is also planning and development minister, will hand a letter from Musharraf to Koizumi in which he is expected to explain Pakistan’s position regarding Japan’s economic support for it in response to the Afghan refugee situation.

In September, Japan decided to provide Pakistan with 4.7 billion yen (45 million U.S. dollars) in emergency grants to deal with the influx of more refugees from Afghanistan.

At the same time, former Japanese prime minister Yoshiro Mori will make a three-day trip to India starting Sunday as a special envoy of Koizumi to explain Japan’s anti-terrorism efforts – and to assuage New Delhi’s concerns about Tokyo’s help for Pakistan.

Japan has also stepped up its diplomatic outreach after the September attacks, reacting faster than it did in the Gulf War more than a decade ago.

It has sent former prime minister Ryutaro Hashimoto to Egypt and the United Arab Emirates, former Foreign Minister Masahiko Komura to Iran and Saudi Arabia, and a lawmaker from the Liberal Democratic Party, Muneo Suzuki to Tajikistan and Uzbekistan.

Inoue says most of Japan’s new pledge of emergency aid will be given to the Pakistani government — and not sent directly to the rising number of Afghanistan refugees now crowding into Pakistan.

Last week, Japan also pledged 30 million dollars to the United Nations High Commissioner for Refugees.

But Inoue points out the figure is less than what Japan extended to Pakistan last month, and will be far less that what will be pledged with the lifting of the economic sanctions.

Critics also point out that there is rising anger among people in different countries over the bombing of Afghanistan, so that Japan’s new aid would be seen against this light.

“Ordinary people are worried that the U.S. bombing has been going on for so long. People are aware of the sad plight of ordinary Afghans and want the bombing to cease immediately,” Inoue said. ” Japan should be more clear with how the Japanese aid is going to be spent.”

Development expert Terue Yoshida says that most Japanese do not want to get involved in the political conflict by supporting the Pakistani government and U.S. policies that cause turmoil in developing countries.