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Subject

Japan's colonial and wartime legacies.

Significance

Prime Minister Shinzo Abe on August 14 issued a Cabinet-endorsed 'Statement on the Occasion of the 70th Anniversary of the End of the War'. The 'Abe Statement' had been much anticipated in Japan and internationally. The Japanese government -- and private corporations, too -- are attempting to resolve historical legacies that complicate relations with China and South Korea, but initiatives at both levels are having mixed effectiveness.

Impacts

Beijing is likely to hold its official position on reparations, but let courts pursue compensation claims against private businesses.

Compensation initiatives by private companies may be counterproductive by complicating matters for the governments involved.

Abe's rejection of further apologies will play well domestically, but is not binding.

The prospects are now better for a trilateral summit before year-end.

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