The government should accept a proposal made earlier this month by the Okinawa Prefectural Government to turn the prefecture into a free trade zone by around 2005, a public think tank recommended Monday.

A panel of the National Institute for Research Advancement concluded in an interim report that the government should work out a general framework to realize the proposal. Yutaka Kosai, head of the NIRA panel who is also chairman of the Japan Center for Economic Research, submitted the preliminary report to Chief Cabinet Secretary Kanezo Muraoka.

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