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(3) The Issue of Diaoyu Islands
Diaoyu Island and its affiliated islands (Japan calls them as Senkaku Islands) lie in the East China Sea, around 92 nautical miles Northeast of Chilung City, Taiwan Province of China, which are mainly composed of Diaoyu Island, Huangwei Yu, Chiwei Yu, Nanxiao Dao, Beixiao Dao Island and some reefs, covering an area of 6.3 square kilometers altogether. Of all the islands, Diaoyu Island is the biggest one with an area of about 4.3 square kilometers.

Diaoyu Island and its affiliated islands have long been the inherent territory of China. Like Taiwan, Diaoyu Islands are inalienable part of the territory of the People's Republic of China. China enjoys indisputable sovereignty over these islands and the natural resources in its affiliated sea areas. China's sovereignty over these islands is fully proven by history and is legally well-founded.

In view of the different positions on Diaoyu Islands from the Japanese side, the Chinese government, proceeding from the development of the Sino-Japanese relations and on condition of adhering to the Chinese consistent positions, reached an understanding with the Japanese government: (1) The issue of the Diaoyu Islands shall be shelved for future settlement; (2) Neither sides should take unilateral actions and (3) The two sides should try to prevent this issue from becoming an disturbing factor in the overall bilateral relations.

In recent years, the Japanese right wings from time to time created incidents over the Diaoyu Islands. The Chinese side made solemn representations to the Japanese side through diplomatic channels. The Japanese government affirmed their basic position of neither participating nor supporting for the activities of the right wings. The action of the right wings is detrimental to the development of Sino-Japanese relations and runs counter to the stand of the Japanese government.

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