Japanese Foreign Minister Yoriko Kawaguchi arrived in Tehran on 7 January 2004 on a two-day visit to discuss bilateral ties, the Iraqi situation and Iran’s nuclear plans. During her stay, Kawaguchi held talks with President Mohammad Khatami, Secretary of Iran’s Supreme National Security Council Hassan Rohani, Head of the Expediency Council Akbar Hashemi Rafsanjani, Majlis speaker Mahdi Karroubi, Foreign Minister Kamal Kharrazi and Head of the Department of Environment Masoumeh Ebtekar.

Japan imports almost all its oil needs and Iran is its third largest supplier of crude oil.

The visit was the second by Kawaguchi. She last visited Iran in May 2002. Japan’s Foreign Ministry spokesman Hatsuhisa Takashima said Kawaguchi’s visit aimed to voice sympathy with Iran over the tragic earthquake that killed some 35,000 people in Iran’s southeastern city of Bam.

Takashima said at a Tehran news conference that Kawaguchi also appreciated Iran’s signing of the additional protocol to the nuclear Non-Proliferation Treaty (NPT). Japan has so far extended as much as $2 billion in relief aid to Iran for the Bam quake victims. Tokyo is also said to be planning to study ways of reconstructing Bam. He said Kawaguchi had also congratulated her Iranian counterpart Kamal Kharrazi on awarding of the Noble Peace Prize to an Iranian woman.

At a meeting with Kawaguchi, Rohani said Tehran was interested in expanding its ties with Japan. But he said Tehran first needed assurances that Tokyo would "not be influenced by third parties in its bilateral ties with Iran."

Under pressure from Washington, a government-backed Japanese consortium earlier this year stalled on completing a $2 billion deal to develop Iran’s giant Azadegan oilfield. Washington had urged Tokyo not to sign the deal because it believed Iran was developing nuclear arms. Tehran denies it has plans to develop such weapons and signed an agreement last month under which international inspectors can carry out snap inspections of its nuclear facilities.

Japanese Foreign Ministry spokesman Hatsuhisa Takashima told a news conference in Tehran that resolving misunderstandings was one of the goals of Kawaguchi’s two-day trip to Tehran. He welcomed Iran’s signing of the nuclear Non-Proliferation Treaty’s additional protocol, but said Tokyo would not lift its ban on exports of dual-purpose equipment to Iran until the International Atomic Energy Agency had released its next report, due next month.

Japan imports almost all its oil needs and Iran is its third largest supplier of crude oil.

Takashima denied rumors in some Iranian media that the minister was carrying a message for Tehran from U.S. officials but said: "Any rapprochement between Iran and the U.S. will be very good for peace and stability in the world." Arch-foes Tehran and Washington have made tentative noises about easing more than two decades of mistrust since the United States sent medical teams and humanitarian aid to victims of the 26 December 2003 Bam earthquake.

"Iran’s mistrust towards the United States will decrease only when Tehran witnesses that it is continuing positive measures that would depict a real change in U.S. policy towards Iran," Khatami said.

The United States temporarily and partially suspended unilateral sanctions against Iran, which it has lumped into an "axis of evil," and offered to send a high-level delegation to follow up on the aid. Iran, however, turned down the offer and said the time was not yet right for contacts at such a level.

"The United States is now facing a test to give up its inappropriate policies, and refrain from taking any action against Iran in international forums such as the IAEA (International Atomic Energy Agency)," Khatami said when he received Kawaguchi.

"The United States should rather approve Iran’s proper behavior and recognize Iran’s right to possess peaceful nuclear technology under the supervision of the IAEA," he said.

"Japanese Foreign Minister Yoriko Kawaguchi and the foreign minister of Iran agreed that there were serious negotiations going on between the Japanese consortium and Iranian authorities," Takashima said. "They both agreed that they wanted to see the negotiations to be concluded in a satisfactory way and successfully in the near future," he added. Takashima was speaking in Abu Dhabi, capital of the United Arab Emirates, where the Japanese foreign minister arrived after visiting Iran.

The Japanese consortium consists of Tomen Corp <8003.T> and two state-backed companies -- INPEX Corp and Japan Petroleum Exploration Co. Kawaguchi also explained to Iranian foreign minister Japan’s decision to send troops to Iraq to help with reconstruction and humanitarian assistance, Takashima said.

"The two nations should boost their relations based on mutual interest and refrain form any step that may jeopardize these ties," he added. Japanese foreign minister said Tehran and Tokyo should continue their consultations in international institutions. "Tokyo’s policy is to expand relations with Tehran in all areas."

The Japanese official also expressed her satisfaction with the progress of JAICA (the Japanese Agency for International Cooperation on Environment) plans to restore Anzali Marsh and Tehran air pollution management.

On Iran’s signing of the additional protocol to NPT, she said the measure indicated Iran’s respect for the world public opinion. She also called on Tehran to actively cooperate in reconstruction of Iraq and Afghanistan.

Karroubi urged Japan to cooperate in the reconstruction of the quake-hit region of Bam as well as implement anti-quake projects in the country. Expressing satisfaction over expansion of relations between Tehran and Tokyo in recent years, Karroubi called for further expansion of bilateral relations based on mutual respect.