"If an oil pipeline is laid... mutual trust between Japan and Russia will grow," Kawaguchi was quoted as saying by Russian news agencies in Vladivostok during her visit to Russia's Far East.

The Russian government is considering to build a key oil pipeline from its vast Siberian reserves to the Asia-Pacific region. There are three options currently under consideration: a pipeline from Angarsk, near Irkutsk in western Siberia, to Nakhodka on Russia's Pacific coast; from Angarsk to Daqing in north eastern China; or a pipeline to Nakhodka with a branch line to China.

Russian officials said earlier this month that the final decision would be made in September this year.

Kawaguchi, however, expressed regret that the absence of a peace treaty is hampering improvement in Japanese-Russian ties.

"Regrettably, Japan and Russia... have failed to conclude a peace treaty," she said. "This fetters the two neighbor nations and is slowing down the development of their relations," she added.

Meanwhile, Kawaguchi urged Russia to play a more active role in resolving the nuclear issue on the Korean Peninsula.

"Japan holds that Russia... can play an even greater substantial role in settling questions, pertaining to North Korea (the Democratic People's Republic of Korea)," she noted.

"I request Russia to render us assistance by all means in settling this question, using all possibilities in relations with North Korea (DPRK)," she stressed.

Kawaguchi arrived in Russia on Saturday for a two-day visit, during which she held meetings with Russian Deputy Prime Minister Viktor Khristenko and other officials. The two sides also discussed Japanese aid in helping Russia dismantle nuclear submarines.

(Xinhua News Agency June 30, 2003)