Japan's Yen Loan's Loss of Political Power

The Nikkei Shimbun ("MYANMAR JUNTA NOT TO USE JAPAN'S YEN LOAN IN AIRPORT CONSTRUCTION," 1, Yangong, 2/7/97) reported that the Myanmar junta decided not to use Japan's yen loan in extensive construction of international airports, construction of which has been postponed since 1988. Myanmar Transportation Minister Tin Win told the Nikkei Shimbun that the reasons for the decision include Japan's freezing of the loan because of Myanmar's human rights problem and PRC's and Southeast Asian countries' possible financial aid to Myanmar. Myanmar will restart the construction on its own within this month. However, some ASEAN countries may resume the construction, which was begun by a Japanese construction company, according to the report. The PRC and Thailand also already provided financial aid for Myanmar in construction of a seaport or airport. The report pointed out that Myanmar's decision indicates the declining authority of Japan's "aid diplomacy," which has long been Japan's diplomatic card, with the economic growth of other Asian countries.