Mr. & Mrs. Chairpersons,

I would like to begin my statement by expressing my sincere gratitude to the World Bank and the European Commission for their excellent preparations in hosting this conference.

First of all, I should stress that my government also applauds yesterday’s transfer of the former President of Yugoslavia Mr. Slobodan Milosevic to the International Criminal Tribunal for the Former Yugoslavia (ICTY). Japan highly values this event as a firm commitment of the Yugoslav authorities to respect United Nations resolutions as well as to implement their co-operation with the international community.

As a member of the international community which is willing to show responsibility to the stability and development of the rest of the world, as well as a member of the G8, we have closely following with concern situation in Southeastern Europe including Former Yugoslavia, and in the process, we extended more than 1 billion US dollars to the region in the last 10 years in support of democratization and economic reforms.

Japan welcomes that Yugoslavia, once the most destabilising factor in Southeastern Europe, has been promoting democratic reform since October last year, and has taken steps on its co-operation with the international community under the new regime led by President Kostunica. My government expects that Yugoslavia will play a constructive role for stability and prosperity of the region as a whole.

Mr. & Mrs. Chairpersons,

The Government of Japan has a positive view on and gives its support to Yugoslavia’s efforts for democratization, economic reform and reintegration to the international community since its democratic reform last October. Japan’s strong support to the current Yugoslav government is reflected by Japanese emergency assistance worth of 10 million US dollars to Yugoslavia in last December and official visit of Yugoslav Foreign Minister Mr. Goran Svilanovic to Japan in February this year.

On that occasion our expectations to Yugoslavia were conveyed by the then Foreign Minister Mr. Yohei Kono to Mr. Svilanovic, and since then we have noted a number of concrete developments have taken place.

Firstly, co-operation with international financial organizations and internal economic reforms are greatly developed. Yugoslavia joined major international financial organizations such as World Bank, IMF and EBRD. Also, stand-by arrangement of IMF was approved for Yugoslavia in the middle of this month.

Secondly, as for relations with neighbouring countries, Yugoslavia improved its relations with countries like Croatia, Bosnia and Herzegovina and Albania, including newly establishment of diplomatic relations.

Thirdly, on Kosovo issues, a constructive movement has taken place , such as the establishment of UNMIK office in Belgrade. I hope that Yugoslav authorities will continue to cooperate with UNMIK. Also, I appreciate that Yugoslavia is coping with terrorist acts in restrained manner.

Fourthly, concerning the issues on Southern Serbia, I highly appreciate that Yugoslav authorities have taken restrained measures and intended to solve problems through political dialogues. Japan pays attention to the activities of multi-ethnic police structure in the region.

Finally, on the issue of ethnic Albanian detainees, I appreciate the fact that Serbia released 145 detainees in late April, which contributes to the confidence-building among different ethnic groups.

Mr. and Mrs. Chairpersons,

Considering those positive developments, Japan dispatched a survey mission to Yugoslavia in May to design our plan of assistance for further advancement of reforms by Yugoslav government. Following a consideration of the assistance plan based on the mission’s survey, Japan decided to assist Yugoslavia based on the following policies;

Firstly, Japan supports self-efforts by Yugoslavia towards economic reconstruction. Yugoslavia was internationally isolated under Milosevic’s regime in past 10 years and experienced heavy economic exhaustion. Yugoslavia still faces difficult situations, such as the existence of more than 880,000 refugees and displaced persons, decrepit infrastructure, high unemployment rate, and so on. Although reconstruction of such exhausted economy is not an easy task, Japan will support efforts by Yugoslav people to reconstruct economy and develop democracy and market oriented economy in Yugoslavia.

Secondly, Japan supports stability and prosperity of Yugoslavia as an important element to realize stability and prosperity of the Southeastern Europe as a whole. I strongly expect that Yugoslavia, a country that has potentiality to play a core role in Southeastern Europe, will contribute to stabilization of the whole region as a peaceful and stabilizing factor.

Japan will take advantage of its experience and know-how from previous Japanese assistance to Southeastern Europe in order to support Yugoslavia.

Considering those matters, Japan decided to extend an assistance package to Yugoslavia.

Firstly, Japan will provide grant aid up to 50 million US dollars in such areas as electricity, public transportation, health and medical treatment, urban environment, agriculture and social welfare in order to support rehabilitation and reconstruction of life and economic infrastructure of people in Yugoslavia.

Secondly, Japan will extend technical assistance by accepting around 20 trainees from Yugoslavia in order to carry out the above-mentioned grant aid effectively.

Considering heavy economic burden on the Yugoslav government caused by refugees and displaced persons, Japan has also decided to contribute additonal 10 million US dollars through UNHCR for this year, earmarked to humanitarian assistance in Yugoslavia and the Southeastern Europe as a whole.

In addition to financial assistance I mentioned, Japan attaches importance to private sector exchanges. In this view, an economic mission of major Japanese enterprises will pay one-week visit to Yugoslavia from July 2.

Mr. & Mrs. Chairpersons,

Finally, let me reiterate that those Japanese assistance is in response to the actions taken by the Yugoslav government which has made its own efforts to advance internal reforms as well as to resolve regional problems. We continue to urge Yugoslavia to respect United Nations resolutions and to promote its co-operation with the international community, the ICTY in particular. We will implement our assistance, taking this into consideration. We strongly hope that Yugoslavia continues to make efforts in this direction and contributes to the stability of the region.

Thank you, Mr. & Mrs Chairpersons.