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The U.S. government may be legally obligated to defend Japan.

Cross-posted from One Minute MBA.

Global economists are keeping their eyes glued to the Asia-Pacific region, where a bitter feud is brewing between two of the world’s most powerful nations over a small collectivity of islands in the East China Sea. The Chinese government argues that a treaty signed during the first Sino-Japanese War (1894-95) conferred ownership of the islands to China. Japan has long disputed these claims, and today argues that the islands are integral to its national identity.

The argument came to a head last September, when a boycott of Japanese products led Chinese demonstrators to target fellow citizens who owned Japanese cars. Three months later, the situation escalated when when Japanese jets confronted a Chinese plane flying over the islands; no shots were fired, but the act of antagonism has set a troubling precedent between the military forces of both nations.

The conflict between China and Japan has put the United States in a precarious position: if a full-scale war were to erupt, the U.S. would be forced to choose between a long-time ally (Japan) and its largest economic lender (China). Last year, China’s holdings in U.S. securities reached $1.73 trillion and goods exported from the U.S. to China exceeded $100 billion. The two countries also share strong economic ties due to the large number of American companies that outsource jobs to China.

However, the U.S. government may be legally obligated to defend Japan. In November, the U.S. Senate added an amendment to the National Defense Authorization Act that officially recognizes Japan’s claims to the disputed islands; the U.S. and Japan are also committed to a mutual defense treaty that requires either country to step in and defend the other when international disputes occur. Not honoring this treaty could very easily tarnish America’s diplomatic image.

The countries of the Asia-Pacific region are collectively responsible for 55 percent of the global GDP and 44 percent of the world’s trade. A major conflict between the region’s two largest economies would not only impose a harsh dilemma on U.S. diplomats, but also have a significant impact on the entire global economy. It is in every nation’s best interest that the Chinese and Japanese settle their territorial dispute peacefully.

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Some among Japan's ruling elite seek to rid the country of its "nuclear allergy."

SenkakusBehind the current impasse among China, Japan and Taiwan over five tiny specks of land in the East China Sea is an influential rightwing movement in Japan that initiated the crisis in the first place, a crisis it is using it to undermine Japan’s post-World War II peace constitution and, possibly, break the half-century taboo on building nuclear weapons.

The dispute over the islands China calls the Diaoyus, Taiwan the Diaoyutais, and Japan the Senkakus, is long-standing, but it boiled over when the right-wing governor of Tokyo, Shintaro Ishihara, provoked a confrontation with China by trying to buy the uninhabited islands from their owners. When the Japanese government bought three of the islands, ostensibly to keep them out of Ishihara’s hands, China accused Japan of “stealing” the disputed archipelago.

Ishihara, who has long pressed for building nuclear weapons, is generally portrayed as a bit of a loose cannon—the Economist calls him the “old rogue of the Japanese right”—but he is hardly an anomaly. Toru Hashimoto, leader of the rightwing National Japan Restoration Association and just re-elected mayor of Osaka, is cut from the same cloth.

Hashimoto and Ishihara both deny Japan’s record of brutality during World War II—in particular, the horrendous Nanking Massacre in China and the sexual enslavement of Korean women—sentiments echoed by some of Japan’s leading political figures, many of whom advocate Japan acquiring nuclear weapons.

The recent election of former Prime Minister Shinzo Abe to lead the Liberal Democratic Party (LDP) is a case in point. The LDP is favored to win upcoming elections, and Abe—who would become prime minister— calls for revoking a 1993 apology for the Japanese Imperial Army’s use of sexual slavery. He also seeks to remove Article 9 of Japan’s constitution that forbids Japan from waging war.

And while Abe has recently been vague about nuclear weapons, before he became prime minister in 2006, he argued that Japan’s constitution allowed the country to build nukes so long as they were defensive in nature. Many leading figures in his party openly advocate they do so.

Former foreign minister Taro Aso and Shoichi Nakagawa raised the issue of nuclear weapons back in 2006, when Aso was a member of Abe’s government and Nakagawa was chair of the LDP’s Policy Research Council. Abe refused to repudiate Aso’s and Nakagawa’s remarks on nuclear weapons.

But the LDP is not the only section of Japan’s ruling elite that is considering ridding the country of its so-called “nuclear allergy.”

Ichiro Ozawa—once a leader of the now defunct Liberal Party and currently heading the People’s Life First Party, the third largest party in the Diet—says Japan should consider building nukes in order to confront “excessive expansion” by China.

According to Tokyo-based journalist Hiusane Masaki, “…what has long been considered a taboo subject after World War II is now being openly discussed, not just by the rightwing but even in the mainstream.”

In 1970, Japan signed the Nuclear Non-Proliferation Treaty, and the following year the Diet adopted three “non-nuclear principles” to not build, possess, or host nuclear weapons. Japan currently has enough plutonium to produce about 700 nuclear warheads and the ballistic missiles to deliver them. Most experts think building a bomb would take about a year.

The Japanese right is also waging war on what it calls “treasonous history.” Its current target is the enormously popular anti-war comic-book novel, or “manga,” Barefoot Gen, by Hiroshima bomb survivor Kakazawa Keiji. The manga has sold millions of copies, been turned into a film, and is used as an educational resource in Japan’s schools. Barefoot Gen is sharply critical of Japan’s military and of the elites that fueled its rise to power.

Writing in Japan Focus, Matthew Penny, a professor of history at Concordia University in Montreal and an expert on Japanese nationalism, says “those with an interest in chipping away at Japan’s anti-war norms…are now pushing for the work to be removed from the classrooms.”

According to Penny, the right has created an organization called the “Association of Atomic Bomb Victims for Peace and Security,” which apparently doesn’t include any real victims. Its spokesmen are two right-wingers, Tamogami Toshiro and Kusaka Kimindo, both of whom deny the Nanking Massacre and “call for nuclear armament of Japan and expanded conventional military capabilities.”

All this nuclear talk comes at a time when Japan is at loggerheads with China over the Senkaku/Diaoyus, with South Korea over the Dokdo/Takeshimas, and with Russia over the southern Kurlies, although the situation for each island chain is different. Japan currently controls the Senkaku/Diaoyus, while South Korea and Russia occupy the other disputed island groups.

Japan’s claim on the Senkaku/Daioyus is shaky at best, dating back to the 1895 Sino-Japanese War. The islands were first claimed by the Ming Dynasty in 1368, and the Qing Dynasty (1644-1912) considered the chain part of its western sea border. According to Japanese scholar Unryu Suganuma, “There is no ambiguity about the Diaoyu islands” being part of China, “because the islands belonged to the Middle Kingdom, period!” Suganuma says the US turned the chain over to Japan in 1971 during the Cold War “because they didn’t want the islands to fall into communist hands.”

Some of the right’s rhetoric is aimed at embarrassing the ruling Democratic Party before the upcoming Japanese elections, but some goes further than election eve posturing, reflecting a long-standing illusion by Japan’s right concerning the capabilities of its military.

Kunihiko Miyake, research director of the Canon Global Institute, told the Financial Times that he thought that the crisis would not come to blows because of the strength of Japan’s Maritime Self-Defense Forces and its US alliance. “China will not use force because it would lose,” he said.

While it is true that the Washington has said that it will honor Article 5 of the US-Japan Security Treaty and come to Japan’s aid over the Senkaku/Diaoyu islands, the US is neutral on who owns them and would certainly be reluctant to let Japan draw it into a military confrontation with China.

Which might not stop Japan from trying to do exactly that.

Unless the US gets involved, Japan is no match for China. While Japan has more surface warships (78 to 48) it has far fewer submarines (18 to 71) and its air force is only about a quarter the size of China’s.

The Japanese right likes to invoke the early days of World War II when it crushed British, Dutch and American forces on land and smashed a good part of the U.S.’s Pacific fleet at Pearl Harbor. But many of those victories were the result of stunning incompetence on the Allied side, rather than the superiority of Japan’s samurai tradition. When Japan provoked a war in 1939 with the Soviet Union at Khalkin Gol on the border between Manchuria and Mongolia, they took a terrible shellacking.

Even in China, where Tokyo had enormous superiority in weapons and equipment, Japan never succeeded in defeating the Chinese, though they killed millions and millions of soldiers and civilians. In the end, of course, Japan was devastated by WW II, its economy shattered, its cities leveled by massive fire bombings and two atomic bombs.

The right is keen to erase those memories and has already managed to whitewash Japanese imperial history by expunging much of it from history books. Barefoot Gen is its latest target.

The dispute over the islands does not seem to be going away, in part because Japan keeps sending mixed signals. Japan’s economic minister recently said Tokyo “cannot compromise,” but according to Japanese news reports, Japan is preparing to take note of China’s and Taiwan’s claims, something they have refused to do in the past.

A drawn-out fight could inflict major damage on both economies, and there is always the chance of stumbling into a military confrontation. The recent US “pivot” toward Asia—which includes a major military buildup—adds to the regional tensions, particularly since it includes the possible collision of two nuclear-armed powers.

Japan’s greatest modern tragedy was the triumph of militarism, but as memories of WW II fade, there are those that would like to take her back down the same road. Adding more nuclear weapons to what is already a dangerous situation could be catastrophic. It would sink the Non-Proliferation Treaty in Asia—South Korea and Taiwan would almost certainly follow suit—escalate an already dangerous regional arms race, and could bring Japan back that moment on the morning of Aug. 6. when, in the words of John Hersey, “the atomic bomb flashed above Hiroshima.”

For more of Conn Hallinan's essays visit Dispatches From the Edge. Meanwhile, his novels about the ancient Romans can be found at The Middle Empire Series.

Thanks in part to U.S. announcement of deployment of an ABM system in Japan, the smoldering between Japan and China could burst into open flames.

Chinese activists on the Diaoyu Islands.Could Japan and China—the number two and three largest economies in the world—really get into a punch-out over five tiny islands covering less than four square miles? According to the International Crisis Group, maybe: “All the trends are in the wrong direction, and prospects of resolution are diminishing.”

That the two Asian superpowers could actually come to blows seems unthinkable, but a devil’s brew of suspicion, anger, ham-handed diplomacy, and a growing US military presence has escalated a minor dispute into something that could turn very ugly if someone makes a misstep.

And so far, the choreography in the region has ranged from clumsy to provocative.

A few examples:

On the anniversary of Japan’s brutal 1931 attack on China, Tokyo purchased a handful of islands in the East China Sea—known as the Senkaku in Japan and the Diaoyu in China—whose ownership is in dispute. In response, China accused Japan of “stealing” the islands, and anti-Japanese demonstrations and riots broke out in 80 Chinese cities. Several major Japanese companies, including Toyota, Honda, and Panasonic were forced to shut down for several days.

Amidst this tension, Washington announced that it will deploy a second anti-ballistic missile system (ABM) in Japan, supposedly to guard against North Korea, but which the Chinese charge is aimed at neutralizing their modest nuclear missile force.

“The joint missile defense system objectively encourages Japan to keep an aggressive position on the Diaoyu Islands dispute,” charges Shi Yinhong, a professor of international studies at Beijing’s Renmin University. Tao Wenzhao, deputy director of United States studies at China’s Academy of Social Science, adds, “It is highly inappropriate and counter-constructive for the U.S. to make such a move at this highly sensitive time.”

Timing-wise, the island purchase and the ABM announcement seem almost consciously provocative, but Tokyo and Washington are hardly the only capitals guilty of inept diplomacy in the Pacific.

Two years ago China declared the South China Sea a “core interest area,” which means Beijing essentially claimed sovereignty over 80 percent of one of the most heavily trafficked waterways in the world. China also insisted that several island groups—the Spratleys, Parcels, and Macclesfield Bank—were Chinese territory, and it backed this assertion up with ships and even a small garrison.

Some in China have gone as far as to claim sovereignty over the Ryukyu chain, which includes Okinawa, an island hosting several major US bases, with a population of 1.4 million Japanese citizens. Japan took control of the island group in 1879, but several hundred years earlier the independent Ryukyu Kingdom had paid tribute to China.

On top of all this, the Obama administration last year announced an Asian “pivot” and beefed up its military footprint in the region, including plans to send 2,500 Marines to Australia—the first time US troops have been deployed on the sub-continent since the end of World War II.

Not to be outdone, China launched its first aircraft carrier, introduced a new stealth fighter, and is apparently upgrading its intercontinental ballistic missile (ICBM), the Dongfeng-41. According to the Pentagon, China has 55 to 65 ICBMs and 240 nuclear warheads. In comparison, the US has over 1,000 ICBMs, 1,737 strategic warheads, and over 5,000 nuclear weapons.

Feeling a little nervous? You should be. The tensions are real even though it is hard to imagine countries in the area letting things get out of hand. But when you combine overheated rhetoric with gunboat face-offs, a clumsy move, a misinterpreted act, or plain stupidity could spark something that might be difficult to contain.

So who is to blame for all this sturm und drang?

Depending on your perspective, the crisis is either triggered by the US and Japan trying to smother a rising rival in a resurgent China, or by Beijing’s aggressiveness in the region creating dangerous tensions. Actually, it is a little of both and a lot more complex than it appears. First, China, Japan and the US are not the only actors in this drama. Taiwan, the Philippines, Vietnam, Malaysia, Brunei, Russia and South Korea all have pieces on the board.

South Korea, for instance, is locked in a fight with Japan over the Dokdo Islands (called Takeshima by the Japanese). Taiwan and China have a grievance with the Philippines over the Seaborough Shoal, and Vietnam, Malaysia and Brunei have overlapping claims on a host of islands, shoals, reefs and tiny coral atolls. Japan and Russia are at loggerheads over the Kuril Island chain that Moscow occupied in 1945.

Nor are issues in the South China Sea the same as those in the East China Sea. In the south the disputes are mainly economic: fishing rights and energy reserves. In the East, imperial history and the echo of World War II play an important role. For example, the Senkaku/Diaoyu and Dokdo/Takeshima islands were seized by Japan in its early imperial days, and neither China nor Korea have forgotten or forgiven Japanese occupation of their countries.

Countries like the Philippines, Vietnam, Malaysia and Brunei view the Chinese as heavy-handed bullies who throw their weight around and routinely arrest their nationals for fishing in disputed waters. They would like Beijing to negotiate boundary issues with them as a group through the Association of Southeast Asian Nations (ASEAN), while China insists on talking with them individually. This standoff has allowed the U.S. to reassert itself in the region by presenting itself as a “fair broker” (and thus enraging China).

China, on the other hand, sees the US as surrounding it with potentially hostile allies, shifting yet more aircraft carrier battle groups into the region, and drawing up plans to spend $352 billion modernizing its nuclear weapons arsenal. What China doesn’t want is an arms race with the US, which already out-spends the Chinese five-to-one on defense. But the new US ABM system in Japan will force China to respond.

While China’s economy is in better shape than that of the US, its growth rate has plunged further than Beijing had hoped, and increased military spending will come at the expense of economic stimulation, energy efficiency, and infrastructure improvement. The Chinese smell a whiff of the Cold War, when the Americans hobbled the Soviet economy by forcing it to divert many of its resources to defense in order to keep up with the US.

So if the Chinese are feeling a little paranoid these days, one can hardly blame them.

There are a number of ways the current atmosphere of tension in the Pacific can be defused.

First, China should back down from its insistence that it will only negotiate boundary and access issues country by country. It is perfectly valid for smaller countries to collectivize their negotiating strategies, and ASEAN would be the obvious vehicle through which to work. That would have the added benefit of strengthening a regional organization, which can then be used to deal with other issues, from trade to terrorism.

Second, while the US is a Pacific power, it is not a western Pacific power. Putting warships in Beijing’s home waters is asking for trouble, and feeds a strong nationalist current in China. There should be a gradual de-militarization of the region, and a reduction in the number of US bases. And the US has to recognize that ABMs are trouble. They have soured the atmosphere for military reductions in Europe, and they will fuel a military buildup in Asia. The ABM Treaty produced sensible policy until the Bush Administration unilaterally withdrew from it. It should be revived and adhered to.

Third, provocations like China’s bluster over Okinawa, Japan’s purchase of the Senkaku/Diaoyu Islands, Washington sending 2,500 Marines to Australia, and general chest-beating via gunboats needs to stop.

On one level it is unthinkable that Japan and China would actually come to blows, a conflict that could draw in the US though its mutual support treaty with Tokyo. China is Japan’s number-one trading partner, and Japan is China’s number-two partner (the US is Beijing’s first). Polls indicate that the average Chinese and the average American have favorable views of one another. A study by the Committee of 100, a Chinese-American group, found that 55 percent of Americans and 59 percent of Chinese had favorable views of one another.

It is a different matter with Japan and China, which makes the tension between the two countries much more dangerous. Some 70 percent of Japanese had an “unfavorable” view of Beijing, and those figures are matched in China. The islands crisis has brought out a powerful current of nationalism in both countries. It was the right-wing mayor of Tokyo, Shintaro Ishimara, who kicked off the crisis by trying to buy the islands. Rightwing politicians from the Liberal Democratic Party (LDP) have since seized the dispute to bludgeon the current government, and the LDP is likely to win the next election.

Passions are running high, distorted by bitter memories of the past, and fed by fear and political opportunism. “There is a real possibility that if diplomacy fails, there will be a war,” says Kazuhiko Toyo, a former career Japanese diplomat.

One hopes this is smoke, not fire.

For more of Conn Hallinan's essays visit Dispatches From the Edge. Meanwhile, his novels about the ancient Romans can be found at The Middle Empire Series.

Does it mean protecting nuclear plants or using nuclear weapons for national security?

Japanese kanji for karma.From the long-prevailing Japanese perspective, it's foolhardy for the state to consider developing nuclear weapons.

Twice victimized by their use, Japan is uniquely positioned to know how engaging in nuclear war inevitably results in attacks like the ones it experienced in World War II. It's also able to empathize with the prospect of another state struck by nuclear weapons and envision the negative karma (or gou in Japanese) their use generates.

Alas, many Japanese have focused on their victimization and, especially with North Korea nearby, bow down to the gods of deterrence in hopes of preventing another nuclear attack on Japan. In fact, as Yuri Kageyama reports for the Associated Press, arming Japan with nuclear weapons has long been part of the national and internal debate.

Historical documents released in the past two years show that the idea of a nuclear-armed Japan was long talked about behind-the-scenes, despite repeated denials by the government. …

In a once-classified 1966 document, the government outlined how the threat of China going nuclear made it necessary for Japan to consider it too, though it concluded that the U.S. nuclear umbrella made doing so unnecessary at the time.

In meeting minutes from 1964, 1966 and 1967, Japanese officials weigh the pros and cons of signing the nuclear non-proliferation treaty, which would mean foregoing the nuclear option. Japan signed the treaty in 1970.

The government denials continued, even after former Prime Minister Yasuhiro Nakasone wrote in his 2004 memoirs that, as defense chief, he had ordered a secret study of Japan's nuclear arms capability in 1970. The study concluded it would take five years to develop nuclear weapons, but Nakasone said he decided they weren't needed, again because of U.S. protection.

Lately confusion arose when

… parliament amended the 1955 Atomic Energy Basic Law in June, adding "national security" to people's health and wealth as reasons for Japan's use of [nuclear-energy] technology.  Given the secretive past, former diplomat Tetsuya Endo and others are suspicious about the June amendment adding "national security" to the atomic energy law. Backers of the amendment say it refers to protecting nuclear plants from terrorists. Opponents ask why the words aren't then "nuclear security," instead of "national security."

As you can see, much more than semantics, the term "nuclear security" may be obfuscation intended to throw up a smokescreen behind which to advance the development of nuclear weapons. In any event, the phrase is a riddle. But, unlike a koan,* which can lead to enlightenment, this phrase has the potential to help usher Japan into a post-apocalyptic world of darkness.

*koan A paradoxical anecdote or riddle, used in Zen Buddhism to demonstrate the inadequacy of logical reasoning and to provoke enlightenment.

Japanese PM Yoshihiko Noda“Japan-U.S. and Japan-China relations need to be improved," Japan's newly elected prime minister, recently told his foreign minister. "I’d like you to place priority on them.”

Japan has put its sixth premier in five years in place to tackle the extensive problems facing Japan in the wake of consecutive tragedies including the earthquake, tsunami and nuclear crisis. The appearance of the new Japanese leader already attracted the attention of neighboring countries. China has viewed the appointment of Japan’s new premier with more anxiety than enthusiasm, given Yoshihiko Noda's conservative views and comments supporting a controversial Tokyo shrine honoring World War II dead including Class A war criminals.

Despite such controversial remarks, the new prime minister is not likely to take any risky positions. As Koichi Nakano, political science professor at Sophia University in Tokyo, remarks, “Noda is likely to play down his past comments and he has no interest in complicating his situation by creating an acrimonious atmosphere when he needs to cooperate with Asian nations to get out of Japan‘s economic quagmire.” The Japanese public also will not want their leader to waste his time squabbling over historical issues with neighboring countries. The core interest of Japan at the moment is economic recovery. And China is a big part of this.

China has become a key trading partner to sustaining Japan’s economic growth. China has become Japan’s biggest trading partner, doing $176 billion worth of trade for the first half of 2011. The relationship is complementary. As the world's largest developing country, China needs Japan's technology and high-end products. As a trade and technology-oriented country, Japan needs China's market which is close to Japan and has great potential. Japan also needs low-priced daily necessities made in China. 

However, the two countries face a serious hurdle in the path toward better bilateral relations.

The maritime dispute between China and Japan over the Tokyo-administered island chain in the East China Sea known in Japan as the Senkakus and in China as the Diaoyu islands has been a longstanding point of conflict. The new leadership in Japan not only has stressed its claim over the islands but also revealed its willingness to take corresponding measures to China’s military expansion, especially its naval power. In a news conference on September 2, Japan's foreign minister said that “China is building up its naval power without transparency. We’ll make firm demands on China over the matter.” In addition, the annual white paper report released by Japan’s ministry of defense outlines a plan to beef up the country's naval power, with China and its maritime assertiveness cited as a major reason for the modernization. According to People’s Daily Online, the Japanese government uses the “China threat theory” to bridge the divide between Japan and the United States and to force local municipalities to continue to tolerate the presence of U.S. military bases. 

The new Sino-Japan relations depend on the newly elected Japanese prime minister’s performance. But the revolving door nature of Japan's leadership over the last five years has given “the world the impression that Japan’s leadership is fickle.” In order to improve relations with China, Yoshihiko Noda will first have to stay in power long enough to make a difference. 

Ikhwan Kim is a Foreign Policy in Focus intern.

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