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On Tuesday a formal decision was taken by the Japanese government to end its freeze on the annual disbursement of aid loans to China for the fiscal year 2005 through March, Kyodo News Service reports.

 

The ruling was agreed upon by a top decision-making panel on foreign aid strategy comprising Prime Minister Junichiro Koizumi, Foreign Minister Taro Aso and other Cabinet ministers, Kyodo reports. .

 

Local media said the move was apparently aimed at giving a boost to repairing soured bilateral ties.

 

Chief Cabinet Secretary Shinzo Abe announced today that Japan will provide China with a low-interest loan of 74 billion yen (US$659.3 million) for fiscal year 2005 -- a reduction  of around 10 billion yen over the last fiscal year.

 

(Xinhua News Agency June 6, 2006)