The government has decided to continue its policy of promoting economic development in northern Okinawa in fiscal 2007 as part of efforts to facilitate a smooth relocation of the Futenma air base within the prefecture, government sources said Sunday.

The move reverses a Cabinet decision in May to discontinue the policy at the end of the current fiscal year.

The central government changed its mind after determining that continuing the promotion policy would help advance talks with local officials over the relocation plan, considering that Okinawa Gov.-elect Hirokazu Nakaima has shown some flexibility.