Chinese, Japanese leaders meet in Europe

Chinese Premier Wen Jiabao met Japanese Prime Minister Naoto Kan on the sidelines of a meeting in Europe, Beijing confirmed Tuesday, in the highest-level contact between the countries since a bitter clash broke out a month ago over disputed islands.

Wen and Kan met briefly Monday in Brussels where both were attending the Asia-Europe Meeting and agreed to improve bilateral ties and to hold senior-level talks.

Relations between the Asian neighbors - the world's second- and third-biggest economies - have been strained since a Chinese fishing boat collided with Japan Coast Guard vessels in early September near the islands in the East China Sea, which are claimed by both countries as well as Taiwan.

"Both parties agreed to strengthen non-governmental exchanges and communications between the governments, and to hold high-level Chinese-Japanese talks at the appropriate time," said a statement posted on the website of the Chinese Foreign Ministry .

It said Wen reiterated that the islands - called Diaoyu by China and Senkaku by Japan - belong to China, while Japan's Kyodo news agency said Kan said they were Japanese territory.