Japan, China split on gas, to hold more talks

JAPAN and China failed to resolve a row over gas exploration in the East China Sea in talks that ended yesterday, but agreed to more dialogue this month to discuss Tokyo's new offer for joint development, Japanese officials said.

The row over China's development of gas fields in the sea dividing the two countries - and near waters over which Japan claims exclusive economic rights - is one of several issues that have strained ties between the Asian neighbours. Tensions rose last month after Japan said China sent warships to the area and started producing oil or gas at one of the fields.

Japan reiterated its demand that China cease its development work in the area and provide geological data, and also presented a new proposal for resolving the dispute that includes the idea of joint development, Japanese officials said.

But the Chinese side showed no immediate sign of agreeing to Tokyo's demands, another official said. The next round of talks will take place later this month. China may consider providing related data to Japan after reaching an in-principle agreement on joint development, the official said.

Tokyo's offer, a counter-proposal to a joint development plan raised by Beijing in earlier negotiations, demands that China stop its ongoing work, a third Japanese official said.

Japanese officials expressed concern over the fact that China was moving ahead with development, and explained that there were "strong views" within Japan calling for its own test-drilling in the area if China continues its development without heeding Japan's demands, the second official said.

Japan also took up China's naval activity in the area. China replied by saying that such vessels were conducting normal training activities and countered by accusing Japanese ships and aircraft of interfering with the work of China's development work in the area, the second Japanese official said.