On June 1, Chinese Premier Wen Jiabao gave an interview to NHK (Japan Broadcasting Corporation) presenter Hiroko Kuniya in Tokyo. The following is a transcript of the interview:

Hiroko Kuniya: This is your second visit to Japan as premier, after the previous "ice-breaking trip." What is the main purpose of this visit, and what implications does it have for Japan-China relations?

Wen Jiabao: It gives me great pleasure to be back in Japan after my last visit three years ago. I wish to send my greetings to the Japanese people through the NHK. My previous visit was called an "ice-breaking trip." China-Japan relations have experienced great developments over the past three years and we have forged a strategic relationship of mutual benefit. We may call this visit a "trip of confidence and hope." The main purpose of this visit is to strengthen mutual trust, enhance cooperation, and cement the foundation of China-Japan friendship. My talks with Prime Minister Yukio Hatoyama have increased mutual trust between leaders of the two countries and produced important agreements on a host of issues, including reestablishing the hotline between the two prime ministers, setting up a maritime liaison mechanism between defense departments, and negotiating a maritime search and rescue agreement. We have also explored ways to strengthen economic and trade ties and decided to prioritize green economy, energy, environmental protection and e-commerce. All this will serve the development of bilateral ties in a fundamental way.

I attended four public diplomacy events with great enthusiasm. The first was a welcome dinner hosted by seven Japan-China friendship groups and four Chinese community organizations in Japan. I gave an impromptu speech and I spoke from my heart. The second was a welcome luncheon hosted by the Japanese business community. Again I gave an impromptu speech, and this time I made the case for closer business ties between China and Japan. The third was a roundtable discussion with people from the cultural circles of both countries. Our discussion was filled with friendly sentiments. And the fourth was my interaction with average Japanese people, including students. I joined them in their morning exercises. These events impressed upon me that the hearts and minds of the Chinese and Japanese people can be connected and that China-Japan cooperation enjoys vast prospects. Our two economies are indivisibly linked to each other. We need to further increase cultural and people-to-people exchanges, as this is the root and foundation of our friendship.

In this connection, I can say that I have achieved the purpose of my visit and the visit has been a successful one.

Hiroko Kuniya: I am deeply touched by your heart-warming remarks. Japan and China decided to build a strategic relationship of mutual benefit in 2006. What are the specific dimensions of this relationship? On oil and gas development in the East China Sea, the two sides have agreed to officially launch negotiations between the two governments on realizing a principled consensus on the East China Sea issue. I think this is a very positive and win-win development. What do you think?

Wen Jiabao: Since China and Japan reached a principled common understanding on the East China Sea issue, leaders of the two sides have followed the matter with much interest. I often say it takes time and hard work to produce a good outcome, and when all the necessary preparations have been made, a good outcome is bound to come. Now the two sides have decided to officially start negotiations between the two governments on realizing the principled consensus. This is a step forward towards settling the East China Sea issue. We stand for a proper settlement of the issue under the principle of shelving disputes and pursuing joint development. This is in the best interests of both Chinese and Japanese people. The two sides should understand each other, build consensus and follow a step-by-step approach to turn the East China Sea into a sea of peace, friendship and cooperation.

Hiroko Kuniya: The world is closely watching China's reaction to the Cheonan incident. How does China really see this issue? Our impression is that China has adopted a cautious attitude and kept its distance from both North Korea and South Korea. Why is that? Is it because you need more information about the incident or you don't want to anger North Korea?

Wen Jiabao: The sinking of the Cheonan is an unfortunate incident. We understand the grief of the South Korean people, especially the bereaved families. We have expressed condolences and sympathies to them on many occasions.

China is a responsible country that upholds justice. In dealing with this issue, we have no selfish interest. Our major focus is to safeguard peace and stability on the Korean Peninsula. We attach importance to the joint investigation conducted by South Korea and other countries as well as the reactions of various parties. We will decide our position in accordance with the facts concerning the issue.

We call on the parties to keep calm, exercise restraint and refrain from any move that may escalate tension or even lead to a conflict. Should a conflict break out, it is the people of North Korea and South Korea that will suffer the most, and China cannot stay immune, either. As a Chinese idiom goes, "When the city gate catches fire, fish in the moat will suffer." Only neighboring countries have such feelings. President Lee Myung Bak and I had several in-depth discussions on this matter, adding up to about four hours. Our discussions were conducted with mutual understanding in a friendly and candid atmosphere. China's position is clear-cut. First, we are committed to maintaining peace and stability on the peninsula. Second, we stand for achieving the denuclearization of the peninsula through the six-party talks. Both are important for peace and stability in Northeast Asia, and the six-party talks are of fundamental importance. Only denuclearization of the peninsula can bring about enduring peace and stability there. Japan is an important country in Northeast Asia and a close neighbor of China and South Korea. We look forward to working with Japan on major issues including maintaining peace and cooperation in Northeast Asia. I had a small-group discussion with Prime Minister Hatoyama yesterday. The meeting was scheduled for 15 minutes, yet it went on for over half an hour.

Hiroko Kuniya: South Korea may bring the Cheonan incident to the UN Security Council this week. The world is watching, and expects a lot from China too, hoping that China can be more active in working on North Korea. What is China's position?

Wen Jiabao: The Chinese side understands the difficulties President Lee and the South Korean Government face and the feelings of the South Korean people. As I said, China will determine its position according to the facts. We will take a serious look at all relevant information and reactions of various parties and take a just and objective position. With regard to how China will act in the Security Council, I would advise you to continue to follow the developments.

Hiroko Kuniya: It seems South Korea finds itself in a very difficult situation. Does China feel the same way, being caught between North Korea and South Korea?

Wen Jiabao: I have said on several occasions that we will not protect any party and that we will uphold a just position. Meanwhile, we view the issue from a longer-term perspective, that is, the issue must be handled in a way that serves the fundamental interests of peace and stability on the Korean Peninsula.

Hiroko Kuniya: As you said, Premier Wen, stability and peace in Northeast Asia is of utmost importance. China's military strength is growing rapidly and its naval forces are getting stronger. And with rising national strength, patriotic and anti-foreign sentiments among young Chinese are also surging. This is troubling. How do you view the situation?

Wen Jiabao: I suppose you actually wish to know about the increase in China's military expenditure. China's military spending is not high from a world perspective. For many years, its share of the GDP has been less than 1.5 percent, whereas the world average is 4 percent. Moreover, a good part of the defense spending is for personnel expenditure. I don't think I need to get into the specifics. What's important is that China's military development is transparent. China has suffered so much from foreign bullying and aggression in its modern history, and is thus deeply aware of the value of peace and independence. China pursues a defense policy that is defensive in nature for the sole purpose of self-defense. We have never invaded or occupied a single inch of foreign land. And China is not a threat to any country in any respect. I emphasized in my speeches during this visit that China is committed to the path of peaceful development and China will never pose a threat to any country or seek hegemony.

With respect to the patriotic spirit of the young Chinese people, I think it is something positive. I myself am patriotic. I once said that patriotism is in each cell and each drop of blood of mine, and I shall remain a patriot even when I die and my body is burnt to ashes. What's important is that a person and a nation should learn to treat as equals those who treat them in the same spirit and make due contribution to the building of a harmonious world. We should educate the younger generation to keep in mind the overall interests of the world and mankind, in other words, to have a global perspective.

Hiroko Kuniya: Government-to-government relations between Japan and China have greatly improved. But it seems that the people of the two countries, especially the young people, are not as close as they used to be, and much remains to be done in this regard. What has caused the estrangement and how should we improve the situation? What's the biggest problem?

Wen Jiabao: You talked about the distance between the Chinese and Japanese people. This boils down to how one should view history and reality. We believe the two countries should take history as a mirror and be forward-looking. This is not meant to perpetuate hatred, but enhance the goodwill and friendship between our people and avoid repeating the tragic past. Now, what is the reality? Japan's post-World War II Constitution stipulates that Japan must pursue peaceful development, and this has delivered tangible benefits to Japan: Its economy has been growing rapidly and people's living standards improved significantly. In the 60 years since the founding of the People's Republic, especially in the last 30 years of reform and opening up, great changes have taken place in China's economy and society. And we have stated our commitment to peaceful and harmonious development. That is to say, both China and Japan should follow the path of peaceful development, and our two peoples should understand each other, trust each other and work with each other. I know how important it is to enhance mutual understanding between our people, and I have never been pessimistic about our friendship. Take my own experience, for example. I gave a speech at the Japanese Diet during my visit three years ago, and that speech won 11 rounds of applause. I could still hear the applause from a distance even after I left the chamber. And in both Tokyo and Kyoto, I saw ordinary Japanese people on both sides of the street, waving to me as a gesture of welcome. They did so on their own initiative. I made friends with Japanese farmers, writing them letters, and interacted with Japanese young people, playing baseball with them. I believe through exchanges, people can understand each other's thoughts, feelings and goodwill. This is true for all, both old and young. We should educate and guide the younger generation. Leaders, media organizations and people in the field of education in our two countries should do more for better communication and mutual understanding between our people.

I'd like to give you a suggestion. I hope the media will stop publishing so-called poll figures about mistrust between our people, especially the young. Instead, it should focus its energy on promoting communication and goodwill between them.

Hiroko Kuniya: This is a good suggestion. Indeed, we should do more in the future for better mutual understanding. I'd like to ask a question on the political and economic situation in China. The wealth gap in China seems to be widening. You said you would spare no effort to achieve social equity and justice and tackle income distribution inequality in the remaining three years or so of your term. What do you plan to do?

Wen Jiabao: One major problem in China's uneven development is the income disparity and wealth gap between urban and rural areas and among different regions. Honestly speaking, the gap is still widening. If the wealth of a society is concentrated in the hands of a small number of people, the society is bound to be unfair, thus unstable. In the next three years, we will pay even greater attention to promoting social equity while tackling the international financial crisis and boosting economic development. I will do my utmost in this regard. First, education. Fairness in education is of greatest importance. We have achieved nine-year free compulsory education in the true sense of the word. Yet, this is not enough. We must further develop senior higher education, in particular, vocational education. We have decided to establish a scholarship and student grant program for vocational education. We first exempt tuition fees for students from poor rural families and students majoring in agriculture-related subjects. We have also introduced scholarship and student grant program among college students. Two years ago, the college enrollment rate in China was 20 percent, more than 20 million college students. And then the scholarships and student grants totaled only 1.8 billion yuan ($265 million). In the past two years, we have raised the volume to 35 billion yuan ($5.1 billion) and the coverage rate to 40 percent.

We attach special importance to rural areas because the living conditions and learning facilities of rural children are poor. Rural children are exempted from paying tuition and miscellaneous fees and textbook charges. We also give subsidies to rural students who live on campus.

Fairness in education means providing equal access to education for all. We will continue to work hard to this end.

Second, medical care. Medical care concerns the health of everyone. We have decided to advance reform of the pharmaceutical and health care system. For all countries, reform in this area is an extremely difficult task. To advance the reform, the Central Government will mobilize 850 billion yuan ($125 billion) within three years for progress in these priority areas:

First, we have introduced a new type of cooperative medical care program in rural areas. A health pool fund has been set up under this program. The government contributes 120 yuan ($17.6) and the individual 30 yuan ($4.4) to the personal account of each farmer. The farmer can access the fund for treatment of major diseases and get his medical expenses reimbursed based on certain proportionality. With this money at hand, farmers can afford to seek medical treatment at their village clinics, county hospitals or hospitals in their provincial capitals. As government revenues grow, we will constantly raise the share of government contributions to the program.

Second, we have put in place a basic medical insurance program for non-working urban residents, covering mainly seniors, children and people with disabilities. This program is mainly funded by the Central Government and is also supported by contributions from local governments and individuals, and it makes medical treatment affordable to the above-mentioned people. As for urban workers, they have been covered by their medical insurance scheme and will remain covered after retirement.

Third, social security. Old-age insurance, unemployment insurance and medical insurance are the essential social security programs. In addition, there is work-related injury insurance. We are extending the coverage of all these insurance schemes. Let me give you one example. We will establish a basic old-age insurance program in rural areas, under which a farmer at the age of 60 and above can get a monthly pension of 55 yuan ($8.1). This is something that farmers dared not even dream of in the past. The basic cost-of-living allowances have been extended to more than 90 percent of the eligible people in both urban and rural areas, covering more than 27 million urban dwellers and more than 40 million rural residents.

What is more, we have rescinded the agricultural tax for farmers, putting an end to a more than 2,000-year history of paying taxes for growing grain. Farmers now no longer need to pay any money for grain growing. Instead, the government provides them with subsidies.

That said, our social security system is still at a low level. It seeks to ensure the basic needs of people and cover as many people as possible. Our country is so big with so many people. We need to gradually raise the level of our social safety net.

We will take various measures to ease income disparities. We will increase the share of workers' income in primary distribution and the government will give greater financial support in redistribution to vulnerable groups and public programs in education and medical care. We have put all these tasks on our agenda and the implementation is under way. Only when equity and justice are achieved can society show its due value and people enjoy happiness and live in dignity.

Hiroko Kuniya: How do you see China's political reform? What will China do to advance its democracy process?

Wen Jiabao: Our reform is an all-dimensional one, including economic restructuring, political restructuring, and reform of the public administration system. Without success in political restructuring, there will be no success in economic reform. This is what we have been thinking and doing since the very start of reform.

Political restructuring should focus on four aspects: first, building socialist democracy and ensuring people's right to vote, and to stay informed about, participate in and oversee government affairs; second, improving the socialist legal system, governing the country according to law and building a country according to the rule of law; third, achieving social equity and justice; and fourth, realizing all-round development of the people in a free environment.