Weapons of Mass Destruction (WMD)

DATE=10/15/03

TYPE=CORRESPONDENT REPORT

NUMBER=2-308608

TITLE=JAPAN/IRAQ (L-ONLY)

BYLINE=STEVE HERMAN

DATELINE=TOKYO

CONTENT=

VOICED AT:

INTRO: Just two days before a visit to Japan by

President Bush, the government of Prime Minister

Junichiro Koizumi has announced it will immediately

provide one-and-a-half billion dollars in grants to

help rebuild Iraq. Steve Herman reports from Tokyo.

TEXT: The initial amount appears to be less than some

in the Bush administration were hoping to see

committed from their close ally.

A Japanese government spokesman on Wednesday

characterized the one-and-a-half billion dollar

contribution as the first installment of grants for

electricity, education, water and health support to

help rebuild Iraq.

Chief Cabinet Secretary Yasuo Fukuda says future aid is still under consideration, but Japan must take into consideration its own severe domestic financial situation.

///FUKUDA ACT, IN JAPANESE, EST. & FADE UNDER///

Mr. Fukuda told reporters that Japan will also

contribute to the medium-term reconstruction needs of

Iraq. He says further details of the Japanese aid

package are likely to be unveiled at an international

aid conference in Madrid next week. The government

spokesman added that the funds will come out of

government reserves and there will not be a need to

issue bonds to finance the contribution.

Some local media reports have predicted Japan will

commit to a five-billion dollar package over four

years.

Even without the total expected package, Japan's

initial contribution is the largest pledged by any

nation that is not part of the American-led coalition in

Iraq.

U.S. Ambassador to Japan Howard Baker calls the one-and-a-half

billion dollars worth of grants a most welcome

contribution.

///BAKER ACT///

I think it is generous. I think it is appropriate and

I think it will contribute significantly to peace and

stability in the region. And, we, the United States is

very pleased for it.

///END ACT///

The announcement of the first contribution will be

formally conveyed to President Bush on Friday when he

meets here with Prime Minister Koizumi.

A multi-billion dollar contribution for Iraq is likely

to prove unpopular at a time when Japan is trying to

overcome its economic troubles. And there is still the

matter of President Bush's request that Japan send

non-combat troops to Iraq. No decision on that is

expected until after the November 9th Japanese general

election. (SIGNED)

NEB/HK/SH/MEM