among the international energy industry about the potential reserves in those waters. The only politically independent survey in the region, by UN scientists, was conducted in 1948 and in a highly speculative manner.

Three Parts of the Principled Consensus

I. Cooperation Between China and Japan in the East China Sea

China and Japan have agreed through serious consultations that the two sides will conduct cooperation in the transitional period prior to delimitation without prejudicing their respective legal positions. The two sides have taken the first step to this end and will continue to conduct consultations in the future.

II. Understanding Between China and Japan on Joint Development of the East China Sea

As the first step in the joint development of the East China Sea between China and Japan, the two sides will work on the following:

(a) The block for joint development shall be the area that is bounded by straight lines joining the following points in the order listed:

1. Latitude 29°31' North, longitude 125°53'30" East

2. Latitude 29°49' North, longitude 125°53'30" East

3. Latitude 30°04' North, longitude 126°03'45" East

4. Latitude 30°00' North, longitude 126°10'23" East

5. Latitude 30°00' North, longitude 126°20'00" East

6. Latitude 29°55' North, longitude 126°26'00" East

7. Latitude 29°31' North, longitude 126°26'00" East

(b) The two sides will, through joint exploration, select by mutual agreement areas for joint development in the above-mentioned block under the principle of mutual benefit. Specific matters will be decided by the two sides through consultations.

(c) To carry out the above-mentioned joint development, the two sides will work to fulfill their respective domestic procedures and arrive at the necessary bilateral agreement at an early date.

(d) The two sides have agreed to continue consultations for the early realization of joint development in other parts of the East China Sea.

III. Understanding on the Participation of Japanese Legal Person in the Development of Chunxiao Oil and Gas Field in Accordance With Chinese Laws

Chinese enterprises welcome the participation of Japanese legal person in the development of the existing oil and gas field in Chunxiao in accordance with the relevant laws of China governing cooperation with foreign enterprises in the exploration and exploitation of offshore petroleum resources.

The governments of China and Japan will work to reach agreement on the exchange of notes as necessary and exchange them at an early date. The two sides will fulfill their respective domestic procedures as required.

(Source: the Chinese Foreign Ministry)