This paper highlights the issue of the recognition of the existence of a dispute between China and Japan regarding sovereignty over Diaoyu Dao, identifies such a recognition, and comments on the implications flowing from that recognition for Japan and China, as well as for other States, especially the United States, and argues that in light of the well-known US position of taking no view on sovereignty over Diaoyu Dao, Article V of the US-Japan Mutual Cooperation and Security Treaty cannot apply to the island. Some comments are also offered on Japan’s “nationalization” and other measures and China’s response measures and/or counter-measures.

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