JAPANESE MORNING PRESS HIGHLIGHTS 03/14/06

UNCLAS SECTION 01 OF 10 TOKYO 001327

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TAGS: OIIP KMDR KPAO PGOV PINR ECON ELAB JA

SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 03/14/06


Index:

1) Top headlines
2) Editorials
3) Prime Minister's daily schedule

4) Yomiuri poll: 81% feel income gap is growing, most blame
Koizumi reforms, but 54.9% of public still support Koizumi
Cabinet

5) Prime Minister Koizumi to visit US in late June, with USFJ
realignment, beef likely on summit agenda 5

Iraq deployment:
6) British announce pullout of 800 troops from Samawah area by
May
7) Vice foreign minister says it will be "difficult" to start
withdrawing GSDF troops from Samawah late this month

USFJ realignment issues
8) Koizumi, Abe adamant on going ahead with Iwakuni base plan
despite recent referendum rejecting jet transfer from Atsugi
9) Government to continue to seek Iwakuni's understanding
despite referendum result
10) Criticism wells up in LDP on Iwakuni's plebiscite on Atsugi
jet transfer as inappropriate theme
11) Prime Minister Koizumi says negative results of Iwakuni
referendum poses difficulty for the bilateral security
relationship
12) Concern that Iwakuni's negative public stance on USDF
realignment plans could spread to other base-hosting communities
13) Washington irritated at Tokyo for impasse in local
coordination on USFJ realignment plans
14) Government realizes that revision of interim USFJ
realignment agreement would help break local impasse but doing so
may be difficult
15) In recent bilateral talks, Japan asked to foot bill for 75%
of $10 billion cost of Marine transfer to Guam

16) Opposition wants to summon witnesses to Diet to probe into
alleged "secret pact" on Okinawa reversion

17) LDP's Taku Yamasaki practicing reconciliation diplomacy by
meeting dignitaries in South Korea

18) US company that shipped bones with beef to Hong Kong was one
of suppliers cleared by Japan last year as reliable shippers

Articles:

1) TOP HEADLINES

Asahi:
Skymark Airlines operated planes without fixing dent on fuselage
for nine months; Transport Ministry to impose punishment

Mainichi:
Hyogo police to arrest 2 teens for killing disabled homeless man
with Molotov cocktail

Yomiuri, Sankei & Tokyo Shimbun
TSE to delist Livedoor on April 14

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Nihon Keizai:
Individuals, businesses less dependent on social safety net as
economy improves

2) EDITORIALS

Asahi:
(1) Outcome of Iwakuni vote: Local residents ignored
(2) Milosevic: The end result of stoking ethnic tensions

Mainichi:
(1) Iwakuni referendum: Content of "popular will" should be
examined
(2) Dubious call in World Baseball Classic

Yomiuri:
(1) Crimes by Livedoor too heavy to be forgiven with delisting
(2) Telecommunications and broadcasting technologies: Separation
of research institutions will only please foreign businesses

Nihon Keizai:
(1) Persuasive efforts necessary to realize US force realignment
plans
(2) Investors must be aware of seriousness of delisting Livedoor

Sankei:
(1) Iwakuni base: Importance of national security should be
taken into consideration
(2) Land and Infrastructure Ministry urged to present unified
quake-resistance standards

Tokyo Shimbun:
(1) Lack of consideration for local residents brings about
Iwakuni vote results
(2) Efforts needed to have citizens understand court system,
principles

3) Prime Minister's Official Residence (Kantei)

Prime Minister's schedule, March 13

NIHON KEIZAI (Page 2) (Full)
March 14, 2006

10:31
Arrived at Kantei.

11:00
Met with former New York Mayor Giuliani, joined by Foreign
Ministry North America Affairs Bureau Director-General Kawai.

12:02
Attended a liaison council meeting of the government and the
ruling parties. Afterwards, met Foreign Minister Aso.

14:00
Met State Minister in Charge of Measures for Declining Birthrate
Inoguchi, Cabinet Office Policy Officer Hayashi, and Gender
Equality Bureau Director-General Natori. Later, met State
Minister in Charge of Financial Affairs Yosano and Council on
Economic and Fiscal Policy members Honma and Yoshikawa.

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15:00
Met Deputy Foreign Minister Yabunaka. Afterwards, met Environment
Minister Koike, Global Environment Bureau Director-General
Kobayashi, and Deputy Assistant Chief Cabinet Secretary Saka.

17:02
Attended an executive meeting in Diet.

17:41
Met Administrative Vice Finance Minister Hosokawa at Kantei.

18:30
Met Finance Minister Tanigaki, Vice Finance Minister Hosokawa,
Vice Finance Minister for International Affairs Watanabe, and
Budget Bureau Director-General Fujii.

18:55
Had a haircut at the barbershop at Capitol Tokyo Hotel.

21:10
Arrived at official residence.

4) Poll: 81% see social divide as widening; 56% attribute
expanding gap to Koizumi reforms

YOMIURI (Page 2) (Full)
March 14, 2006

An overwhelming 81% of the Japanese public think income and other
economic disparities are expanding, the Yomiuri Shimbun found
from its face-to-face nationwide public opinion survey conducted
March 11-12. The proportion of those who do not think so was no
more than 16%. Among those who think the social divide is
widening, 56% attributed the expanding gap to Prime Minister
Koizumi's structural reform drive, with 40% saying it has nothing
to do with the premier's restructuring initiative. The poll shows
a majority of the nation sees the widening gap as a 'shadow' of
the structural reforms.

In the survey, respondents were also asked if they thought they
could overcome economic disparities if they work hard. In
response to this question, "no" accounted for 59%, with "yes" at
39%.

"The winning and losing sides must not be fixed," Koizumi stated
in his recent Diet reply. "Anyone losing one day must be given
another chance to win the next day," the premier added. However,
many people seem to think that the gap has become fixed. Among
those who do not support the Koizumi cabinet in particular, 69%
do not think the gap can be overcome.

Poll: Cabinet support rate at 54.9%

YOMIURI (Page 2) (Full)
March 14, 2006

The Koizumi cabinet's support rate was 54.9% in a face-to-face
nationwide public opinion survey conducted by the Yomiuri Shimbun
on March 11-12. The figure was up 1.4 points from the last survey
taken in February. Its approval rating continued slipping from
December last year. In the latest survey, however, it rose for

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the first time in four months. The nonsupport rating was 35.9 % ,
down 0.3 points.

In the breakdown of public support for political parties, the
ruling Liberal Democratic Party stood at 42.3%, up 3.0 points
from the 39.3% rating in the last survey. The leading opposition
Democratic Party of Japan (DPJ or Minshuto) was at 11.1%, down
2.2 points from the 13.3% rating in the last survey. The DPJ's
support rate was the lowest level ever since DPJ President
Maehara took the helm of his party in September last year. It can
be taken as reflecting the DPJ's sustaining of a blow from the
party's email fiasco.

5) Prime Minister Koizumi likely to visit US, possibly in late
June

NIHON KEIZAI (Page 1) (Full)
March 14, 2006

The Japanese and US governments have launched coordination to
arrange a visit by Prime Minister Junichiro Koizumi to the United
States, possibly in late June, for a summit with President George

W. Bush. If realized, this visit would be the prime minister's
last tour of the US in office, as he has declared he will step
down in September, when the tenure of his presidency of the
Liberal Democratic Party (LDP) expires. The prime minister will
reconfirm the relationship of trust with President Bush, as well
as the importance of the Japan-US alliance.

The Japanese side has sounded out the US side about a prime
ministerial visit to the US on June 18 or after, when the current
session of the Diet wraps up. US Ambassador to Japan Thomas
Schieffer has invited the prime minister to make an official
visit to the US. The prime minister is expected to be treated as
a state guest in the same way as the Emperor.

There have been 13 meetings between Koizumi and Bush, including
their last one in Kyoto last November. On the agenda will be the
realignment of US forces in Japan, North Korea's nuclear
ambitions, the strained Japan-China relations, and the Asian
situation.

On the US force realignment, the two governments are trying to
come up with a final report by the end of March. In the planned
meeting, both leaders will discuss cooperation in the security
area, including the US military transformation. Japan is making
preparations for a pullout of Ground Self-Defense Force (GSDF)
troops from Iraq in the first half of this year. Assistance for
the reconstruction of Iraq from a medium- and long-term
perspective after the withdrawal of GSDF troops will also be on
the agenda for the summit. Whether to resume US beef imports is
likely to be left as an outstanding issue until then.

6) British defense secretary announces plan to withdraw 800
troops in May from southern Iraq, possibly including Samawah

YOMIURI (Page 2) (Full)
March 14, 2006

Keiko Iizuka, London

British Defense Secretary John Reid announced March 13 that

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Britain would withdraw about 800 troops from southern Iraq in May
to keep the troop level at 7,000. Reid had explicitly said
Britain would begin pulling out troops from areas relatively
stable. It is certain that Muthanna Province, including Samawah
where Self-Defense Force troops have been carrying activities, is
subject to the planned pullout. British forces' moves are likely
to have an impact on the SDF's withdrawal plan.

7) Yachi: Difficult to begin pulling out GSDF troops from Samawah
in late March

YOMIURI (Page 2) (Full)
March 14, 2006

Touching on the timeframe for withdrawing Ground Self-Defense
Force troops from southern Iraqi city of Samawah, Vice Foreign
Minister Shotaro Yachi said in a press conference yesterday:

"The situation does not allow an immediate pullout of troops from
Samawah. In view of the political process (including the
establishment of a new government) and the security situation,
the stage has not been set."

Yachi thus revealed the view that it would be difficult for Japan
to begin withdrawing GSDF troops in late March, as originally
planned.

8) Transfer of US carrier-borne fighter jets to Iwakuni; No
change in plan, says prime minister; Abe - "Why referendum now?"

SANKEI (Page 2) (Excerpts)
March 14, 2006

Iwakuni, Yamaguchi Prefecture, carried out a referendum over
whether to accept the relocation of US carrier-borne jets to the
city. The number of voters who cast a negative vote has largely
exceeded those who voted in favor of it. Commenting on the
results, Prime Minister Junichiro Koizumi categorically said:
"The same results would be obtained in referendums on military
bases anywhere. That is the difficult point on security issues."
He then stated that there would be no change in the relocation
plan. The comment was made in reply to a question asked by
reporters at the Prime Minister's Official Residence. Many
government officials and ruling party members are skeptical about
the referendum held by Iwakuni.

Chief Cabinet Secretary Shinzo Abe during a press conference the
same day noted, "If Japan and the US reach an agreement in talks,
then it will basically be a final decision." He thus ruled out
the possibility of the referendum affecting future bilateral
talks. He expressed his displeasure, noting: "Those who were
negative toward holding a referendum did not vote. The merger of
Iwakuni and nearby municipalities is to take place shortly. Many
residents in the vicinity of Iwakuni are skeptical about holding
of a referendum at such a time."

Liberal Democratic Party (LDP) Secretary General Tsutomu Takebe
told a news conference, "I am concerned about the trend of giving
priority to local communities' wishes regarding the security
issue spreading." He thus expressed a strong concern over the
result of the referendum this time spilling over into other
affected communities, such as Okinawa.

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9) Government, ruling coalition to seek Iwakuni's understanding
following plebiscite

YOMIURI (Page 2) (Full)
March 14, 2006

The government and ruling parties are visibly baffled by
Iwakuni's plebiscite on Sunday in which a vast majority rejected
the government's plan to relocate carrier-borne aircraft from the
US Navy's Atsugi base to the air station in the city. But many
expressed their determination to continue seeking Iwakuni's
understanding. Some opposition members criticized the government
for a lack of explanation and other factors, one saying, "The
government should respect the outcome of the referendum."

Before reporters at his official residence last night, Prime
Minister Junichiro Koizumi played up his determination to
continue working hard to obtain the understanding of Iwakuni for
producing a final report on the realignment of US forces in Japan
by the end of this month.

The Iwakuni plebiscite has not prompted the government to change
its policy.

Minshuto (Democratic Party of Japan) President Seiji Maehara
delivered a speech in Tokyo in which he rapped the government,
saying, "The government drove Iwakuni into the plebiscite, which
was a serious mistake."

10) Burst of criticism of plebiscite over Iwakuni relocation
issue in LDP; "Question itself is questionable," LDP member says

MAINICHI (Page 5) (Full)
March 14, 2006

The plebiscite held by Iwakuni City, Yamaguchi Prefecture, on the
planned relocation of US carrier-based aircraft to the city ended
up with a vast majority of residents voting against the move.
This has led to a welling up of criticism of the referendum
itself in the Liberal Democratic Party (LDP). LDP Upper House
Caucus Secretary General Toranosuke Katayama commented: "It's
improper to hold a plebiscite on security and defense issues.
There is a growing momentum of self-determination votes in
municipalities with grand mergers of cities, towns, and villages
having occurred since the beginning of 1989. In recent years, the
number of regional referendums has been on the sharp increase.
Meanwhile, an argument simmering in the political world is that
it is questionable to hold a plebiscite over such matters as
foreign and security policies. (Iwakuni City's) referendum has
now helped revive this kind of criticism.

11) Prime Minister Koizumi: "It's difficult"

MAINICHI (Page 5) (Full)
March 14, 2006

Prime Minister Junichiro Koizumi late yesterday was asked at his
official residence by reporters about the result of Iwakuni
City's plebiscite. He said: "Residents anywhere would say no if
they are asked whether to allow the presence of a base. That's
why security matters are difficult. It's indeed difficult to keep

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a balance between regional and national issues."

12) Growing trend of referendum is a matter of concern

MAINICHI (Page 5) (Full)
March 14, 2006

At a meeting yesterday of the liaison council of the government
and the ruling parties, Liberal Democratic Party (LDP) Secretary
General Tsutomu Takebe complained: "The result is regrettable
indeed. I'm concerned that a trend of prioritizing local logic
over security issues will spread across the country." LDP Upper
House Caucus Secretary General Toranosuke Katayama also
criticized Iwakuni Mayor Katsusuke Ihara, who held a plebiscite,
noting: "The right thing to do is for the head of local
government and the chairman of the local assembly to deal with
the issue."

A referendum is a general vote by residents on certain issues
involving a local government. Under the law, a referendum is
allowed only when issues concern, for instance, a dissolution of
a local assembly, a resignation of the head of a local government
and an establishment of a council on merger. In the event of
asking residents about certain policy measures, a referendum
should be held after establishing an ordinance. The referendum
has no binding force.

13) US frustrated with stymied local coordination over USFJ
realignment, calls for Japan to initiate political leadership

ASAHI (Page 2) (Abridged)
March 14, 2006

Washington, Yoichi Kato

Japan and the United States are now in the final phase of
intergovernmental talks over the planned realignment of US forces
in Japan to release a final report by the end of this month. In
the meantime, however, the US government is increasingly fretting
over the Japanese government's taking time to obtain local
consent. As it stands, Washington is concerned about the
bilateral alliance's possible destabilization. One US government
official fears that the two countries may not be able to carry
out their realignment plans agreed to in an interim report, which
was released in October last year and incorporates burden-
lessening measures such as to moving US Marines from Okinawa to
Guam. Washington is calling for Tokyo to take the initiative in
forging a final settlement along with the interim report.

"Our Japanese counterparts were under pressure to comply with
local calls," says a US government official who attended the
recent Hawaii round of working-level consultations held until
March 11 over the US military presence's realignment. With this,
the official voiced his frustration, noting that the realignment
talks have not been based on strategic needs.

Washington wonders why the Japanese government has effectively
given a veto to local governments. This lies behind Washington's
distrust. The US government is urging the Japanese government to
make a decision on its security policy in consideration of
national interests.


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In the interim report released last October, however, the
Japanese government committed itself to thorough coordination
with local governments through cabinet ministers in the process
of making specific realignment plans. The United States is now
asking Japan to carry out this commitment. The Japanese and US
governments also ran into rough waters over the planned
relocation of Futenma airfield in Okinawa Prefecture. Eventually,
the two governments agreed to relocate the airfield's heliport
functions to a coastal area of Camp Schwab in the island
prefecture. "We agreed to do so because Defense Agency Director
General Ono at the time said it's possible." With this, one US
government official underscored the Japanese government's
responsibility.

In the meantime, the US government remains flexible, saying it
will consider rectifying the agreed relocation plan if it meets
the US military's requirements.

14) Interim report modification holds key

ASAHI (Page 2) (Abridged)
March 14, 2006

The Japanese government remains committed to working out a final
report on the realignment of US forces in Japan by the end of
March, following up on the interim report released last fall.
However, the question is whether the Japanese government can
revise each specific realignment plan incorporated in the interim
report if it tries to complete local coordination within the
remaining timeframe. However, the Japanese and US governments
still differ on the issue of burden sharing in terms of the costs
of an agreed plan to move US Marines from Okinawa to Guam. Some
government officials are now beginning to hint at foregoing this
realignment plan.

The city of Iwakuni in Yamaguchi Prefecture polled its residents
on March 12 over the advisability of accepting the planned
relocation of US carrier-borne fighter jets to a local base. As a
result, a majority of Iwakuni's citizenry voted "no" to that
realignment plan. The government therefore cannot expect the city
to consent to the plan by the end of March.

Another focus is on the issue of relocating Futenma airfield in
Ginowan, Okinawa Prefecture, to the island prefecture's northern
coastal city of Nago. In this case as well, the Nago city
municipal government is seeking to modify the government plan.
"We may have to make some concessions on the current plan," said
an executive of the New Komeito party, a coalition partner of the
ruling Liberal Democratic Party. "The question is whether the
prime minister will agree to do so," he added.

15) US wants Japan to pay 75% of 10-billion-dollar cost of
relocating US Marine Corps in Okinawa to Guam

SANKEI (Page 1) (Full)
March 14, 2006

The full details of the cost of relocating US Marines stationed
in Okinawa to Guam, which the US government presented during the
bilateral working-level talks to discuss the realignment of US
forces in Japan, were unveiled yesterday. The US side called on
Japan to shoulder 75% of the total cost of the relocation, which

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comes to approximately 10 billion dollars (approximately 1.175
trillion yen),covering five items, including the construction of
a command center and infrastructure. It was also learned that the
US indicated it would reject the idea of a meeting of the Japan-
US Security Affairs Consultative Committee, referred to as the "2-
plus-2," to reach a final agreement, unless an agreement is
obtained from affected local communities, such as Okinawa.

The talks were held March 7-11. During the talks, the US side
presented the costs of relocating US Marines in Okinawa to Guam,
by dividing the spending items into five: (1) operational
facilities, including a command center; (2) barracks and related
facilities, such as a gymnasium; (3) family houses and lodgings;
(4) the construction of infrastructure, such as roads,
electricity, and water-supply system; and (5) the construction of
a road system linking the base with a port.

The US had previously informed Japan that the estimate of the
total cost of the planned transfer would be approximately 8
billion dollars (940 billion yen),but it now explained that the
estimate had risen to 10 billion dollars as a result of detailed
calculations. Chances are that the total costs presented this
time will most likely increase further, because the cost of
creating a road system outside the base has not been included.
The cost of the construction of facilities for training of Self-
Defense Forces personnel in Guam has not been included, either.

The US has called on Japan to shoulder 75% of the total costs, or
881.2 billion yen. The Japanese side asked the US to adopt a loan
system for the construction of family houses, seeking repayment
of the cost from the US. The two countries will reexamine the
details of Japan's share and the loan system at the next round of
the working-level talks. A final settlement will likely be
reached on a political level.

16) Testimony by Yoshino called for over "secret pact"

MAINICHI (Page 2) (Full)
March 14, 2006

In yesterday's House of Councillors Budget Committee session,
Minshuto (Democratic Party of Japan) lawmaker Toshio Ogawa and
Social Democratic Party head Mizuho Fukushima sought testimony by
former Foreign Ministry American Bureau chief Bunroku Yoshino of
Yokohama, who had indicated to the Mainichi and others that Japan
and the US concluded a secret pact over the return of Okinawa in

1972. Board members will discuss at a later date whether to
summon Yoshino to the Diet.

The board meeting also plans to discuss whether to ask the
government to disclose the following: (1) a breakdown of the 320
million dollars Japan had paid to the US at the time of the
Okinawa reversion; (2) data on talks on the reversion of Okinawa
kept by the Foreign Ministry and the Finance Ministry; and (3)
documents to prove that the US paid 4 million dollars to Japan.

17) Taku Yamasaki meets with Kim Dae Jung, other key officials in
South Korea

YOMIURI (Page 4) (Full)
March 4, 2006


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Former Liberal Democratic Party Vice President Taku Yamasaki
yesterday made a day-trip to South Korea. In Seoul, he met
separately with former President Kim Dae Jung, pro-government Uri
Party chairman Chung Dong Young and former Grand National Party
Secretary General Li Sang Tuk. Kim reportedly plans to visit

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North Korea shortly. Yamasaki appears to have exchanged views
with them on the improvement of strained bilateral relations due
to Prime Minister Koizumi's visits to Yasukuni Shrine and
measures to find a breakthrough on the North Korean nuclear
issue. After returning home, Yamasaki told reporters in Tokyo, "I
had brief talks with South Korean officials on the future and
present state of Japan-South Korea relations. I did not tell
Prime Minister Koizumi about my visit to South Korea beforehand."

18) US firm that sent beef containing SRM to Hong Kong cleared
Japanese inspection last year

NIHON KEIZAI (Page 5) (Full)
March 14, 2006

A US meat-processing plant that recently shipped beef containing
banned bones to Hong Kong has been authorized by the US
government to handle Japan-bound beef and had also cleared an
inspection by the Japanese government last December to certify
beef shipments to Japan. According to informed sources yesterday,
The Japanese inspection had concluded: "The meat-processing
process is proper." Although Hong Kong and Japan have provided
different import conditions, the disclosure of the sloppy
processing at a plant authorized to import beef to Japan may
affect Japan-US beef negotiations.

Japan reinstated its ban on US beef imports after finding
vertebral columns contained in a beef shipment from another
plant. Regarding the question of whether the latest ineligible
shipment to Hong Kong will affect Japan-US negotiations, Vice
Agriculture, Forestry and Fisheries Minister Mamoru Ishihara said
in a press conference: "The question is whether the incident is a
special case or a structural problem."

The plant in question is owned by leading American meat packer
Swift Beef Co. The plant was one of the 11 plants inspected last
December by the Japanese government, out of the 40 or so
authorized plants in the US. After the inspection, the Japanese
government announced. "We found they were processing meat
properly."

SCHIEFFER