Mon, Jul 10, 2006 - Page 5 News List

China, Japan can't agree on energy

AFP , BEIJING

Great differences remained as China and Japan ended two days of talks in Beijing yesterday on disputed gas and oil fields in the East China Sea, although they agreed to step up communication, officials said.

The Japanese delegation left the Chinese capital after a total of six and a half hours of talks on Saturday and yesterday, according to a Japanese official.

"Great differences still remain," the Chinese foreign ministry said after the discussions, which it nevertheless characterized as "helpful" and "practical," according to the state-run Xinhua news agency.

The Japanese official, speaking on condition of anonymity, declined to describe the atmosphere of the talks, but said two results had been achieved.

"They agreed to set up a dialogue to discuss technical details, and they agreed to strengthen communications between the maritime agencies," he said.

According to Xinhua, the two sides had reached an agreement in principle to set up a communication mechanism for accidents on the East China Sea.

The Japanese official said the two parties would meet again although the time and venue were still to be decided.

"They are trying hard. They will continue," the official said.

Hu Zhengyue (胡正躍), China's top representative to the talks, said on Saturday that existing differences could be overcome, Xinhua said.

"As long as we both have sincerity and goodwill and work towards the common goal, we will be able to properly solve the issues," said Hu, director of the foreign ministry's department of Asian affairs.

The Japanese side at this weekend's talks -- the sixth round of discussions on the issue -- was headed by the foreign ministry's Asia and Oceania affairs bureau director Kenichiro Sasae.

Tensions escalated last year after Japan said it had spotted flames indicating China had started production close to the area to which Japan claims development rights. China began test-drilling in 2003.

A Chinese consortium has been developing gas fields in the area, raising Japanese concerns that it could siphon off its resources.

The two countries failed to find common ground during the previous round of talks in May in Tokyo. Both sides have proposed joint gas and oil development but they differ on where exactly their zones lie.

China does not recognize the boundary claimed by Japan, which splits the area in half, and says its rights extend nearly as far east as Japan's southern islands of Okinawa.

The energy reserves are among a number of disputes that have badly damaged relations between the Asian powers, which are also divided over treatment of wartime history.

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