The Yomiuri Shimbun
The minor cuts agreed by Japan and the United States in the so-called sympathy budget allocations that Japan pays toward the cost of utilities used by U.S. military forces stationed in the country can be seen as a result of Japanese compromise.
Japan went into the Special Measures Agreement talks with the objective of beginning a process that would eventually cut Japan's support for these utility costs to zero.
The amount allocated to utility charges will be 25.3 billion yen in fiscal 2008--the same as this fiscal year--with cuts of 400 million yen, or 1.5 percent, in fiscal 2009 and 2010.
"[The settlement] is extremely beneficial from the point of view of reinforcing the Japan-U.S. alliance," Foreign Minister Masahiko Komura told reporters Wednesday following a meeting with U.S. Ambassador to Japan Thomas Schieffer.
A senior Defense Ministry official said, however, that during negotiations "some exchanges were akin to a shouting match."
The fiscal 2007 sympathy budget--combining the Special Measures Agreement and the Japan-U.S. Status of Forces Agreement--was 217.3 billion yen.
Japan's 74.5 percent burden in fiscal 2007 is much more than in other countries where U.S. military forces are stationed--South Korea pays 40 percent of costs and Germany just 32.6 percent.
"The Americans lack an awareness of the [utility] costs," said a Liberal Democratic Party lawmaker with connections to the defense industry.
Tokyo had initially proposed in the negotiations that the 25.3 billion yen Japan paid in fiscal 2007 for utilities be reduced by 5 billion yen a year over the next five years to whittle it down to zero finally, according to government sources.
However, negotiations proved tough, as the United States, citing reasons such as the additional cost of sending further troops to Iraq and the increased militarization of China, strongly demanded that Japan increase the amount it contributes.
The United States eventually accepted Tokyo's demand that a minor cut was needed in order to retain Japanese public support for the payments.
While the settlement is still financially unsatisfactory for Japan, it is a step forward in terms of the system.
Until now, Japan has agreed to cover the cost of a specified maximum amount of electricity, gas and water.
Under the new agreement, Japan's total burden will be a fixed sum decided in advance.
"The United States will pay any costs in excess of the fixed sum," a senior Defense Ministry official said. "[This change] will have the effect of making the United States aware of the costs involved."
A senior Foreign Ministry official said the settlement would have a "cost reduction effect of 1.5 percent or more" as Japan would no longer face higher bills if energy prices rise.
(Dec. 14, 2007)
Posts
