Yomiuri : Japan may end freeze on l

[hlaing@xxxxxxxxxxxxxx]

Japan may end freeze on loans to Myanmar 
Yomiuri Shimbun
July 20, 1998
The government is considering lifting a 10-year-old freeze on official
development assistance loans to Myanmar as early as this autumn--but only
for humanitarian projects, government sources said Sunday. 

All economic assistance to the Southeast Asian country was frozen following
a military coup in 1988. The ban was meant to help pressure Yangon toward
democracy. 

However, the sources said the government was reconsidering its position
because the tactic had not been effective in improving the country's human
rights record or pushing it toward free elections. 

The government was now considering a dual approach of lobbying the Myanmar
regime to improve its human rights situation and make democratic reforms,
while also helping it improve the living conditions of its people, the
sources said. 

They said the government would still withhold loans for large-scale
projects that could be used to strengthen the military regime. Funds would
only be made available for humanitarian projects and other projects to
improve living standards. 

The sources said improving Myanmar's medical system to lower the country's
mortality rate and building new roads were possible aid targets. 

The government also planned to work with various members of the Association
of Southeast Asian Nations, including Thailand and the Philippines, to
press the country's military regime even harder to improve its human rights
record and make democratic reforms, they said. 

The government's anticipated policy shift has reportedly already won the
approval of ASEAN countries, as well as some European nations, including
Britain. 

The government reportedly plans to coordinate its policy with the United
States, which has been cautious about giving economic assistance to
Myanmar. 

In March, the government extended an ODA loan of 2.5 billion yen--the first
of its kind since 1988--to Myanmar to upgrade safety features at its
international airport in Yangon. At the time, the government said it was
not changing its policy toward the country.