TOKYO—Prime Minister Junichiro Koizumi has been talking tough with Russia in the run up to the 59th anniversary of the Soviet occupation of several tiny, frozen islands in the North Pacific—a favorite rallying topic for Japan’s ruling conservatives.

Occupied or not, he says, the southern Kuril islands are an “integral part of Japan.” And if Moscow ever wants to sign a peace treaty to formally end World War II—and open the door to more Japanese money—it needs to understand Japan’s position.

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