Introduction

This introduction presents an overview of the key concepts discussed in the subsequent chapters of this book. The book highlights that there remains a perception in Japan that Russia will eventually be forced to come to terms over the territorial issue by powerful economic incentives. It examines the argument made by many on the Japanese side about the islands being 'inherent' Japanese territory and regarding the 'illegal' nature of the Soviet occupation. The book draws attention to evidence indicating that Tokyo exaggerates the extent of public support for its yonto ikkatsu henkan policy and underestimates Russian public opposition. The territorial dispute between Japan and Russia reached its 70th anniversary in August 2015. A major impediment to bilateral relations, this continuing conflict has prevented the signing of a peace treaty between the neighbouring powers. Russian companies do indeed desire the financing, technology, and expertise that Japanese businesses can provide, yet Japan is not alone as a potential source of investment.