Japan plans aid for Kabul ahead of Obama visit

By Yoko Nishikawa

TOKYO (Reuters) - Japan said on Tuesday it would give Afghanistan up to $5 billion in new aid, a move Tokyo hopes will improve strained security ties with Washington ahead of U.S. President Barack Obama's visit this week.

Japan and the United States also agreed to set up a working group to examine plans to relocate a U.S. military base on Japan's southern island of Okinawa, a feud over which had raised concerns about the security alliance between the world's two biggest economies.

It is the first big test of ties between Washington and a new Japanese government that wants a more equal relationship with its closest security ally.

Hatoyama is expected to present the aid package to Obama, who is reviewing U.S. strategy for Afghanistan, at a summit on Friday in Tokyo. The aid would be delivered over five years.

The aid package, which comes ahead of a planned halt to Japan's naval refuelling mission in support of U.S.-led operations in Afghanistan, will focus on civilian steps including job training for former Taliban fighters.

Tokyo and Washington have said the row over the relocation of the Futenma air base would not be the main focus of the talks on Friday, but Hatoyama is under pressure to make a decision soon.

Under a 2006 agreement, the Futenma Marine base is to be closed and replaced with a facility built in a remoter part of the island by 2014 as part of a realignment of the 47,000 U.S. military personnel in Japan.

But Hatoyama said before his party's landslide August election victory that the base should be moved off the island, where many residents resent what they see as an unfair share of the burden of the U.S. military presence in Japan.