InfoAnda - How debts and double-dealing sparked Japan-China islets row |

Pakistanis angry over detentions in Times Sq. case
Monday, May 24, 2010
ISLAMABAD – Relatives of three men detained by Pakistan for alleged links to the suspect in the attempted Times Square bombing say the men are innocent.
They

Taiwan denies boycotting Australian film festival
Thursday, August 6, 2009

AFP - Thursday, August 6TAIPEI (AFP) - - Taiwan's Beijing-friendly government on Wednesday denied boycotting an Australian film festival amid a row over the e

Merkel's support dips, regional ally resigns International
Thursday, September 3, 2009

By Sarah Marsh and Noah Barkin

BERLIN (Reuters) - Chancellor Angela Merkel suffered a double blow on Thursday as a senior party ally in east German

Minister seeks closure of anti-Berlusconi websites
Wednesday, December 16, 2009
ROME (AFP) - – The Italian government moved Tuesday to close down Internet sites encouraging further violence against Prime Minister Silvio Berlusconi, who

Asian markets mixed after Wall Street rally
Wednesday, March 18, 2009

By ELAINE KURTENBACH,AP Business Writer AP - Wednesday, March 18SHANGHAI - Asia's stock market rally seemed to be running out of steam Wednesday, despite an

Zsa Zsa Gabor returns home from hospital | | 22 October 2011
Pavilion celebrates Taiwan's centennial | 15 February 2011
Amazon, eBay wage costly battle for shoppers | | 23 April 2011

Obama brother arrested over cannabis possession | 1 February 2009

Forum Views () Forum Replies ()

Read more with google mobile : How debts and double-dealing sparked Japan-China islets row |

Edition: U.S. Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom Home Business Business Home Economy Technology Media Small Business Legal Deals Earnings Social Pulse Business Video The Freeland File Aerospace & Defense Investing Simplified Markets Markets Home U.S. Markets European Markets Asian Markets Global Market Data Indices M&A Stocks Bonds Currencies Commodities Futures Funds peHUB Dividends World World Home U.S. Brazil China Euro Zone Japan Mexico Russia India Insight World Video Reuters Investigates Decoder Politics Politics Home Election 2012 Campaign Polling Supreme Court Politics Video Tech Technology Home MediaFile Science Tech Video Tech Tonic Social Pulse Opinion Opinion Home Chrystia Freeland John Lloyd Felix Salmon Jack Shafer David Rohde Nader Mousavizadeh Lucy P. Marcus Nicholas Wapshott Bethany McLean Anatole Kaletsky Edward Hadas Hugo Dixon Ian Bremmer Lawrence Summers Susan Glasser The Great Debate Steven Brill Reihan Salam Frederick Kempe Christopher Papagianis Mark Leonard Breakingviews Equities Credit Private Equity M&A Macro & Markets Politics Breakingviews Video Money Money Home Tax Break Lipper Awards 2012 Global Investing MuniLand Unstructured Finance Linda Stern Mark Miller John Wasik James Saft Analyst Research Alerts Watchlist Portfolio Stock Screener Fund Screener Personal Finance Video Money Clip Investing 201 Life Health Sports Arts Faithworld Business Traveler Entertainment Oddly Enough Lifestyle Video Pictures Pictures Home Reuters Photographers Full Focus Video Reuters TV Reuters News Article Comments (7) Full Focus Photos of the week Our best photos from the past week. Slideshow Download our Wider Image iPad app Images of October Follow Reuters Facebook Twitter RSS YouTube Read Tampa woman identified as source of FBI's Petraeus probe 11 Nov 2012 Identity of second woman emerges in Petraeus' downfall | 1:53am EST BBC must reform or die, says Trust chairman 11 Nov 2012 Study tentatively links flu in pregnancy and autism 12:39am EST Republicans say deal can be done on U.S. "fiscal cliff" 11 Nov 2012 Discussed 213 After Obama win, U.S. backs new U.N. arms treaty talks 171 White House race goes down to the wire 166 Obama plans ”fiscal cliff” statement as showdown looms Sponsored Links How debts and double-dealing sparked Japan-China islets row Tweet Share this Email Print Related News New York readies for Veterans Day as region struggles Sat, Nov 10 2012 New York rations gasoline; storm victims still in the dark Fri, Nov 9 2012 Toyota pushes up profit forecast, details China hit Mon, Nov 5 2012 Anger grows over fuel shortage in storm-hit Northeast Fri, Nov 2 2012 Sharp fears for future as Japan TV makers bleed Thu, Nov 1 2012 Analysis & Opinion Historic stakes are higher in China than in U.S. How to make sense of Chinaâ€™s leadership line-up Related Topics World » China » Japan » Hiroyuki Kurihara speaks during an interview with Reuters in Tokyo October 1, 2012. The Kurihara family are the former owners of the disputed islands in the East China Sea, known as Senkaku in Japan, Diaoyu in China and Tiaoyutai in Taiwan. Surrounded by concrete walls, security cameras and warnings of guard dogs, Kunioki Kurihara has shunned the spotlight in his compound since closing a deal to sell three uninhabited islands in the East China Sea to Japan's government in September. The islands are also claimed by China and deemed part of its national territory for centuries. Their $25.5 million sale sent tension soaring between Tokyo and Beijing. Kurihara's younger brother Hiroyuki, who describes himself as family spokesman, has used his sudden fame to promote a book, ''Senkaku Islands for Sale'' -- and a longshot plan to turn the islands into a centre for medical tourism. Picture taken October 1, 2012. Credit: Reuters/Toru Hanai By Antoni Slodkowski OMIYA, Japan | Sun Nov 11, 2012 4:30pm EST OMIYA, Japan (Reuters) - The road to China's breakdown in relations with Japan began here - a sleepy Tokyo suburb that is home to the reclusive real-estate investor at the centre of the explosive property deal that enraged Beijing. Surrounded by concrete walls, security cameras and warnings of guard dogs, Kunioki Kurihara has shunned the spotlight in his compound since closing a deal to sell three uninhabited islands in the East China Sea to Japan's government in September. The islands, known as the Senkaku in Japan, are also claimed by China, where they are known as the Diaoyu and deemed part of its national territory for centuries. Their $25.5 million sale sent tension soaring between Tokyo and Beijing. Seen in Beijing as a nationalisation of private property, it sparked violent protests and a boycott of Japanese goods. Chinese ships were dispatched to patrol disputed waters. Participants close to the deal describe how a property magnate with heavy debts clinched a deal he had sought with the government for at least six years by playing it off against a fiery nationalist - Tokyo's then-governor, Shintaro Ishihara. Ishihara has since resigned to return to national politics at age 80. It was his initial offer to buy the islands that led to a quick government purchase - at a markup of at least half a million dollars. Kurihara, 70, declined a request for an interview. His younger brother Hiroyuki, who describes himself as family spokesman, has used his sudden fame to promote a book, "Senkaku Islands for Sale" -- and a longshot plan to turn the islands into a centre for medical tourism. "It's odd that they owned the islands for so long," said Jeffrey Kingston, director of Asia Studies at Temple University in Japan. "It's only now that the ante is up." FROM FISH PROCESSING TO FLASHPOINT Mostly rocky outcroppings which serve as a home to migratory birds and a herd of wild goats, the islands are closest to Taiwan, about 210 km (125 miles) northeast of Taipei and 1,800 km from Tokyo. The largest, Uotsurijima in Japanese, rises up like a forest-canopied mountain from the sea, with no port for landing. A little larger than New York's Central Park, the island's highest point tops the Eiffel Tower. The Kuriharas obtained the islands for an undisclosed amount in the 1970s from Zenji Koga, a journalist from Okinawa, an island to the northeast. Before World War Two, his father had run a fish processing plant on Uotsurijima. Japan annexed the islands in 1895 and Koga rented them, then bought them in 1932, when they fell under the jurisdiction of colonial Taiwan, also annexed by Japan. Taiwan also claims the islands. The Kuriharas obtained the islands after the United States returned Okinawa to Japan in 1972 and interest grew in potential oil and gas deposits. But the family's focus was on commercial and residential property in Omiya, a legacy of wealth built up in the rice trade. Records show Kunioki pledged at least 75 real estate parcels in Omiya and Tokyo against his bank borrowing. One building next to his house served until recently as headquarters of a Buddhist-affiliated group, Kenshokai, which preaches that Japan faces an apocalyptic reckoning and invasion by China. The group, a former Kurihara tenant, has described the isles as a potential flashpoint in that conflict. In the summer of 2011, Kurihara approached Akiko Santo, a lawmaker from the opposition Liberal Democratic Party, saying he wanted to try to sell the islands to Tokyo governor Ishihara. Ishihara became internationally known in 1989 for his best-seller "The Japan that Can Say No," an argument to reduce Japan's reliance on the protection of the United States. "THE STRONGEST PROMISE YOU CAN MAKE" Kurihara described himself as an admirer of the governor and said he wanted to sell him the islands, Santo said. The two met at the Omiya compound in September 2011 and later in Tokyo's fashionable Ginza district, where they reached a verbal deal. "They shook hands and gave their word to each other as men, which in Japan is the strongest promise you can make," she said. In April, Ishihara announced a plan to buy the islands, raising $17 million from private donors. His deputy, Vice-Governor Naoki Inose, also an author, estimated Kurihara's net debt at about 1.5 billion yen, almost $19 million. "I'm not stupid. I checked his mortgages," Inose told Reuters. Records show Kurihara had a credit line of almost $50 million, or 4 billion yen by 2012. The funding was provided by Bank of Tokyo-Mitsubishi UFJ, Japan's largest lender, and the Saitama Shinkin Bank, a local bank. The final offer from Ishihara's team was just over 2 billion yen, nearly $25 million, two people close to the talks said. But Kurihara had also been talking to the government. Prime Minister Yoshihiko Noda saw a national bid as a way to head off a more damaging confrontation with China. "He first approached us about the islands in 2006," said Akihisa Kameda, the official responsible for negotiating the deal. Kameda said Kurihara had earlier rejected proposed swaps for forests or fields elsewhere in Japan. With the Tokyo governor offering cash, the government was forced into the bidding. By late June, Kurihara had grown worried that the sale could be tied up in Tokyo's local parliament or derailed by assessors, Santo said. He broke off talks with Ishihara's team with a curt message: "I decided to sell the islands to Japan." Government negotiators offered Kurihara the higher price, people involved told Reuters, and fast-tracked a deal that would have taken up to a year with a private-sector buyer. Kameda offered few details on the price, saying that it reflected a calculation of what it would cost to "replace" the islands, without further explanation. Officials declined requests by Reuters to see documents related to the valuation and sale. On September 11, Japan announced it had nationalised three of the Senkaku islands, generating outrage in China, where a Communist Party Congress opened last week to put in place new leaders who will face the challenge of re-engaging with Japan. "Japan should have pressed more for China to accept that the Senkaku are Japanese islands," Kurihara's brother, Hiroyuki, told Reuters. Kazuko Kurihara, a younger sister, still holds the second-largest island, Kubajima, and in May renewed a 20-year lease to the Defence Ministry. Kubajima has been made available to the United States as a bombing range, last used in 1978. Ishihara has told aides he wants to fund building projects on the islands. That would strain ties with China further. Santo said she understood Kurihara's pursuit of the highest offer. "For him, business considerations were the most important. After all, he is a real-estate broker," she said. ($ = 80.1400 Japanese yen) (Additional reporting by Junko Fukita and Kimiteru Tsuruta, Writing by Kevin Krolicki, Editing by Ron Popeski) World China Japan Tweet this Link this Share this Digg this Email Reprints We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (7) VonHell wrote: Edition: U.S. Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom Back to top Reuters.com Business Markets World Politics Technology Opinion Money Pictures Videos Site Index Legal Bankruptcy Law California Legal New York Legal Securities Law Support & Contact Support Corrections Connect with Reuters Twitter Facebook LinkedIn RSS Podcast Newsletters Mobile About Privacy Policy Terms of Use AdChoices Copyright Our Flagship financial information platform incorporating Reuters Insider An ultra-low latency infrastructure for electronic trading and data distribution A connected approach to governance, risk and compliance Our next generation legal research platform Our global tax workstation Thomsonreuters.com About Thomson Reuters Investor Relations Careers Contact Us Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests. NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.

Other News on Monday, 12 November 2012
Russia to help probe Arafat's death, Palestinian president says |
Middle East nuclear talks said doubtful despite Iran |
Saudi King to undergo back operation next week |
Thousands of Kuwaitis protest against voting changes |
Cattle raiders kill at least 12 Kenyan policemen |
West African bloc to commit 3,300 troops in Mali battle plan |
Three killed in Sunni-Shi'ite clash in south Lebanon |
Egypt plans new deficit-reduction steps: media |
James Bond soars to box office record with Skyfall |
Robbie Williams takes UK pop charts' crown |
Syria's opposition groups strike unity deal against Assad |
Syrian helicopters bombard town near Turkish border: witness |
Iran launches air drills in country's east |
How debts and double-dealing sparked Japan-China islets row |
Analysis: European austerity protests far from revolution |
Myanmar quake death toll at 11, aftershocks rumble |
Merkel to visit Lisbon, back austerity regime |
At China party congress, allegiance trumps reform |
China's Alibaba Group Q2 net profit doubles: SEC filing |
HTC shares jump after settles patent issues with Apple |
Swift, Bieber win three apiece at MTV Europe awards |
BBC head says broadcaster must reform or die |
Violence flares in Golan even as Syria's opposition seeks recognition |
More Gaza rockets hit Israel despite truce efforts |
Italy's Monti says he would prefer not to stay on as PM |
Saudi tells U.N. Iran trespassing on its territory: report |
At least 32 Kenyan policemen killed by cattle raiders |
Spanish parties tackle eviction reform after suicides |
Italy arrests fisherman who supplied TNT for mafia bombings |
Gaddafi's ex-PM on trial in Libya over mass rape, graft |
Microsoft's Surface tablet has modest start: Ballmer |
RIM to introduce new BlackBerry 10 devices on January 30 |
Donating in the wake of Sandy gets social with apps |
Pedometers play up every step you take |
U2's Bono to urge U.S. politicians not to cut aid programs |
Labels maintain new music spend despite sales slump |
BBC head says broadcaster must reform or die |
Greece at new risk of being pushed off euro
Bodies of missing Tenn. mom, Jo Ann Bain, and daughter found
Female Breasts Are Bigger Than Ever
AMD Trinity Accelerated Processing Units Now in Volume Production
The Avengers (2012 film), made the second biggest opening- and single-day gross of all-time
AMD to Start Production of piledriver
Ivy Bridge Quad-Core, Four-Thread Desktop CPUs
Islamists Protest Lady Gaga's Concert in Indonesia
Japan Successfully Broadcasts an 8K Signal Over the Air
ECB boosts loans to 1 trillion Euro to stop credit crunch
Egypt : Mohammed Morsi won with 52 percent
What do you call 100,000 Frenchmen with their hands up
AMD Launches AMD Embedded R-Series APU Platform
Fed Should not Ignore Emerging Market Crisis
Fed casts shadow over India, emerging markets
Why are Chinese tourists so rude? A few insights

USD EUR - 1 year graph	VPN on MacOSX	BlogMeter 1.01