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HONIARA, Solomon Islands (March 30, 1998 - PACNEWS/Ioane)---The Japanese government has announced a 10 percent reduction in its official development assistance to the Solomon Islands.

Japanese Charge d'Affaires in Honiara, Hideo Nomoto, announced the 10 percent cut during the commissioning of a $US 5.5 million water supply project in Honiara last Friday.

Nomoto said Japan's development assistance to the Solomon Islands had to be reduced due to the critical financial situation being experienced in Japan. With the shrinking of allocations, he added, a quality oriented approach is required.

The Japanese government, the Solomon Islands' biggest single donor country, provided more than $US 20 million in development assistance to the Honiara government during 1997.

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