Faced with a declining birthrate and falling tax revenues, officials of the cities of Hoya and Tanashi in western Tokyo signed an agreement Thursday to launch the merger of the two municipalities.

If approved by the two city assemblies and by Tokyo's metropolitan assembly as widely expected, the city of "Nishi-Tokyo," population 180,000, will appear on maps from January 21, 2001.

"Residents go back and forth between the two cities to purchase daily goods," said Hoya Mayor Kohan Hoya following the signing. "This long history of mingling makes the merger between our two cities more than just a means of improving financial strength."