declared for improving efficiency of logistics in the East-West Economic Corridor.

In November 2009, the First Mekong-Japan Summit Meeting between the Heads of the governments of Japan and the Mekong region countries was held, where they shared the recognition of giving priority to the following areas and of establishing a new partnership for the flourishing common future: 1) Comprehensive Development in the Mekong Region, 2) Environment, Climate Change/Overcoming Vulnerability, and 3) Expansion of Cooperation and Exchanges and establishing “A New Partnership for the Common Flourishing Future.” Japan continues the policy to expand its Official Development Assistance (ODA) to CLV countries respectively as well as to the Mekong region as a whole. Japan committed more than ¥500 billion of ODA in the next 3 years for the Mekong region to further flourish.

At the same time, economic partnership agreements (EPA) between Japan and Indonesia, Brunei, Philippines, and the ASEAN as a whole went into effect in 2008. An agreement between Japan and Vietnam also entered into force in October 2009. With these EPAs, Japan has been working to expand trade and investments and enhance wide-ranging economic relations that include the harmonization of economic systems such as intellectual property systems and

## ☑ Relations with China

Since 1979, Japan’s assistance to China has helped the infrastructure development in coastal areas, environmental measures, improvement in the basic human needs sectors including health and medical care, and human resource development, among other efforts that contribute to the steady development of its economy. As such, Japan’s assistance has played a significant role in promoting and sustaining China’s reform and opening policy. Most of the assistance in these areas was provided to China in the form of loan aid. The assistance can be valued as having supported the development of economic relations between Japan and China as well as having functioned as one of the main pillars for the multilayered Japan-China relationship. Regarding this point, the representatives of China, including at the summit-level, have expressed their gratitude on many occasions. In light of China’s recent remarkable economic growth, Japan and China recognized that ODA loans for the country from Japan will come to a harmonious end by the 2008 Beijing Olympics. Therefore, new provision of loan aid was halted with the six Exchanges of Notes in December competition policies. Through these efforts, Japan advances the sharing of basic ASEAN values, including democracy, the rule of law, and a market economy, works to reduce poverty, and supports regional integration by rectifying disparity within the ASEAN region.

In August 2008, Japan provided a Climate Change Program Loan to Indonesia in order to support climate change countermeasures in the country. Projects are also underway in Indonesia for supporting the investment environment, energy-related cooperation, disaster countermeasures, maritime safety in the Straits of Malacca and Singapore, as well as improvement of ports security.

Japan reinforces its collaboration with the Asian Development Bank (ADB) which is engaged in a range of regional cooperation in the Asian region. For instance, in order to support efforts made by developing countries in Asia, Japan has established the “Accelerated Co-Financing scheme with ADB (ACFA),” which enhances cooperation between ADB and the Japan Bank for International Cooperation (JBIC) $ ^{(Note\ 39)} $ , the “Investment Climate Financing Fund (ICFF),” and the “Asian Clean Energy Fund (ACEF),” under the “Enhanced Sustainable Development for Asia (ESDA),” on measures to promote investment and energy efficiency in the region.

2007.

Yet, the people of Japan and China face many common challenges to tackle, including global issues such as environmental issues and infectious diseases that affect Japan directly. During President Hu Jintao’s official visit to Japan in May 2008, in a Joint Statement between the Government of Japan and the Government of the People’s Republic of China regarding the Comprehensive Promotion of a Mutually Beneficial Relationship Based on Common Strategic Interests, the leaders of both countries confirmed that cooperation will be undertaken mainly in the areas of energy and the environment, while a joint declaration was issued relating to climate change. Moreover, increasing the mutual understanding between the people of Japan and China is an important issue from the perspective of facilitating the sound development of Japan-China relations. In light of this situation, grant aid is currently being implemented with its focus narrowed on: (1) areas conducive to resolving common challenges faced by the people of Japan and China such as the environment and infectious diseases, and