Rice Prods China, Japan on Relations

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"We have encouraged good relations between China and Japan and even though there are difficulties in that relationship, China and Japan also share a lot of interests," including extensive economic ties, Rice said.

She spoke following discussions with Australian Prime Minister John Howard.

Security talks Rice was holding with Japanese and Australian ministers stirred criticism from business and academic elites in Australia that the United States has alarmist, outdated views of the risks from China's rapid military, political and economic expansion.

Rice has spent much of her three-day visit to Australia trying to tamp down that suspicion, while prodding China to be more forthcoming. She also signaled Friday that she is worried about ally Japan's relationship with its much larger neighbor.

President Bush leaned on China on Thursday to shed "old ways of thinking and acting," including its lack of candor about details of its military buildup.

The absence of transparency, Bush said in his latest National Security Strategy report, aggravates worries about China "throughout the region and the world."

Saturday's session will bring together Rice, Australian Foreign Minister Alexander Downer and Japanese Foreign Minister Taro Aso to discuss China and other regional issues.

Rice told reporters that the meeting has a broad agenda beyond China, but the fact that it is taking place at all is likely to antagonize Beijing.

Earlier this week, Downer said the ministers would be looking not at containing China, but at ensuring it works with the region. He also said that he hoped the meeting could ease tensions between Beijing and Tokyo.

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