Visit to the Russian Federation by Minister for Foreign Affairs Yohei Kono

From 1 to 4 November 2000, Minister for Foreign Affairs Yohei Kono paid a visit to Moscow, where in addition to paying a courtesy call on President Vladimir Putin, he held meetings with Minister of Foreign Affairs Igor Sergeyevich Ivanov, and held a meeting of the Japan-Russia Inter-Governmental Committee on Trade and Economic Affairs with Deputy Prime Minister Viktor Khristenko.

1. Courtesy Call on President Putin by Foreign Minister Kono (2 November)

(1) Message from Prime Minister Yoshiro Mori to President Putin

1. Foreign Minister Kono transmitted the message outlined below from Prime Minister Mori:
   1. Japan-Russia relations entered an extremely important phase with the Presidential visit to Japan in September. Japan and Russia should progress with three issues, namely strategic and geo-political cooperation, wide-ranging economic cooperation and the conclusion of a peace treaty, all of which must form the basis of a new bilateral relationship towards the 21st century.
   2. Concerning the conclusion of a peace treaty, we should continue our efforts to seek for the way to resolve this issue in a frank and positive manner.
   3. I would like to hold frank discussions based on the Krasnoyarsk Agreement on the occasion of the 8th Informal APEC Economic Leaders' Meeting.
2. In response to this message from Prime Minister Mori, President Putin stated his agreement with its whole content and expressed his appreciation to Prime Minister Mori regarding his visit to Japan in September.

(2) Peace Treaty

1. Foreign Minister Kono made the following statements:
   1. Of the three measures indicated by the leaders in their Statement on the Issue of a Peace Treaty, of over-arching importance were "new measures" in order to further accelerate negotiations.
   2. It is necessary to continue to seek a resolution to the issue of the peace treaty in a manner that can be explained to the people of both countries to attain their understanding, and to seek for a solution that could be appropriate to both Russia and the international community. From this perspective, "law and justice," referred to enthusiastically by Russia, could be a hint (at what would be appropriate).
   3. Those involved in the issue of the peace treaty have been making utmost efforts to conclude the issue by 2000, and it is now necessary to consider afresh new ideas. It would not be significant merely to repeat the content of the Statement issued in September.
2. In response, President Putin said that Russia was serious in its intent to achieve a complete normalization of relations with Japan in all fields and progress in all the areas of strategic and geo-political cooperation, wide-ranging economic cooperation and the conclusion of a peace treaty.

(3) Economic Relations

Foreign Minister Kono pointed out that the solutions of outstanding concrete issues in economic relations will lead to the bright future of Japan-Russia economic relations.

2. Foreign Ministers' Meeting(3 November)

(1) Peace Treaty

1. In the spirit of not skirting around the issue, negotiations were conducted on the issue of a peace treaty in a friendly and serious manner, and it was confirmed that discussions would continue on the ways to proceed the negotiations. In this context, it was noted that if necessary, another Foreign Ministers' Meeting could be held before the end of the year.
2. Both Ministers discussed how to materialize the three measures indicated by the leaders in their Statement on the Issue of a Peace Treaty in September and achieved the following progress:
   1. It was confirmed that "new measures" should be materialized by the end of the year.
   2. Concerning the Joint Compendium of Documents on the History of Territorial Problems between Japan and Russia, it was agreed to compile related documents after 1993 into a second volume, including the Tokyo Declaration, the Moscow Declaration, and the Statement by the Prime Minister of Japan and the President of the Russian Federation on the Issue of a Peace Treaty in September. It was decided that both sides would continue efforts at the working level to realize the publication of the new volume as early as possible by the end of the year.
   3. Concerning the activation of efforts to explain and to enlighten the people of each nation, it was agreed that both sides could take concrete measures, such as broadcasts of Japanese television programs and movies on Russian television networks in a form like "Month of Japan" and organization of symposia, in order to deepen the awareness among the population of the strategic significance of the Japan-Russia relationship.
3. Following on from the vice-minister level talks in October, the effectiveness of the 1956 Japan-Soviet Joint Declaration was re-confirmed, and both sides agreed on its importance. It was decided to proceed further with discussions towards resolution of the issue of the attribution of the four islands.

(2) Political Dialogue

1. Taking the opportunity of the 8th Informal APEC Economic Leaders' meeting in Brunei Darussalam, it was confirmed that a Japan-Russia Leaders Summit would take place on 15 November.
2. It was confirmed that an invitation had been extended to Marshal Igor Sergeyev to visit Japan in November.

(3) International Situation

Discussions took place on the situation in the Middle East, the former Yugoslavia, and the Korean Peninsula.

3. Fourth Meeting of the Japan-Russia Inter-Governmental Committee on Trade and Economic Affairs (2 November)

The meeting was convened under the joint chairmanship of Foreign Minister Kono and Deputy Prime Minister Khristenko. Frank and valuable discussions were held on cooperation and outstanding problems in trade and economic areas, based on the leaders' discussions on the occasion of President Putin's visit to Japan and the new cooperation program on trade and economic areas that was developed from the "Hashimoto-Yeltsin Plan." The main points of the meeting were as follows:

(1) Improvement of the Investment Climate in Russia

1. The Russian side gave detailed explanations regarding the current economic situation in Russia (including the positive outlook for this year and next year), and its social and economic programs. In addition, from the perspective of the improvement of the investment climate, explanations were given on tax reform, regulations on capital flight, and the introduction of international accounting standards. Further, it was announced that accession to the WTO was in Russia's interests and efforts to this end were being actively pursued, and that Russia expected the cooperation of Japan in this regard.
2. The Japanese side referred to comments made by business leaders at their meeting with President Putin, and stated that it expected the Government of the Russian Federation to demonstrate strong leadership towards the solution of outstanding issues pertaining to trade and investment, as well as the bolstering of the investment climate.

   Of these outstanding issues, a request was made for a prompt solution to the matter concerning export credits by the Japan Bank for International Cooperation (JBIC) (Kamaz and Yaroslavl projects), and a fair resolution of the issue of the Santa Resort Hotel in Sakhalin. Further, the Japanese side specifically pointed out the necessity for improvement of the system pertaining to trade and investment as well as its operation, such as complete and quick refund of value-added tax for exports.

(2) Strengthening of the Role of the Inter-Governmental Committee

1. It was agreed on the necessity of creating an active role for the Inter-Governmental Committee in the resolution of outstanding issues. Currently, three subcommittees exist in the framework of the Inter-Governmental Committee: the Subcommittee on the Elimination of Barriers in Bilateral Trade and Economic Relations, the Subcommittee on the Support of Russian Reforms, and the Far East Subcommittee. It was agreed in principle to merge the first and second of these subcommittees.
2. The Japanese side proposed that a meeting of the merged subcommittees be held in December in order to deepen the discussions on the outstanding issues. With regard to the Far East Subcommittee, it was agreed to convene a meeting in February 2001. In the discussions on organizational matters, the Russian side proposed building up a network for the Inter-Governmental Committee through the Internet, and both sides decided to consider this proposal positively.

(3) Promotion of Cooperation in Concrete Aspects, as Part of the New Cooperation Program

1. The Japanese side explained that a "Japan Center" would be established in St. Petersburg by the end of the year (five such centers already exist in Russia) and announced their intention to establish another center in the city of Nizhniy Novgorod. In addition, with regard to the dismantling of decommissioned nuclear submarines in the Russian Far East, it was explained that a railroad restoration project amounting to approximately US$7 million had just begun in order to provide a rail link to the shipyard where the decommissioning is taking place.
2. Other cooperation in specific areas discussed included the following:
   - It was agreed to convene a Japan-Russia Science and Technology Cooperation Committee in mid-December.
   - It was confirmed that in mid-November a Japan-Russia Experts' Meeting would be held in Vladivostock on the issue of smuggling of marine products.
   - Both sides confirmed their intention to take the opportunity of the mission of the Japan Federation of Economic Organizations (Keidanren) to Russia scheduled for June 2001 to cooperate mutually in promoting trade and economic areas between Japan and Russia.
   - The Russian side expressed their appreciation for cooperation to date with regard to the JBIC untied loan.

   Upon the conclusion of the meeting, the co-chairs both signed the memorandum.

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