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China rejected a US offer to pay $34,000 over costs incurred by its spy plane, which collided with a Chinese fighter jet early this year and caused a standoff between the two countries. China wants $1 million, but the State Department of the United States did not agree to increase its offer. In response, China urged Wednesday that Washington reconsider.

On August 13, two days earlier than the planned date of August 15, the anniversary of Japan's World War II surrender, Japans Prime Minister Junichiro Koizumi visited Tokyo's Yasukuni war shrine despite the strong objections of other Asian countries such as China and South Korea. Though Koizumi’s visit date may have been shifted to avoid the sensitive anniversary day, this move did little to ease the indignation of Japan’s Asian neighbors. Instead, his visit to pay “respects” to executed war criminals hurt the feelings of other Asian people and is expected to harm Japan’s diplomatic relations with its Asian neighbors.

U.S. Defense Secretary Donald Rumsfeld reaffirmed in Moscow on August 13 that Washington will insist on withdrawing from the 1972 Anti-Ballistic Missile (ABM) Treaty unilaterally, even if Russia does not give its consent. He said that in case the testing of the new missile defense system proves to be a success, the U.S. will quit the treaty in about one year.