Eric Watkins
Senior Correspondent
LOS ANGELES, Apr. 14 -- Japanese Prime Minister Junichiro Koizumi has called for dialogue between Japan and China to help settle their growing disagreement over oil and gas drilling rights in disputed waters off the East China Sea.
"The Chinese and Japanese positions differ on that matter, but we need to continue talks from a big point of view—without inflaming conflicts and to turn the sea of conflict into a sea of coordination," Koizumi said Apr. 14.
The Japanese prime minister's remarks followed an earlier protest by a Chinese Foreign Ministry spokesman who accused Japan of a "serious provocation to the rights of China" by granting two Japanese firms rights to drill for oil and gas in the Xihu Trench, an area east of Shanghai that spans a maritime economic zone partially claimed by both China and Japan.
In an Apr. 13 statement, spokesman Qin Gang said Japan's granting of drilling and exploration rights in the East China Sea to Japanese firms is against "the norm of international relations."
Qin said the Japanese had turned "a deaf ear to the righteous position of China and attempted to impose [Japan's] unilaterally conceived 'demarcation line' on the Chinese side." But he told journalists, "China has never ever recognized and will never recognize this."
Japan's Senior Vice-Foreign Minister Ichiro Aisawa brushed off China's protest, saying, "There is no change in our policy of proceeding with the procedures in line with domestic law."
He repeated Japan's earlier call on China either to disclose information about natural gas projects it is conducting in the disputed area or suspend exploration. He said China had not responded, but he insisted that Japan is still willing to settle the dispute through dialogue.
Teikoku Oil Co. and Japan Petroleum Exploration Co. have been designated to conduct drilling on behalf of the Japanese government, which will bear the costs.
It will likely be 2-3 months before Japan's Ministry of Economy, Trade, and Industry approves drilling.
China has drilled on its side of the Xihu Trench. Japan contends any reserves China discovers could come from the Japanese side and has demanded a halt to Chinese exploration. State-owned China National Offshore Oil Corp. plans to begin full-fledged drilling in the area close to Japan's demarcation line in August.
Last September, Royal Dutch/Shell Group and Unocal Corp. pulled out of Xihu exploration, citing disappointing results.
