Japan agrees not to cut U.S. base funding: report

TOKYO (Reuters) - Japan has abandoned an attempt to slash its funding of U.S. bases on its soil because of concerns about ties after Tokyo ended support for Washington-led military activities in Afghanistan, a report said on Saturday.

Japan and the United States have agreed to fix "host nation support" at this financial year's level of 140.9 billion yen for the next three years, Kyodo news agency said in a report published in the Japan Times.

Japan had hoped to slash the amount it pays for labor and operational costs as part of an effort to control its national debt. But the United States has been pressing its allies to help with funding as its military expenditure mounts in both Afghanistan and Iraq.

Japan was forced to halt marine refueling support for U.S. operations in Afghanistan last month because an opposition majority in parliament's upper house refused to back it, saying it would only support UN missions.

Kyodo said there were concerns in Tokyo that cutting back on funding of U.S. bases in the country would further strain ties.

Japan also took into account the fact that it wants to persuade the United States to keep North Korea on its list of terrorism-sponsoring nations until progress is made on resolving Pyongyang's abductions of Japanese citizens, Kyodo said.

Tokyo is seeking other ways of cutting what it pays to support the 50,000 or so U.S. military personnel based in Japan.

The government wants to halt special allowances paid to Japanese civilians working on U.S. bases, because this would not involve increased expenditure by the United States, but this proposal has led to strikes.

Tokyo is also requesting a reduction in the amount it pays for maintenance of accommodation for U.S. personnel.

Japan also covers the rent for land used by U.S. bases on the southern island of Okinawa.

(Reporting by Isabel Reynolds; Editing by Sanjeev Miglani)