Accra, (Greater Accra) 16 Feb. '99,

Japan today granted Ghana 21 million dollars in two separate agreements signed in Accra towards increased food production and support of the structural adjustment programme.

Three million dollars will go into food production while 18 million dollars, in the form of a non-project grant aid, is earmarked for the structural adjustment programme.

The Japanese Ambassador in Ghana, Mr Shosuke Ito signed for his government while Mr Victor Gbeho, Minister of Foreign Affairs initialed for the government of Ghana.

Mr Ito said his government appreciates the nation's efforts to reduce budget deficit and rate of inflation without which any development programme would not be meaningful and private activities would not be re- vitalised.

''My government, therefore, appreciates the strong commitment of the Ghanaian government in the implementation and management of macro-economic policies.''

The non-project grant aid would enable the government to acquire indispensable materials and machinery for development and economic activities.

Mr Gbeho said this gesture ''clearly demonstrates the Japanese government's understanding of the direction in which Ghana is trying to move and the obstacles in our path.''

He said the grant represents only a small fraction of the tremendous effort which the government of Japan has been making in diverse ways to help Ghana move our economy forward.

''The people of this country fully appreciate the positive impact that the friendly people of Japan have made on their lives through these facilities.''

GRi.../