Fri Sep 28, 1:15 AM ET

TOKYO - Japan on Friday condemned the killing of a Japanese journalist covering protests in Myanmar but refused Western calls to impose sanctions on the military regime.

Japan remains a leading donor to Myanmar, in a rare break in foreign policy with its US and European allies.

A Japanese videojournalist, Kenji Nagai, was shot dead Thursday as he filmed the military regime's clampdown on demonstrations, becoming the first foreigner to die in the turmoil.

Japan said it would probe if he was deliberately killed as he was shot in the chest at close range.

"I am very sorry. It is really deplorable and I want to extend my condolences to his family," Prime Minister Yasuo Fukuda told reporters.

But he added: "Many of the Japanese aid programmes are for humanitarian purposes. Japan has to consult with other countries rather than just hastily slapping sanctions."

Japan in 2003 suspended low-interest loans for major projects, such as infrastructure, to protest the continued detention of pro-democracy leader Aung San Suu Kyi.

But Japan says aid continues for emergencies and humanitarian purposes.

Nobutaka Machimura, the chief spokesman for Fukuda's government, said separately that Japan has "not decided to stop grant aid immediately."

"Regarding the nature of the aid, the government will consider it by watching how the situation develops and what facts we get," he said, referring to the probe into Nagai's death.

Machimura had earlier said Japan would lodge a protest over the journalist's death.

The United States and European nations have decided to tighten sanctions on Myanmar and called for the world to ramp up pressure due to the bloody crackdown on protests.

But Japan, which often jostles for influence with China in Asia, has preferred the approach of most regional nations of trying to engage the junta.

Japan said it was considering sending Deputy Foreign Minister Mitoji Yabunaka to Myanmar for talks.

Myanmar agreed Thursday to issue a visa for UN special envoy Ibrahim Gambari to visit