On July 7, 2001, Dr. Adel Khalid Al-Subaih, Minister of Oil, State of Kuwait and Mr. Takeo Hiranuma, Minister of Economy, Trade and Industry of Japan, had a meeting in Kuwait. The Ministers exchanged their views in particular on the establishment of a strategic relationship between the two countries. The Ministers acknowledged the meeting as an important event between the two countries and were convinced that it would open a new chapter in the two countries' relationship, which would be reinforced and deepened even more rapidly. For the purpose of promoting mutual cooperation, the two Ministers discussed and agreed upon the following points during the meeting.

1. General Matters

Ministers, in their meeting at the beginning of the new Millennium, agreed to make efforts to achieve mutual prosperity, under the common understanding that energy is the key element in their endeavour to maintain the recovery of the world economy, to build the future economy and society, and to promote sustainable development. In particular, Ministers shared a common understanding on the demand-supply situation of the world energy market and acknowledged the importance of further cooperation which would lead to the establishment of a strategic relationship in the energy sector between the two countries.

2. Stability of the International Energy Market

Ministers shared the view on the significance of bilateral and multilateral cooperation and dialogue in securing stability of the global energy market. In this regard, they recognised the importance of the International Energy Forum, comprised of major oil producing and consuming countries, and will cooperate with each other to have benefit from the 8th session to be hosted by Japan in September 2002.

3. Importance of Kuwaiti-Japanese Dialogue

Ministers recognised that continued communication and dialogue between Kuwait, a major oil producing country, and Japan, the second largest oil consuming country, are both important and effective, from the standpoint of stability of the global energy market.

4. Continuation and Expansion of Oil Trade Relationship between Kuwait and Japan

Ministers recognised the continued importance of oil import as an energy source to Japan and the vital need to secure stable supplies of oil from Kuwait to Japan. Ministers shared the view that, in their bilateral relationship, Japan regards Kuwait as an important supplier of oil and shall endeavour to maintain and expand the oil trade relationship between the two countries, and that Kuwait shall make an effort to provide a steady supply of oil.

5. Role of Arabian Oil Company in the strategic relationship between Kuwait and Japan

Ministers shared the view that oil development in Kuwait through investment by Arabian Oil Company (AOC) would encourage the establishment of a strategic relationship in the energy sector between the two countries. In this regard, Ministers recognised the work of AOC operation since 1957 as a symbol of the friendly relationship between Kuwait and Japan. Ministers expressed their hope that the Kuwaiti government and AOC shall soon conclude negotiations on mutually satisfactory conditions, and that AOC has the chance to continue its operation, strongly contributing to the bilateral relationship in the energy sector.

6. Efforts toward an Even Closer Bilateral Relationship

Minister of Economy, Trade and Industry of Japan proposed the following initiatives for cooperation, which would further contribute to the bilateral relationship through diversification of the industrial structure of the Kuwaiti national economy, creation of an attractive investment climate. Minister of Oil of Kuwait valued highly the co-operative relationship in the energy sector thus far and welcomed these initiatives for cooperation.

1) Human Resources Development and Cultural Exchange Minister of Economy, Trade and Industry of Japan will create a favourable environment for cultural exchange and human resources development with Kuwait.

2) Joint Studies and Technical Support Minister of Economy, Trade and Industry of Japan encourages the continuation of joint research and development projects between various Japanese and Kuwaiti organisations and research institutes such as KISR (to which AOC has contributed to its establishment and development), and will actively support such joint research in view of the need in Kuwait to promote science and technology and to advance technology transfer in different fields.

3) Dispatch of Experts Minister of Economy, Trade and Industry of Japan will arrange to dispatch experts to Kuwait in various areas in accordance with its preference from Japanese relevant authorities such as the Japan Cooperation Center for Middle East.