REFILE-UPDATE 1-Edano: told U.S. that Japan imports of Iran crude falling

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* Talks with U.S. on Iran sanctions to continue

* U.S. asked to consider Japan situation flexibly

* Next working level meeting seen sooner than later

TOKYO, Jan 20 (Reuters) - Japanese Trade Minister Yukio Edano said on Friday that government officials told visiting U.S. counterparts that Japan's imports of Iranian crude oil are on the decline and the trend will continue.

U.S. Treasury and State Department officials held meetings with Japanese officials in Tokyo this week to explain a U.S. law imposing sanctions on countries that trade with Iran to curb its ability to build a nuclear weapon.

Like other Asian buyers of Iranian oil, Japan is under pressure to cut imports from the world's fifth-largest crude exporter to secure a waiver from the sanctions.

Edano said Japanese officials told U.S. counterparts that the country's imports of Iranian crude have fallen by about 40 percent in the past five years, a fact that Prime Minister Yoshihiko Noda pointed out at a news conference last week.

"We also told them our understanding is that this trend is set to continue," Edano told a news conference on Friday.

"Having said that, we asked U.S. officials to consider the Japanese situation in a flexible manner, including the consideration of a waiver from the U.S. law on sanctions. And I understand that negotiations will continue," Edano said.

Iranian crude makes up 10 percent of Japan's overall oil imports and some in Japan are concerned the new sanctions could drive up oil prices, dealing a blow to its economy, which is recovering from last year's earthquake and nuclear power disaster.

The head of the country's oil industry body said on Thursday that Japanese buyers are likely to cut Iranian crude purchases in about three months.

The next working-level meeting may be held sooner rather than later, a government official who attended the meetings told Reuters on Thursday.

(Reporting by Risa Maeda; Editing by Edmund Klamann and Edwina Gibbs)