China Calls Talks With Japan Successful

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So far, two modest agreements have been struck. One was a $420 million Japanese loan to China to fund six environmental projects, and the other a treaty to allow the countries' police and prosecutors to work directly on criminal extradition.

However, no breakthroughs have been reported on Japan's chief issue, China's exploitation of a gas field that straddles a contested part of the East China Sea.

At Saturday's meetings between foreign ministers, the two sides agreed to more exchanges among the countries' militaries and defense officials, Japanese Foreign Ministry spokesman Mitsuo Sakaba told reporters.

They also tried to settle dates for an upcoming visit to China by Japanese Prime Minister Yasuo Fukuda and a reciprocal trip to Japan by Chinese President Hu Jintao, perhaps during the cherry blossom season in April, he said.

Also on the agenda were macro-economic policies, disputes over the value of the Chinese yuan, cooperation on energy and the environment, investment policies and world trade talks, officials from both sides have said.