by Naoko Aoki

31-05-05 Japanese and Chinese officials met to try to narrow their differences over gas exploration in the East China Sea, but the yawning gap between the two sides suggested a breakthrough may be elusive.
The two-day talks in Beijing are the second round of discussions on the dispute. The previous meeting in October failed to produce significant progress.

Japan is represented in the talks by Kenichiro Sasae, director general of the Foreign Ministry's Asian and Oceanian Affairs Bureau, and Nobuyori Kodaira, head of the Agency for Natural Resources and Energy.
''We hope to seek understanding over our national interests and viewpoints, as well as do our best to listen to what China has to say and seek common points,'' Sasae told shortly after his arrival in Beijing. China's delegation is headed by Cui Tiankai, head of the Chinese Foreign Ministry's Asian Affairs Department.

At issue is a series of Chinese gas projects carried out a few kilometres west of the median line, which is the Japan-proposed line of separation of the two countries' exclusive economic zones. Concerned that China might siphon off resources that could be buried under the seabed in the Japanese side of the sea, Japan has repeatedly asked China to halt exploration and present detailed data on its projects.
''Our position remains that we want China to fully disclose data and suspend one-sided developments, so that we can discuss specific measures of cooperation,'' Sasae said.

China does not recognize the median line, and claims its economic waters stretch further east, to the edge of a continental shelf. China has refused to comply with Japan's demands. It has proposed shelving the row and seeking joint exploration of the area instead.
China has yet to explain what it has in mind when it says joint exploration, Japanese officials said, adding that the specifics of the proposal will be one of the issues they hope to hear from the Chinese officials during the current round of talks.

Japan has been lessthan enthusiastic about the joint exploration plan -- with some saying that Japanese money could be used for projects that would primarily benefit China -- but has said it is ready to hear China's ideas.
Kodaira emphasized that China must first hand over the data over the existing projects in order for the two sides to discuss the possibility of joint development.
''In order to proceed with joint development, mutual trust is very important,'' Kodaira said. ''It will not go smoothly if China proceeds with its projects on one hand and tries to discuss joint development on the other.''

Since the last round of talks in October, both sides have signalled they are determined to preserve what they see as their rightful claims. In April, the Japanese government unfroze procedures to grant experimental drilling rights to private companies in the East China Sea, more than 30 years after the firms submitted applications.
The government had previously shelved their applications because of unsettled demarcation in the sea. Following the government move, Teikoku Oil resubmitted its application for the test-drilling rights on April 28. The rights are widely expected to be granted in the summer.

Meanwhile, China National Offshore Oil Corp., a company leading the gas field projects, has proceeded with the projects despite Japan's protests.
Zhao Liguo, manager of the legal department in China National Offshore Oil Corp., told that production in the Chunxiao gas field, which lies a few kilometres on the Chinese side of the median line, is expected to begin in October.

The gas development talks come at a time when relations between the two countries remain troubled. Bilateral ties fell to what have been described as their lowest level in three decades after a string of anti-Japan protests took place in China in early April.
While the two countries' leaders agreed to halt the downward spiral later that month, Chinese Vice Premier Wu Yi's cancellation of a meeting with Japanese Prime Minister Junichiro Koizumi in May has shaken the relations once again.