training programs in various areas. Regarding loan aid, Japan decided to spend approximately US$3.28 billion in total on 15 projects by the end of FY2009. Japan continues to perform detailed implementation promotion support to ensure the steady progress of the cooperation projects that are currently being implemented. Iraq and other aid agencies must aim for even closer cooperation in order to ensure that Japanese assistance is effectively incorporated into the medium-term reconstruction and development strategies for Iraq.

Furthermore, in order to address Iraq’s debt

## (3) Palestine

The Palestine issue is the core of the Arab-Israeli conflict which has persisted for more than half a century. The issue of Middle East peace in particular is one that has a significant impact on the stability and prosperity of the international community as a whole, including Japan. On top of which, preparations for the social and economic development and nation building of the Palestinian Autonomous Areas are indispensable when it comes to advancing the current Middle East peace process, which strives for peaceful coexistence between the two nations. Since the initiation of the Palestinian Interim Self-Government Authority via the Oslo Accords in 1993, Japan and the other members of the international community have been actively deploying

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In light of the perspective of “peacebuilding,” which is one of the priority issues in the ODA Charter, Japan regards assistance for Palestine as a crucial pillar of measures contributing to Middle East peace. In order to stabilize the civil life of the Palestinians and support the realization of a future Palestinian state, Japan has provided assistance to Palestine of more than approximately US$1 billion in total since 1993. The total amount of assistance makes Japan one of its major donors after others like the European Union (EU) and problems, an agreement was reached in 2004 at the Paris Club that 80% of Iraq’s total Paris Club debt of US$37.2 billion be reduced over three stages. Based on this agreement, an Exchange of Notes took place in November 2005 between Japan and Iraq, which would reduce Iraq’s total debt owed to Japan of approximately US$7.6 billion (Japan is the number one creditor nation to Iraq) by 80% in total over the three stages. Then, the debt reduction was completed for a total of approximately US$6.7 billion with the final reduction in December 2008.

assistance to Palestine.

The people of the Palestinian Autonomous Areas continue to harbor immense dissatisfaction and antipathy toward their occupation by Israel. On the economic front, the region has come to be largely dependent on the Israeli economy and international assistance due to the occupation, which has lasted for many years. It is currently striving to break free of this state of dependency. Hereafter, making the Palestinian economy independent serves as the most important challenge for the sake of setting in place an environment in which Palestine can negotiate with Israel on an equal footing with an eye toward true peace.

the United States.

What is more, since July 2006 Japan has been advocating the Corridor for Peace and Prosperity concept as its own unique medium to long-term initiative for future co-existence and co-prosperity between Israel and Palestine. The concept advances the economic development of the Jordan Valley through intraregional cooperation by the four parties of Japan, Israel, Palestine, and Jordan. Japan is currently moving forward with an initiative to construct an agro-industrial park on