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(Provisional Translation)

Japan's Assistance for the Reconstruction of Iraq

October 15, 2003
Government of Japan

The reconstruction of Iraq is an extremely important challenge that the international community faces today. The situation in Iraq had deteriorated during a quarter century of Saddam Hussein's rule. The reconstruction of Iraq, as a peaceful and democratic country, preserving the integrity of its sovereignty and its territory, is extremely important for the people of Iraq, as well as for the peace and stability of the region and the international community as a whole. This is of direct concern to the national interest of Japan, which depends on the Middle East for almost 90% of its oil import.
In order to overcome the current difficulties, it is necessary to provide the Iraqi people with a concrete vision as well as hope for their future. In doing so, it is important for the members of the international community to join efforts to assist the reconstruction of Iraq. The UN has been calling on its members to assist the Iraqi people through its Security Council resolutions. The GOJ has been appealing to the members of the international community to develop a broad-based international solidarity for the reconstruction of Iraq.
The International Conference on Reconstruction in Iraq will be convened on 23rd - 24th October in Madrid. Japan had previously announced a contribution of up to $ 100 million, of which $ 86 million had already been committed or disbursed. Having examined the outcome of the recent needs assessment conducted by such organizations as the World Bank and the UN, the GOJ has decided, on its own initiative, to provide the following assistance including the assistance which the GOJ has already declared.
-The GOJ will provide grant assistance totaling US $1.5 billion for the immediate reconstruction needs of Iraq.
-In doing so, the GOJ will give priority to areas related to the revitalization of the bases of living conditions of the Iraqi people, including (i) power generation, (ii) education, (iii) water and sanitation, (iv) health, and (v) employment, as well as those related to the improvement of the security situation in Iraq.
The GOJ will provide the assistance under the condition that they will be used in an effective and efficient way taking into account the situation in Iraq and the engagement of other members of the international community in the reconstruction of Iraq.
As a concrete step, the GOJ has decided to provide approximately $ 11.6 million through the UNDP to assist the rehabilitation of Hartha Power Plant and Al-Kadhimiya Teaching Hospital, to which Japan had extended loan aid in the past.
In addition, the GOJ intends to provide assistance for the medium-term reconstruction needs of Iraq. This is currently under active consideration with a view to be announced at the International Conference in Madrid.
The GOJ has, despite severe domestic fiscal situation, made this decision bearing in mind the importance of assisting the reconstruction of Iraq. The GOJ will strongly call upon other countries to play a more active role in supporting the reconstruction of Iraq.
The GOJ will continue to work actively to assist the reconstruction of Iraq.