On the first day of the hearing at the court of appeal in Tokyo, lawyers said they were optimistic the Japanese Government would be more sympathetic this time.

The former prisoners of war (PoWs) are demanding an apology and $22,000 each in compensation. If they win the Japanese Government will have to pay out $440m.

Martin Day, one of the lawyers representing 20,000 British, American, Australian and New Zealand veterans and civilians, said the case had to be heard by men with courage and compassion.

He added: "I am optimistic from seeing today's judges that this may be the group of people that have that courage, have conviction and have that compassion."

Most of the veterans seeking compensation are British.

Arthur Titherington: Fresh hope

Arthur Titherington, who worked as a slave labourer in a Japanese mine during the war, told the court he had no intention of failing in his duty to obtain justice for those who suffered with him.

"Recognition comes first, compensation comes next and reconciliation will follow."

After the hearing Mr Titherington, secretary of the Japanese Labour Camp Survivors' Association, said: "Rightly or wrongly, I got an impression of a more sympathetic hearing than we had in November."

In November 1998 the Tokyo District Court ruled that compensation had already been settled by the 1951 San Francisco peace treaty. This paid out £76 each for PoWs and £49 for civilian detainees.

After last year's ruling Mr Titherington spat on the doorstep of the Japanese parliament, declaring: "There is no justice in this country."