Japan, Russia to sign peace treaty by 2000 (November 2, 1997)

KRASNOYARSK, Russia (CNN) -- The leaders of Russia and Japan concluded an informal summit Sunday with hugs and kisses -- and a pledge to work toward a Russian-Japanese peace treaty, nearly a half-century after World War II ended.

"This is a major breakthrough in relations between Russia and Japan," Russian President Boris Yeltsin told reporters after the so-called "no neckties" summit in this Siberian city.

"We had very serious discussion about a very complex problem, the issue of a peace treaty," said Japanese Prime Minister Ryutaro Hashimoto.

The two leaders set a goal of resolving the issue by 2000.

I N C O N T E X T
Japan and Russia never signed a peace treaty to formally end World War II because of a dispute over four islands which Russia calls the Kuril Islands and Japan names the Northern Territories. Moscow occupied the islands towards the end of the war and still controls them. In 1993 both sides pledged to end territorial dispute by legal means.

Japan and Russia never signed a peace treaty to formally end World War II because of a dispute over four islands, known to Russia as the Kuril Islands and at to Japan as the Northern Territories. Moscow occupied the islands toward the end of the war and still controls them, though Japanese-Russian tension in the region has eased markedly in past years.

The two countries singed a document in 1993 to resolve the dispute by legal means, but both sides so far have refused to cede. Tokyo wants the islands back but Moscow fears a nationalist backlash if it returns them, according to political analysts.

CNN's Jill Dougherty presents an overview of the summit
2 min. 30 sec. VXtreme video


Yeltsin acknowledged that compromises on the issue were likely to be met by criticism in both Russia and Japan.

Yeltsin and Hashimoto also agreed on a six-point plan to boost Japanese investment in Russia, Japanese assistance to help Russia integrate its economy into the world economy, and Tokyo's support for reforms in Russia, as well as the training of Russian managers.

Among the projects discussed at the summit was a feasibility study for the construction of a pipeline to carry Siberian natural gas via Mongolia and China to Japan.

Observers said that the Krasnoyarsk summit had clearly shown the economic and geopolitical realities that were driving the diplomatic agenda.

Russia, rich in natural resources and showing signs of stabilizing after years of economic upheaval, is an attractive partner for Japan, which lacks resources and is seeking new markets for its products, as analysts point out.

Tokyo is also concerned about China's increasing economic and military clout in the Asia-Pacific region and about the risk of turmoil on the Korean peninsula, Russian commentators say.

"If Russia and Japan can seal a peace treaty by the year 2000, as hoped, that would dramatically change the geopolitical scenery in northeast Asia," Japanese Foreign Ministry spokesman Nobuaki Tanaka said.

Yeltsin is scheduled to travel to China for a three-day summit next weekend as part of what is seen as Moscow's attempt to improve relations with key players in Asia.

Moscow Bureau Chief Jill Dougherty, The Associated Press and Reuters contributed to this report.