Japan has cancelled millions in aid to Burma in its first action in protest against the crackdown on demonstrations in Rangoon, during which a Japanese journalist was shot dead.
Foreign Minister Masahiko Komura said his country was cancelling grants of up to 552 million yen, equivalent to around 18% of the total grants from Japan.
However it stopped short of saying it would end all assistance to Burma, keeping its position at odds with its Western allies who have demanded global action to isolate the military regime.
Japan, in a rare break with the US and the European Union, has been one of the largest donors to Burma, although since 2003 it only provides humanitarian aid to the country.
Officials had earlier expressed caution about punishing Burma, fearing it would push the military leaders further into the arms of China, which has close economic and political ties with the regime.
Japan and China have increasingly jostled for influence overseas, particularly in Southeast Asia.
Buddhist monks led last month's protests, which posed the biggest challenge to the regime in nearly 20 years.
Troops and riot police unleashed force to end the demonstrations, leaving 13 people confirmed dead, with more feared killed.
The dead included Kenji Nagai, a video journalist for Tokyo-based APF News, who was killed on 27 September as he filmed the crackdown in Rangoon.
Television footage showed him apparently being shot at close range by security forces.
