TOKYO, Oct 9 : The 2.5 billion Dollars aid package for the Soviet Union announced by Japan today is a message of support for reforms and not a bargaining chip in a long-running territorial dispute, a senior foreign ministry official said, reports Reuter.

The package consists of 1.8 billion Dollar trade insurance. 200 million dollar in export credits and 500 million Dollar in emergency food and medical aid.

Foreign Minister Taro Nakayama was scheduled to visit Moscow later this week to discuss details, such as which government— the federal or

the republic — would receive the credit.

Nakayama was to meet both Soviet President Mikhail Gorbachev and Russian President Boris Yeltsin.

This does not mean we have abandoned our position to seek the return of the northern territories," the senior ministry official said.

"Rather, this is meant as Japan's clear political message for the cause of post-coup reforms."

The norlherh territories dispute involves four islands north of Japan occupied by the Soviet Union Jn the closing days of World War two but

claimed by Japan.

The foreign ministry official said the package did not represent an answer to Moscow's long-sought financial aid for large-scale projects such as overhauling infrastructure or tapping Siberia's natural resources.

"We could ’ not just sit and watch the situation after the failed coup attempt of August 18," he said.

A ministry of finance official told reporters Japan will not start considering large-scale financial aid until the Soviet Union comes up with a reconstruction programme for its economy.

The European Community yesterday announced it would offor 1.5 billion Dollars in new credit guarantees for food and medicine.

This brought total EC food assistance for Moscow lo 2.4 billion Dollars.

The US has offered 2.5 billion Dollar in agricultural loan guarantees and Canada was expected to follow suit with its own package.

President GorbAchev asked for 10 billion Dollar in food aid from G-7 countries— Germany, Britain, France, Italy , Canada, the US and Japan — lo meet a threatened winter shortfall.

The foreign ministry official

said the amount of Japan's new package had nothing to do with EC demands that Japan match its offer." That is a coincidence in figures." the official said.

Details of the G-7 aid would be tjirashed out by the group's finance ministers at a meeting on Friday in Bangkok. A separate meeting of financial officials of the G-7 would also take place shortly in London, foreign ministry official said.

Japan has been refusing to extend the massive aid lo Moscow says Ils needs until the Soviet Union agrees lo re-tprn the four Islands in ihe Kuriles chain.

The issues has blocked the signing Of a World War Two peace Ircaty.

The 500 million Dollar in food and medical aid would bring lo 600 million Dollar the amount pledged by Japan so far in humanitarian aid.

Negotiations for the first 100 million Dollar tranche which Japan extended last December, were in their final stages, the foreign ministry official said.

The food aid, which also covers costs of transportation, would most likely be offered directly lo the far Eastern region of Ihe Russian republic, he said.