China called Japan?s plan to allow gas exploration in disputed waters a serious provocation yesterday, but sought to rein in anti-Japanese sentiment that sparked violent protests at the weekend. Japan avoided escalating the war of words, saying dialogue was needed to resolve the feuds.

Simmering tensions between the two Asian giants over a range of topics, especially what Beijing sees as Japan?s failure to own up to wartime atrocities, erupted in China at the weekend, with thousands taking part in protests in cities across the country. The situation deteriorated on Wednesday after Japan announced it had started procedures to allocate rights for test-drilling in a disputed area of the East China Sea. ?This move by Japan is a serious provocation of China?s rights and international norms,? Foreign Ministry spokesman Qin Gang said on the ministry?s Web site.

?China has already made a protest to Japan and reserves the right to take further reaction,? Qin said, without elaborating. China and Japan, respectively the world?s second- and third-biggest oil consumers, are at odds over China?s exploration for natural gas near an area Japan claims as its exclusive economic zone.

Asked about Qin?s remarks, Japanese Chief Cabinet Secretary Hiroyuki Hosoda urged dialogue. ?As the prime minister said yesterday, it is in the interest of both Japan and China to make the East China Sea a sea of cooperation rather than a sea of confrontation,? Hosoda, Japan?s top government spokesman, told a news conference. ?We believe that we need to discuss this from a broad perspective.?

<B>Scott HILLIS
Linda SIEG</B>