Snow, Tanigaki stress importance of postwar reconstruction

WASHINGTON (Kyodo) Finance Minister Sadakazu Tanigaki and U.S. Treasury Secretary John Snow agreed Saturday that both countries will cooperate further in supporting the postwar reconstruction of Iraq and Afghanistan.

During talks held after a two-day meeting of top economic policymakers from the Group of Seven nations, Snow voiced gratitude for Japan's role in pursuing financial aid programs to help rebuild the war-torn countries.

Finance ministers and central bank governors from Britain, Canada, France, Germany, Italy, Japan and the United States called on other nations to join their aid initiatives for Iraq and Afghanistan under the Greater Middle East concept.

"We stand ready to assist Iraq, Afghanistan, and the West Bank and Gaza in their development efforts," the G-7 said in a joint statement. The statement also calls on others to join "in reducing the debt burdens of Iraq and Afghanistan."

Japan has pledged a $ 5 billion aid package for Iraq.

However, the deteriorating security situation in the country has heightened concerns that the implementation of the aid package could be delayed.

"Iraq cannot emerge without a very substantial debt reduction," a senior U.S. Treasury official told reporters.

"The secretary praised Japan for their leadership there and the role they have played."

Tanigaki said he explained to Snow how Japan plans to advance its structural reform program, including Prime Minister Junichiro Koizumi's initiative to privatize the nation's postal services and give local governments more fiscal independence from the central government.

"I went a little bit deeper in discussing structural reform issues," Tanigaki said, adding that he held no substantive discussions on exchange rates in his meeting with Snow.

Tanigaki and Snow also shared the view that the recently ratified Japan-U.S. tax treaty will benefit both countries.

WASHINGTON (Kyodo) The International Monetary Fund said Saturday that robust global economic growth will provide member states with an opportunity to accelerate efforts to make their economies more resilient, with Japan being urged to continue with its banking, corporate and fiscal reforms.