China, Japan Create Joint Green Fund

The two countries, Japan and China, are planning to establish a joint fund of Y200 billion ($2 billionish).

Each country will put half that amount into the kitty for the purpose of environmental protection.

Japan has other motives. 

1. Japan wants to lend China more money since scheduled low-interest yen loans are due to end by March of 2008 (the end of Japan's fiscal year.)

2. Japan's loan is expected to appease hard-liners towards China.

3. Japan also wants to send experts in pollution control to China to encourage the hiring of retired Japanese.

If Japan can accomplish these goals, opposition in Japan's government will be less likely to maintain their attitude toward China.

And China will have a better environment, too.

Win-win?

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Japan, China Create $2 billion Green Fund