BEIJING, March 3 (Xinhuanet) -- Chinese Foreign Ministry spokesman Liu Jianchao said at a regular press conference here Thursday that China and Japan should "properly solve" issues related to Japan's yen loans to China.

    A Japanese newspaper reported Wednesday that Japan has proposed cutting yen loans by 10-20 billion yen each year from fiscal 2004 and putting an end to new loans by fiscal 2008.

    When asked to comment on Japan's proposal, Liu said the yen loans are a financing cooperation between China and Japan with mutual benefits for both sides, put into practice with special political and historical background.

    Liu said China and Japan should "properly solve" the issue of the loans, with "responsible attitudes towards the general situation of Sino-Japanese relations." Enditem