(Japantimes, Dec 24, 2006) Talks between Japan and China are expected to resume next month on the dispute over gas exploration rights in the East China Sea, diplomatic sources said Saturday.

The talks are likely to be held sometime after mid-January. They will be the first under the administration of Prime Minister Shinzo Abe. The last round was held in July.

Abe and Chinese President Hu Jintao have agreed in their two meetings to aim for an early resolution of the dispute with joint development as the goal.

Japan plans to propose development near the median line between the two nations' territories, but China is expected to propose development in other locations, the sources said.

The dispute stems from the unsettled demarcation of the East China Sea where the two countries' economic waters overlap.

A Chinese consortium has been developing gas fields close to waters claimed by Japan, which Tokyo fears may be siphoning off resources from the Japanese side.

The talks were to have resumed before the end of the year, but preparations were delayed by the six-party talks on North Korea.

Source:Japantimes