widening gaps in the region and within each Latin American country. In order to narrow the gaps, reduce poverty, and realize stable growth of the regional economy, it is necessary to improve basic living conditions such as education and health and medical care because they are the basis for solving those challenges. Latin America is a region that has diverse and serious environmental and social problems such as destruction of tropical rain forests, environmental deterioration in big cities, and expansion of slums due to concentration of population in cities.

Japan has given Latin America assistance designed to contribute to the solution of the above-mentioned problems, taking into consideration that there are many Japanese immigrants and Japanese descendants in the region who have traditionally played a role as a bridge between Japan and Latin America and that the economic connection between Japan and the region has been strengthened as a result of the rapid economic growth of the region in recent years.

Japan has also provided the region with technical cooperation and financial assistance for environmental protection. For example, Japan has given the region technical cooperation in preparing plans for water quality improvement and other projects. To countries where people's income levels are relatively high, Japan has provided Yen loan projects related to the environment. Furthermore, to Guatemala, Nicaragua, Honduras and others, Japan has given grant aid for improving housing for low-income groups, water supply systems, and other basic housing conditions. Moreover, Japan gave technical cooperation to Mexico and Chile by implementing "The National Center for Environmental Research and Training (CENICA)" in Mexico and "The National Center for Environment (CENMA)" in Chile.

In consideration of regional unification, Japan needs to give effective assistance to Caribbean countries which have formed CARICOM, and Latin American countries, which have been studying the possibility of further unification since the formation of MERCOSUR. Japan will make efforts to give comprehensive assistance to Latin American countries and Caribbean countries and also to strengthen relationships with those countries by making the most of the Japan-Central America Forum, which holds an annual meeting, and by taking action within the New Framework for Japan-CARICOM Cooperation for the 21st Century, $ ^{30} $ which was adopted at the CARICOM-Japan Ministerial Level Meeting held in November 2000.

Moreover, Japan has actively given assistance to the region for projects that have positive effects on the environment of large areas, contribute to the region as a whole, and support post-disaster restoration. For example, Japan provided Chile with technical assistance for environmental protection by offering "Project for Strengthening Institutional Capacity of Mining Environmental Management (technical cooperation project)" and other support. The project is aimed at transferring technologies necessary for the management of information on mines and also for the closing of mines to Chile, which needs to take measures to prevent mining pollution caused by the closing or suspension of mines. The projects that contribute to the region as a whole include the "Technical Cooperation Project" and other support.

Water tower build by grant aid from Japan (Phase II Project for Groundwater Development in Rural Area in Bolivia)