TOKYO (REUTERS) - US President Barack Obama assured ally Japan on Thursday that Washington was committed to its defence, including of tiny isles at the heart of a row with China, but denied he had drawn any new "red line" and urged peaceful dialogue over the islands.
Mr Obama also urged Japan to take "bold steps" to clinch a two-way trade pact seen as crucial to a broad regional agreement that is a central part of the US leader's "pivot" of military, diplomatic and economic resources towards Asia and the Pacific.
US and Japanese trade negotiators failed to resolve differences in time for Mr Obama and Prime Minister Shinzo Abe to shake hands on a deal at the summit, but the two leaders reported progress and ordered their teams to keep working.
Mr Obama, on the start of a four-nation tour, is being treated to a display of pomp and ceremony meant to show that the US-Japan alliance, the main pillar of America's security strategy in Asia, is solid at a time of rising tensions over growing Chinese assertiveness and North Korean nuclear threats.
"We don't take a position on final sovereignty determinations with respect to Senkaku, but historically they have been administered by Japan and we do not believe that they should be subject to change unilaterally and what is a consistent part of the alliance is that the treaty covers all territories administered by Japan," Mr Obama said.
"This is not a new position, this is a consistent one," he told a joint news conference after his summit with Mr Abe, using the Japanese name for the islands that China, which which also claims sovereignty over them, calls the Diaoyu.
"In our discussions, I emphasised with Prime Minister Abe the importance of resolving this issue peacefully," Mr Obama added.
Mr Obama also said there were opportunities to work with China - which complains that his real aim is to contain its rise - but called on the Asian power to stick to international rules.
"What we've also emphasised, and I will continue to emphasise throughout this trip, is that all of us have responsibilities to help maintain basic rules of the world and international order, so that large countries, small countries, all have to abide by what is considered just and fair," he said.
Some of China's neighbours with territorial disputes with Beijing worry that Mr Obama's apparent inability to rein in Russia, which annexed Crimea last month, could send a message of weakness to China.
Mr Obama told the news conference that additional sanctions were "teed up" against Russia if it does not deliver on promises in an agreement reached in Geneva last week to ease tensions in Ukraine.
The two leaders also agreed that their top trade aides, US Trade Representative Michael Froman and Japanese Economy Minister Akira Amari would keep trying to narrow gaps in their trade talks.
Mr Abe has touted the TPP as key to "Third Arrow" reforms needed to generate growth in the world's third-biggest economy, along with hyper-easy monetary policy and fiscal spending.
Both sides have also stressed that the TPP would have strategic implications by creating a framework for business that could entice China to play by global rules.
But the talks have been stymied by Japan's efforts to protect politically powerful agriculture sectors such as beef, and disputes over both countries' auto markets.
Pointing to restrictions on access to Japan's farm and auto sectors, Mr Obama said: "Those are all issues that people are all familiar with and at some point have to be resolved. I believe that point is now."
The diplomatic challenge for Mr Obama during his week-long, four-nation regional tour is to convince Asian partners that Washington is serious about its promised strategic "pivot", while at the same time not harming US ties with China, the world's second-biggest economy.
Mr Obama will also travel to South Korea, Malaysia and the Philippines.
The difficulty of Mr Obama's balancing act was underscored hours before he arrived on Wednesday night when Chinese state media criticised US policy in the region as "a carefully calculated scheme to cage the rapidly developing Asian giant".
China's Xinhua news agency followed that on Thursday with a commentary that said: "...the pomp and circumstance Obama receives ... cannot conceal the fact that Tokyo has become a growing liability to Washington's pursuit of long-term interests."
Mr Abe - who repeatedly referred to the US president as "Barack" during their news conference - and Mr Obama were keen to send a message of solidarity after USJapan ties were strained by Mr Abe's December visit to Tokyo's Yasukuni Shrine, seen by critics as a symbol of Japan's past militarism.
Japan lobbied hard to get the White House to agree to an official state visit, the first by a sitting US president since Bill Clinton in 1996.
Mr Abe is trying to soothe US concerns that his conservative push to recast Japan's war record with a less apologetic tone is overshadowing his pragmatic policies on the economy and security.
"Seventy years ago, when the war ended, Japan gave grave damage and pain to many people, particularly people in Asia. Japan started taking post-war steps by reflecting on this. Japan and Japanese people have continued to take the path of peace for the past 70 years," Mr Abe told the joint news conference.
"Japan has strived to create a free and democratic country after the war. We have been building a country that respects human rights and the rule of law," he said. "I would like to gain understanding of the people all over the world by contributing to creating the world that is peaceful and prosperous."