Mr Bottomley asked whether a deal with the Soviet

Union would achieve diversification or would affect the

security of supply.⇒

Mr Arita considered these to be quite separate

problems. Projects involving the Soviet Union

included one to bring gas from Okha in North Sakhalin

by pipeline; another to explore the possibilities

of off-shore development off the Eastern Provinces;

and possibilities of obtaining oil from Yakutsk.

The second and third of these projects were however

at a very preliminary stage.

Mr Bottomley referred to news reports about a

proposal by Japanese businessmen for the construction

of a pipeline from Tumen and Central Siberia.

Mr. Arita presumed that this article arose from the

fact that a Soviet/Japanese businessmen's conference

was due to meet. Mr Hirahara said that Japan did

not see Siberia as a major source of supply.

Mr Wilford asked whether in the long term,

if relations with hina improved, Japan might not

wish to obtain oil from off shore-sources in the

Gulf of Chihli and near Korea. Mr. Arita said that

the first need would be to know if there was enough

oil there. The second would be to accomplish

cooperation with China and the Soviet Union.

Mr. Wilford remarked that the Chinese attitude to

problems such as the continental shelf was not known.

Mr. Arita said that the 2.4 billion cubic meters of

gas imported annually from Okha did not constitute

a very large

amount.

Mr. Hirahara welcomed cooperation both in OECD

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