(3) Japan will provide support for the alleviation of poverty by assisting basic education programs, health and medical services, agriculture and rural development, and the development of a basic infrastructure for the reduction of regional disparities.

(4) In relatively low-income countries, Japan will provide support for the development of the social and economic infrastructure in order to revitalize the private sector and promote overseas investment.

(5) Japan will promote regional cooperation, including human resources development and technology transfer which targets two or more countries.

### 7. Oceania

Japan enjoys close ties with the Pacific island countries and depends on these countries for supplies of marine and forestry products. Because of their extremely small national scales and their marked dependence on primary products, these countries are particularly vulnerable to natural disasters, fluctuations in the international prices of primary products and other external factors. Development is further hampered by other factors, such as the dispersion of landmass over large areas, the limited scale of domestic markets and the distance from international markets. The provision of adequate health care services also poses a difficult challenge. On the other hand, the vast area of exclusive economic waters held by these island nations establishes them as promising sources of marine products and underwater mineral resources.

The countries of the region share an awareness of the need to achieve economic self-reliance through economic reform and private-sector development and are involved in reforming their fiscal and administrative systems.

In light of the above, Japan will provide assistance and support while emphasizing the following points.

(1) Japan will provide support for social and economic infrastructure development (including health care services) to provide a foundation for social and economic activities and to overcome such island-nation problems as dispersion and geographic isolation.

(2) Japan will provide support for economic structural reform.

(3) Japan will provide support for human resources development for developing the private sector.

(4) Japan will provide support for environmental conservation.

(5) Japan will promote regional cooperation, including the use of remote education for human resources development and technology transfer which targets two or more countries in the region.

### 8. Europe

Many of the former Soviet-bloc countries of Central and Eastern Europe are currently in the process of transforming to market economies, and it is necessary to support the efforts of these countries. The achievement and maintenance of peace through post-conflict restoration and reconstruction, such as in the former-Yugoslav region, constitutes an international challenge to which Japan will provide its share of assistance.

In light of the above, Japan will provide assistance and support while emphasizing the following points.

(1) Japan will provide support for the transition to a market economy, for environmental conservation, and for infrastructure restoration and development.

(2) Japan will provide humanitarian aid to refugees, economic and social infrastructure development for the promotion of restoration and reconstruction, assistance in the area of basic human needs, and support for the implementation of elections in the former-Yugoslav region and neighboring countries.

### I V. Methods of Aid

Implementation of ODA calls for collaboration and coordination among government ministries and agencies, as well as the active utilization of the experience and know-how of the private sector, NGOs, local governments, labor and management groups, and other entities. Likewise, active measures will be taken to promote cooperation and collaboration with other donor countries and international organizations. Furthermore, active support must be given to encouraging and expanding South-South cooperation.

1. Coordination of ODA Programs within the Japanese Government, among Implementing Agencies and with Various Schemes for Aid

- A more effective and efficient system for collaboration and coordination covering the entire government will be created by promoting the sharing of information and a better mutual understanding among government ministries and agencies involved in ODA, through upgrading the level of communications (e.g. the improvement of liaison meetings) among government offices.

-The advantages of the various forms of financial and technical cooperation will be optimally utilized while promoting organic interaction among them. In this process, grassroots grant aid deserves special attention as a form of