Since the end of World War II the Soviet Union has occupied four islands known as the Hoppo Ryodo, which Japan considers its Northern Territories. Possession of these islands has been a stumbling block to negotiations between the two countries for more than half a century. This analysis addresses the question. Will the end of the Cold War bring about the Soviet return of the islands to Japan? Nine scholars, diplomats, and defence strategists probe the terms of a possible peace treaty between Japan and the Soviet Union, the economic implications of the new relationship between these two countries and the United States and the economic political and security implications of a rapprochement.