Identifier
Created
Classification
Origin
06TOKYO1306
2006-03-13 01:45:00
UNCLASSIFIED
Embassy Tokyo
Cable title:  

JAPANESE MORNING PRESS HIGHLIGHTS 03/13/06

Tags:  OIIP KMDR KPAO PGOV PINR ECON ELAB JA 
pdf how-to read a cable
VZCZCXRO6149
PP RUEHFK RUEHKSO RUEHNAG RUEHNH
DE RUEHKO #1306/01 0720145
ZNR UUUUU ZZH
P 130145Z MAR 06
FM AMEMBASSY TOKYO
TO RUEHC/SECSTATE WASHDC PRIORITY 9643
INFO RUEKJCS/SECDEF WASHDC PRIORITY
RHEHAAA/THE WHITE HOUSE WASHINGTON DC PRIORITY
RUEAWJA/USDOJ WASHDC PRIORITY
RULSDMK/USDOT WASHDC PRIORITY
RUCPDOC/USDOC WASHDC PRIORITY
RUEAIIA/CIA WASHDC PRIORITY
RUEKJCS/JOINT STAFF WASHDC//J5//
RHHMUNA/HQ USPACOM HONOLULU HI
RHHMHBA/COMPACFLT PEARL HARBOR HI
RHMFIUU/HQ PACAF HICKAM AFB HI//CC/PA//
RHMFIUU/COMUSJAPAN YOKOTA AB JA//J5/JO21//
RUYNAAC/COMNAVFORJAPAN YOKOSUKA JA
RUAYJAA/COMPATWING ONE KAMI SEYA JA
RUEHNH/AMCONSUL NAHA 7705
RUEHFK/AMCONSUL FUKUOKA 5074
RUEHOK/AMCONSUL OSAKA KOBE 8198
RUEHNAG/AMCONSUL NAGOYA 5101
RUEHKSO/AMCONSUL SAPPORO 6255
RUEHBJ/AMEMBASSY BEIJING 1080
RUEHUL/AMEMBASSY SEOUL 7271
RUCNDT/USMISSION USUN NEW YORK 9254
UNCLAS SECTION 01 OF 13 TOKYO 001306 

SIPDIS

SIPDIS

DEPT FOR E, P, EB, EAP/J, EAP/P, EAP/PD, PA;
WHITE HOUSE/NSC/NEC; JUSTICE FOR STU CHEMTOB IN ANTI-TRUST
DIVISION; TREASURY/OASIA/IMI/JAPAN; DEPT PASS USTR/PUBLIC AFFAIRS
OFFICE; SECDEF FOR JCS-J-5/JAPAN,
DASD/ISA/EAPR/JAPAN; DEPT PASS ELECTRONICALLY TO USDA
FAS/ITP FOR SCHROETER; PACOM HONOLULU FOR PUBLIC DIPLOMACY
ADVISOR; CINCPAC FLT/PA/ COMNAVFORJAPAN/PA.

E.O. 12958: N/A
TAGS: OIIP KMDR KPAO PGOV PINR ECON ELAB JA

SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 03/13/06


Index:
UNCLAS SECTION 01 OF 13 TOKYO 001306

SIPDIS

SIPDIS

DEPT FOR E, P, EB, EAP/J, EAP/P, EAP/PD, PA;
WHITE HOUSE/NSC/NEC; JUSTICE FOR STU CHEMTOB IN ANTI-TRUST
DIVISION; TREASURY/OASIA/IMI/JAPAN; DEPT PASS USTR/PUBLIC AFFAIRS
OFFICE; SECDEF FOR JCS-J-5/JAPAN,
DASD/ISA/EAPR/JAPAN; DEPT PASS ELECTRONICALLY TO USDA
FAS/ITP FOR SCHROETER; PACOM HONOLULU FOR PUBLIC DIPLOMACY
ADVISOR; CINCPAC FLT/PA/ COMNAVFORJAPAN/PA.

E.O. 12958: N/A
TAGS: OIIP KMDR KPAO PGOV PINR ECON ELAB JA

SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 03/13/06


Index:

1) Top headlines
2) Editorials
Prime Minister's weekend, daily schedule: None

Defense and security issues:
3) 87% reject US carrier-borne aircraft redeployment to Iwakuni
in local plebiscite
4) 90% opposed to US carrier-borne fighter jets relocation from
Atsugi to Iwakuni
5) Iwakuni referendum finds overwhelming majority opposed to
USFJ realignment plan
6) First popular will shown, heavy pressure on gov't
7) Gov't, LDP to prioritize US-Japan agreement on USFJ
realignment
8) Japan estimates burden sharing at 3 trillion yen for USFJ
realignment
9) But Finance Ministry negative about exceptional disbursement
for USFJ realignment
10) US to return 3 Okinawa bases
11) US to return 3 Okinawa facilities
12) US to return Yokota-controlled airspace in part
13) Japan to give up completing troop pullout in May
14) North Korea developing Taepodong 3 to cover US

Beef ban:
15) Farm minister denies impact on import resumption with
possible BSE case in US
16) Gov't to ask US for cattle information
17) US urges Japan to resume US beef imports at early date

18) Japan to go ahead with FTA talks with ASEAN countries

19) Japan likely to give up presenting USNC expansion resolution

20) Japan expert to leave Japan Desk post at US State Department

21) Abe tops all others in popularity ranking for post-Koizumi
premiership

Articles:

1) TOP HEADLINES

Asahi, Mainichi & Tokyo Shimbun:
Iwakuni vote, with 58% turnout, shows 87% oppose planned
relocation of US military airwing, casting shadow over US force
realignment talks


Yomiuri:
Nearly 30% of reports on medical accidents by 272 hospitals do
not post age, sex of patients for privacy-protection reasons

Nihon Keizai:
Japanese banks sharply increase lending overseas, mainly to
Japanese firms in Asia, Middle East, as of end of January

Sankei:
Political parties making greater use of blogs

2) EDITORIALS

TOKYO 00001306 002 OF 013



Asahi:
(1) Koreans brought to Japan for forced labor: Light at the end
of the tunnel
(2) Review necessary for abnormally low rent for housing for
government workers

Mainichi:
(1) Reform of local allocation tax should be carried out in line
with decentralization
(2) Policy debate imperative in selecting party head

Yomiuri:
(1) Despite result of Iwakuni vote, US force realignment is
necessary
(2) Encourage healthy eating habits

Nihon Keizai:
(1) Improve legal framework for financial and capital markets
under political leadership

Sankei:
(1) Condemned criminals' organs: Steady efforts necessary to
increase good-will organ donors
(2) Heavy snow this winter: Work out effective measures for
survival in depopulated villages

Tokyo Shimbun:
(1) Details about projects must be presented before introducing
forestry environment tax
(2) Thorough preparations necessary for pluthermal project to
ensure safety

3) Iwakuni plebiscite marks 58% voter turnout; 87% of residents
say 'no' to carrier-borne aircraft relocation plan; Results
affect overall US force realignment plan

ASAHI (Top play) (Full)
March 13, 2006

A referendum was held yesterday in Iwakuni City, Yamaguchi
Prefecture, over the propriety of a government plan to relocate
US carrier-borne aircraft from Atsugi Air Base in Kanagawa
Prefecture to the Marine Corps' Iwakuni Air Station in the city.
The votes were counted yesterday. The voter turnout was 58.68%.
Eighty-seven percent of the voters, well over the 50% line, said
"no" to the plan. Although the results are nonbinding, Mayor
Katsusuke Ihara said, "Taking the results seriously, I will urge
the central government to rescind the relocation plan." The mayor
intends to directly convey the results to the central government
soon.

The nation's first official negative reaction at the local level
to the planned US force realignment is likely to have an adverse
effect on the government's efforts to persuade other local areas,
including a plan to relocate the US Marine Corps' Futenma Air
Station in Ginowan, Okinawa Prefecture.

The vote held yesterday in Iwakuni was the nation's first
municipal referendum over the planned US force realignment. In
order for votes to be counted, voter turnout must exceed 50%.
This prompted those willing to accept the plan with some

TOKYO 00001306 003 OF 013


conditions, such as local stimulus measures, to call for
residents to boycott the referendum.

With the results of the plebiscite on hand, Mayor Ihara is
scheduled to announce his official view in the city's assembly's
plenary session tomorrow. He is also expected to convey Iwakuni's
policy to the central government after holding talks with the
city assembly and prefectural government.

The relocation of carrier-borne aircraft from the Atsugi base to
Iwakuni is incorporated in the interim report released by Japan
and the US last fall. The two governments plan to realize the
relocation once the project to relocate the current runway 1
kilometer further offshore is completed in fiscal 2009.

The government plans to incorporate this plan in the final report
without making any changes. Defense Agency Director General
Fukushiro Nukaga released a comment last night that the
government would continue explaining to local areas the need for
relocation plans in order to obtain their understanding and
cooperation.

In anticipation of an economic stimulus package, the Yamaguchi
prefectural government is leaning toward approving the relocation
plan. Ihara, however, noted late yesterday, "We will not cut a
deal (with the central government) to accept the relocation."
Ihara will resign from post March 19, the day before Iwakuni will
merge with other municipalities. The newly reorganized Iwakuni
City is expected to hold a mayoral election in about a month.

Results of Iwakuni referendum on relocation of US carrier-borne
aircraft

Voter turnout: 58.68%

Yes 5,369 votes 10.8 %
No 43,433 votes 87.4 %
Invalid 879 votes 1.8 %

Total eligible voters: 84,659

4) Iwakuni referendum; 90% of voters against transfer of US
military aircraft: Mayor to call for withdrawal of relocation
plan; Blow to government; Result likely to affect other areas up
for relocation sites

TOKYO SHIMBUN (Top Play) (Excerpts)
March 13, 2006

Iwakuni, Yamaguchi Prefecture, which hosts US Iwakuni Marine
Corps Air Station, held a referendum on whether to accept carrier-
borne fighter jets from the US Navy's Atsugi Air Base, Kanagawa
Prefecture. An overwhelming majority voted against the relocation
with 43,433 casting negative votes, while 5,369 voted in favor of
the proposal. The number of ballots against the relocation
accounted for 89% of valid votes, reaching a majority of eligible
voters. The referendum was valid with voter turnout reaching
58.68%, meeting the municipal ordinance requiring that voter
turnout exceed 50%.

Comment by Iwakuni Mayor Katsusuke Ihara: Many people expressed
opposition to the relocation of US military aircraft at town

TOKYO 00001306 004 OF 013


meetings. The result of the referendum backs this up. I will
discuss the proposal for relocating carrier-borne fighter jets to
Iwakuni with the municipal assembly with the goal of having it
withdrawn. Both the government and the US say that understanding
and cooperation from local communities are important for the
stable operation of military bases. I would like to convey the
will of local residents to the government, by respecting the
result of the referendum. I would like the government to value
the views of the local community and make an appropriate policy
judgment.

5) Iwakuni plebiscite: Overwhelming majority says no to
relocation of carrier-borne aircraft

MAINICHI (Top play) (Excerpt)
March 13, 2006

A municipal plebiscite was carried out yesterday in Iwakuni City,
Yamaguchi Prefecture, over whether to accept the government's
plan to relocate US carrier-borne aircraft to the US Marines
Corps' Iwakuni Air Station in the city. Voter turnout was 58.68%,
exceeding the 50% turnout necessary to count votes. The results
showed that about 90% of the voters rejected the relocation plan.
Meeting the press after learning of the results, Mayor Katsusuke
Ihara stated, "I would like to transmit the citizens' voice to
the central government, urging it to rescind the relocation
plan." The government still intends to aim for a final agreement
with Washington on US force realignment before the end of the
month. But the results of the Iwakuni referendum may affect talks
on US force realignment.

6) First local plebiscite carries tremendous weight for central
government

ASAHI (Page 1) (Full)
March 13, 2006

Commentary

The Japanese government plans to produce a final report in late
March with the US government after working out details on what
was agreed upon with Washington last October and obtaining local
understanding. Yesterday's referendum in Iwakuni, Yamaguchi
Prefecture, in which the vast majority said no to the relocation
of US carrier-borne aircraft, was a serious blow to the plans of
the central government. The local opinion revealed in the
nation's first plebiscite on US force realignment carries
significant weight.

In the interim report released by the Japanese and US governments
last October, the Japanese government pledged that it would
complete coordination with local areas. US Deputy Under Secretary
of Defense Richard Lawless has also indicated that the Japanese
government had promised to realize local coordination.

Despite that, Chief Cabinet Secretary Shinzo Abe stated, "Once
Japan and the US reach an accord in the bilateral talks, that
will be the final agreement." The Japanese government has been
slow to win consent from local areas. The results of the Iwakuni
plebiscite have now presented the government with a hefty task. A
government source commented, "It has now become impossible to win
Iwakuni's consent ahead of the final agreement." The focus will

TOKYO 00001306 005 OF 013


shift to whether the government can win local consent over the
planned relocation of the US Marine Corps' Futenma Air Station in
Okinawa.

Coordination with Nago, the relocation site for the Futenma
airfield, has been experiencing difficulties. Defense Agency
Director General Fukushiro Nukaga held talks last week with
Okinawa Gov. Keiichi Inamine and Nago Mayor Yoshikazu Shimabukuro
in which signs of making arrangements finally emerged.

A government official predicted: "Following Iwakuni's plebiscite,
Nago residents are expected to put up stiff resistance. Residents
of Kanagawa and Tokyo will probably not accept plans so easily."
If the government fails on Futenma, a chain of opposition may
spread nationwide. The government's efforts for Futenma will
become a test that could affect the overall US force realignment
plan.

Talks with the US have been following a rocky path. There is a
view in the government that some US government officials have
questions about the approach of reaching an agreement by setting
a deadline. The government must put greater efforts into local
coordination, postponing the deadline if necessary, rather than
forcing matters through.

7) Government to give priority to Japan-US agreement on US force
realignment despite Iwakuni referendum; Will quickly study local
economic stimulus measures

NIHON KEIZAI (Page 1) (Full)
March 13, 2006

In the wake of yesterday's Iwakuni plebiscite, in which a
majority of voters rejected the relocation of US carrier-borne
aircraft to the city, the government and ruling coalition intend
to proceed with local coordination carefully regarding the
planned US force realignment. The government plans to establish a
council to discuss local economic stimulus measures with affected
local governments and study the creation of a subsidy system for
municipal governments.

Because local referendums are nonbinding and have no power on
state policy, the government will not make any changes to its
plan to relocate carrier-borne aircraft from the US Atsugi base
in Nakagawa Prefecture to Iwakuni. The government will also aim
to reach a final agreement with the US later this month.

The government, however, fears that this negative trend could
spread to talks with other local areas, which have been stalled.
Liberal Democratic Party Security Research Commission Chairman
Taku Yamasaki and others have advised Prime Minister Junichiro
Koizumi to speed up efforts to map out promotion measures with
affected local governments. The government and ruling coalition
are expected to expedite their efforts.

The interim report released by Tokyo and Washington last October
specified the relocation of Army 1st Corps headquarters from
Washington state to Camp Zama in Kanagawa Prefecture. As a step
to reduce the burden on Atsugi, the report specified the
redeployment of carrier-borne aircraft to Iwakuni. If realized,
Iwakuni will host some 60 additional aircraft, raising the total
number of US aircraft there to nearly 120. Iwakuni is expected to

TOKYO 00001306 006 OF 013


overtake Kadena Air Base, which is one of the largest air bases
in the Far East.

8) Realignment of US forces in Japan: Japan estimates its
financial burden to be 3 trillion yen; US "willing to return
some" control of air traffic over Yokota base

NIHON KEIZAI (Page 1) (Full)
March 12, 2006

The government has estimated its financial burden relating to the
realignment of US forces in Japan to top 3 trillion yen, sources
revealed yesterday. The cost includes the transfer expenses for
US Marines from Okinawa to Guam and the construction of an
alternate facility for the relocation of the US Futenma Air
Station to the coastline of Camp Schwab. The government plans to
appropriate money in its defense budget over 10 or so years. This
plan is being discussed within the government.

In working-level talks in Hawaii on March 7-11 of foreign and
defense officials from Japan and the United States on the
realignment of US forces in Japan, Japanese officials elaborated
on the estimation.

Additionally, Japan called for a full return of control of the
airspace over Yokota Air Base, currently held by US forces, but
the United States asked Japan to accept a partial return.
Negotiations on this matter will continue, but both sides are
likely to come to a conclusion regarding a partial reduction of
air traffic control. Japan and the US have reached a general
agreement on the return of portions of Sagami Depot and Camp
Zama.

Of the 3-trillion-yen estimate, major portions are occupied by
the cost of the construction of an alternative facility relating
to the transfer of Futenma Air Station, estimated at more than
one trillion yen, as well as the expenses of transferring Marines
to Guam, estimated at about 940 billion yen. On the Guam
transfer, Japan has asked the US to share in the cost, but some
in the US have called on Japan to bear 50% -75% of the cost.

In addition, Japan is expected to outlay a total of 1.5 trillion
yen for: 1) improvement of Iwakuni Marine Corps Air Station with
the transfer of US carrier-based aircraft from the US Naval Air
Facility Atsugi; 2) improvement of the aircraft hanger and other
facilities with the transfer of air tankers from Futenma Air
Station to Kanoya Base; and 3) improvement of the runway at the
training ground due to the shift of the training site for F-15s
based at Kadena Air Base.

With no provision in the Japan-US Status of Forces Agreement
(SOFA) regarding financial assistance for overseas US military
facilities, the government will incorporate a provision creating
a legal basis for Japan to pay expenses related to the Guam
transfer in a bill intended to promote the realignment of US
forces in Japan. The bill will be submitted to the Diet this
April.

Japan and the US will decide on a final report on the realignment
of US forces in Japan during a meeting of the Security
Consultative Committee (2 plus 2) of foreign and defense
ministers slated for late this month. Although local coordination

TOKYO 00001306 007 OF 013


has been difficult, Chief Cabinet Secretary Abe stated, "The
accord Japan and the US will reach in consultations will be the
final agreement."

On the expenses relating to the realignment of US forces in
Japan, the government will outlay the initial cost from the
reserve fund of the fiscal 2006 budget. Starting next fiscal
year, the government plans to include it in the defense budget.

9) Realignment of US forces in Japan: Japan's financial burden
estimated at 3 trillion yen; Exceptional treatment difficult; SDF
may be streamlined

NIHON KEIZAI (Page 2) (Full)
March 13, 2006

Analysis

Japan may find it necessary to streamline the Defense Agency
(JDA) and the Self-Defense Forces (SDF) if it outlays the
estimated 3 trillion yen concerning the realignment of US forces
in Japan from its defense budget. The Ministry of Finance (MOF)
is dismissive of raising any particular budgets, including
defense. Given this, the government has to somehow appropriate
the estimated cost in the defense budget.

Defense-related expenditures in the fiscal 2006 budget bill are
approximately 4.8 trillion yen. Three trillion yen would account
for 60% of that amount. Even if the 3 trillion yen is
appropriated over 10 years, an outlay of 300 billion yen on
average for a single fiscal year will be necessary. The JDA will
look for ways to reduce the JDA's budget itself, for instance, by
establishing a new framework for expenses related to the Japan-US
Special Action Committee (SACO) and utilizing yen loans from the
Japan Bank for International Cooperation.

The huge financial burden will make the government's
accountability grow. The realignment of US forces in Japan is a
part of the US military's global strategy to deal with terrorism
and other new threats, and it will give a boost to the fusion of
the US military and the SDF. On the security front, this
realignment is significant indeed, but it is essential for the
government to seek national understanding, given that the people
are forced to bear the vast financial burden.

On March 10, Foreign Minister Taro Aso expressed caution about
incorporating the cost of the construction of recreational
facilities in Japan's financial burden relating to the relocation
of US Marines from Okinawa to Guam, noting: "Some assert that
matters that are not considered to be directly linked to
(Okinawa's burden reduction and maintenance of deterrent force)
should be dropped. I agree." Bargaining between Japan and the US
is likely to heat up towards the end of this month, the planned
deadline for a final report to be released by Japan and the US.

10) Japan, US in agreement on full return of three bases in
Okinawa - Naha port, Makiminato area, Camp Kuwae

MAINICHI (Top play) (Full)
March 12, 2006

By Yozo Furumoto

TOKYO 00001306 008 OF 013



In the working-level talks of defense and foreign officials on
the realignment of US forces in Japan, which began in Hawaii on
March 7, the Japanese and US governments on March 10 (March 11,
Japan time) agreed in principle to return all of three US bases
and on the partial return of one base, all of which are located
in the south-central area in Okinawa Prefecture. This reversion
is a main means of alleviating the prefecture's burden. Bolstered
by this agreement, Tokyo intends to seek local understanding for
the planned relocation of the Futenma Air Station to the coastal
area of Camp Schwab, which has foundered.

Bases that will be returned altogether to Japan are: Naha
Military Port in Naha City, with an area of 56 hectares;
Makiminato Service Area in Urasoe City, with an area of 274
hectares; and Camp Kuwae (Camp Lester) in Chatan Town, with an
area of 107 hectares. A partial return will occur in Camp
Zukeran, covering a few municipalities, including Chatan Town,
with an area of 643 hectares. The general agreement reached this
time on the base return realizes the plan specified in the
interim report on the return of a sizable scale of land south of
the Kadena Air Base. This base return will be specified in the
final report to be finalized by the end of this month.

Naha Military Port is a hub for transporting personnel and goods.
Following its reversion to Japan, an alternative facility is
expected to be constructed in an area adjacent to the civilian
port in Urasoe City. The Makiminato Service Area is a complex of
warehouses for US forces. Discussions will continue on a plan to
scale down and transfer its functions to other US bases in
Okinawa. Camp Kuwae is a camp composed mainly of barracks. Most
of the area has been already decided in the final report of the
Japan-US Special Action Committee (SACO) to be returned to Japan.
Following the agreement this time on the full return of the base,
the site will be reorganized.

Regarding Camp Zukeran, there is a plan to transfer the naval
hospital in Camp Kuwae there. Japan has agreed on a partial
return of the base because of US opposition to the transfer of
the telecommunications facility.

The general agreement will bring about the return of nearly 1,500
hectares of land to Okinawa.

11) On cost sharing of relocating three US military facilities in
Okinawa, Japan proposes in deputy-director-level talks "under 4
billion dollars"

ASAHI (Page 2) (Excerpts)
March 13, 2006

In the talks on US force realignment held through March 11 by the
Japanese and US foreign and defense deputy directors, both sides
confirmed that the US military would completely return three
facilities in Okinawa to Japan. The three facilities are the Naha
Military Port in Naha City, the Marine Corps' Makiminato Service
Area in Urazoe City, and Camp Kuwae in Chatan City. The Japanese
and US governments will incorporate the plan in their final
report due out at the end of March.

Both sides also agreed in general that the US would partially
return Camp Zama in Kanagawa Prefecture, where the US Army's new

TOKYO 00001306 009 OF 013


joint operation headquarters will be established, as well as
Sagami Depot in Sagamihara City.

Regarding the cost of constructing facilities under a plan to
relocate Marines in Okinawa to Guam that totals about 8 billion
dollars, or about 940 billion yen, Japan insisted in the talks
that it would pay less than 4 billion dollars. Japan and the US
remained unable to work out the details of the cost-sharing plan,
so they will discuss the issue in the next round of talks and
beyond. Under the US force realignment plan, most of the about
8,000 Marines being removed from Okinawa would be transferred to
Guam. As for Japan's share, the US was looking into a plan for
Japan to pay 75% of the total relocation cost.

12) Japan, US agree on plan on US military's partial return of
airspace near Yokota base by 2009, as measure to prevent near-
misses

ASAHI (Page 1) (Excerpts)
March 13, 2006

The Japanese and US governments agreed in talks held through
March 11 in Hawaii by their foreign and defense deputy director
generals that the US military would partially return the control
of airspace around Yokota Air Base in Tokyo. The US would return
mainly the top layer in the southern part of the airspace,
possibly by 2009, when the number of commercial flights is
expected to increase by 40% over the present level, as Haneda
Airport will be expanded. Under an agreement between Japan and
the US, some 470 flights a day by Japanese commercial planes
avoid the US-controlled airspace around Yokota. Some experts have
pointed to this as a cause of near-miss incidents. If the plan is
realized, flight times will be shorted by up to 9 minutes, and
the risk of near-misses will be eased.

13) Gov't to give up on completing GSDF withdrawal from Iraq in
May

SANKEI (Page 2) (Abridged)
March 11, 2006

Japan will substantially delay its planned withdrawal of Ground
Self-Defense Force troops currently deployed in the southern
Iraqi city of Samawah, sources said yesterday. In Iraq, the
ongoing political process for its recovery of sovereignty has now
become fluid due to the recent deterioration of the local
security situation. Meanwhile, the US government has asked Japan
to forego its scheduled pullout. As it stands, the Japanese
government will give up on its plan to complete the withdrawal of
GSDF troops in May. The government is now beginning to study
replacing the Samawah-based GSDF detachment with a new one to
continue Japan's assistance with Iraqi reconstruction.

14) Taepodong 3 under development: US military official

SANKEI (Page 3) (Abridged)
March 11, 2006

Washington, Takashi Arimoto

North Korea is developing the Taepodong 3, an advanced
intercontinental ballistic missile capable of striking anywhere

TOKYO 00001306 010 OF 013


in the United States, US Forces Korea (USFK) Commander Bell
testified before the US House of Representatives Armed Services
Committee in a hearing held March 9. It is the first time a high-
ranking US military official has clarified North Korea's ongoing
development of the Taepodong 3 missile. The commander noted in
the hearing that the Taepodong 3 outranges the Taepodong 1, which
has a range of more than 1,500 kilometers and was test-launched
in 1998, and the Taepodong 2, which has a range of about 3,500-
6,000 kilometers. "The Taepodong 3 is capable of reaching not
only Alaska but also the entire United States," the commander
said. The Taepodong 3 is an update of the Taepodong 2 and is
believed to be a three-stage missile. It reportedly has a range
of more than 12,000 kilometers.

15) Agriculture Minister on suspected BSE case in US: "No effect
on import resumption"

NIHON KEIZAI (Page 1) (Full)
March 13, 2006

Koji Ichimura, London

In reference to the discovery of a cow that tested positive for
BSE in a routine test in the US, Agriculture, Forestry, and
Fisheries Minister Shoichi Nakagawa, now visiting Britain for a
meeting of the World Trade Organization (WTO),stated on March
11: "I heard about the case in detail from US Agriculture
Secretary Johanns. But the case is not likely to have any effect

SIPDIS
(on the issue of whether Japan should resume imports) for now."

Secretary Johanns reported on the case directly to Nakagawa

SIPDIS
during a WTO ministerial meeting.

The Agriculture Ministry intends to watch the US government's
process of determining the results of ongoing detailed tests
carefully. There are cases in which cows testing positive for BSE
in regular tests were later found free of the disease in more
detailed tests. Nakagawa's comment also reflects the fact that
the BSE-suspected cow is not eligible for export to Japan,
because Japan's condition for exports is only beef from cattle 20
months or younger.

The import of US beef has been suspended since vertebral columns
were found in a Japan-bound shipment this January. If a new case
of BSE is confirmed, consumers' concerns about US beef will
inevitably grow stronger. Recovering consumer trust is
indispensable for Japan's resumption of US beef imports. The
result of the detailed tests might affect the timing for Japan to
reopen its market.

16) Government to ask US for detailed information on possible
case of BSE

TOKYO SHIMBUN (Page 1) (Full)
March 13, 2006

A possible case of BSE, which could be the third, has been
reported in the US. The Japanese government will determine its
future response after obtaining detailed information from the US
Department of Agriculture. Tokyo takes the view that this case
will not immediately affect the issue of whether to resume US
beef imports, but cautious views about a resumption of imports

TOKYO 00001306 011 OF 013


might spread among domestic consumers.

The government intends to ask the US through diplomatic channels
to present information on details, such as the age and birthplace
of the cow in question. In the case of the US, though, only
cattle over 30 months of age and dead cows are subject to BSE
testing. Since Japan has set the condition that only beef from
cattle 20 months of age or younger be imported, the government is
of the view that even if the cow tests positive, there will be
little impact on bilateral beef talks.

However, now that the sloppy US processing has been exposed in
the recent case of a specified risk material found in a shipment
to Japan, Japanese consumers may have stronger concerns about the
safety of US beef.

17) Talks between Japanese, US agriculture officials; US calls on
Japan to resume beef imports at early date

NIHON KEIZAI (Page 5) (Full)
March 11, 2006

Agriculture Minister Shoichi Nakagawa, now visiting the US, on
Mar. 10 met with Secretary of Agriculture Mike Johanns. During
the talks, Johanns said that the US would formally reply next
week to questions asked by the Japanese side regarding the US
report on the inclusion of vertebral columns in a beef shipment
to Japan. He once again called on Japan to resume imports of US
beef at an early date, saying, "The US will do anything it can do
for Japan."

Meeting the press after the talks, Nakagawa said: "Now I am
waiting for the US reply. I have not yet made a reply regarding
the next stage." He thus noted that he never referred to
conditions for lifting the second ban on US beef imports.

18) Economic talks with ASEAN to be resumed next month after
hiatus of 8 months: Priority to be given to FTA talks; Speedy
trade negotiations eyed

NIHON KEIZAI (Page 1) (Excerpts)
March 11, 2006

The government will resume free trade agreement (FTA) talks with
the Association of Southeast Asian Nations (ASEAN) in April after
a hiatus of eight months. Learning lessons from the strained
talks with the organization in the past to sign a comprehensive
economic partnership agreement (EPA),which covers procedures for
settling disputes and the protection of intellectual property
rights as well, the government will aim for speedy talks by
giving priority to an FTA. It aims to reach a consensus next
March.
The government has decided to switch to speedy trade talks by
giving priority to signing FTAs instead of EPAs, which require
negotiations on broad areas. FTA talks with ASEAN started in
April 2005 but bogged down that August. Behind Japan's decision
to restart talks with ASEAN is the fact that China, which had
been positive about pursuing trade talks with the ASEAN, has
already signed an FTA with it. South Korea has also reached an
agreement with it in general principle.

Talks with ASEAN will focus on scrapping tariffs on goods,

TOKYO 00001306 012 OF 013


including agricultural products and mined and manufactured
products. Once an FTA is concluded, the focus will be shifted to
the possibility of signing an EPA. It will not be easy to reach
an agreement, even if the talks focus only on an FTA. The
greatest obstacle is agricultural products, including rice. Japan
intends to call for making rice an exception to the pact, as was
the case with Thailand and the Philippines, but whether ASEAN
will agree to that is not clear.

19) UNSC expansion resolution; Japan finds it difficult to
present due to mountain of other key reform issues, including
reform of Secretariat; UN members no longer interested in issue

YOMIURI (Page 2) (Full)
March 12, 2006

An effort to reform the United Nations Security Council (UNSC) to
meet Japan's bid to secure a permanent seat on it will likely bog
down. Talks at the UN on such key issues as the establishment of
a human rights council and reform of the Secretariat are facing
difficulties. In addition, many members are no longer interested
in UNSC expansion. Japan has made efforts to present its own
resolution to reform the UNSC, but it now finds itself in a
situation in which it has no other option but to give up on that
initiative.

UN Secretary General Annan on Mar. 10 indicated to reporters that
under the present circumstances, in which there are a mountain of
pending reforms, including the establishment of a human rights
council, reform of the Secretariat, revisions to various
projects, and antiterrorism measures, it would be difficult to
take up UNSC reform. His statement is a major step back from his
usual contention that reform of the UN will not be completed
without reforming the UNSC.

US Ambassador to the UN Bolton, from whom Japan has sought
cooperation for the drafting of a resolution, also told a news
conference: "The US will not support any UNSC reform proposal.
There are no proposals that will be able to obtain support from
more than two-thirds of members at the General Assembly." He
stressed that for the time being, efforts should be focused on
reform of the Secretariat, noting, "Last year's overheated
discussions on reforming the UNSC could spoil the atmosphere for
discussing other reform items."

Confrontation between advanced industrialized countries, which
want to promote reform of the UNSC, and resistant developing
countries is intensifying at the UN. Japan, Germany, India, and
Brazil, which last year submitted a joint proposal for expanding
the UNSC framework, are the only members that want to promote
UNSC reform. A UN diplomatic source noted, "If Japan presents a
UNSC expansion resolution under this atmosphere, it will only
incur a negative reaction from other countries."

Given that the G-4 plan fell through last year, Japan wants to
produce results by September, characterizing this as round two of
the fight. However, many government officials are skeptical about
mapping out and submitting a resolution that is unlikely to be
adopted.

20) Japan Desk director, Japan expert at US Department of State,
to quit

TOKYO 00001306 013 OF 013



MAINICHI SHIMBUN (Page 3) (Full)
March 12, 2006

It was learned on Mar. 10 that Japan Desk Director David Straub,
who is known as a Japan expert at the US Department of State,
will leave his office in late April. Economic Minister Councilor
James Zumwalt will replace him, according to a State Department
source.

Straub came into office as Japan Desk director in 2004. He is now
serving as a point of contact with Japan on the BSE issue.

21) Poll: Abe tops all others at 54% as next premier

TOKYO SHIMBUN (Page 2) (Abridged)
March 12, 2006

Chief Cabinet Secretary Shinzo Abe topped all others in terms of
popularity for the post-Koizumi premiership, according to
findings from a face-to-face nationwide public opinion survey
conducted by the Japan Polling Association on March 4-5. The
ruling Liberal Democratic Party is slated to elect its new
president to succeed Prime Minister Junichiro Koizumi in
September. In the survey, respondents were asked to pick an
appropriate person for the next prime minister. In response to
this question, Abe stood at 54%, followed by former Chief Cabinet
Secretary Yasuo Fukuda at 10% and Foreign Minister Taro Aso at

SIPDIS
6%. Finance Minister Sadakazu Tanigaki ranked fifth.

In the survey, respondents were also asked if they thought
Koizumi's successor should visit Yasukuni Shrine. In response,
"no" accounted for 47%, with "yes" at 42%. Meanwhile, the leading
opposition Democratic Party of Japan (DPJ or Minshuto) is also
scheduled to elect its new president around that time. In a
further question asking respondents to pick a candidate for the
party's presidency, DPJ Vice President Ichiro Ozawa stood at 26%,
followed by former DPJ President Naoto Kan at 24%, and DPJ
Secretary General Yukio Hatoyama. The party's incumbent

SIPDIS
president, Seiji Maehara, was at 11%, apparently reflecting the
party's recent email fiasco.

SCHIEFFER