TEHRAN, October 15 - Japan's foreign minister raised concerns Monday about the high levels of debt accrued by some Pacific Island nations and said his country wants to help resolve the problem.
TEHRAN, Young Journalists Club (YJC) - Foreign Minister Taro Kono made the comments while visiting New Zealand, where he met with his counterpart Winston Peters.
Some observers have become alarmed at the growth in Chinese lending in the Pacific and worry that small countries such as Tonga and Vanuatu are becoming beholden to China because of their high debt levels.
Kono didn't mention China specifically in his comments. But he said the Pacific region was important in a strategic sense to both Japan and New Zealand.
Peters said New Zealand was also concerned about the loans and the ability of small island nations to repay them.
"We're looking very seriously at that, saying 'What does it mean for us when those nations may forfeit the very asset value that they've sought to develop, and have it owned by some other country?'" he said.
Peters said neither Japan nor New Zealand had gone so far as to offer to repay the loans directly.
Source: AP
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