The leaders discuss possibilities to improve the Soviet-Japanese relations. The Japanese delegation inquires about the permission for Japanese fishermen to use the Soviet fishing grounds and a chance to establish aerial communication between Japan and the Soviet Union. Khrushchev affirms the Soviet-Japanese friendship and expresses willingness to conduct trade. 

Kono and Khrushchev argue about the text of peace agreement. Khrushchev insists on exclusion of the phrase "territorial question", claiming that the issue will be addressed following the signing of the peace treaty. After some discussion, the Japanese leaders accept the Soviet formulation and ask to sign the agreement as soon as possible.

Kono and Khrushchev continue the previous day's discussion of the peace agreement and the transfer of two islands to Japan, highlighting that this territorial transfer can give the Japanese leverage to demand that the United States return Okinawa as well.

Ichirō Kōno, the Japanese Minister of Agriculture, raises questions about the normalization of relations between the Soviet Union and Japan. Issues that must be addressed prior to this happening include disputes over fishing rights and the transfer of the islands of Habomai and Shikotan to Japan.