Japan should clarify its priorities regarding foreign aid to China, the Foreign Ministry said in a draft annual report on aid presented Thursday to a ruling Liberal Democratic Party panel.

"It is important to insist what should be asserted and further clarify issues and areas of importance while gaining understanding and support from the nation," the draft 2000 white paper on official development assistance said regarding aid to China.

Japan's foreign aid to China has recently come under the spotlight due to the communist state's increased spending on defense and Japan's huge budget deficits, both of which have sparked a backlash within the LDP against providing aid to China.

The resulting melee delayed the report, which was due out by the end of 2000.

The LDP panel on foreign affairs demanded that some descriptions related to China be changed, but not by a large degree, LDP officials said.

Japan remained the world's top donor for the ninth consecutive year in 1999 by disbursing 1.752 trillion yen in ODA, up 24.8 percent from the previous year.

China was the second-largest recipient of Japanese ODA in 1999, receiving 11.7 percent of total payouts.

The draft also emphasized the significance of extending development assistance for poverty reduction but took a passive approach to support for environmental measures.