II

Both sides believe that, after the Cold War, the Asian region has continued to move toward stability and the regional cooperation has deepened further. In addition, both sides are convinced that this region will exert greater influence on international politics, economics and security and will continue to play an important role in the coming century.

Both sides reiterate that it is the unshakable fundamental policy of the two countries to maintain the peace of this region and to promote its development, and that they will not seek hegemony in the Asian region and settle all disputes by peaceful means, without recourse to the use or threat of force.

Both sides expressed their great interest in the current financial crisis in East Asia and the ensuing difficulties for the Asian economy. At the same time, both sides recognize that the economic foundation of this region is sound, and firmly believe that by advancing rational adjustment and reform based on experiences, as well as by enhancing regional and international coordination and cooperation, the economy of Asia will definitely overcome its difficulties and continue to develop. Both sides affirmed that they would positively meet the various challenges that they faced, and would respectively make their utmost efforts toward promoting the economic development of the region.

Both sides believe that stable relations among the major nations of the Asia-Pacific region are extremely important for the peace and stability of this region. Both sides shared the view that they would actively participate in all multilateral activities in this region, such as the ASEAN Regional Forum, promote coordination and cooperation, and support all measures for enhancing understanding and strengthening confidence.

III

Both sides reviewed the bilateral relationship since the normalization of relations between China and Japan, and expressed satisfaction with the remarkable development in all areas, including politics, economics, culture and personnel exchanges. Further,both sides shared the view that under the current situation cooperation between the two countries is growing in importance, and that further strengthening and developing the friendly and cooperative relations between the two countries not only serve the fundamental interests of their peoples, but also positively contribute to the peace and development of the Asia-Pacific region and the world as a whole. Both sides reaffirmed that the Japan-China relationship is one of the most important bilateral relationships for the respective country,deeply recognized the role and responsibility of both countries in achieving peace and development, and expressed their resolve to establish a partnership of friendship and cooperation for peace! and development toward the twenty-first century.

Both sides restated that they will observe the principles of the Joint Communique of the Government of Japan and the Government of the People's Republic of China, issued on 29 September 1972 and the Treaty of Peace and Friendship between Japan and the People's Republic of China, signed on Aug 12, 1978, and reaffirmed that the above-mentioned documents will continue to be the most important foundation for the bilateral relations.

Both sides are of the view that China and Japan share a history of friendly exchanges spanning more than 2,000 years, as well as a common cultural background, and that it is the common desire of the peoples of the two countries to continue this tradition of friendship and to further develop mutually beneficial cooperation.

Both sides believe that squarely facing the past and correctly understanding history are the important foundation for further developing relations between China and Japan. The Japanese side observes the 1972 Joint Statement between the government of the People's Republic of China and the government of Japan and the Aug 15, 1995 Statement by former Prime Minister Tomiichi Murayama. The Japanese side is keenly conscious of the responsibility for the serious distress and damage that Japan caused to the Chinese people through its aggression against China during a certain period in the past and expressed deep remorse for this. The Chinese side hopes that the Japanese side will learn lessons from the history and adhere to the path of peace and development. Based on this, both sides will develop long-standing relations of friendship.

Treaties between China and Japan