Japan's Policy on the Russian Federation

1. Basic Objectives

The basic objectives of Japan's policy on Russia are to make the utmost efforts to resolve the Northern Territories issue, thereby concluding a peace treaty and fully normalizing relations with Russia, and to provide appropriate assistance for the reform efforts of Russia in coordination with the international community.

A new basis for the future development of relations between Japan and Russia was established by the visit to Japan by President Boris Yeltsin in October 1993 when the Tokyo Declaration was signed. Japan has been working since then to enhance relations with Russia, both political and economic, through a series of political dialogues. These include the March 1994 visit to Russia by then-Deputy Prime Minister and Minister for Foreign Affairs Tsutomu Hata, a visit to Japan in late November 1994 by Russian First Deputy Prime Minister Oleg N. Soskovets and a visit to Japan in early March 1995 by then-Russian Minister of Foreign Affairs Andrei V. Kozyrev. Most recently, Japan's Minister for Foreign Affairs Yukihiko Ikeda visited Russia last March to meet President Yeltsin, Foreign Minister Primakov and First Deputy Prime Minister Soskovets.
In these talks, Japan and Russia have repeatedly reaffirmed their stance to advance bilateral relations based on the Tokyo Declaration, as well as the commitment of the Russian Government to the reform process, and the intention of Japan to continue assistance as long as Russia's reform process continues.

2. Political aspects

(1) On the occasions of various high-level talks with Russia after the visit to Japan by President Yeltsin in October 1993, Japan has been seeking progress toward resolution of the territorial issue, based on the Tokyo Declaration. During Foreign Minister Ikeda's visit to Russia last March, President Yeltsin and Foreign Minister Primakov reaffirmed the Tokyo Declaration and clearly reconfirmed that the bilateral relation be developed on the basis of the Tokyo Declaration. It is all the more necessary to continue tenacious efforts to resolve the territorial issue, especially in view that this year will mark the 40th anniversary since the resumption of state relations of both countries by the Japan-Soviet Joint Declaration signed in 1956. We are firmly convinced that the solution of this issue would contribute greatly to the peace and stability of the Asia-Pacific region.

(2) In order to create an appropriate environment for negotiations toward solving the territorial issue, since 1992 Japan has begun mutual visits without passport and visa of Japanese citizens and Russian inhabitants of the Northern Territories. Over the ensuing four-year period more than 2,300 people from both sides have taken advantage of this exchange program, making a remarkable impact on the promotion of mutual understanding. Following the Foreign Ministerial Meeting in March 1996, exchanges for the current fiscal year began in April on an expanding scale agreed by both countries.

(3) President Yeltsin announced during his visit to Japan that Russia would withdraw all military troops other than border troops from the Northern Territories. Foreign Minister Primakov explained to Foreign Minister Ikeda that the present number of Russian military troops on the Northern Territories is 3,500 and no military troops on the Shikotan Island. Japan welcomes that withdrawal has been in progress in accordance with the statement of President Yeltsin. We believe that the complete withdrawal of Russian military troops would be an important contribution to creating an appropriate environment for the resolution of the territorial issue.

(4) Japan also attaches importance to security dialogue and exchange with Russia as a confidence-building measure, which include Japan-Russia policy planning talks, defense scholars exchange, Agreement on the prevention of incidents at sea beyond territorial waters and the air space above them, Visit to Russia by Director-General, Bureau of Defense Policy of Japan's Defense Agency in November 1994 and Trilateral Forum on North Pacific Security by Japan, Russia, and the United States (Its first round of meetings were held in 1994 and 1995).

Foreign Minister Ikeda and Foreign Minister Primakov agreed upon Ministerial level exchanges between Japan's Defense Agency and Russia's Defense Ministry. We believe that exchanges in this area promote mutual trust and understanding.

(5) Fishery framework negotiations in the territorial waters of the Four Islands

When Russia's First Deputy Prime Minister Soskovets visited Japan in November 1994, both sides shared the view on the necessity of creating a framework to ensure a stable fishery order in the territorial waters of the Four Islands and agreed on starting negotiations to achieve a mutually acceptable agreement on this issue. Since then, five rounds of negotiations have been held in March, May, August, December 1995 and February 1996.

The negotiations have difficult aspects as this issue relates to the territorial question. Nevertheless, the success of the negotiations would give a significant meaning for the development of Japan-Russia relations. Japan intends to continue utmost efforts to attain an appropriate framework as early as possible, with the basic stance that neither side's position should be undermined by any means.

3. Economic Aspects

Due to continuing non-payment of uninsured trade debts and inadequate legal and taxation systems in Russia, there is little economic activity between Japan and Russia. Conditions for trade and investment between the two countries need to be improved in order to stimulate private-sector economic activity.

At the visit to Japan by Russia's First Deputy Prime Minister Soskovets in November 1994, it was agreed in principle to establish Japan-Russian Federation Inter-Governmental Commission on Trade and Economic Problems. The aim of the Commission is to deal with a high level cabinet member who supervises various economic ministries responsible for the above-mentioned issues. Three Sub-Commissions were set up in order to prepare the first meeting of the Commission and were held in Moscow in 1995; Sub-Commission on improvement of conditions for the development of bilateral trade and economic relations, Sub-Commission on the quiestions of assistance to the implementation of market economic reform in Russia, and, Sub-Commission on economic relations with Russia's Far Eastern region.

The 1st meeting of the Commission was held between Foreign Minister Ikeda and First Deputy Prime Minister Soskovets in March 1996. They adopted the Join Report prepared by the three Sub-Commissions which includes concrete proposals for enhancing the economic relations between the two countries.

At the meeting of the Commission, Japan also confirmed its policy of attaching importance to strengthening relations with Russia's Far Eastern region. Discussions are already underway on a number of projects in the region, such as development and production of oil and natural gas on the Sakhalin continental shelf and Far Eastern forestry resources development.

4. Japan's Assistance to Russia

The outcome of reforms in Russia toward democratization, a market-oriented economy, and foreign policy based on law and justice will have tremendous significance for the countries of the former Soviet Union and indeed the entire world. Japan also provides appropriate assistance to Russia's reform in coordination with other countries. Japan wishes to promote its relations with Russia based on the approach of "balanced expansion," in which both political and economic aspects, including assistance, of the relations are to be expanded by giving positive effects with each other.

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