Japan defense minister backs all U.S. options on North Korea, seeks deeper alliance

Japan's Defence Minister Tomomi Inada speaks at the 16th IISS Shangri-La Dialogue in Singapore June 3, 2017. REUTERS/Edgar Su

SINGAPORE (Reuters) – Japan’s defense minister on Saturday backed the United States using any option to deal with North Korea, including military strikes, and said Tokyo wanted to build a deeper alliance with Washington that could play a regional security role.

“The United States is making clear through both words and deeds that all options are on the table. I strongly support the U.S. position,” Japanese Minister of Defense Tomomi Inada said during a speech at a regional security conference in Singapore.

Pyongyang’s accelerating nuclear and missile programs are stoking fear in nearby Japan and prompting a harder line on North Korea from Prime Minister Shinzo Abe.

A Japanese helicopter carrier and destroyer are concluding three days of drills with two U.S. aircraft carriers in the Sea of Japan that also included simulated combat sorties between U.S. Navy F-18s and Japanese air force F-15s.

The exercise followed three ballistic missile tests by Pyongyang in as many weeks. The latest on Monday reached an altitude of 120 km (75 miles) before falling into international waters in the Sea of Japan, but inside an exclusive economic zone where Japan has jurisdiction over the exploration and exploitation of maritime resources.

Apart from using the U.S. alliance to tackle its belligerent neighbor, Japan also wants the military partnership to exert influence on other parts of Asia, including the highly contested South China Sea, Inada said.

China claims almost all the disputed waters, which is one of the world’s busiest shipping lanes, and its growing military presence has fueled concern in Japan and the West.

“The robust, long-standing Japan-U.S. alliance now functions as a public good that contributes to the peace and stability of the region,” she said.

Beijing often rails against the United States, Japan and other countries for what it sees as interference in the South China Sea, insisting it is for claimant countries involved in disputes to work them out.

Inada also called on European navies to provide “a regular and visible presence” in the region.

A French amphibious assault carrier visited Japan in April after sailing through the South China Sea. Japan’s military later trained with the French force alongside U.S. and British contingents in what sources earlier told Reuters was meant as a show of force aimed at China.

(Reporting by Tim Kelly and Masayuki Kitano; Editing by Raju Gopalakrishnan and Lincoln Feast)

Putin says U.S. missile systems in Alaska, South Korea challenge Russia

Russian President Vladimir Putin speaks during a meeting with representatives of international news agencies in St. Petersburg, Russia, June 1, 2017.

By Denis Pinchuk and Andrew Osborn

ST PETERSBURG/MOSCOW (Reuters) – Russian President Vladimir Putin said on Thursday that elements of a U.S. anti-missile system in Alaska and South Korea were a challenge to Russia and that Moscow had no choice but to build up its own forces in response.

Putin, speaking at an economic forum in St Petersburg, said Russia could not stand idly by and watch while others increased their military capabilities along its borders in the Far East in the same way as he said had been done in Europe.

Participants attend a session of the St. Petersburg International Economic Forum (SPIEF), Russia, June 1, 2017. REUTERS/Sergei

Participants attend a session of the St. Petersburg International Economic Forum (SPIEF), Russia, June 1, 2017. REUTERS/Sergei Karpukhin

He said Moscow was particularly alarmed by the deployment of the U.S. THAAD anti-missile system to South Korea to counter a North Korean missile threat and to reported U.S. plans to beef up Fort Greely in Alaska, a launch site for anti-ballistic missiles.

“This destroys the strategic balance in the world,” Putin told a meeting with international media, the start of which was broadcast on state TV.

“What is happening is a very serious and alarming process. In Alaska, and now in South Korea, elements of the anti-missile defence system are emerging. Should we just stand idly by and watch this? Of course not. We are thinking about how to respond to these challenges. This is a challenge for us.”

Washington was using North Korea as a pretext to expand its military infrastructure in Asia in the same way it had used Iran as a pretext to develop a missile shield in Europe, charged Putin.

RUSSIAN RESPONSE

Putin said the Kurile Islands, a chain of islands in the Far East where Moscow and Tokyo have rival territorial claims, were “quite a convenient place” to deploy Russian military hardware to respond to such threats.

Defence Minister Sergei Shoigu said last year Russia planned to deploy some of its newest missile defence systems and drones to the islands, part of a drive to rearm military units already stationed there. He has also spoken of Russia building a military base there.

“I don’t agree that we are unilaterally starting to militarize these islands,” said Putin. “It is simply a forced response to what is happening in the region.” Any talk of demilitarizing the islands could only occur once tensions in the entire region had been reduced, he said.

Tokyo and Moscow have long been locked in talks over the contested islands, known as the Northern Territories in Japan. Putin said Russia was alive to the danger that Japan might allow U.S. troops to deploy there if it struck a deal to hand over some of the islands to Tokyo’s jurisdiction.

“Such a possibility exists,” said Putin.

Russia did not want to worsen already poor relations with Washington by fueling what he described as an arms race, but Putin said the United States was still consumed by what he called an anti-Russian campaign.

“How will the situation develop? We don’t know,” said Putin.

(Additional reporting by Dmitry Solovyov and Maria Kiselyova; Writing by Andrew Osborn; Editing by Alexander Winning)

Japan’s military begins major drill with U.S. carriers watching North Korea

The U.S. Navy aircraft carriers USS Ronald Reagan (front) and USS Carl Vinson and (back R) sail with their strike groups and Japanese naval ships during training in the Sea of Japan, June 1, 2017.

TOKYO (Reuters) – Japan’s navy and air force began a three-day military exercise with two U.S. aircraft carriers in the Sea of Japan on Thursday adding pressure on North Korea to halt an accelerating ballistic missile program.

Japan’s Maritime Self Defence Force has sent two ships, including one of its four helicopter carriers, the Hyuga, to join the U.S carriers, the USS Ronald Reagan and USS Carl Vinson, and their eight escort ships, Japan’s military said in a release.

Japanese Air Self Defence Force F-15s are taking part in simulated combat with U.S. Navy F-18 fighters at the same time, the military said.

“It’s the first time we have exercised with two carriers. It’s a major exercise for us,” a Japanese military spokesman said.

The Sea of Japan separates Japan from the Korean peninsula.

U.S. Navy aircraft carriers USS Carl Vinson (L) and USS Ronald Reagan sail with their strike groups and Japanese naval ships during training in the Sea of Japan, June 1, 2017.

U.S. Navy aircraft carriers USS Carl Vinson (L) and USS Ronald Reagan sail with their strike groups and Japanese naval ships during training in the Sea of Japan, June 1, 2017. U.S. Navy/Mass Communication Specialist 2nd Class Z.A. Landers/Handout via REUTERS

The United States sent the warships to the region after a surge of tension on the Korean peninsula over fears the North was about to conduct a sixth nuclear test, or another test in its bid to develop an intercontinental ballistic missile capable of hitting the mainland United States.

Japanese Prime Minister Shinzo Abe has vowed to work with other countries to deter North Korea, which on Monday conducted a short-range ballistic missile test.

The missile reached an altitude of 120 km (75 miles) before falling into the Sea of Japan in international waters, but inside Japan’s exclusive economic zone where it has jurisdiction over the exploration and exploitation of maritime resources.

The launch followed two successful tests of medium-to-long-range missiles in as many weeks as North Korea conducts tests at an unprecedented pace,

North Korea can already strike anywhere in Japan with missiles, raising concern in Tokyo that it could eventually be threatened by a North Korean nuclear strike.

South Korea’s new liberal president, Moon Jae-in, who took office on May 10, has taken a more conciliatory line than Abe, pledging to engage with his reclusive neighbor in dialogue.

(Reporting by Tim Kelly; Editing by Robert Birsel)

North Korea fires Scud-class ballistic missile, Japan protests

People watch a television broadcasting a news report on North Korea firing what appeared to be a short-range ballistic missile, at a railway station in Seoul, South Korea,

By Jack Kim and Ju-min Park

SEOUL (Reuters) – North Korea fired at least one short-range ballistic missile on Monday that landed in the sea off its east coast, the latest in a fast-paced series of missile tests defying world pressure and threats of more sanctions.

The missile was believed to be a Scud-class ballistic missile and flew about 450 km (280 miles), South Korean officials said. North Korea has a large stockpile of the short-range missiles, originally developed by the Soviet Union.

Monday’s launch followed two successful tests of medium-to-long-range missiles in as many weeks by the North, which has been conducting such tests at an unprecedented pace in an effort to develop an intercontinental ballistic missile (ICBM) capable of hitting the mainland United States.

North Korea was likely showing its determination to push ahead in the face of international pressure to rein in its missile program and “to pressure the (South Korean) government to change its policy on the North,” South Korea’s Joint Chiefs of Staff spokesman Roh Jae-cheon said.

It was the third ballistic missile test launch since South Korea’s liberal President Moon Jae-in took office on May 10 pledging to engage with the reclusive neighbor in dialogue.

Moon says sanctions alone have failed to resolve the growing threat from the North’s advancing nuclear and missile program.

Japan's Chief Cabinet Secretary Yoshihide Suga attends a news conference after the launch of a North Korean missile at Prime Minister Shinzo Abe's official residence in Tokyo, Japan

Japan’s Chief Cabinet Secretary Yoshihide Suga attends a news conference after the launch of a North Korean missile at Prime Minister Shinzo Abe’s official residence in Tokyo, Japan May 29, 2017. REUTERS/Toru Hanai

The missile reached an altitude of 120 km (75 miles), Roh said.
“The assessment is there was at least one missile but we are analyzing the number of missiles,” he said.

North Korea, which has conducted dozens of missile tests and tested two nuclear bombs since the beginning of 2016 in defiance of U.N. Security Council resolutions, says the program is necessary to counter U.S. aggression.

The White House said President Donald Trump had been briefed about the launch. The U.S. Pacific Command said it tracked what appeared to be a short-range ballistic missile for six minutes and assessed it did not pose a threat to North America.

The United States has said it was looking at discussing with China a new U.N. Security Council resolution and that Beijing, North Korea’s main diplomatic ally and neighbor, realizes time was limited to rein in its weapons program through negotiations. [nL4N1IS196]

Trump portrayed the missile test as an affront to China in a morning post on Twitter. “North Korea has shown great disrespect for their neighbor, China, by shooting off yet another ballistic missile…but China is trying hard!” he wrote.

U.S. Defense Secretary Jim Mattis, asked what a military conflict with North Korea might look like if diplomacy failed, warned on Sunday it would be “probably the worst kind of fighting in most people’s lifetimes”.

“The North Korean regime has hundreds of artillery cannons and rocket launchers within range of one of the most densely populated cities on Earth, which is the capital of South Korea,” Mattis told CBS news program “Face the Nation”.

“And in the event of war, they would bring danger to China and to Russia as well,” he said.

TESTING NEW CAPABILITIES

China reiterated that U.N. Security Council resolutions had “clear rules” about North Korean missile activities and it urged Pyongyang not to contravene them.

“The situation on the Korean peninsula is complex and sensitive, and we hope all relevant sides maintain calm and exercise restraint, ease the tense situation as soon as possible and put the issue back onto the correct track of peaceful dialogue,” China’s foreign ministry said in a statement.

Russia condemned the launch and also called for restraint, “including toward military activity,” from the partners it was working with, the RIA news agency quoted a deputy Russian foreign minister as saying.

Japan lodged a protest against the test missile, which appeared to have landed in its exclusive economic zone.

Japanese Prime Minister Shinzo Abe vowed action along with other nations to deter Pyongyang’s repeated provocations.

“As we agreed at the recent G7, the issue of North Korea is a top priority for the international community,” Abe told reporters in brief televised remarks. “Working with the United States, we will take specific action to deter North Korea.”

Seoul’s new liberal administration has said Pyongyang’s repeated test launches were dashing hopes for peace.

South Korea’s Moon called a meeting of the National Security Council, South Korea’s Office of the Joint Chiefs of Staff said in a statement.

North Korea last test-fired a ballistic missile on May 21 off its east coast and said on Sunday it had tested a new anti-aircraft weapon supervised by leader Kim Jong Un. [nL3N1IU014]

It has tested Scud-type short-range missiles many times in the past, most recently in April, according to U.S. officials. However, experts say it may be trying to test new capabilities that may be fed into its efforts to build an ICBM.

“There are many possibilities … It could have been a test for a different type of engine. Or to verify the credibility of the main engine for ICBM’s first stage rocket,” said Kim Dong-yub, a military expert at Kyungnam University’s Far Eastern Studies department in Seoul.

Modified versions of the Scud have a range of up to 1,000 km (620 miles).

On Tuesday, the United States will test an existing missile defense system to try to intercept an ICBM, the first such test, officials said last week.

(Additional reporting by Doina Chiacu Matt Spetalnick in WASHINGTON, Ben Blanchard in BEIJING, William Mallard in TOKYO, Soyoung Kim and Christine Kim in SEOUL, and

U.S., Japanese leaders agree to enhance sanctions against North Korea: White House

U.S. President Donald Trump (R) and Japan's Prime Minister Shinzo Abe shake hands during a bilateral meeting at the G7 summit in Taormina, Sicily, Italy, May 26, 2017. REUTERS/Jonathan Ernst

TAORMINA, Italy (Reuters) – President Donald Trump and Japanese Prime Minister Shinzo Abe agreed on Friday to expand sanctions against North Korea for its continued development of nuclear weapons and ballistic missiles, the White House said in a statement.

“President Trump and Prime Minister Abe agreed their teams would cooperate to enhance sanctions on North Korea, including by identifying and sanctioning entities that support North Korea’s ballistic missile and nuclear programs,” the White House said after the two men held a one-on-one meeting in Sicily.

“They also agreed to further strengthen the alliance between the United States and Japan, to further each country’s capability to deter and defend against threats from North Korea,” the statement said.

North Korea’s growing nuclear and missile threat is seen as a major security challenge for Trump and Abe both. Trump has vowed to prevent the country from being able to hit the United States with a nuclear missile, a capability experts say Pyongyang could have some time after 2020.

(Reporting by Steve Holland, writing by Steve Scherer; editing by Crispian Balmer)

Exclusive: U.S., Japanese firms collaborating on new missile defense radars – sources

FILE PHOTO: Logos of Mitsubishi Electric Corp are seen at a news conference at the company's headquarters in Tokyo, Japan, May 23, 2016. REUTERS/Toru Hanai/File Photo

By Tim Kelly and Nobuhiro Kubo

TOKYO (Reuters) – Raytheon Co and Lockheed Martin Corp are working with Japanese partners on rival projects to develop new radars that will enhance Japan’s shield against any North Korean missile strike, government and defense industry sources in Tokyo told Reuters.

As nuclear-armed Pyongyang builds ever more advanced missiles with the ability to strike anywhere in Japan, Tokyo is likely to fund a ground version of the ship-based Aegis defense system deployed on warships in the Sea of Japan, other sources had said earlier.

Raytheon is allied with Mitsubishi Electric Corp on the project while Lockheed is working with Fujitsu Ltd. The intent is to extend the range of Japan’s detection and targeting radars multiple times beyond range of models currently deployed at sea, the five government and industry sources said.

“Japan’s government is very interested in acquiring this capability,” said one of the sources with knowledge of the radar plans. The sources asked not to be identified because they were not authorized to speak to the media.

“Japan wants to have Aegis Ashore operational by 2023 at the latest,” said another of the sources.

Lockheed Martin, Raytheon and Mitsubishi Electric declined comment, while Fujitsu did not respond to requests for comment.

A spokesman for Japan’s Ministry of Defense said Tokyo did not currently have any concrete plans to collaborate with the United States on Aegis radars. “It is not our place to discuss the activities of corporations,” the spokesman added.

The proposed Aegis Ashore radars would be variants of models already developed by Raytheon and Lockheed, the sources said. They would include components using gallium nitride, an advanced material fabricated separately by Mitsubishi Electric and Fujitsu that can amplify power far more efficiently than conventional silicon-based semiconductors.

Nuclear-capable North Korea has a fast accelerating missile development program and Japanese officials have been worried that its ballistic missile defenses (BMD) could be overwhelmed by swarm attacks or be circumvented by warheads launched on lofted trajectories.

In the latest snub to demands it end its weapons program, North Korea on Sunday fired what it described as a intermediate-range ballistic missile that flew about 500 km (311 miles), falling into waters off its east coast.

It had tested another missile the previous Sunday. North Korea said that launch tested the capability to carry a “large-size heavy nuclear warhead” and put the U.S. mainland within “sighting range.”

Japan would likely need three Aegis Ashore batteries to cover the whole country, each of which would cost around $700 million without missiles, one of the sources said.

EXPORT

The idea is that such systems could eventually be sold to the U.S. or other militaries, representing a second chance for Japan to break into global arms markets after a failed bid last year to sell Australia a fleet of submarines in what Tokyo had hoped would spur military exports.

Prime Minister Shinzo Abe ended a decades-old ban on arms exports in 2014 to help beef up the nation’s military and lower the unit cost of home-built military equipment but Japan’s long-isolated defense companies have so far had scant success winning business overseas.

“Rather than a fully engineered submarine or other platform, the best way Japan can win export deals is to get Japanese components and technology integrated into U.S. equipment,” another of the sources said.

Japan is expected to make a final decision to acquire a ground-based Aegis system this year. It has also looked at buying THAAD (Terminal High Altitude Area Defense), which would add a third layer of defense between Aegis and Japan’s last line of defense PAC-3 Patriot missiles, to counter the North Korean threat.

Each THAAD battery, which come with missiles already loaded, costs around $1 billion.

Using either THAAD or beefed up Aegis radars could, however, anger China, which is already upset that THAAD batteries recently deployed in South Korea can peer deep beyond its border.

(Editing by Raju Gopalakrishnan)

North Korea says missile ready for mass-production, U.S. questions progress

The scene of the intermediate-range ballistic missile

By Ju-min Park and Phil Stewart

SEOUL/WASHINGTON (Reuters) – North Korea said on Monday it successfully tested what it called an intermediate-range ballistic missile, which met all technical requirements and could now be mass-produced, although U.S. officials and experts questioned the extent of its progress.

The United States, which has condemned repeated North Korean missile launches, said Sunday’s launch of what North Korea dubbed the Pukguksong-2 was of a “medium-range” missile, and U.S.-based experts doubted the reliability of the relatively new solid-fuel type after so few tests.

U.S. officials, who spoke on condition of anonymity, said the test did not demonstrate a new capability, or one that could threaten the United States directly. But the test was North Korea’s second in a week and South Korea’s new liberal government said it dashed its hopes for peace.

U.S. officials have been far less sanguine about the test of a long-range KN-17, or Hwasong-12, missile just over a week ago, which U.S. officials believe survived re-entry to some degree.

North Korea said that launch tested the capability to carry a “large-size heavy nuclear warhead” and put the U.S. mainland within “sighting range.”

Western experts say that test did appear to have advanced North Korea’s aim of developing an intercontinental ballistic missile capable of reaching the U.S. mainland, even if it is still some way off from achieving that capability.

The U.N. Security Council is due to meet on Tuesday behind closed doors to discuss the latest test, which defies Security Council resolutions and sanctions. The meeting was called at the request of the United States, Japan and South Korea.

Washington has been trying to persuade China to agree to new sanctions on North Korea, which has conducted dozens of missile firings and tested two nuclear bombs since the start of last year.

U.S. President Donald Trump has warned that a “major, major conflict” with North Korea is possible over its weapons programs, although U.S. officials say tougher sanctions, not military force, are the preferred option.

North Korea’s state news agency, KCNA, said the latest missile test was supervised by leader Kim Jong Un and verified the reliability of Pukguksong-2’s solid-fuel engine, stage separation and late-stage guidance for a nuclear warhead. It said data was recorded by a device mounted on the warhead.

‘PRIDE’

“Saying with pride that the missile’s rate of hits is very accurate and Pukguksong-2 is a successful strategic weapon, he (Kim) approved the deployment of this weapon system for action,” KCNA said.

“Now that its tactical and technical data met the requirements of the Party, this type of missile should be rapidly mass-produced in a serial way … he said.”

KCNA said Kim was able to view the Earth from a camera mounted on the missile. “Supreme leader Kim Jong Un said it feels grand to look at the Earth from the rocket we launched and the entire world looks so beautiful,” KCNA said.

South Korea’s military said the missile flew about 500 km (310 miles), reaching an altitude of 560 km (350 miles).

The South’s military said the test would have provided more “meaningful data” for North Korea’s missile program, but further analysis was needed to determine whether Pyongyang had mastered the technology needed to stop the warhead burning up on re-entering the Earth’s atmosphere.

U.S.-based experts said it would have a maximum range of about 1,500 km (930 miles) and questioned North Korea’s assertion that the reliability of the solid-fuel missile had been proven, given limited testing.

“Entering mass production this early in the development phase is risky, but perhaps a risk North Korea feels comfortable managing,” said Michael Elleman of the International Institute for Strategic Studies.

Jeffrey Lewis, of the California-based Middlebury Institute of International Studies, said North Korea would probably continue to test the missile after deployment, fixing flaws as they emerged.

The use of solid fuel presents advantages for weapons because it is more stable and can be transported easily allowing for a launch at very short notice from mobile launchers.

Developing longer-range solid fuel missiles was a highly complicated and would “take time, lots of it,” Elleman said, but North Korea’s solid fuel missiles pose a threat to South Korea and Japan and the tens of thousands of U.S. troops based in both countries.

On Sunday U.S. Secretary of State Rex Tillerson termed North Korea’s missile testing “disappointing, disturbing” and said economic and diplomatic pressure would continue.

Japan’s chief Cabinet secretary, Yoshihide Suga, said on Monday it was important to cut North Korea’s foreign currency earnings and to block shipments and technology transfers that aid North Korea’s nuclear missile development.

China repeated its call for all parties to exercise restraint and not let tension mount further.

On Monday, South Korea’s Unification Ministry spokesman Lee Duk-haeng said while Seoul would respond firmly to any North Korean “provocations”, “it would not be desirable to have ties between the South and the North severed.”

(Additional reporting by Kaori Kaneko in Tokyo, Ben Blanchard in Beijing and David Brunnstrom and Matt Spetalnick in Washington; Editing by Nick Macfie and Peter Cooney)

Japan favors Aegis Ashore over THAAD to boost missile defense: sources

The deckhouse of the Aegis Ashore Missile Defense System (AAMDS) at Deveselu air base, Romania, May 12, 2016. Inquam Photos/Adel Al-Haddad/via REUTERS

TOKYO (Reuters) – Japan is leaning towards choosing the Aegis Ashore missile-defense system over another advanced system called Terminal High Altitude Area Defense (THAAD), government and ruling party sources said.

Faced with North Korea’s rapid missile and nuclear development, and its threats, Japan has been looking into introducing a new missile-defense layer – either the THAAD or the Aegis Ashore, a land-based version of the Aegis system developed for war ships.

Lockheed Martin Corp makes both systems.

The government now favors the Aegis Ashore system as it comes with a wider coverage area, which would mean fewer units needed to protect Japan, and it is also cheaper, three government and two ruling party sources said.

The sources, who spoke this week, declined to be identified because they are not authorized to speak to media on the topic.

An Aegis Ashore unit costs about 70 billion-80 billion yen ($618 million-$706 million), while a THAAD unit costs more than 100 billion yen, the sources said.

Also, the introduction of Aegis Ashore would help reduce the burden of round-the-clock vigilance shouldered by Japanese warships equipped with the Aegis system, they said.

The government will make a final decision on the new system in coming months, after sending, possibly this month, an inspection team to Hawaii, where U.S. forces operate Aegis Ashore test facilities, they said.

Japan’s ruling Liberal Democratic Party in March urged Prime Minister Shinzo Abe’s government to consider acquiring the capability to hit enemy bases and to beef up missile defense.

($1 = 113.3300 yen)

(Reporting by Nobuhiro Kubo; Writing by Kiyoshi Takenaka; Editing by Robert Birsel)

Japan, China to boost financial ties amid protectionist, North Korean tensions

Chinese Finance Minister Xiao Jie (R) and Japanese Finance Minister Taro Aso shake hands during their bilateral meeting, on the sidelines of Asian Development Bank (ADB) annual meeting, in Yokohama, Japan, Saturday, May 6, 2017. REUTERS/Koji Sasahara/Pool

By Tetsushi Kajimoto

YOKOHAMA, Japan (Reuters) – Japan and China agreed to bolster economic and financial cooperation, Japanese Finance Minister Taro Aso said on Saturday, as U.S. President Donald Trump’s protectionist stance and tension over North Korea weigh on Asia’s growth outlook.

Chinese Finance Minister Xiao Jie, who missed a trilateral meeting with his Japanese and South Korean counterparts on Friday for an emergency domestic meeting, had flown in for the talks with Aso, seeking to dispel speculation his absence had any diplomatic implications.

“We actively exchanged views on economic and financial situations in Japan and China and our cooperation in the financial field,” Aso told reporters after the meeting, which included senior finance ministry and central bank officials.

“It was significant that we reconfirmed the need of financial cooperation between the two countries while sharing our experiences in dealing with economic policies and structural issues,” he added.

The two countries agreed to launch joint research on issues of mutual interest – without elaborating – and to report the outcomes at the next talks, which will be held in 2018 in China.

They did not discuss issues such as currencies and geopolitical risks from North Korea’s nuclear and missile program during the dialogue, held on the sidelines of the Asian Development Bank’s (ADB) annual meeting in Yokohama, eastern Japan, Aso said.

Relations between Japan and China have been strained over territorial rows and Japan’s occupation of parts of China in World War Two, though leaders have recently sought to mend ties through dialogue.

Still, China’s increasing presence in infrastructure finance has alarmed some Japanese policymakers, who worry that Beijing’s new development bank, the Asian Infrastructure Investment Bank (AIIB), may overshadow the Japan-backed ADB.

Shortly before the bilateral talks on Saturday, Xiao voiced hope that the ADB will boost ties with China’s high profile “One Belt One Road” infrastructure development initiatives.

“China hopes the ADB … strengthens the strategic ties between its programs and the One Belt One Road initiative to maximize synergy effects and promote Asia’s further development,” Xiao told the ADB’s annual gathering.

Japan and China do agree on the need to respect free trade, which they see as crucial to Asia’s trade-dependent economies.

Finance officials from Japan, China and South Korea agreed to resist all forms of protectionism in Friday’s trilateral meeting, taking a stronger stand than G20 major economies against the protectionist policies advocated by Trump.

China has positioned itself as a supporter of free trade in the wake of Trump’s calls to put America’s interests first and pull out of multilateral trade agreements.

Japan has taken a more accommodative stance toward Washington’s argument that trade must not just be free but fair.

(Reporting by Tetsushi Kajimoto; Editing by Nick Macfie and Alexander Smith)

French amphibious carrier visits Japan ahead of Pacific show of power

French amphibious assault ship Mistral (L) arrives at Japan Maritime Self-Defense Force's Sasebo naval base in Sasebo, Nagasaki prefecture, Japan April 29, 2017, ahead of joint exercises with U.S., British and Japanese forces in waters off Guam. REUTERS/Nobuhiro Kubo

By Nobuhiro Kubo

SASEBO (Reuters) – As tension spikes on the Korean peninsula, a French amphibious assault carrier sailed into Japan’s naval base of Sasebo on Saturday ahead of drills that risk upsetting China, which faces U.S. pressure to rein in North Korea’s arms programs.

The Mistral will lead exercises next month near Guam, along with forces from Japan, the United States and Britain, practicing amphibious landings around Tinian, an island about 2,500 km (1,553 miles) south of the Japanese capital of Tokyo.

The drills, involving 700 troops, were planned before Saturday’s test-firing of a ballistic missile by North Korea, in defiance of world pressure, in what would be its fourth successive unsuccessful missile test since March.

Japan and the United States are worried by China’s efforts to extend its influence beyond its coastal waters and the South China Sea by acquiring power-projecting aircraft carriers, a concern shared by France, which controls several Pacific islands, including New Caledonia and French Polynesia.

Even as they seek stronger economic ties with China, both France and Britain, which has two navy helicopters aboard the Mistral, are deepening security cooperation with Japan, a close U.S. ally that has Asia’s second-strongest navy after China.

The Mistral forms part of an amphibious task force mission, the Jeanne d’Arc, that is “a potent support to French diplomacy,” the country’s defence ministry said in a statement.

Officials and children’s welcome dances greeted the Mistral in Sasebo, on the western island of Kyushu, a major naval base for Japan’s Maritime Self Defense Force (MSDF) and the U.S. Navy.

The Mistral, which left France in February, can carry up to 35 helicopters and four landing barges, besides several hundred soldiers. It will stay in Sasebo until May 5.

This month China launched its first domestically-built aircraft carrier. It joined the Liaoning, bought from Ukraine in 1998, which led a group of Chinese warships through waters south of Japan in December.

China’s military ambitions, however, have been overshadowed in recent weeks by tension on the Korean peninsula as Pyongyang conducts long-range missile tests, and prepares for a possible sixth nuclear test.

“We did not expect the start of our visit to coincide with a North Korean missile launch, France’s ambassador to Japan Thierry Dana said on the Mistral’s bridge. “Cooperation between our four nations in upholding laws, peace and stability in the region will display our readiness to deal with North Korea,” he added.

In a show of force, the United States has sent the USS Carl Vinson aircraft carrier group to nearby waters, where it will join the USS Michigan, a guided missile submarine that docked in South Korea on Tuesday.

The Carl Vinson entered the Sea of Japan on Saturday, where it completed naval drills with two Japanese warships dispatched from Sasebo, an MSDF spokesman said.

(Reporting by Nobuhiro Kubo; Writing by Tim Kelly; Editing by Clarence Fernandez and Muralikumar Anantharaman)