Japan must not forget the lessons from the hostage crisis at the Japanese ambassador's residence in Lima and must uphold the principle of not yielding to terrorism, according to a report released July 1 by a Tokyo-based think tank.

The Council for Public Policy, an affiliate of the National Policy Agency, said that two months after the crisis ended, it has faded in the public memory. But the public "should seriously recognize that Japan was targeted in the crisis," the report says.

The four-month hostage standoff by 14 Tupac Amaru terrorists ended in late April when commandos stormed the residence and killed the rebels. Although one Peruvian hostage and two Peruvian commandos died during the operation, the remaining 71 hostages escaped alive.

Japan should not accept any unjustified demands from a terrorist group and should be aware that the nation may have to risk lives to maintain this policy, the report says. Stressing that the government should be reminded that heads of Japanese embassies abroad hold the ultimate responsibility for maintaining security, the council called on the government to strengthen security at its overseas missions.

The council also said Japanese firms apparently regard the Peru incident as not being directly related to their business, but more "a domestic problem in Peru, a question of security management at Japanese embassies abroad (or) a question of the government's crisis management."