December 1, 2023

H.E. Fumio Kishida, Prime Minister
H.E. Yoko Kamikawa, Minister for Foreign Affairs
H.E. Shunichi Suzuki, Minister of Finance
H.E. Tetsuo Saito, Minister of Land, Infrastructure, Transport and Tourism

Statement calling on the Japanese government to stop ODA andpublicly-funded projects benefiting the Myanmar military
ayus:Network of Buddhists Volunteers on International Cooperation
Friends of the Earth Japan
Japan International Volunteer Center (JVC)
Network Against Japan Arms Trade (NAJAT)
Mekong Watch
Progressive Voice

More than two years and ten months have passed since the failed coup by the Myanmar
military. The military continues to commit serious human rights abuses amounting to war
crimes and crimes against humanity. At least 4,192 people including pro-democracy activists
and civilians have been confirmed killed by the military as of November 21, 2023.1 Among
those protesting the attempted seizure of power by force by the military, a total of 25,425
people have been arrested. Across Myanmar, 2 million people are estimated to be internallydisplaced as of November 10, including 1.7 million currently displaced by clashes and insecurity
since the coup.2
By 2020, the Japanese government provided JPY 356.518 billion in total in grant aid as well as
JPY 109.94 billion in total in technical assistance to Myanmar, and promised JPY 1,378.47 billion
in loan aid (figure based on loan agreements). 3 After the failed coup, then Foreign Minister
Motegi made the following statement regarding these Official Development Assistance (ODA)
to Myanmar on May 21, 2021: “If the situation continues in this way, it is possible that we will
be compelled to review ODA and that companies may become unable to provide investment
even if they want to.” However, since then, despite the worsening human rights crisis in
Myanmar, the Ministry of Foreign Affairs and the Minister of Foreign Affairs have simply
repeated that it would “comprehensively consider what measures may be effective while
viewing the situation of the efforts made by Japan and the international community”.4 No
1Assistance Association for Political Prisoners, "Daily Briefing in Relation to the Military Coup," November 20, 2023.
https://aappb.org/?p=26765
2
Myanmar Humanitarian Update No.34 (November 10, 2023) :https://reliefweb.int/report/myanmar/myanmar-humanitarian-update-no-34-10-november-2023
3
Ministry of Foreign Affairs webpage on ODA data by country (2021) :https://www.mofa.go.jp/mofaj/gaiko/oda/files/100384974.pdf#page=30
4Answer by HARA Keiichi, Deputy Assistant Minister of the Ministry of Foreign Affairs, to a question from SUZUKI
Takako of the Liberal Democratic Party at a meeting of the Foreign Affairs Committee of the House ofRepresentatives (April 14, 2021); Answer by the Ministry of Foreign Affairs at a meeting of the Parliamentary Group
Supporting Democratization in Myanmar and the Parliamentary Group Promoting "Human Rights Diplomacy" oncontract has been signed on new ODA, but no official announcement has been made as towhether any review or assessment has been conducted regarding the existing ODA.
A large part of ODA to Myanmar is loan aid (yen loans) for development of a special economic
zone and surrounding infrastructure, construction of roads, and repairing railroads. The
Ministry of Foreign Affairs has stated in the Diet that 34 loan aid projects totaling JPY 739.6
billion based on figures in loan agreements are being implemented currently,5 making it clearthat these projects have continued even after the failed coup.
Besides ODA, the Japanese government provides public funds for private projects in Myanmar.
Redevelopment of the Defense Services Museum Project (commonly known as the “Y Complex
Project”) involves building and operating a large-scale real estate complex at the army-ownedsite of the former military museum in Yangon, the largest city in Myanmar. Japan Overseas
Infrastructure Investment Corporation for Transport and Urban Development (JOIN), a
government-funded infrastructure investment corporation under the Ministry of Land,
Infrastructure, Transport and Tourism, and Japan Bank for International Cooperation (JBIC)
which is Japan’s public export credit agency, invests or lends to the Y Complex Project. Tokyo
Tatemono, Fujita Corporation (a subsidiary of Daiwa House Industry), and JOIN set up a Joint
Special Purpose Company (J-SPC) in Singapore. JBIC along with Sumitomo Mitsui Banking
Corporation and Mizuho Bank co-financed a loan to this J-SPC, and the J-SPC in turn is
co-investing in Y Complex Company Ltd., a Myanmar corporation set up jointly by the J-SPC andYangon Technical and Trading Company Limited (YTT), a Myanmar crony company. The landlease agreement is between YTT and "Colonel Aung Min Thein (Officer No. Army 17642), Vice
Quarter Master General, Office of the Quarter Master General, Commander-in-Chief (Army).”Land lease payments are to be made to "Defence Account no. MD 010424,” an account likely to
be under control of the Office of the Quartermaster General.6

The US, UK and Canada imposed sanctions on the Office of the Quartermaster General on
December 10, 2021.7 Further, on June 21, 2023, the US designated Myanmar's Ministry ofJapan's ODA and OOF programs and economic activities in Myanmar (February 1, 2022); Answer by HAYASHI
Yoshimasa, Minister for Foreign Affairs, to a question from INOUE Satoshi of the Japanese Communist Party at a
meeting of the Committee on Foreign Affairs and Defense of the House of Councillors (March 16, 2022); Answer by
MIBAE Taisuke, Deputy Assistant Minister of the Ministry of Foreign Affairs, to a question from TOKUNAGA Hisashi of
the Constitutional Democratic Party of Japan at a meeting of the Committee on National Security of the House ofRepresentatives (April 26, 2022); Answer by Mr. Kurimoto, Director of the Country Assistance Planning Division I,
International Cooperation Bureau, Ministry of Foreign Affairs, to a question from Mekong Watch at the ODA Policy
Council meeting held on July 20, 2022 as part of the NGO-Ministry of Foreign Affairs Regular Consultation Meetings.
5
Answer by UENO Atsushi, Director-General for International Cooperation of the Ministry of Foreign Affairs, to aquestion from INOUE Satoshi of the Japanese Communist Party at a meeting of the Committee on Foreign Affairs
and Defense of the House of Councillors (April 15, 2021).
6
Mekong Watch, et al., "Call for Engagement with Companies Involved in the Y Complex Project in Myanmar," May24, 2022 :http://www.mekongwatch.org/report/burma/mbusiness/20220524Letter_Eng.pdf
7
US Department of the Treasury, "Treasury Sanctions Perpetrators of Serious Human Rights Abuse on International
Human Rights Day," December 10, 2021: https://home.treasury.gov/news/press-releases/jy0526;
Foreign, Commonwealth & Development Office, "New UK sanctions target human rights violations and abuses in
Myanmar and Pakistan," December 10, 2021:
https://www.gov.uk/government/news/new-uk-sanctions-target-human-rights-violations-and-abuses-in-myanmar-a
nd-pakistan;
Global Affairs Canada, "Backgrounder: Additional Myanmar sanctions," December 10, 2021:
https://www.canada.ca/en/global-affairs/news/2021/12/backgrounder-additional-myanmar-sanctions.html

Defence as a “Specially Designated National” subject to financial sanctions, noting that the
Ministry was “responsible for the command and control of the armed forces, which has
conducted decades of repressive military rule that was violently resumed following the coup in
2021.”8
Following are some of the issues that that the continuation of the provision of public funds andODA could entail:First, by continuing ODA which requires bilateral agreements even though one of the parties tothose agreements has ceased to exist due to the coup in February 2021, and by providing
public funds to the Y Complex Project, a venture that allows funds to flow to the Office of theQuartermaster General, it appears that the Japanese government is giving implicit support tothe military junta. We share the concern of Myanmar citizens regarding this point.9
Second, ODA projects and projects receiving public funds in fact benefit the Myanmar military.
It has been made clear by the UN Independent International Fact-Finding Mission on Myanmarthat in Myanmar, revenues from business operations conducted by companies owned orcontrolled by the military are a source of funds for the military, supporting their atrocities.10
The UK government has pointed out that the Office of the Quartermaster General which is
involved in the Y Complex Project "plays a crucial role in procuring equipment for the Myanmar
Armed Forces, including ammunition, bombs and jet fuel.11” It has been revealed that the
Myanmar Economic Corporation (MEC), one of the military enterprises that the Fact-Finding
Mission recommended to the international community not to "enter into or remain in abusiness relationship” with, is involved in the construction of Bago Bridge, a yen loan project.12
It has been pointed out that Yokogawa Bridge Corporation made payments to MEC from July to
November 2022.13 Further, in the Thilawa Special Economic Zone (SEZ) Development Project,
the Japanese government along with major trade companies and banks is investing in the
Myanmar Japan Thilawa Development Ltd. (MJTD) which operates the industrial area using“Private Sector Investment Finance,” a type of ODA. Myanmar established the Thilawa SEZ
Management Committee and holds 10% of MJTD. Soon after the coup, the military detained
the chairperson of the Management Committee and appointed a new chairperson. Dividend
payments are to be made if MJTD makes a profit, but under these circumstances, thepossibility cannot be denied that such dividend payments will benefit the military.

8

US Department of the Treasury, "Treasury Sanctions Burma’s Ministry of Defense and Regime-Controlled Financial
Institutions," June 21, 2023: https://home.treasury.gov/news/press-releases/jy1555
9Progressive Voice, “Japan and Junta Make Dangerous Bedfellows” (Weekly Highlights July 11-17, 2022):
https://progressivevoicemyanmar.org/2022/07/26/japan-and-junta-make-dangerous-bedfellows/
10
UN Independent International Fact-finding Mission on Myanmar, Economic interests of the Myanmar military(September 16, 2019)https://www.ohchr.org/EN/HRBodies/HRC/MyanmarFFM/Pages/EconomicInterestsMyanmarMilitary.aspx
11
Foreign, Commonwealth & Development Office, "New UK sanctions target human rights violations and abuses in
Myanmar and Pakistan," December 10, 2021:
https://www.gov.uk/government/news/new-uk-sanctions-target-human-rights-violations-and-abuses-in-myanmar-a
nd-pakistan
12
Myanmar Now, "Japan must abandon project with military-owned company to build bridge in Yangon, sayengineers" (March 26, 2021):
https://www.myanmar-now.org/en/news/japan-must-abandon-project-with-military-owned-company-to-build-brid
ge-in-yangon-say-engineers
13
Human Rights Watch, "Myanmar: Japan’s Construction Aid Benefits Junta," January 23, 2023:
https://www.hrw.org/news/2023/01/23/myanmar-japans-construction-aid-benefits-junta

Third, in the type of ODA called “Two-Step Loans” under which ODA funds lent by the Japanese
government are held and managed by financial institutions in Myanmar, there is concern thatthe funds may come to be managed by the military through its control over the financial
institutions. Projects in question include the Housing Finance Development Project, Project for
the Development of Finance for Small and Medium-sized Enterprises, and the Agriculture andRural Development Two Step Loan Project.
Fourth, funds provided through yen loans are money lent at interest that Myanmar needs torepay, which will increase the debt owed by the people of Myanmar. Japan had already lent acumulative total of USD 2761.8 million to Myanmar by 2020,14but Myanmar will owe an
additional JPY 739.6 billion (USD 4.93 billion as of November 10, 2023). This means that thepeople of Myanmar who are suffering from serious human rights abuses and atrocities by the
Myanmar military will be made to bear the burden of repaying ODA for the next decades that isor may well be a source of funds for the military.
As we expressed in our statement in December 2022, we believe that the Japanese
government should respect the National Unity Government (NUG), Ethnic Revolutionary
Organizations (EROs) and civil society organizations in Myanmar and effectively support the willof the people of Myanmar.15 We express deep concern that Japan may be complicit in theatrocity crimes by the military by providing ODA and public funds to the benefit of the military.
We strongly demand that the Japanese government suspend all yen loan projects currently
being implemented. Regarding the Y Complex Project, we strongly demand that the Ministry ofLand, Infrastructure, Transport and Tourism immediately withdraw the investment made by
JOIN, and that the Ministry of Finance immediately cancel the loan made by JBIC.

Statement has been endorsed by the following organizations:
1
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7
8
9
10
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12
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14
15
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17
14

Action Committee for Democracy Development (Coalition of 14 Grassroots Networks)
Active Youths Kalaymyo
Africa Japan Forum
Ah Nah Podcast - Conversations with Myanmar
All Arakan Students' & Youths' Congress – AASYCAll Burma Indigenous People Alliance (ABIPA)
Alternative People's Linkage in Asia
ALTSEAN-Burma
ASEAN Parliamentarians for Human Rights
Asian Community Center 21
Asian Forum for Human Rights and Development (FORUM-ASIA)
Asian Health Institute, AHI
Assistance Association for Political Prisoners
Association of Human Rights Defenders and Promoters
Association Suisse-Birmanie (ASB)
Associazione per l'Amicizia Italia Birmania "Giuseppe Malpeli"
Athan – Freedom of Expression Activist Organization

Ministry of Foreign Affairs record of development assistance by country:
https://www.mofa.go.jp/mofaj/gaiko/oda/shiryo/jisseki/kuni/asia.html
15
Mekong Watch, et al., "Statement Calling for the Japanese Government to Stop ODA to Myanmar," December 5,2022: http://www.mekongwatch.org/PDF/rq_20221205_Eng.pdf

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Burma Action Ireland
Burma Campaign UK
Burma Human Rights Network
Burmese Relief Center Japan
Burmese Women’s Union
CRPH & NUG Supporters Ireland
CRPH Funding Ireland
CRPH, NUG Support Team Germany-Deutschland
Democracy, Peace and Women’s Organization
Earth Tree
Educational Initiatives Prague
Equality Myanmar
Federation of Workers’ Union of the Burmese Citizen in Japan (FWUBC)
Freedom and Labor Action Group (FLAG)
Fukuoka NGO forum on ADB
Future Light Center
Future Thanlwin
General Incorporation Association WORKSPACE ASIA
Generation Wave
Grass-root People
HANDS（Health and Development Service)
Human Rights Educators Network
Human Rights Foundation of Monland (HURFOM)
Human Rights Now
Info Birmanie
Initiatives for International Dialogue (IID)
International Association, Myanmar-Switzerland (IAMS)
International Karen Organisation
Japan Campaign to Ban Landmines (JCBL)
Japan Catholic Council for Justice and Peace
Japan Center for a Sustainable Environment and Society (JACSES)
Japan Overseas Christian Medical Cooperative Service
Japan Tropical Forest Action Network (JATAN)
Justice For Myanmar
Karen Human Rights Group
Karen Peace Support Network
Karen Swedish Community (KSC)
Karenni Human Rights Group
Karenni National Women's Organization
Keng Tung YouthMandalay Regional Youth Association Revolution Core Group
Metta Campaign
Myanmar Campaign Network
Myanmar Diaspora Group Finland
Myanmar International Assistance Organization
Myanmar News Now
Myanmar People Alliance (Shan State)
Myanmar Refugee Policy Group
Network for Human Rights Documentation - Burma (ND-Burma)
Nway Oo Guru Lay Myar
Padauk Finland-Myanmar Association

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Pakokku Youth Development Council
70
Peace Boat
71
Peace Village United
72
Political Prisoners Network73
Progressive Voice74
Save and Care Organization for Women at Border Areas
75
Services for the Health in Asian and African Regions
76
Shan MATA
77
Southern Youth Development Organization
78
Ta'ang Legal Aid
79
Ta’ang Women’s Organization
80
Tanintharyi MATA
81
The Ladies
82
U.S. Campaign for Burma
83
Women's Democratic Club, Femin
84
Yokohama NGO Networkand one other organization.

Contact:
Mekong Watch
3F Aoki Bldg., Taito 1-12-11, Taito-ku, Tokyo
110-0016 Japan
Phone: +81-3-3832-5034
E-mail: info@mekongwatch.org