KUALA LUMPUR, May 10 (Xinhua) -- The Malaysian government considers that it has settled the issue of compensation for those who were forced to work on the Japanese "Death Railway" during the World War II, an Malaysian official said Thursday.

    The Malaysian and Japanese governments inked a pact on the issue on Sept. 21, 1967, Malaysian Foreign Ministry parliamentary secretary Ahmad Shabery Cheek was quoted as saying by Malaysia's national news agency Bernama.

    Under the deal, the Japanese agreed to pay "blood money" to the Malaysian government, he told the parliament here.

    The money was used to set up the Malaysia International Shipping Corporation, he said.

    The official also noted that Malaysian Prime Minister Abdullah Ahmad Badawi told a cabinet meeting on April 27, 2005 that the issue had been settled.

    The Malaysian Foreign Ministry considered the matter had been closed from the perspective of the Malaysian government, he said.

    However, he stressed that the Malaysian Foreign Ministry would not stop any individuals or organizations from filing compensation claims with the Japanese.