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Japanese Plan Third World Investments

March 30, 1989|From Associated Press

TOKYO — Japan's most powerful business organization said Wednesday that its members will increase direct investment in developing countries to aid those indebted nations.

The Federation of Economic Organizations said it had established two new semigovernmental groups composed of representatives of leading Japanese corporations to promote direct investment in the Third World.

"It's important for us to provide not only money but technology and management" to help develop industries in such countries, Prime Minister Noboru Takeshita said at a meeting of the federation.

The two new groups, the Japan International Development Organization (referred to as JAIDO) and the Committee on International Cooperation Projects, are considering investments in about 80 proposed projects, including an industrial park in the Philippines, a copper mine in Mexico and rubber and eucalyptus cultivation in other countries.

JAIDO will be set up as a joint stock company with capital provided by 98 corporations and the government's Overseas Economic Cooperation Fund. It will use its funds for direct investment in joint ventures.

The second group will act as liaison between JAIDO and appropriate government bodies. It also will examine JAIDO's proposed investments in light of investment guidelines endorsed by the government and the Federation of Economic Organizations to ensure that the projects are not aimed at promoting Japanese exports.

Although no projects have been chosen, members of the groups said four or five would begin this year and 10 would be selected in 1990.

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