Japanese games are not compatible with non-Japanese games, and will corrupt your save data if you attempt to trade between the two.
Players can then 'trade through time' as the Time Capsule presents the Generation 2 game as if it were a Generation 1 game to your copy of Red, Blue, or Yellow. Players must also have received the Pokédex from Professor Oak in order to trade from Pokémon Red, Blue, or Yellow. The Time Capsule machine is located on the upper floor of the Pokémon Center in Pokémon Gold, Silver, and Crystal, and must be unlocked by meeting Bill in Ecruteak City.
While there's no explicit transfer area to bring all of your Pokémon from Red, Blue, and Yellow to Gold, Silver and Crystal, players can still trade between both generations using the Time Capsule feature.
