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			 Initial talks are being held between the two countries to prepare 
			for the lifting of sanctions and begin formal negotiations, the 
			business daily said, without identifying the sources. 
			 
			Japan is keen to boost ties with Iran and invest in resource 
			projects in the country, as well as return imports of Iranian oil to 
			about 10 percent of the total from 5 percent now after sanctions 
			forced Japanese refiners to cut purchases, it said. 
			 
			Earlier this month, Daishiro Yamagiwa, vice-minister of Japan's 
			Ministry of Economy, Trade and Industry (METI), visited Tehran and 
			met top government officials, accompanied by executives from the 
			oil, gas and other industries. 
			 
			Yamagiwa did not discuss an investment agreement, Shigetoshi 
			Ikeyama, a director in METI's Middle East and Africa division, said 
			when contacted by Reuters about the Nikkei report. 
			
			  "Knowing that Japanese companies are interested in boosting economic 
			ties in future, state minister Yamagiwa had general discussions on 
			streamlining the environment for that, but did not discuss an 
			investment pact in particular," Ikeyama said, adding that the 
			Ministry of Foreign Affairs would take the lead on any discussions 
			on specific agreements. 
			 
			"Another reason for Yamagiwa's visit was to avoid being beaten by 
			European and U.S. companies," Ikeyama said. 
			 
			Officials at the foreign ministry were not immediately available for 
			comment. 
			 
			Inpex Corp <1605.T>, Japan's biggest energy explorer, JGC Corp 
			<1963.T>, an engineering company, and trading houses Mitsubishi Corp 
			<8058.T>, Mitsui & Co <8031.T> and Itochu Corp <8001.T> joined 
			Yamagiwa on the visit, the Nikkei said. 
			 
			
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			A spokesman at Inpex, which in 2010 was forced to give up a stake in 
			Iran's Azadegan oil field because of the sanctions, confirmed some 
			of its officials had accompanied Yamagiwa and said the explorer was 
			monitoring the situation. 
			 
			Itochu and JGC also confirmed they were in the delegation but Mitsui 
			did not respond immediately to a query on the matter. A Mitsubishi 
			official had said earlier that it planned to send an official along 
			with Yamagiwa. 
			 
			Senior government ministers from Italy, France, Germany and Serbia 
			have been among those making the trek since the July 14 accord, 
			which raised the prospect of banking and trade sanctions on Iran 
			being lifted, possibly by the end of this year. 
			 
			Last month Iran outlined plans to rebuild its main industries and 
			trade relations following the nuclear agreement with world powers, 
			saying it was targeting oil and gas projects worth $185 billion by 
			2020. 
			 
			(Reporting by Osamu Tsukimori and Kiyoshi Takenaka; Writing by Aaron 
			Sheldrick; Editing by Alan Raybould) 
			
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