HomeBUSINESSJapan Changes Aid Rules and finance defense projects of friendly nations

Japan Changes Aid Rules and finance defense projects of friendly nations

 Japan said on Wednesday it plans to offer financial aid to friendly nations to help boost their defenses, marking Tokyo’s first clear departure from rules that prohibit the use of international aid for military purposes.

Japan’s Overseas Security Assistance (OSA) will be run separately from the Overseas Development Assistance (ODA) program, which has funded roads, dams and other civil infrastructure projects for decades, Chief Cabinet Secretary Hirokazu Matsuno said at a regular news conference.

“By improving its security and deterrence capabilities, the OSA aims to deepen our security cooperation with these countries and create a desirable security environment for Japan,” said a statement issued by the Ministry of Foreign Affairs on Wednesday.

The aid will not be used to purchase lethal weapons that recipient countries could use in conflicts with other nations, in line with the three principles governing arms exports, the statement said.

The first aid recipients are likely to include the Philippines and Bangladesh, a government source involved in the talks told Reuters.

Japan is considering providing radars to the Philippines to help monitor Chinese activity in the contested South China Sea, and is also considering Fiji and Malaysia as potential aid recipients, the Yomiuri newspaper reported on Monday.

According to the State Department, in principle only developing countries will be eligible for aid if it is provided as grants.

The decision to expand the scope of international aid to military projects follows Japan’s announcement in December of a military buildup that will double defense spending within five years as it seeks to counter China’s growing military power in Asia.

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