DAILY SUMMARY OF JAPANESE PRESS 03/01/06

UNCLAS SECTION 01 OF 13 TOKYO 001090

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SUBJECT: DAILY SUMMARY OF JAPANESE PRESS 03/01/06


INDEX:

(1) Transcript of RBC TV news report of Kevin Maher's speech on
Feb. 27 in Okinawa

(2) Editorial: Kevin Maher should know how angry his remarks have
made the prefectural residents

(3) USFJ realignment: Government at odds with US over "package
argument" in resolving specific cases

(4) Mizuho Town mayor accepts proposal for joint use of Yokota
Air Base between USFJ and SDF; Decision without sufficient
information rough-and-ready; Now is good opportunity to seek
reduced financial burden

(5) MSDF Iraq assistance: Information about port location also
leaked out in e-mail from seamen to family

(6) Main replies by the US government

(7) US government responds to Nihon Nogyo Shimbun's questions on
beef issue; Eager to resume beef trade; Willing to give positive
thought to prior inspections

(8) US replies on beef issue fail to dispel concerns; Blanket
testing labeled as meaningless

(9) Editorial: Japan should strive to avoid sanctions being
imposed on Iran for its nuclear program

(10) Editorial: Lawmaker Nagata, DPJ grossly negligent

(11) Toshiba drops plan on coal-fired power plant with ORIX in
response to opposition from Environment Ministry

ARTICLES:

(1) Transcript of RBC TV news report of Kevin Maher's speech on
Feb. 27 in Okinawa

RBC TV NEWS REPORT
February 27, 2006

In a speech today, Kevin Maher, director for security affairs at
the American Embassy in Japan -- the responsible embassy official
on the realignment of American bases in Japan -- stressed that
unless Futenma Air Station is relocated to the coastal portion of
Camp Schwab, the reduction of US Marines on Okinawa and the
reversion of facilities on the south-central portion of the main
island will not be implemented.

Director of Security Affairs Kevin Maher of the US Embassy has
been selected as the next consul general in Okinawa, starting
this summer. He gave his briefing at a speech forum sponsored by
Kyodo News. In his presentation, Director Maher brought up such
reasons for deciding to relocate Futenma Air Station to a site on
the coastal portion of Camp Schwab as there being little impact
on the safety of the local residential area, little noise
problem, and the need to maintain a deterrent capability.

On the other hand, he stressed that if the relocation to Camp
Schwab's coastal portion did not take place, the reduction in

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Okinawa's burden would not take place. Maher also pointed out
that coordination with local communities is the role of the
Japanese government, and that if the realignment as planned is
looked at in its entirety, it will become a plus for Okinawa. He
stated that for the realignment to be successful, Okinawa's
cooperation was essential, and he sought the prefecture's
understanding.

(2) Editorial: Kevin Maher should know how angry his remarks have
made the prefectural residents

OKINAWA TIMES (Page 5) (Full)
March 1, 2006

Speaking on the issue of relocating MCAS Futenma, Kevin Maher,
the chief of the security unit of the US Embassy in Japan noted
that he did not think the basic plan to build a facility on the
coastal portion of Camp Schwab in the Henoko district of Nago
City would be revised.

On this issue, Secretary of Defense Rumsfeld, too, took a
negative view recently, stating his displeasure at revised plans
being floated. Although we might say that Maher's comments were
just falling in line with the Pentagon's view, the US government
should know full well that a stance of its "running ahead first
with the coastal plan" has fired up the anger of local residents.

Looking at the local communities, we find the joint committee of
three districts of Nago City, including Henoko, clearly opposed
to the coastal plan. The council of thirteen districts along the
sea coast of Nago also is making a resolution opposing the plan.

It is evident that the alternate facility will create new dangers
and will destroy the quiet living conditions of the area with
explosions and aircraft noise. One may say that it is only
natural for the surrounding areas to oppose the coastal plan.

On March 5, a large rally of prefectural residents will be held
at the multipurpose ground of the seaside park in Ginowan City to
protest the relocation plan. This is not just a local issue; It
has become a problem taken up by all residents in the prefecture.
We would like the rally to send a strong message that the new
base construction plan is unacceptable.

The agreement reached late last October between Japan and the US
was only an interim report; it was not supposed to be the final
report. That is what the Foreign Ministry and the Defense Agency
have been explaining to prefectural residents. Whatever has been
compiled by the end of March is supposed to be put in the final
report. We cannot forget the promise that the central government
made to local communities repeatedly, namely, that nothing would
proceed or be decided that went over the heads of the local
communities.

Maher also developed the "package argument" when he talked about
the realignment of US forces in Japan, stating that if the
relocation of Futenma Air Station was not according to the
coastal plan, the reversion and consolidation of base facilities
in the central and southern portions of the main Okinawa island
would not be possible.

However, we would like to once more stop and take a look at that
statement.

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Do not the plans to consolidate facilities and the arguments for
reversions stem from the fact that those facilities are no longer
needed? Isn't this proof that even if the facilities were scaled
down in scope, there would be no inconvenience suffered? If such
is the case, isn't it odd in itself to make the alternate
facility for MCAS Futenma a part of a package deal? Moreover, one
is compelled to say that to argue that the realignment plan "is
to the advantage of Okinawa" is nothing but the naked logic of
Occupation mentality.

Maher is slated to become the next consul general for Okinawa.
However, we would like to ask him to step back a bit from a
military point of view and properly perceive his role as a
"diplomat of a democratic country" that does not trample on the
right to a peaceful life of the residents of a prefecture where
75% of the US forces in Japan are deployed or otherwise infringe
on their human rights.

(3) USFJ realignment: Government at odds with US over "package
argument" in resolving specific cases

OKINAWA TIMES (Page 1) (Full)
March 1, 2006

(TOKYO)

The Defense Facilities Administration Agency (DFAA) on Feb. 28
issued this view regarding the expression "unified package" that
is stated in the interim report on the realignment of US forces
in Japan: "It does not mean that the implementation of all cases
are connected; (it means that) if it is possible, we will pursue
the implementation of some individually." In connection with the
so-called "package argument," Kevin Maher, security unit chief of
the US Embassy in Japan in a speech on Feb. 27 made this
statement regarding such issues as the relocation of MCAS Futenma
and the reversion of facilities south of Kadena Air Base: "If the
contents of the interim report are implemented individually,
everything would fall apart." The two statements underscore a
split in views between Japan and the United States.

The view of DFAA was issued to a news company in reply to written
questions from the city of Tomakomai (Hokkaido) regarding the Air
Self-Defense Force's Chitose Base, which is to be the location
for training of F-15 fighter aircraft coming from Kadena Air
Base.

The package argument is explained as such: "In the 2 plus 2 joint
document (omitted portion),the expression 'unified package'
refers to planning the implementation as a whole in terms of
maintaining deterrence capabilities and reduction of the local
burden." If the DFAA view is applicable to Okinawa, then the
relocation of MCAS Futenma to the coastal portion of Camp Schwab
in Nago City, the transfer of 8,000 US Marines to locations
outside of the prefecture, and the reversions of facilities south
of Kadena Air Base are not necessarily linked together.

This view differs from the US government's explanation that makes
the implementation of the coastal plan a condition for reducing
the burden on Okinawa.

A senior DFAA official stated: "The US side in working level
talks between Japan and the US also has been asserting (the

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package argument),but the Japanese side has never had such a
perception."

(4) Mizuho Town mayor accepts proposal for joint use of Yokota
Air Base between USFJ and SDF; Decision without sufficient
information rough-and-ready; Now is good opportunity to seek
reduced financial burden

MAINICHI (Page 6) (Excerpts)
February 24, 2006

By Social News Section reporter Kenji Kimura

In the ongoing realignment of US force stationed in Japan, Koemon
Ishizuka, mayor of Mizuho Town, Tokyo, has decided to accept a
proposal for joint use of US Forces' Yokota Air Base, which
extends across five cities and one town, between US force in
Japan (USFJ) and the Self-Defense Forces (SDF). The proposal has
been in the interim report issued last October. The town is
situated north of the base. The mayor has made the decision,
based on the judgment that there would be no major change, if SDF
troops were transferred to Yokota. It, however, appears premature
to make such a decision at a stage where the government has yet
to provide more information on the realignment issue. The
governments of Japan and the US should pursue far-reaching
discussions without regard to the March target set for the
compilation of a final report.

Three points concerning Yokota Air Base in the interim report
are: (1) the Air-Self Defense Force's (ASDF) Air Defense Command
Headquarters is to be transferred from Fuchu, Tokyo, and a new
joint operations coordination center is to be established for the
USFJ Headquarters; (2) joint military-civilian use of the air
base is to be considered, while taking into consideration that
such a use should not damage the operational capability of the
air base; and (3) a reduction in airspace under the US military's
control is to be looked into. Mizuho Town has strongly opposed
the joint military-civilian use of Yokota Air Base as leading to
a deteriorated living environment and the perpetuation of the
presence of the air base.

Mayor Ishizuka expressed his decision to accept the joint USFJ-
SDF use of Yokota Air Base at a consultative meeting of the Town
Assembly held on Feb. 11. The decision to accept the joint use of
the air base limited to the SDF alone was motivated by the desire
to receive generous local development allowances from the state.
To that end, the town has accepted the interim report ahead of
other municipalities in order to demonstrate its presence as a
model town among those that host USFJ facilities. In a related
effort, it has also suspended the movement opposing joint
military-civilian use of air base facilities, though its previous
stance had been against such a use.

Mizuho Town has a population of 33,976 as of Jan 1, 2006. It
provides 2.1 square kilometers or about 13% of the entire area of
the town (16.83 square kilometers) for the use of Yokota Air
Base. Noise levels were measured 34.2 times a day on average in

2004. The presence of the air base is a major disturbing factor
for town building, and the government has provided financial
assistance to the town so that it can make up for the loss.
Government subsidies for measures for military base-related
measures totaled 1.11407 billion yen in the town's fiscal 2004
financial statement, accounting for 8.5% of revenues in its

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general account.

The Defense Facilities Administrative Agency (DFAA) Regional
Defense Facilities Administrative Bureau (RDFAB),Tokyo, located
in Saitama City, on Jan. 30 submitted a written reply to
questions asked by local governments in the vicinity of Yokota
Air Base. According to the RDFAB, the transfer of the current
framework of approximately 600 personnel is expected with the
relocation of the ASDF headquarters to Yokota. There is no plan
to permanently transfer air units to Yokota, but the RDFAB report
noted as an example that there were about 400 flights last year
to transfer SDF personnel among bases throughout the country.
Regarding measures to reduce burdens of municipalities that host
the air base, the report simply noted that the issue was a future
agenda item. For joint military-civilian use, it went no further
than to say that Japan and the US would look into such a
possibility more specifically in the future.

The establishment of the new joint operations coordination center
requires special attention. The main aim of establishing such a
facility is said to be to promote bilateral cooperation on the
missile defense system (MD),which the two countries are to
develop in fiscal 2006 as a joint project. It is one of the
concepts that symbolize the policy of integrating Japanese and US
military operations in the realignment plan along with the
transfer of the US Military 1st Headquarters (Washington) to Camp
Zama (Kanagawa Prefecture) and the establishment of the Ground
Self-Defense Force's central readiness command.

Commenting on the planned new joint operations coordination
center, Tetsuo Maeda, professor of disarmament and security,
pointed out, "It can be said that the planned facility is a joint
headquarters or a combined command for Japan and the US. But
since such names could be taken to mean (a setting for) the
exercise of the right of collective self-defense, which is banned
under Article 9 of the Constitution, it had to bear such a
complicated name." Though the establishment of the center
involves serious issues like that, the report provided by the
RDFAB simply noted that intensive coordination of views would be
undertaken regarding such aspects as a concrete form of the
planned organization and personnel.

No more information has been provided though it has been three
months or so since the issuance of the interim report. Five
municipalities other than Mizuho Town remain cautious. Joichi
Kitagawa, mayor of Akishima City, located south of the base,
said, "We should reach a judgment, based on a final report. In
the meantime, we should urge the government to provide more
information." Fussa City is recruiting opinions from citizens, by
carrying replies provided by the DFAA Tokyo Bureau in its
bulletin.

The realignment of Yokota Air Base will be the largest ever since
the Kanto Plan, under which US forces' facilities located on the
Kanto Plain were integrated at Yokota in the 1970s. Concerned
municipalities should not give up their pursuit of overall return
of the base facilities in the future, while seeing the
realignment this time as an opportunity to seek a reduction in
base burdens once in several decades.

(5) MSDF Iraq assistance: Information about port location also
leaked out in e-mail from seamen to family


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MAINICHI (Page 9) (Full)
Evening, March 1, 2006

Another incident of information leakage from the Maritime Self-
Defense Force (MSDF) has been discovered. A seaman stationed
aboard the large-scale transport ship Ohsumi (8,900 tons),which
embarked from its MSDF Kure Base in Hiroshima in Feb. 2004 to
Iraq for assistance duties leaked out information into the
Internet contained in his e-mails to his family and in internal
documents. The e-mail contained the name of the ports and cities
where the ship was heading for. A senior Defense Agency (JDA)
called the incident of "revealing the ports of destination a
serious issue."

The Ohsumi left the MSDF's Kure Base on Feb. 14, 2004, in order
to transport weapons and equipment for the Self-Defense Forces
(SDF) carrying out activities in Iraq under the special measures
law for Iraq reconstruction assistance. It stopped in the port of
Mororan in Hokkaido to load on armored vehicles and equipment,
and then sailed to Kuwait, arriving on March 15, and then
returning to Kure Base on April 8.

The leaked data related to the Ohsumi amounted to enough to fill
76 floppy disks. According to an informed source, mail sent by
the seaman to his family continued from Feb. 20, when his ship
left Muroran, and continued until it returned to Kure Base. He
sent well over 100 messages. Much of what he wrote contained
specific mention of his duties, such as, "We finished the first
stage of transporting vehicles"; and "We seem to be passing the
Holmes Straits." He included the port destinations.

As for internal documents, most of what was leaked included the
seaman's emergency call nets that contained rosters of
individuals on the ship and portable telephone numbers, as well
as digital photographs.

(6) Main replies by the US government

NIHON NOGYO SHIMBUN (Page 2) (Full)
March 1, 2006

Question 1: According to a survey by Intage, major marketing
research firm in Japan, more than 90% of consumers said, "The
GOJ's recent measures to ban beef imports from the US was a right
decision." Even after USDA submission of its report, many
Japanese consumers and producers think US countermeasures on BSE
are insufficient. Do you think the USG could relieve their
anxieties against US beef? Do you have any concrete ideas to
promote understanding among the Japanese public on this issue?

Answer: The US has admitted that a mistake was made regarding the
shipment of the veal item, which was not in accordance with our
agreement, and apologized for this officially. We have submitted
an investigative report to the Japanese Government and taken a
number of measures to diminish the possibility that this could
happen again. With the Japanese public, we seek their
understanding by continuing to present facts to give them
confidence that the US does produce a safe, nutritious product
which is enjoyed by consumers around the world. We hope and
believe that (Japanese consumers) will make decisions based on
facts rather than emotion. While we are aware of various opinion
polls, we also know there are many Japanese who would like the
opportunity to enjoy our beef.

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Question 2: The USDA investigative report to the GOJ concludes,
"We are confident in our assessment that this ineligible shipment
was unique." There are voices among the Japanese public that the
ineligible shipment was caused not by simple errors but by
structural problems. Do you believe that the USDA action plans
could resolve these issues?

Answer: Yes. Of course any time humans are involved in any
activity there is a chance for error. The report does document
that the export company was informed about the requirements. The
report then addresses the problems identified in order to
minimize the possibilities that such a mistake could ever be
repeated, but we believe our system is very sound overall.

Question 3: The OIG released the audit report regarding safety
measures to BSE on February 2, 2006. MAFF Minister Nakagawa, in a
Diet session, said that it is necessary for the GOJ to verify the
report by saying, "We are asking the USG about four issues,"
according to a Diet record. They are "Surveillance," "Clinical
inspection of live animals," "SRM," and Downer animals." Would
you please tell us the USG response to the GOJ on these
questions?

Answer: We are still compiling our responses to these questions
and will pass them to the Agriculture Ministry upon receipt.

Question 4: In Japan, there are views that advance inspections by
Japanese officials at US processing plants will be a precondition
for the resumption of US beef imports. Is the USG ready for
accepting Japanese inspection teams? If so, do you think it is
possible for the Japanese teams to choose processing plants for
their inspection and to conduct surprise inspections?

Answer: Secretary Johanns has already stated that we would
favorably consider additional Japanese inspections of our plants
(noting that we have already hosted numerous such visits over the
past two years). Details on their scope will need to await the
overall bilateral discussions on trade resumption, which of
course have not commenced.

Question 5: Some Japanese assert that the GOJ should not be so
hurry to lift the import ban on US beef and in fact there is a
view that the resumption of imports would be half a year later at
the earliest. How do you convince these cautious voices among the
Japanese public on the resumption of beef trade? Do you think
American frustration would be growing if the resumption of beef
trade is delayed?

Answer: While the decision on timing is of course for Japan to
make, we believe that the facts surrounding the unique nature of
this case will in fact support trade resumption in the near
future. As I have previously stated we have accepted
responsibility for a mistake in that the export requirements were
not met. However, Americans are not less concerned about food
safety than other people; the difference is in how information on
the subject is conveyed and assessed. We consume large quantities
of beef with confidence and seek the understanding of our trading
partners that decisions be based on science.

Question 6: Japan's Food Safety Commission said in its report
last year that the BSE contamination risk in the US would be the
same level or even higher than that of Japan, for example,

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between 150% and 700%, considering inadequate feed regulations in
the US. What do you think of this assessment?

Answer: The surveillance program we have had in place for the
last two years was designed to detect cases within our cattle
herd with a very high degree of certainty, according to our
experts in this field. It is also important to again remind
ourselves that testing of young cattle such as we send to Japan
has virtually no meaning, as the test results are not reliable;
what protects human health is not testing the animals, but
correct removal of the risk materials from the carcasses.

(7) US government responds to Nihon Nogyo Shimbun's questions on
beef issue; Eager to resume beef trade; Willing to give positive
thought to prior inspections

Nihon Nogyo Shimbun (Page 1) (Full)
March 1, 2006

The US government provided answers Feb. 28 to the Nihon Nogyo
Shimbun's six questions pertaining to insufficient BSE-preventive
measures taken by the US that led to Japan's ban on beef from the
US. The US replies, while accepting responsibility for having
included vertebral columns in the shipment of veal items to
Japan, expressed its eagerness for an early resumption of beef
trade, noting, "We have taken a number of measures to diminish
the possibility of this happening again." In response to the
Japanese government's call for answers to four items, the US
government also made it clear that it will quickly provide them
to the Ministry of Agriculture, Forestry and Fisheries. The
letter also said that the US would "favorably consider" Japan's
prior inspections.

Through its embassy in Tokyo, the US government maintained, "We
have identified problems in order to minimize the possibilities
that such a mistake could be repeated, but we believe our system
is very sound overall." The US called for an early resumption of
beef trade saying that the recent incident was an isolated case.

Touching on the fact that Japanese consumers are concerned about
the resumption of beef trade, the US underscored the validity of
its standpoint by noting, "We hope that (consumers) will make
decisions based on facts rather than emotion"; and "There are
many Japanese who would like the opportunity to enjoy our beef."

Additionally, the US explicitly noted, "We believe (US beef
imports) should be resumed in the near future."

Furthermore, the US strongly criticized Japan's blanket testing
of young cattle as "having virtually no meaning, as such test
results are not reliable."

Tighter regulations on feed necessary

A comment by Satoshi Kai, professor at Kyushu University Graduate
School: The US government should take Japanese consumers'
concerns more seriously. In order to resume beef trade, the
Japanese government must conduct inspections thoroughly once
again. Beef trade requires some conditions, such as allowing only
major meatpackers with sufficient facilities to handle Japan-
bound beef. The Japanese government must urge the US to tighten
regulations on feed.


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(8) US replies on beef issue fail to dispel concerns; Blanket
testing labeled as meaningless

NIHON NOGYO SHIMBUN (Page 3) (Full)
March 1, 2006

Commentary

The Nihon Nogyo Shimbun has received replies from the US
government that began with its admission of a "mistake" and
"official apology" for the inclusion of backbones in the recent
shipment of US beef to Japan in violation of the bilateral
agreement. But all in all, the US replies are designed to urge
Japan to resume US beef imports at an early date. The US answer
is far too insufficient to convince Japanese consumers and
producers of the safety of US beef.

On February 17, the US Department of Agriculture (USDA) released
a report, which brought to light the sloppiness of US
inspections, as seen in the fact that inspectors responsible for
exports to Japan did not know what had been agreed upon between
Tokyo and Washington. The Japanese people have little faith in US
beef. The US government must have presumed that pressing Tokyo
hard to resume beef trade would only prompt the Japanese people
to further turn their backs on US beef, thereby delaying a
resumption of beef trade. The US announced that it would accept
prior inspections by Japan before the ban on imports was removed
in anticipation of such a consequence.

But the US replies clearly indicated that the inclusion of
backbones in the Japan-bound shipment resulted from a simple and
exceptional mistake and that the preventive measures revealed by
the USDA were good enough to prevent a recurrence. The US replies
clearly reflect Washington's view that the US system against BSE
is very sound overall. However, the US conclusion that Japan's
blanket testing of cattle "has virtually no meaning" is likely to
draw outcries from Japan.

The US government's position rests on the view that US beef is
safe in the first place. The US envisages that as long as it
abides by the Beef Export Verification program allowing only beef
from animals up to 20 months with no specified risk materials to
reach Japan, follows measures specified in the USDA report more
thoroughly, and allows Japan to conduct prior inspections, Tokyo
will agree to resuming beef trade at an early time. But the
recent incident has drawn strong reactions from Japanese
consumers and producers, and the Japanese government remains
cautious about resuming beef trade, thinking that the USDA report
is insufficient.

The US replies made it clear once again that Washington is not
facing up to the BSE risk in the country. The government must not
hurriedly resume beef trade without ensuring basic food safety
measures for the Japanese people, such as tighter regulations on
animal feed.

(9) Editorial: Japan should strive to avoid sanctions being
imposed on Iran for its nuclear program

MAINICHI (Page 5) (Full)
March 1, 2006

At a time when Iran's nuclear development program is becoming a

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matter of serious concern, Foreign Minister Mottaki came to Japan
and met with Japanese leaders, including Prime Minister Junichiro
Koizumi, Foreign Minister Taro Aso, and Minister of Economy,
Trade and Industry Toshihiro Nikai. Japanese leaders, including
Koizumi, urged Mottaki to halt his country's uranium enrichment
activity, but Mottaki emphasized the legitimacy of such activity,
telling them: "We hope for your cooperation to prevent
discriminatory treatment regarding our right to use nuclear
energy for peaceful purposes.

Iran's adamant attitude about the nuclear issue is likely to give
rise to calls for sanctions at the United Nations Security
Council (UNSC). We hope Iran will make a wise response to avoid
being isolated in the international community.

The International Atomic Energy Agency (IAEA) has adopted a
resolution to refer Iran's nuclear issue to the UNSC. On March 6,
the IAEA will discuss what the next course of action will be.
Japan considers Russia's proposal to transfer the uranium
enrichment process from Iran to Russia as a pragmatic approach.
In order to pressure Iran to accept the Russian plan, Japan
invited Mottaki to come and discuss the issue.

Mottaki, however, went no further than to reiterate his previous
claim in meeting with Aso, saying: "We are allowed the right to
use nuclear energy for peaceful purposes."

Since the normalization of diplomatic ties with Iran in 1953,
Japan, owing to its own efforts, has maintained a good
relationship with that country. Japan depends on Iran for about
15% of its overall crude oil imports. For Japan, Iran ranks third
in oil suppliers after Saudi Arabia and the United Arab Emirates.
In February 2004, Japan and Iran signed a contract to develop the
Azadegan oil field in southwestern Iran, one of the largest oil
fields in the Middle East. This contract ensures Japan a large
interest in developing energy resources. Japan therefore needs to
take care of its relations with Iran in the future, as well.

However, Japan cannot wink at Iran's nuclear-related activities
that might lead to its manufacturing nuclear weapons. That is why
Japan voted for the IAEA resolution to refer Iran's nuclear issue
to the UNSC. It is only natural for Japan to urge Iran to halt
its nuclear development program.

Iran has insisted that its nuclear-related activities are all for
peaceful purposes. Make no mistake, the right to use nuclear
energy for peaceful purposes is granted under the Nuclear Non-
Proliferation Treaty (NPT). But the first matter for Iran to
attend to before proclaiming that right must be to accept IAEA
inspections and by so doing, it needs to enhance the transparency
of its nuclear program.

Japan uses nuclear energy for peaceful purposes. But before the
rest of the world was willing to look at Japan in that context,
Japan had to make continuous efforts to win international
confidence while observing the NPT rules. Since 2004, integrated
safeguards have been applied to Japan. Integrated safeguards are,
in short, a certification by the IAEA to show that countries
coming under such safeguards do not have any unreported nuclear
materials and nuclear activities. It is advisable for Iran to
follow Japan's example as a country that uses nuclear energy for
peaceful purposes.


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Iran revealed that it and Russia had agreed on a plan to launch a
joint venture to conduct uranium enrichment. Reportedly, an
Iranian delegation has arrived in Moscow to restart negotiations.
We hope Iran will come up with a flexible response to resolve its
nuclear issue via discussion and dispel international suspicions
about it.

Once a decision is made to impose sanctions on Iran, it would
cause turmoil in the international economy. What can Japan do to
avoid a sanction scenario? One idea would be to take advantage of
its good relations with Iran and try to bridge the gap between
Iran and Western nations, particularly the United States.

(10) Editorial: Lawmaker Nagata, DPJ grossly negligent

NIHON KEIZAI (Page 2) (Full)
March 1, 2006

Lower House member Hisayasu Nagata of the Democratic Party of
Japan (DPJ = Minshuto) held a news conference over the money
transfer order e-mail allegedly sent by former Livedoor president
Horie, the issue which he brought up during Diet sessions, and he
offered an apology, admitting that it was not possible to verify
the authenticity of the information. Regarding his course of
action, he simply said that he would leave the matter to
Secretary General Hatoyama to decide. He is heavily accountable

SIPDIS
for bringing up groundless information and sending the Diet into
a melee, backbiting Liberal Democratic Party (LDP) Secretary
General Takebe and other persons concerned, saying, "They sold
their souls for money." He cannot be forgiven just by offering an
apology.

His press conference was extremely awkward. As reasons for having
judged that the e-mail at issue was authentic, Nagata cited that
(1) the intermediary was a former journalist, and he placed full
confidence in this person; (2) according to this intermediary,
the person who provided the information was involved in the money
transfer; and (3) information on the person involved had also
been provided."

If he had judged that the e-mail was authentic, based on such
insufficient information, we must say that his information
analyzing capability and investigative ability were extremely
poor. He admitted that he had never met the intermediary. He also
revealed that he had asked the intermediary to provide the
electronic documentation of the e-mail, but did not obtain such.
Nagata's qualification and aptitude for a lawmaker are being
questioned, because he raised questions in the Diet, based on
dubious information and an insufficient investigation.

Nagata insisted, "Though it is not possible to prove the
authenticity of the e-mail, there is still a possibility of its
containing truth." If that is the case, he should reveal that
truth to the public as soon as possible. He should not try to
avoid resignation from the Diet for no other reason than that.

It would be the usual procedure for any ordinary political party
to set up an investigative team to obtain evidence that justifies
the authenticity of information like this. Diet Policy Committee
Chairman Noda, who gave the green light to Nagata bringing up the
e-mail in the Diet, believing his story, is also heavily
responsible. It is only natural for him to step down as diet
policy affairs committee chairman.

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Pursuing wrongdoings is an important role the opposition camp is
expected to play. To that end, it has to conduct sufficient
surveys to support its pursuit. If it was unable to do so, it
should be cautious in raising questions in the Diet. If lawmakers
pursue allegations in an exaggerated manner, based on vague
information, the Diet would become a scandal-exposing
battlefield, and will eventually lose the trust of the people.
Both the ruling and opposition camps must not forget that Japan's
pre-war party politics collapsed, following just such a process.

The DPJ later issued a statement admitting that Horie had never
sent that e-mail, and so, it was "not authentic." Party head
Maehara offered an apology, but it was too careless for him to
categorically say at a party-head debate, "There is certain
evidence that proves the authenticity of the e-mail." It will not
be easy to rebuild the DPJ. The starting point for that is for
Nagata to take responsibility in stark terms.

(11) Toshiba drops plan on coal-fired power plant with ORIX in
response to opposition from Environment Ministry

MAINICHI (Top Play) (Full)
February 28, 2006

Toshiba Corporation announced yesterday that it has decided to
drop a plan to construct with ORIX Corporation a large-size coal-
fired power plant (power output: one million kilowatts) in Ube
City, Yamaguchi Prefecture. The company cites the public's
growing interest in global environmental protection issues as the
main reason for the cancellation of the plan. From the viewpoint
of the need to stop global warming, the Environment Ministry has
opposed the plan, one official claiming: "A large volume of
carbon dioxide (CO2) would be emitted." In response, the company
has voluntarily decided to drop the power-generation business
plan.

SIGMA POWER Yamaguchi Corporation worked out the plan, under
which it would initiate the project in 2009 and set two 500,000
kilowatt-class power stations in operation in 2012. SIGMA POWER
was established in April 2003 with 66.8% of the company share
held by Toshiba and 33.2% by ORIX.

However, the Kyoto Protocol, which mandates industrialized
countries to cut greenhouse gas emissions, came into effect in
February of last year. Based on it, the government laid down a
program last April to attain the goals set for the nation under
the protocol.

The electricity industry, based on its own action program, has
earnestly tackled the challenge of reducing CO2 emissions by 7
million tons annually over the five years from 2008. But the Ube
electricity plant gives off 5.82 million tons of CO2 annually, a
figure equivalent to about 30% of the targeted volume of gases to
be reduced over the five years.

In response, the Environment Ministry sent a letter in late
January to the Ministry of Economy, Trade and Industry (METI),
which has jurisdiction over the industry, noting: "The plan is
inconsistent with the government's CO2-cutting goals." METI
replied that it would be impossible to uniformly restrict coal-
use plans because of the nation's energy policy of using a
variety of electric sources, but the ministry respected the

TOKYO 00001090 013 OF 013


Environment Ministry's advice. Seeing the response of METI, many
observers had anticipated that the ministry would instruct the
company to review its plan.

Toshiba, though, backed down on its plan voluntarily. In addition
to environmental issues, the company has cited as another main
reason the problem of costs, reflecting coal prices being 1.5
times higher than those set at the time of the plan drawn up
despite the prices of electricity lowering recently.

Strong pressure on Kyoto Protocol

(Commentary)

The case of Toshiba and ORIX is the first case for a power-
generation business plan to be cancelled for the reason of the
need to contain global warming.

Under the Kyoto mechanisms, the signatories have to attain their
respective targets for reducing greenhouse gas emissions by 2008.
Keeping this in mind, the Environment Ministry is now determined
to make severe assessments of the effect of power projects on the
environment. The outcome this time is expected to seriously
affect the nation's energy policy.

The Environment Ministry focused its attention particularly on
the fact that the withdrawn plan was mapped out by a power
producer supplier (PPS). Such suppliers are free from the
electricity industry's voluntary action program to reduce CO2
emissions.

According to the ministry, another thermal power project by PPS
is now under the process of environmental assessment. That is a
Konahama thermal power plant in Iwakuni City, Fukushima
Prefecture (power output: 400,000 kilowatt). Regarding liquefied
natural gas (LNG),three stations are now under construction. In
order to acquire the same amount of power from coal and LNG, two
times more CO2 is generated from coal than LNG. Once the ministry
unconditionally approves the plan for low-priced coal-fired power
generation, the brakes might not be applied to the increase in
CO2 emissions.

Environment Minister Yuriko Koike said in a press conference
after a cabinet meeting: "The government has worked out a plan to
achieve the targets set in the Kyoto Protocol. (The Toshiba plan
is) considerably deviated from our policy direction." As it
stands, the Environment Ministry and METI crashed head-on over
the Toshiba plan.

The recent case also highlighted the fact that the nation's two
major challenges - energy policy and countermeasures against
global warming - have been addressed separately in the
government. The government is likely to be urged to come up with
a new policy to be able to pursue the two challenges
simultaneously.

SCHIEFFER