China cancels Japan talks, warns on undersea gas bed dispute

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http://news.yahoo.com/s/nm/20100911/wl_nm/us_japan_china

By Chris Buckley Chris Buckley – 2 hrs 43 mins ago

BEIJING (Reuters) – China called off planned talks with Japan over an undersea gas bed dispute and warned of worse repercussions while Japan lodged a protest on Saturday over another maritime spat between the two big neighbors.

The Chinese Foreign Ministry issued its vehement warning after a Japanese court on Friday authorized a 10-day extension in detaining a Chinese captain whose fishing boat collided with two Japanese coast guard ships in disputed seas this week.

The arrest of the captain and continued detention of 14 crew members has given an emotive focus for long-running territorial quarrels between Beijing and Tokyo over East China Sea islets, called Senkaku in Japan and Diaoyu in China.