Japan, Russia discuss fishing, islands dispute

MOSCOW, May 3 (Reuters) Japan raised concerns with Russia today over fishing rights and discussed ways to resolve a territorial dispute that has soured relations since World War Two, a spokesman said.

Japanese Foreign Minister Taro Aso had two hours of talks in Moscow with his Russian counterpart Sergei Lavrov at which fishing rights and the territorial dispute was raised, Japanese Foreign Ministry spokesman Mitsuo Sakaba said.

The feud over the sparsely populated islands known as the Southern Kuriles in Russia and the Northern Territories in Japan has prevented Moscow and Tokyo from signing a peace treaty more than 60 years after the end of World War Two.

''The foreign ministers discussed this issue for finding an solution acceptable for both sides,'' Sakaba told reporters in Moscow.

''They share the same view: to continue to negotiate for finding a solution on this matter at various levels,'' he said.

Russia's relations with Japan have been strained by the territorial dispute and disagreements over fishing rights as Tokyo seeks to secure oil and gas supplies from Russia.

A Japanese fisherman died last August after a Russian patrol boat fired on a Japanese fishing boat near the four islands. Moscow says relations with China are excellent.

Aso raised Japanese concerns about a comment President Vladimir Putin made in his state of the nation speech on April 26 about stopping granting fishing quotas to foreign companies, Sakaba said.

''We need to stop the issue of quotas to foreign companies and give preference to giving them to domestic firms,'' Putin said, according to a copy of his speech published by the Kremlin.

''The Japanese side expressed concern on the recent statement made by President Putin for the restriction of fisheries quotas to foreign companies,'' Sakaba said.

Lavrov assured Aso that inter-governmental agreements on fishing would remain in force and that ''he hoped Japanese fishing activities can continue in the area,'' Sakaba said.

Trade between Russia and Japan totalled a record 13.7 billion dollars last year, but this was equivalent to just six per cent of Japan's trade with China. Sakaba said Japan wanted to boost further trade and investment in Russia.

Reuters RS DB2314