China's cautious policy towards the dispute was reflected in the New York meeting between Foreign Minister Qian Qichen and his Japanese counterpart Yukihiko Ikeda, analysts said. 'They agreed only that neither side would make the issue big,' said Professor Yoshifumi Nakai, of the Japan Institute of International Affairs in Tokyo. 'Beijing wants to avoid the impression that mainland China, Taiwan and Hong Hong are unitedly anti-Japanese which may pose a heavy cost to Beijing politically.' The Japanese Government was working on next year's budget and the timing was critical for yen loans to China, Professor Nakai said. 'Delays in yen loans would seriously affect China's future development plan and infrastructure constructions. 'Japan is also preparing for the next election. If Beijing mishandles the issue, the next Japanese Government could be very anti-Chinese,' he added. Professor Nakai, an expert on Sino-Japanese relations, said the Japanese Government appreciated Beijing caution and refusal to support anti-Japanese protests in China. He said the issue would not be solved for the next 10 to 20 years and predicted it would ultimately have to go to the United Nations.