[lbo-talk] Japan in tussle with China over gas rights

uvj at vsnl.com uvj at vsnl.com
Wed Oct 20 14:57:47 PDT 2004


Business Standard

Wednesday, October 20, 2004

Japan in tussle with China over gas rights

Beijing's search for energy leads to conflict with Tokyo

David Pilling & Michiyo Nakamoto / Tokyo October 20, 2004

Japan is seeking emergency talks with China to discuss reports that Beijing has stepped up gas-exploration efforts in the East China Sea in waters claimed by Tokyo.

Hiroyuki Hosoda, chief cabinet secretary, said yesterday: "If China has designated several areas for gas development in waters outside its own, we will seek termination of the projects through diplomatic channels."

His statement came after weekend comments by Shoichi Nakagawa, Japan's trade minister, that China had granted exploration rights to several companies.

China and Japan have never agreed on the limits of their respective exclusive economic zones with Japan saying a line should be drawn equidistant between the two countries and Beijing basing its claim on the extent of its continental shelf.

The issue has become more urgent as China steps up its search for energy. Japan, which depends on imports for most of its energy, has been in increasing competition with China over resources - most recently over the route of a proposed oil pipeline from Siberia in Russia.

A Japanese trade ministry official said yesterday: "We don't want this to ruin relations between Japan and China, but it is a problem if this kind of activity continues. Unless this is managed properly, there is a danger that things will escalate. But with so much activity going on, we cannot not do anything."

Satoshi Morimoto, professor of international development at Takusyoku university in Toky, described Japan's relations with China as the worst since diplomatic ties were established in 1972.

Defence analysts in Tokyo said the dispute also involved control of sea lanes vital for Japanese exports and imports. One military analyst close to the government spoke of China "invading our exclusive economic zone".

China rejects any Japanese claim to the waters. Wang Yi, China's ambassador to Tokyo, was reported by Reuters as telling journalists: "As China has repeatedly explained to Japan, the area where the exploration work is taking place is indisputably within China's zone."

In July, Japan launched its own exploration studies of the site, provoking an angry response from Beijing. The month before, Nakagawa flew over the Chinese natural gas complex, and complained that the Chinese gas project could siphon off gas from its side of the EEZ.

Meanwhile, Beijing has also been angered by the regular visits of Junichiro Koizumi, Japan's prime minister, to the Yasukuni nationalist shrine.

Koizumi has shown no sign of stopping his annual pilgrimage to the site, which enshrines the "spirits" of fallen war victims, including a handful of class-A war criminals.

Yesterday, he told a parliamentary committee: "I am aware that China is not happy about the visits. But it is doubtful whether we should just fall in line when other countries say they are displeased."



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