Japan "squarely" acknowledged the damage and suffering caused by colonial aggression across Asia with "deep remorse", Koizumi told the conference in Jakarta attended by Chinese President Hu Jintao.

"In the past, Japan, through its colonial rule and aggression, caused tremendous damage and suffering to the people of many countries, particularly to those of Asian nations," Koizumi said, but gave no mention of China.

"Japan squarely faces these facts of history in a spirit of humility. And with feelings of deep remorse and heartfelt apology always engraved in mind, Japan has resolutely maintained, consistenly since the end of World War II, never turning into a military power but an economic power," he said.

Koizumi, who hoped to meet Hu during the summit, added that his country was guided by the "principle of resolving all matters by peaceful means, without recourse to use of force."

Sino-Japanese relations were at one of their lowest ebbs in decades after three weekends of protests by tens of thousands in China against Japan's approval of a school textbook that critics say glosses over the country's wartime atrocities.

In sometimes-violent anti-Japanese demonstrations, people hurled bottles, eggs and rocks at Japan's diplomatic and business interests in China while calling for the boycott of Japanese products.

Tokyo has demanded Beijing's apology and compensation for damage caused by the protests but China rejected Japan's demands, saying the real issue was Japan's alleged denial of its wartime past.

Koizumi said on Friday a post-war Japan has never resorted to the use of force to settle international disputes and vowed to continue to promote peace and prosperity in the world.

"Japan once again states its resolve to contribute to the peace and prosperity of the world in the future as well, prizing the relationship of trust it enjoys with the nations of the world," he said.

Japan's post-war constitution, written by the United States, not only renounces war but forbids Tokyo from maintaining a military or even threatening the use of force.

However, Japan maintains what it calls a Self-Defense Forces and Koizumi, a staunch ally of US President Gerge W. Bush, dispatched 600 Self-Defense troops on a non-combat mission in southern Iraq.

The deployment which began in December 2003 is Japan's first since World War II in a country where fighting is under way.

But Koizumi has enraged China with his annual visits to Tokyo's Yasukuni Shrine, which venerates 2.5 million war dead including war criminals.

Since taking office in April 2001, the prime minister never missed the annual pilgrimage to the shrine, which draws about five million visitors a year.

Last week Chinese Premier Wen Jiabao said in India that Japan must face up to its World War II history and win the trust of the people of Asia if it wants to win a permanent seat on the United Nations Security Council.

Japan, which joined the UN in 1956 and is the second-biggest donor for the global body after the United States, has launched a joint bid with Brazil, Germany and India to win prestigious permanent seats with veto power.

China supports Brazil, Germany and India over the UN posts, but argues Japan is not eligible until it further atones for its World War II atrocities.

Koizumi was scheduled to meet UN Secretary General Kofi Annan later in Friday to discuss Japan's bid for the permanent seat as well as wide-ranging UN reform.

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