Japan commits $400M to Pacific islands

NAGO CITY, Okinawa—Amid a growing presence of China in the region, the Japan government committed Saturday to provide members of the Pacific Island Forum a new development assistance package worth 45 billion yen, about $400 million, over the next three years.

At the same time, the 16-member states of the Pacific Islands Forum, in a joint declaration with Japan Prime Minister Junichiro Koizumi at the end of a two-day summit here, renewed their support, bilaterally, for Japan’s continuing bid to secure a permanent seat on the U.N. Security Council.

Koizumi disclosed his government’s latest aid package during Saturday’s ending of the 4th summit of the Japan-Pacific Island Leaders Meeting held at the scenic Busena Terrace Hotel.

The summit is held every three years.

This year’s package is 44-percent higher from the 32 billion yen that Japan had given the islands in the last three years.

“This is a specific manifestation of Japan’s renewed commitment to the prosperity and stability of PIF members,” said the leaders in their joint declaration:

“Okinawa for a more robust and prosperous Pacific region.”

Koizumi reiterated this during a press conference with Papua New Guinea Prime Minister Sir Michael Somare, who co-chaired the summit.

Competition with China?

Koizumi dismissed speculations that China’s growing presence in the region, in particular, its recent partnership with the same group of Pacific island nations, prompted his government to increase the aid this year.

He said Japan’s assistance should not be linked to China’s action.

“If China were to provide assistance to the Pacific island states, I would not think of that as a threat,’’ Koizumi said in response to a media inquiry during the new briefing.

Somare, for his part, said “it should not be seen competing for influence in the region.’’

China held for the first time its own bilateral meeting with the heads of Pacific Island states, concluding with loan package of some $300 million in the next three years.

The China-Pacific Islands Countries (PIC) Economic Development and Cooperation Forum was held from April 5-6 2006, in Fiji, and it was attended by Premier Wen Jiabao, of the People’s Republic of China.

This even as Pentagon revealed this week that Beijing’s military buildup “has advanced well beyond what most analysts considered likely just 10 years ago.”

The new arsenal of the People’s Liberation Army reportedly includes more than 700 missiles deployed opposite Taiwan, which could reach targets in areas such as Guam and the Northern Marianas.

UN seat

Meantime, PIF leaders supported Japan’s Security Council bid, “in acknowledging the need for early reform’’ of the council, and represent 12 critical votes in the United Nations.

Somare, echoing his colleagues’ opinion, indicated that Japan deserves to get a permanent seat considering its ‘’substantial contribution’’ not only to the region but to the world economy.

The leaders called their new agreement, the Okinawa Partnership, which is based on five priority areas—economic growth, sustainable development, good governance, security and human exchanges.

In a separate statement, Japan, Australia and New Zealand, which also act as donors to the small island states, reaffirmed that they would enhance their donor cooperation by strengthening their policy dialogue among their senior officials as well as with other donor countries, like the United States and Europe.

The summit leaders praised the outcome of the “Okinawa Initiative,’’ a set of common strategies for regional development in the areas of security, the environment, education, health and economic growth adopted at the previous summit here in May 2003.

The island leaders cited the success of job training and education initiatives through the Japan External Trade Organization and Japan International Cooperation Agency.

The group also noted the importance of “Pacific Plan,’’ a framework adopted by the PIF last October to promote greater regional cooperation to boost economic growth, sustainable development, good governance and security.

Japan began hosting Pacific islands summits in 1997 and every three years thereafter, initially in Tokyo in October 1997 and the second in Miyazaki Prefecture in April 2000.

The last two summits were held this prefecture. so far, Japan has provided the Pacific island states with an annual average of about 10.6 billion yen, which is less than 1 percent of the total ODA grants worldwide.

Part of the PIF are the Cook Islands, Fiji, Kiribati, the Marshall Islands, Nauru,Niue, Palau, Papua New Guinea, Samoa, the Solomon Islands, Tonga, Tuvalu, and Vanuatu.

Donor partners are Japan, Australia, and New Zealand.