Russian President Vladimir Putin arrived in Tokyo yesterday for three days of tense diplomacy aimed at putting aside a six-decade territorial row between the Pacific neighbors and opening the door for more trade.

His arrival was met with loud protests from Japanese ultra-nationalists, demanding the return of four Pacific islands seized by the Soviet army in the closing days of World War II.

The dispute over the tiny wind-swept islands, known as the Northern Territories in Japan and the Southern Kuriles in Russia, has marred ties between Tokyo and Moscow and prevented them from signing a peace treaty.

"I would very much like to develop relations in the way they have been developing in the last few years," Putin, who last visited Japan in 2000, told reporters in his first public comments since arriving in Tokyo.

"That gives us hope that we will be able to build relations based on friendship and understanding ... and solve all the questions we think have yet to be solved."

Dozens of buses with loudspeakers blaring messages such as "Return the Northern Territories" and "Go home" attempted to park outside the central hotel where Putin was staying, but were kept back by a police cordon.

Some protesters carrying Japanese flags and banners briefly clashed with police as they tried to climb over the barriers. Police appeared to take several people into custody before the demonstrators were dispersed.

Russia and Japan have stubbornly refused to budge from their long-held positions on the islands, with Japan saying it would not sign a peace treaty unless they are returned.

Russia has offered to hand over two of the islands but Japan firmly rejected the proposal, which was based on the 1956 Japan-Soviet declaration.

Analysts say a political breakthrough was unlikely on easing the deadlock. Moscow and Tokyo want to put economic incentives above politics and use the symbolism of this year's 150th anniversary of their first trade treaty to open up more trade between the world's No 2 oil exporter and the world's No 2 economy.

Current trade turnover between them is about US$10 billion, a tiny proportion of Japan's trade with China or the United States.

Today, Putin and more than 100 Russian business people were due to attend an economic forum where Putin will meet Koizumi.

Japan is expected to try to coax guarantees from Russia to build its huge oil pipeline to the Pacific rather than to China.

(China Daily November 21, 2005)