Reformist Iranian President Mohammad Khatami will receive a red-carpet welcome when he arrives in Tokyo at the end of this month on what Japanese officials describe as a historic visit that will usher in a new era for bilateral ties after years of near-estrangement.

Japanese government officials and business leaders have a strong desire to see relations between resource-poor Japan and oil-rich Iran become as close and friendly as they were before the 1979 Islamic Revolution.

But below the surface of the official fanfare and cordiality that is likely to characterize the atmosphere of the trip lies a burgeoning distrust of Iran, especially in Japanese political circles.