Taro Aso: Japan was among the first to recognize Bangladesh's sovereign status after its independence in 1972. Even prior to independence and continuing to the present, Japan has continuously provided assistance to Bangladesh for poverty reduction and economic development, among other purposes.

Japan and Bangladesh have many common aspects. For example, partially due to the fact that both our countries are susceptible to natural disasters, both Japanese and Bangladeshi are diligent in nature, and in the face of nature's might they have learned to adopt lifestyles that are in harmony with nature. A love of nature, inclinations toward poetry and song, and bonsai trees are other examples. The people of Bangladesh also seem to feel a strong affinity to Japan.

Since Bangladesh's independence, our two countries have maintained and developed friendly relationship, which Japan intends to cherish.

HE Prime Minister Begum Khaleda Zia paid a visit to Japan in July 2005. This was the first time in eight years for a Bangladeshi Prime Minister to visit Japan and thus it provided an important opportunity to further promote friendly bilateral relations. The Japan-Bangladesh Joint Press Statement, issued after the summit meeting between Prime Minister Khaleda Zia and Prime Minister Junichiro Koizumi of Japan, provides the future orientation for our relations, including the expansion of trade and investment relations, natural disaster prevention measures, and cooperation in facing global challenges, including terrorism. In accordance with the Joint Press Statement, I intend to further develop our bilateral relations.

To date, more than 2,000 Bangladeshi nationals have studied in Japan under the Japanese government-sponsored scholarship scheme. Young Bangladeshi people having come to Japan have exceeded 5,000 through training provided by the Japan International Cooperation Agency (JICA) and others. Each year, more than 400 young people from Bangladesh are engaged in study and training in Japan.

Among these students who came to study in Japan, one of the most distinguished figures is HE Mr. M Morshed Khan, Minister for Foreign Affairs. Foreign Minister Khan attended a Japanese university in the 1960s, and he and I have been friends ever since. For this reason Bangladesh is a country that is very close to me as well.

These people-to-people exchanges serve as a foundation for an even closer relationship, and I am confident that the relations of mutual understanding and trust between our countries will continue to deepen.

Japan is the largest donor for Bangladesh. There are some reservations among a number of European donors that the aid given to Bangladesh has not been utilized properly because of corruption and other malpractices. Being the largest donor, does Japan also share such feeling?

I believe that, for Bangladesh, improving governance is one of the main pillars for policy efforts to achieve development and poverty reduction and also to promote trade and investment.

In July last year, on the occasion of the Japan-Bangladesh summit meeting, the Bangladesh side expressed its commitment to its continuing efforts to promote good governance. Japan understands that Bangladesh is making earnest efforts in this regard.

In cooperation with the Government of Bangladesh and other donor countries and organizations, the Government of Japan intends to assist Bangladesh in improving governance which, the Government of Bangladesh is currently undertaking, including assistance for its efforts to improve the capacity of law enforcement agencies, improve civil servants' training programs, raising resident participation in local government and enhancing transparency, as well as in capacity building efforts in implementation skills in major sectors.

Despite a troubled political atmosphere and other difficulties, the economy of Bangladesh continues to grow at a rate above 5 percent, which could have been much higher if there were less political disturbances. Under the prevailing situation, how do you evaluate the investment climate in Bangladesh? Japanese investment in Bangladesh in the past has not been that encouraging, which stood at around US$32.18 million in 2004. Does the Japanese government have any plan to encourage private sector investment in Bangladesh, particularly in areas like textile, pharmaceuticals, agro-processing, electronics and leather products -- where Bangladesh could achieve modest gain in recent past?

At the Bangladesh Business Seminar held in Japan to coincide with the visit of Prime Minister Khaleda Zia, there was vigorous discussion concerning the enhancement of trade and investment between Japan and Bangladesh. In addition, the Japan International Training Cooperation Organization (JITCO) and the Government of Bangladesh concluded an agreement that will enable the people of Bangladesh to acquire training and technical expertise at private companies in Japan. It may be possible to consider developments such as these as an indicator of increased momentum for investment in Bangladesh.

As was confirmed in the joint press statement on the occasion of Prime Minister Khaleda Zia's visit to Japan, the both governments will provide assistance and cooperation in order to strengthen bilateral economic relations. Although it is difficult for the Government of Japan to encourage private sector companies to invest in specific sectors, I believe it to be of extreme importance that assistance is provided for the improvement of the trade and investment environment through dialogue and economic cooperation among concerned parties, including the Government of Bangladesh.

In the Country Assistance Program for Bangladesh that is scheduled to be revised in the near future, Japan intends to prioritize development of the private sector, together with transportation and power. As such, Japan intends to continue to provide assistance for improving the trade and investment environment, basic infrastructure development support as a means of invigorating investment and exports, as well as human resources development assistance to private sector companies.

In addition, the Japan-Bangladesh Chamber of Commerce and Industry (JBCCI) hosted a second Japan Trade Fair in Dhaka in September last year. Mr. Koji Nojima, Chairman of the Japan-Bangladesh Joint Committee for Commercial and Economic Co-Operation, visited Bangladesh and the Japanese Commerce and Industry Association in Dhaka issued a proposal regarding improvement of the business environment. These and other developments have played a significant role, and Japan intends to continue to assist such efforts.

The year 2006 is very important for Bangladesh as general election is due to be held towards the end of the year. There are political tensions in the country that can lead to further confrontation with the approach of the election date. Moreover, the increasingly destructive activities of the Islamic militants in the country have raised concern among governments that are traditionally friendly to Bangladesh. Being the Foreign Minister of one of the friendliest nations of Bangladesh, what is your impression of the current political situation in the country? Does Japan have any plan to contribute in the successful holding of the next general election?

Japan expects that the upcoming general election will be free and fair, and that it will reflect the will of the people of Bangladesh.

Japan has previously provided assistance for consolidation of democracy in Bangladesh, including personnel exchange, technical cooperation, and the dispatch of election observers. Japan intends to continue such assistance, utilizing our knowledge, experience and technology.

Japan has recently been given the observer status to the South Asian Association for Regional Cooperation (SAARC). How do you think Japan is going to use that position in making SAARC a viable organization capable of making meaningful contribution to improve the situation of the people of the region? Do you foresee the possibility of emerging South Asia as an influential economic entity?

Japan highly appreciates that it was granted observer status in the South Asian Association for Regional Cooperation (SAARC), in the 13th SAARC Summit held in Dhaka in November last year.

Japan has long recognized the importance of SAARC as an organization that can provide a framework for stability and development in the South Asian region. Based on this recognition, Japan has supported the activities of SAARC and worked to enhance its foundations through the Japan-SAARC Special Fund since 1993. This was the first and the only financial assistance from a country outside the SAARC region.

Japan intends to continue to make efforts to further strengthen our relations with SAARC, in close cooperation with all member countries, including Bangladesh, the chair country. One idea is to strengthen functional cooperation, utilizing the Japan-SAARC Special Fund, in a form whereby it is possible to share Japan's knowledge and expertise in issues that are of particular interest in this region, such as the fight against terrorism and disaster prevention.

Japanese policy-makers are now calling for Tokyo's closer tie with India. Prime Minister Junichiro Koizumi made an official visit to the country last year and you too visited India in early January. Would this Japanese approach mean less priority attached to other South Asian Nations? How do you see the possibility of Bangladesh joining the proposed East Asian Community?

Japan believes that in recent years, the political and economic importance of not only India, but the South Asian region as a whole has been increasing. Japan places importance on relations with Bangladesh as a moderate Islamic country and one that is making efforts towards the stability of the South Asian region. Last year, Japan actively supported Bangladesh's candidature to join the ASEAN Regional Forum (ARF). In East Asia, with a common goal for the formation of an East Asian community (EAC) in the future, various kinds of regional cooperation are being progressed. I expect that Bangladesh will make a constructive contribution to such regional cooperation.

Japan is trying to get a permanent seat at the United Nations Security Council. An earlier initiative taken jointly by Japan, Germany, India and Brazil failed to win necessary support, and as a result, Japan is now rethinking its position to launch again country's bid, coming out of the formal set-up of G4. What will be Tokyo's stand in connection with the same bid by Germany, India and Brazil? Is Japan planning to approach Bangladesh to rethink its earlier objection to G4 proposal and support Tokyo's independent bid to win a permanent seat at the UNSC?

Recently Germany, India and Brazil submitted a draft resolution on Security Council Reform to the General Assembly of the United Nations. Japan is currently exploring a proposal that would gain support from a greater number of member states, rather than submitting a draft resolution that has no real prospect of being adopted with the support of more than two-thirds majority.

It was from this viewpoint that Japan has refrained from cosponsoring the draft resolution together with the countries mentioned above. We have thoroughly explained our position to Germany, India and Brazil and gained their understanding on this matter. Japan remains committed to the trust and cooperation among the G4.

With regard our relations with Bangladesh, in the joint press statement issued on the occasion of Prime Minister Zia's visit to Japan in July last year, Bangladesh reiterated its support for Japan's permanent membership in the Security Council, and also stated that it would give due consideration to the G4 Draft Framework Resolution on Security Council Reform.

In any event, Japan intends to continue its efforts towards the realization of reform in a manner that will garner support of more than two-thirds of member states and ensure ratification by countries concerned. Japan considers that support from Bangladesh, based on our friendship, is very important.