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In the name of protecting Japan's energy resources from China, the Cabinet is set to approve a 10-billion-yen allocation in the fiscal 2005 budget to build an ocean resources research vessel.
The Finance Ministry initially rejected the request, but the allocation was added to the draft budget to be finalized today.
The government is looking to counter China's bold search for oil and natural gas near the exclusive economic zone claimed by Japan in the East China Sea.
Tokyo leased a vessel from Norway this year to begin its own undersea research in the area. But the Ministry of Economy, Trade and Industry argued that the nation's energy resources cannot be properly protected without its own ship.
The Finance Ministry initially refused the request by the economy ministry to earmark the funds in the budget, but it came around after discussions Wednesday with relevant officials.
Wednesday's talks, known as revival negotiations, were a last-gasp attempt by ministries that had their initial budget requests turned down to persuade Finance Minister Sadakazu Tanigaki to change his mind.
Tanigaki agreed to include about 50 billion yen worth of new projects in the final draft budget.
The economy ministry plans to spend a total of 24.7 billion yen for construction of the vessel, scheduled for launch in 2008.
The government spends 9.3 billion yen annually to lease the ship from Norway, whereas the cost of operating its own vessel would come to only 5.7 billion yen a year, according to the economy ministry.
The ministry therefore estimates that the outlay for construction of a new vessel will be paid off after about 10 years.
However, the ministry is considering ordering the vessel from an overseas shipbuilder because Japanese manufacturers are inexperienced in building research vessels, a ministry official said.(IHT/Asahi: December 24,2004)
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