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President Vladimir Putin: First of all, I would like to say how very pleased I am to see you.

It makes me very happy that the Japanese Prime Minister has come up with this initiative of creating the Council for Developing Relations between Russia and Japan. I think this is a very good decision and we have been quick to respond to it from our side.

As you know, this council will include Mr Luzhkov, the mayor of Moscow, who is not only the head of one of our country’s most important regions, but is also a politician known and respected at national level.

Also on the council is Mr Mori, who is known here not just as a former Japanese Prime Minister, but also as someone who preserves and supports the family traditions of developing Russian-Japanese relations.

I very much hope that this expert-level work will help bring our countries closer together in all areas, including in the most sensitive areas.

Yoshiro Mori: First of all, I would like to congratulate you on your resounding victory in the recent presidential election.

It is my sincere hope that Russia will develop as a stable and democratic country with a market economy, and also that Russia will develop as an important member of the international community and will fulfil all the hopes the people have placed in you.

As you said, the first part of the Russian-Japanese Council’s first session, which began this morning under the co-chairmanship of Mr Luzhkov, has just ended.

The decision to create this Russian-Japanese Council of Sages is one of the measures set out in the diplomatic action plan approved by the Prime Minister and the President. I recall well your words that I should become the co-chairman of this council from Japan. I was very touched by this proposal.

Incidentally, I want to say that I did not ask the Prime Minister to name me co-chairman of the council, but Mr Koijumi asked me himself to accept this post and it is with pleasure that I take up this appointment. I intend to make maximum effort to work together with Mr Luzhkov to develop our bilateral relations.

I think that over the course of the council’s meetings, we will be able to draw up proposals to present to my friend Vladimir and to my friend Prime Minister Koijumi as recommendations on how to further develop our bilateral relations. I see this work as co-chairman of the council as one of the best jobs I have ever had in my life.

Yury Luzhkov: Esteemed Vladimir Vladimirovich, I thank you for this honour in asking me to be co-chairman of this expert group from Russia. I think we will produce useful work as we deal with all the wide range of issues facing Russian-Japanese relations in different areas. We will not avoid discussing sensitive and complex issues. I think that our work will be based on taking into account the mutual interests we have in developing our relations, the interests of each country. If we succeed in this work, this will represent a great victory and will bring good results. We have now begun our work and we shall continue it and will try to achieve results.

Vladimir Putin: What do I want to say at this point of our meeting… The problems that confront us are complicated, but we do want to resolve them. Not only do we want to resolve them, but it is in our interests to do so. It is in the interests of both Russia and Japan to develop vigorous bilateral cooperation in all areas and to take into account all the challenges that our countries face. Any stumbling blocks in our way need to be removed. We need to find solutions to our problems that would be mutually acceptable to both Russia and Japan. In this respect, it is very important to have an objective view such as the expert group can provide.

I really do sincerely hope that your group will produce effective work.