in such environment as they served as a tool which provided a ground for rebuilding of the relations, severed by Japanese aggression during the war. During this period, Japan paid reparations to Burma, Philippines, Indonesia, Republic of Vietnam (South Vietnam). Other than reparations in the strict sense, Japan also provided “quasi-reparations” in the form of grants and aid to Laos, Thailand, Malaysia, Singapore. This way, reparation payments paved the way for Japan's economic involvement in Southeast Asia, allowing it to pursue economic interest in the region. Another aspect of this period, again motivated by the goal of expanding Japan's economy, is the policy of a triangular relationship with the US and Southeast Asia. This strategy, coordinated with US Cold War policies, aimed at bringing together Japanese know-how, US capital and Southeast Asian raw materials, in order to secure strategic resources and sustain the economic growth. Period of Regional Economic Development (1965-1975) The second phase of Japanese policy towards Southeast Asia is characterized with the active involvement of Japan in the region's development. This was partly due to the increasing pressure from the international community that Japan share a burden on the international arena as a “developed” country. On the other hand, this shift towards participation in the region was motivated by the new US policy on the development of Southeast Asia that aimed to protect South Vietnam from communist expansion. These changes contributed to the extensive Japanese engagement towards Southeast Asia, manifested through huge investments of capital and the involvement in development plans and projects. During this period Japan assisted the establishment of Asian Development Bank; the Asian and Pacific Council (ASPAC); the Ministerial Conference for the Economic Development of Southeast Asia etc. In spite of the increased involvement, however, the essence of the Japanese policy didn't change significantly, as it remained focused on the triangular relationship it was fostering. During the early 1970s Japan was at the turning point for its post-war process, after Okinawa's reversion, and the normalization of Sino-Japanese diplomatic relations. However it had no clear vision for its future diplomatic policies. Meanwhile, the international society continued viewing Japan as solely pursuing its own economic interests. With the end of the Vietnam war in 1975 and the US withdrawal from the region, Japan was expected to take on international responsibility in Southeast Asia. As a result, Japan became determined that as the second-biggest economic power at the