SEOUL--In the rush to normalize bilateral ties between Japan and South Korea in 1965, the issue of compensation was left fundamentally unresolved, opening the door to more claims that dog relations to the present day, newly declassified diplomatic papers show.

The papers, which concern normalization talks held more than 40 years ago, were released Monday by the South Korea foreign ministry.

At the heart of the matter was whether the aid Japan was extending to South Korea amounted to reparations or simple economic assistance.

As one of the documents, dated March 22, 1965, shows, the South Koreans sought to link Japan's economic cooperation to its renunciation of reparations claims.

Japan, meanwhile, stuck to the position that South Korea, as a ``non-victor'' in the war, was not entitled to reparations. It, therefore, refused to link Seoul's renunciation of claims to its economic cooperation.

In June 1965, Tokyo and Seoul normalized relations by signing four treaties, including one on basic relations, under which Japan provided $300 million in grants and $200 million in soft loans-loans extended at no or low interest.

In addition, a total of $300 million in commercial loans was extended.

But under the terms of the agreements, only 8,500 relatives of Koreans conscripted by Japan and subsequently killed in World War II have been compensated.

The 1,200 pages of documents, a fraction of 161 sets detailing the normalization talks held between 1951 and 1965, were made public in response to a court ruling that upheld the demand of war victims for access to negotiation documents.

Covering the last two years of the talks, from 1963 to 1965, the papers illustrate how Tokyo and Seoul clashed until the very end over the interpretation of the right to claims.

That disparity left ambiguous the treaties' terms of economic cooperation and claims for compensation for Japan's colonial rule of the Korean Peninsula, leading to controversy over compensation that continues to this day.

Another paper also dated March 22, 1965, underlines Japan's position that the grants and loans were being extended ``in the hope of assisting in South Korea's economic growth and development.''

Other documents show that Seoul confirmed during the talks that it was taking on responsibility to resolve the problem of individual compensation claims domestically.

According to the minutes of the talks on April 20, 1965, South Korea assured Japan that all the problems regarding such claims ``have been settled.''

The ambiguities were largely the consequence of the rush by the military regime of South Korean President Park Chung Hee to secure funds from Japan for the economic development of South Korea.

U.S. documents show that the United States was also applying pressure to the two sides to normalize relations as quickly as possible in order to shore up a Japan-South Korea bulwark against the former Soviet Union and North Korea.

Although they left many questions unanswered over the settlement of Japan's colonial rule, the 1965 treaties did contribute to South Korea's rapid economic growth.

Although Tokyo agreed to the release of the documents, Japanese Foreign Ministry sources voiced concern they could have a negative impact on bilateral ties.

South Korean citizens groups and members of the ruling party are calling for revising the treaties if their compensation claims are not met.

The Japanese Foreign Ministry has also released some documents, but most of the specific exchanges remain classified.(IHT/Asahi: January 18,2005)