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Zhu makes the right noises in Japan

By F.J. Khergamvala

TOKYO, OCT. 13. The Chinese Premier, Mr. Zhu Rongji made all the right noises at his meeting with his host, Mr. Yoshiro Mori, but the Japanese establishment, media and public are sceptical that this temporary goodwill may be geared only to obtain economic assistance.

At his meeting with the Japanese Prime Minister, Mr. Zhu exempted the Japanese public from responsibility for Japan's actions during World War II and before and suggested both nations look ahead, without forgetting ``the lessons of history,'' according to Japanese officials briefing the media. ``The Japanese people were also sufferers,'' said Mr. Zhu, who added that ``we should head for the future.''

This shift in emphasis to look ahead is in marked contrast to the Chinese President, Mr. Jiang Zemin's constant demand for an apology during his visit here in November 1998, when Japan suggested the two countries build afresh in the new millennium. Mr. Zhu essentially repeated what he has been saying in recent interviews and it would appear that Beijing is exempting the present generation from culpability. The likelihood of him repeating this theme at a town hall meeting on Saturday evening suggests to the Japanese that a tactical ploy is afoot to pay a diplomatic price to woo Japanese economic assistance.

Before getting to the actual purpose of his journey, that of asking for money for the Great Western Development project in the China's hinterland, the visiting Premier also had to address complaints from Japan's public and media that China has not been sufficiently thankful for the yen two trillions plus aid over two decades nor has the Chinese Government done its bit to increase awareness about Japanese aid. The Japanese Foreign Ministry said in an announcement that Mr. Zhu did express gratitude.

Mr. Mori responded that on the assistance for the hinterland, estimated at $12 billion plus over five years just for a natural gas pipeline, this matter should be revisited in March. By then, Japan would have completed its review of the overseas assistance policy on China. But Mr. Mori reminded his guest that as a general rule, China might get less aid because his Government is finding it difficult to get public support for aid. China was also asked to get its investment environment in order. The Hainan International Trust and Investment Corp. (HITIC), one of the so- called ITICs fuelling development on the mainland failed on the Samurai bond market when it defaulted on interest payments of over $2 million on a $130 millions bond repayment in late September. Japanese creditors who bought the bonds suspect that the HITIC could sell assets to pay only the Chinese creditors and leave the rest to litigation.

This ill-timed trust corporation failure and the fact that on Friday China launched its largest display of military might in 36 years, could generate further hostility among Japanese against aid to China, which gets over 45 per cent of its total aid from Japan. Japan has been questioning the wisdom of assistance to a country whose military expenditure is opaque and which has been undertaking suspicious naval excursions into waters that Japan claims as its Exclusive Economic Zone. Mr. Zhu and Mr. Mori confirmed that both countries wanted to establish a hot line. This was also decided two years back but no action was taken. Likewise, as expected, there was disagreement on the base standards to be applied for measuring maritime economic zones. Therefore, the two leaders were forced to mask their inability to establish a prior notification mechanism on maritime activity by saying they agreed to expedite work on a mechanism.

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