Ladies and Gentlemen,

II extend to you all a very warm welcome to my Embassy this morning and wish to thank for availing yourselves here to witness today’s signing and exchange of Notes ceremony formalising Japan’s commitment to Nauru through its Non Project Grant Aid.

At the outset, I wish to take your attention to the fact that Japan, through its NPGA, donated 100 million yen yearly for fiscal years from 2005 to 2007 and 2009 whilst, the impact of global economic crisis and high oil prices in 2008 showed Japan donating 200 million yen to supplement Government of the Republic of Nauru’s ability to purchase fuel whilst availing financial resources in Nauru’s national budget to continue implementing major economic reform programmes.

However, this year, Government of Japan pledged approximately 1.2 million Australian dollars for fiscal year to 2010, to relieve budgetary pressure on Nauru and allowing implementation of ongoing economic reform programmes to continue in sectors such as education, health and capital works for poverty alleviation and sustainable economic development.

I further wish to take this opportunity to express my Government’s hope that the Government of the Republic of Nauru will ensure the deposit of the counterpart fund for the previous years as well as for this NPGA so that such fund will be used for further development purposes of Nauru.

In addition to NPGA, Japan, through its GGP Program, has also decided to assist Nauru with procurement and installation of five solar pumps and five 6000 litres water tanks each to Northern and Eastern Communities, to further supplement the water supply project funded by Japan since 2006 and making Japan’s past donation to improve communal water supply in the entire district more meaningful.

Finally, these funding is a clear manifestation of Japan’s goodwill and firm commitment to assist Nauru with implementation of ongoing important reform programs for sustainable economic growth and national development.

Thank you.