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October 23, 2001
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Japan to lift sanctions on India, Pakistan

Japan is set to lift economic sanctions on Pakistan and India as early as this week to show support for Islamabad during US military strikes on Afghanistan, a Japanese daily said on Tuesday.

The Asahi Shimbun said the move was aimed at supporting the government of General Pervez Musharraf as it faces growing domestic opposition to its support of the US-led strikes on its neighbour.

Tokyo will lift sanctions on India at the same time and the decision may be made as early as on Friday, the Asahi added.

Asked about the report, Japan's deputy chief cabinet secretary Shinzo Abe said the government was still considering the issue.

"At the moment we want to consider the issue, taking into account progress on nuclear proliferation as well as bilateral relations," he told reporters.

Japan imposed economic sanctions on India and Pakistan after the two countries carried out nuclear tests in 1998, freezing all new loans and grants, except humanitarian aid.

Foreign Minister Makiko Tanaka also said that no decision had been made.

"We are considering economic measures, taking into account the requests put forth by Musharraf," Tanaka told reporters.

In telephone talks last week, Musharraf asked Japanese Prime Minister Junichiro Koizumi to review the sanctions as well as to cancel $5.0 billion in debt.

Tokyo decided to give $40 million in assistance to Pakistan earlier this month following Islamabad's decision to support the US-led coalition's campaign against terrorism.

Some lawmakers in the dominant Liberal Democratic Party are opposed to lifting the ban saying it runs counter to Japan's policy of seeking nuclear non-proliferation.

But the Asahi quoted a Foreign Ministry official as saying that lifting of the sanctions was necessary for nuclear non-proliferation as there was danger that Pakistan's nuclear weapons may fall into other countries' hands should Musharraf's government collapse.

The Asahi said the government will try to make a decision on Friday after explaining its policy to the LDP, and before former prime minister Yoshiro Mori visits India as Koizumi's envoy and Pakistani Finance Minister Shaukat Aziz visits Tokyo, both expected to take place next week.

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