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          Japan told not to connect cutting loans to "China threat"
          (Xinhua)
          Updated: 2004-04-07 09:14

          The Japanese side should not connect the cutting of loans to China with the so-called "China threat", said Chinese Foreign Ministry spokesman Kong Quan in Beijing Tuesday.

          Kong said at a regular press conference that China regards the Japanese loans as a symbol of Japanese friendly policy towards China, and spoke highly of the loans' role, although China needed to repay the loan with interest.

          Thanks to the yen-loan assistance, China and Japan benefited, with many Japanese enterprises entering the Chinese market, Kong said.

          The Chinese side thinks that the loans provided by the Japanese government to China play an active role in promoting the Sino-Japanese ties on the basis of equality and mutual benefit, Kong added.

          After the Japanese government decided to cut the loans, the Japanese side provided evidence such as China's robust growth and the so-called "China threat", Kong said, stressing that China cannot accept these "rootless and groundless" explanations, and cannot accept Japan connecting the loans with these kinds of view.

          Japanese Foreign Ministry officials said on March 11 that Japanplans to scale back loans to China by 20 percent to around 96.7 billion yen (US$872.1 million) in the fiscal year to March31. The amount is set to fall below the 100 billion yen mark for the first time in 14 years and it is the third straight year that Japan is cutting loans to China.

           
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