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DATE=8/31/2000 TYPE=CORRESPONDENT REPORT TITLE=CHINA-JAPAN VISIT WRAP (L-O) NUMBER=2-266015 BYLINE=LETA HONG FINCHER DATELINE=BEIJING CONTENT= VOICED AT: //// RE-PRINTING WITH CORRECT CR-NUMBER. /// INTRO: Recently strained China-Japan ties could be on the road to recovery after the Japanese foreign minister's four-day trip to Beijing. Correspondent Leta Hong Fincher reports the main problem addressed during the meetings were allegations of spying by Chinese ships. TEXT: Japan's Foreign Minister Yohei Kono left Beijing Thursday with assurances from Chinese Premier Zhu Rongji that China has no hostile intentions towards Japan. Japan has repeatedly complained about recent Chinese naval incursions near Japanese waters, saying that there have been 17 cases of Chinese ships entering what Japan considers its exclusive economic zone this year. In his most public speech, to the Central Party School in Beijing Wednesday, Mr. Kono warned of what he called rising distrust between Japan and China. But Chinese Premier Zhu Rongji allayed many of Mr. Kono's worries during their meeting Wednesday night. China and Japan have agreed to set up a system to notify each other in advance of naval research activities. In addition, a Japanese official says Premier Zhu promised Mr. Kono that Japan is still a candidate for a potential 15-billion dollar contract to build a high-speed railway between Shanghai and Beijing. Just a few weeks ago, China cancelled a visit by the Japanese Transport Minister Hajime Morita to promote Japan's bid for the train project, reportedly because Mr. Morita had just visited a controversial shrine to war dead reviving bitter memories from World War Two. But Mr. Zhu promised to reschedule Mr. Morita's visit. Mr. Zhu's assurances will clear the way somewhat for his own visit to Japan in October. China's official media gave favorable coverage to the four-day visit, emphasizing the need to strengthen Sino-Japanese ties. However, in a sign that obstacles still remain between the two countries, Thursday's hard-line Liberation Army Daily accused Japan of a growing militarism aimed primarily at China. The article mentions Japanese plans to launch spy satellites and a beefed up coastal defense force. Mr. Kono has dismissed the allegations. (signed) NEB/HK/LHF/JO 31-Aug-2000 10:13 AM EDT (31-Aug-2000 1413 UTC) NNNN Source: Voice of America .