JAPAN SETS CONDITION FOR CAR PLANT LOAN TO POLAND
Japan said an international agreement on
loans to Poland was needed before Tokyo extended fresh loans to
Warsaw to help a Japanese car maker set up a factory there.
    Prime Minister Yasuhiro Nakasone explained the conditions
during the first round of talks with the visiting Polish leader
Wojciech Jaruzelski, foreign ministry sources said.
    They quoted Jaruzelski as saying of a private Japanese plan
to export car production facilities to Poland, "If this project
goes well, it will serve as an engine in future economic
relations between Poland and Japan."
    Nakasone, speaking of the possibility of resuming extending
official loans to Poland, said, "It is necessary that an
agreement should be established at an international arena such
as the Paris Club of creditor nations."
    He hoped that such an agreement will be achieved at an
early date, but he did not make firm commitments about Japanese
loans, the sources said.
    Along with western nations, Japan has witheld new official
credits to Poland since February 1982, following the 1981
declaration of martial law in Poland.
    The Japanese car maker Daihatsu Motor <DMOT.T> and three
trading houses including Mitsui Co Ltd plan to export
production facilities to Poland's state-owned car maker FSO to
make the Charade minicar, according to Mitsui officials.
    "We are pushing the plan on the premise of an official
credit to be extended eventually," a Mitsui spokesman said.
    Nakasone also said that a joint Japan-Poland economic
committee would discuss the proposed conclusion of an
investment protection agreement later this year, the sources
said.
 REUTER
