Japanese Prime Minister Junichiro Koizumi on Wednesday said the relations with China and South Korea are "important."

"China and South Korea are both Japan's important and friendly neighbors. The two countries' development means opportunity to Japan," Koizumi told a press conference on the last working day of 2005.

Also on Monday, Koizumi said "China's development is an opportunity. As for China's growing military capability, I've never said it is a threat." at a dinner at a Tokyo restaurant with ruling bloc heavyweights. The Asahi Shimbun daily reported Wednesday.

Referring to his annual visit to Yasukuni Shrine in the new year, Koizumi only said the working day for next year starts on Jan. 4. Local media interpreted his words as meaning not to visit the shrine at the first three days of next year.

The prime minister is scheduled to visit the Middle East early January.

The shrine enshrines top Japanese World War II war criminals as well as the war dead. Koizumi's visits to the shrine is the sticking point for the current strained relationship with the two countries that once suffered greatly from the Japanese militarism.

Koizumi said given there are differences in their stances, he still is resolved to further the friendship with China and South Korea.

Koizumi has said he will step down as premier when his leadership in the ruling party expires in September.

Concluding the performance of his administration in 2005, Koizumi said it is a year he "can not forget," noting the hard-fought campaign to get his postal privatization bill passed.

(Xinhua News Agency December 29, 2005)