Tokyo and Seoul finally last week resumed high-level diplomatic talks long stalled by differences over interpretations of history and territorial issues. Unless Japan budges, the two countries have little hope of getting past the issue, which is the biggest hurdle to improving the bilateral relationship, diplomats and observers said. Japan has consistently maintained its position that all compensation issues have already been settled legally. The Japanese government apparently fears that conceding any flaws in that treaty could unleash an endless stream of compensation demands from South Korean individuals. Last year, reversing earlier rulings, South Korean courts ordered Japanese companies to pay compensation for forced wartime labor, raising deep concerns among Japanese companies that do business there. The South Korean government has maintained that compensation issues for forced labor during the war were settled by the treaty.
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TOKYO — North Korea had launched its third barrage of short-range missiles in just over a week, parading its growing ability to strike its neighbors with devastating firepower. But instead of banding together against a common adversary last week, the two American allies in the path of the missiles — Japan and South Korea — were locked in their own bitter battle, whose roots stretch back over years. The long-simmering conflict erupted into a full diplomatic crisis on Friday, when Japan threatened to slow down exports of materials essential to South Korean industries.