Prime Minister Noda says Japan has history and law on its side, will never compromise on sovereignty over the islands.
Given all the problems in the world, this row seems utterly ridiculous but unpopular politicians love to stir up nationalism in tough times.
It reminds me of the Falkland Islands, which helped get Thatcher re-elected. In hindsight, I bet Japan wishes it populated the islands with Japanese people and then said ‘let the island’s inhabitants have a referendum’.