The Senkaku Islands dispute in the East China Sea has remained the forefront of growing tensions between

Japan and the Peoples Republic of China. The possession of these five uninhabited islands and three barren rocks benefits the possessor with a large number of oil reserves, nationalistic pride and a statement to the world. With China moving a military presence in the area and Japan continuing its harsh rhetoric, the event of a conflict turns readily possible. The consequences of this problem would not only affect Asia as a whole but the United States as well. As a United States diplomatic envoy to Japan and China, I would stress the use of Joseph Nyes concept of soft power to result in a compromise that benefits both respective countries. This localized matter, if not contained, can engulf global affairs which also emphasizes the need for a United Nations intervention. The sovereignty of these islands remains a gray area. The history of the islands, according to China, traces back to the Ming dynasty in 1372 where the first discovery of these atolls came into place. Japan, during the Meiji Restoration, formerly annexed the Ryukyu Kingdom in 1879, now known as the Okinawa Prefecture. The Senkaku islands lay between the Ryukyu Kingdom and the Qing Empire. Japan considers the islands as part of the Okinawa Prefecture but did not take formal control of the islands until the first Sino-Japanese War. The subsequent Treaty of Shimonoseki ceded Formosa and its islands to Japan but there remains no specific mentioning of the Senkaku islands. This treaty was reinforced in the Treaty of San Francisco at the end of the Second World War in which Japan yielded control over Formosa and its respective islands. When the United States returned the Senkaku islands to Japan, China started protesting of the islands ownership. Since then, talks to find a compromise to fix the issue such as mutual use of the islands resources have stalled and failed.

While the issue of sovereignty continues to cause anxiety amongst Japan and China, the economic benefits resulting from mutual cooperation in acquiring the islands resources can help ease the hostility. The Asia-Pacific region accounts for 54.9 % of the worlds GDP and has increased by eight plus percent in GDP over the last decade according to economywatch.com. China and Japan also have the second and third largest economies, respectively, each holding an important position in the world economy. Large economies can work together as seen in the western hemisphere. Europe faced a similar drastic situation with the oil fields in the North Sea. Countries initially squabbled over the sovereignty of the oil fields but through peaceful negotiations and international processes, settled the issue. The European Union promotes its Integrated Maritime Policy to prove the success of soft power over hard power. This program strives to provide a more logical method to oceanic issues through coordination and information sharing. A similar policy can be implemented for the Asia-Pacific region. The United States does not have the vigor for hard power methods due to its Middle Eastern situations; therefore the United States must promote a peaceful resolution to the dispute. The hard power tactics of Japan and China stems from each countrys economic stagnation and increasing nationalism. The growing of Chinas military has reinforced Japans need for an expanded military to protect its maritime assets. This conflict has only damaged trade, investment and tourism in the area, thus negatively affecting the global economy. The United States has strong ties to both countries and considers them as allies. Due to the fact joint talks between these countries have failed, they should bring the issue to the United Nations which can result in more peaceful compromises. A settlement among Japan and China concerning the ambiguous islands can cause a significant increase in their respective economies. The success of this collaboration would not only bring better standards of living in the Asia-Pacific region, but would also help the United States regain

its position in the world as an example of effective diplomacy and as a honest broker in world affairs. This proposed resolution emphasizes cooperative development of resources over sovereignty issue. While sovereignty remains the key issue of conflict, the insistence over this aspect of the islands would only cause more severe consequences and eventually war. By focusing on the economical features of the islands, countries involved would reap the benefits of a plethora of resources and renewed trust in each other and the world.