Japan, Saudi strike economic and strategic deal

Riyadh, Apr 29: Japan and Saudi Arabia agreed to build a broad economic and strategic partnership, saying a ''just, comprehensive solution'' to the conflict between Israel and the Palestinians was needed.

Japanese Prime Minister Shinzo Abe met Saudi King Abdullah on the first stop of a five-nation West Asia trip aimed at boosting Japan's profile and ensuring stable energy supplies from a region on which it relies for nearly all its crude oil.

The day before Abe's arrival from Washington, where he met President George W. Bush, Saudi Arabia's Interior Ministry said it had foiled an al Qaeda-linked plot to attack oil facilities, military bases and public figures, arresting 172 people.

''Further development of economic relations is a main driving force towards the development of strategic relations between Saudi Arabia and Japan,'' the two leaders said in a statement after their meeting yesterday.

West Asia provides some 90 per cent of Japan's crude oil, with Saudi Arabia alone accounting for nearly 30 per cent. Japan has said it wants to secure a stable supply of oil in the face of growing competition from China and India.

The two leaders discussed energy security and a proposal that would allow Saudi Arabia to use space in a Japanese oil reserves facility to store its oil.

Officials said the details of this proposal still needed to be worked out.

Peace Process

Japan has long felt it has a special part to play in the West Asia and can establish warmer ties with Arab countries, while Saudi Arabia recently took a role in peacemaking efforts between Israel and the Palestinians.

''A just and comprehensive solution to the Arab-Israeli conflict based on internationally legitimate resolutions would be the bedrock of stability in the West Asia and eliminate a major source of tension and the threat to international peace and security,'' the statement said.

Earlier yesterday, Abe told a seminar of Saudi and Japanese business leaders that ties between their two nations should be stronger and broader.

''I want to build a new relationship for Japan in the West Asia, and for that a stronger relationship with Saudi Arabia, the leader of the Gulf, is essential,'' he said.

A delegation of about 170 Japanese business leaders from a broad range of firms, not only the oil industry, has accompanied Abe to the West Asia.

Officials said earlier this week Japan aims to conclude a free trade agreement with six West Asian oil-producing nations, including Saudi Arabia, by 2008, and that Japanese Trade Minister Akira Anmari would be in Saudi Arabia from May 1.

Reuters>