Japan to buy disputed islands, China fumes
September 11, 2012  09:58
Japan's Cabinet has formally announced that the government will purchase several disputed islands that China also claims -- a move that Beijing said would bring 'serious consequences'.

Chief Cabinet Secretary Osamu Fujimura told reporters that Japan will buy the three uninhabited islands in the East China Sea from a private Japanese family it recognises as the owner, and has budgeted 2.05 billion yen ($26 million) for the purchase.

China and Taiwan also claim the islands, which are part of what Japan calls the Senkakus and China the Diaoyu group.

Fujimura said the decision to nationalise the islands is 'to maintain the Senkakus peacefully and stably'.

The signing of the deal was expected later Tuesday.
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