Posted on: Friday, 24 March 2006, 06:36 CSTBy Linda Sieg
TOKYO (Reuters) - Talks aimed at wrapping up a plan to reorganize the U.S. military in Japan ended without a deal on Friday and negotiators will meet in Washington next week to try to close the gaps by an end-of-March deadline, a U.S. source said.
Japan's foreign minister said the two sides were divided over how much Tokyo should pay toward moving 8,000 U.S. Marines to Guam from the island of Okinawa, a key part of a broader plan to reorganise the more than 50,000 U.S. military personnel in Japan.
"These are negotiations ... so it's natural that there is quite a gap," Foreign Minister Taro Aso told reporters.
Washington has proposed that Tokyo pay 75 percent of the estimated $10 billion it will cost to move the Marines to Guam, while Japan wants to reduce the bill and provide at least some of the funds in the form of loans because of its huge public debt.
On Friday, Japan presented an offer to provide $2.5 billion in loans to pay for the construction of housing for the families of U.S. military personnel, Kyodo news agency said.
Squabbling over the funding and opposition from Japanese communities worried about noise, crime and accidents associated with the U.S. bases have delayed finalizing details of the deal, which was agreed last October.
The March deadline was self-imposed but an extended delay could frustrate Washington, which is trying to transform its military globally into a more flexible force.
Talks earlier this week between Japanese defense officials and the mayor of Nago City on Okinawa failed to patch up domestic differences over the proposed relocation of the U.S. Marines' Futenma air base from a crowded part of the island to an area straddling another base and the Nago coast.
OKINAWA HURDLE
The Futenma relocation is a core element of the broader plan and a prerequisite for shifting the Marines to Guam.
"We want them (negotiators) to make efforts to reach an agreement by the end of March," Chief Cabinet Secretary Shinzo Abe told a news conference earlier in the day.
"On the other hand, we must explain sincerely to the local people," Abe added, in a sign an agreement might be delayed.
A stated goal of the realignment in Japan is to reduce tensions with communities that host U.S. bases.
Some experts predicted compromises could be found, both to settle the Futenma dilemma and the funding feud.
"I'm quite optimistic," said one Japanese military expert.
"The main reason is that politicians like (Defense Minister Fukushiro) Nukaga and (Prime Minister Junichiro) Koizumi are so determined to finish the job."
Resentment of the U.S. military presence runs especially deep in Okinawa, one of Japan's poorest prefectures and host to about half the U.S. military presence in Japan. The 1995 rape of a Japanese schoolgirl by three U.S. servicemen prompted huge demonstrations there and calls for the removal of the U.S. bases.
On Friday, an American employee of the U.S. Kadena Air Base on Okinawa was sentenced to nine years in prison for raping two women, a spokesman for the Naha District Court said.
Media reports described the man, Dag Thompson, 36, as an ex-Marine who had sold cars at the base and was arrested in 2004. U.S. military officials could not immediately comment.



