DAILY SUMMARY OF JAPANESE PRESS 03/14/06

UNCLAS SECTION 01 OF 09 TOKYO 001342

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SUBJECT: DAILY SUMMARY OF JAPANESE PRESS 03/14/06

INDEX:

(1) Iwakuni residents say 'no' to relocation plan; Government
fears domino effect

(2) Editorial: National security ignored in Iwakuni plebiscite

(3) Editorial: Realignment of US bases in Japan requires firm
persuasion

(4) Junior LDP members meet Abe, may support his candidacy in
presidential race

(5) SDF integration set for Mar. 27; Massaki named to top joint
command

(6) Government to set up two new organizations with eye on
applying pressure on Pyongyang; Strict application of law

(7) Editorial: Will forest environment tax really contribute to
conservation?

ARTICLES:

(1) Iwakuni residents say 'no' to relocation plan; Government
fears domino effect

ASAHI (Page 2) (Abridged slightly)
March 13, 2006

Does the Japanese public accept a Tokyo-Washington agreement to
relocate US forces in Japan? Residents of Iwakuni in Yamaguchi
Prefecture said 'no' to this question yesterday. Although the
government outwardly denied any fallout from the Iwakuni
referendum, the outcome is likely to spoil the government's
coordination efforts for the relocation of the US Marine Corps'
Futenma Air Station in Okinawa. Some government officials fear
that a domino effect might kick in to affect other local
governments. Some local areas are taking seriously Iwakuni's
rejection of the central government's policy.

Toranosuke Katayama, secretary general of the LDP caucus in the
House of Councillors: "The state is responsible for national
security and defense. The matter is not appropriate for a local
plebiscite. It's a kind of regional egoism."

Former LDP Vice President Taku Yamasaki: "The results will be
valid only for one week because Iwakuni will be merged with
neighboring municipalities on March 20."

Other government and LDP executives also played down yesterday
the outcome of the Iwakuni plebiscite. Chief Cabinet Secretary
Shinzo Abe also simply commented last night, "We will continue
offering explanations sincerely to obtain the understanding and
cooperation of local areas."

Contrary to such words, the government attentively watched the
developments of the Iwakuni referendum. The Defense Agency
implemented a system to immediately inform defense chief Nukaga
and other executives once turnout topped the 50% line. Leaning of
prospects that opponents would dominate the vote, a Foreign
Ministry official discouragingly said, "The situation doesn't
look good."

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The government's gaze is directed not only at Iwakuni but also at
its coordination with local areas over Futenma, which is now at a
critical stage. The relocation of the US Marine Corps' Futenma
Air Station is the highlight in the realignment of US forces in
Japan. But Okinawa Gov. Keiichi Inamine and Nago Mayor Yoshikazu
Shimabukuro are opposed to a plan to relocate the Futenma
airfield to Cape Henoko in Nago. The Japanese and US governments
are also considering relocating a new U.S. Army headquarters,
known as a Unit of Employment X (UEx),to Camp Zama, and an
aerial tanker unit to Kanoya in Kagoshima Prefecture. Chiefs of
local communities, including Zama and Kanoya, are also opposed to
the planned US force realignment.

The government fears Iwakuni triggering a nationwide domino
effect to conduct plebiscites, including Okinawa over the Futenma
relocation plan. A senior Defense Agency official noted:
"Although the majority of Iwakuni residents said 'no' to the
government plan, we cannot change (the government plans). Any
changes to the plans would push other municipalities toward
referendums."

The government cannot afford to make compromise, and strong
backlashes would follow its outright rejection of the wishes of
local areas. The central government is in a dilemma.

Although the government has been adamant not to make any changes
to the Futenma relocation plan, some have begun searching for
ways to revise it.

For instance, the Nago municipal government presented the
permissible scope of making changes to the plan. Defense Agency
Director General Fukushiro Nukaga held talks last week with Gov.
Inamine and Mayor Shimabukuro in which the defense chief left
some room for altering the plan, saying, "Ultimately I will make
a decision." Prime Minister Koizumi has also instructed Taku
Yamasaki to explore ways for making compromise, stating, "Local
reactions are split, and coordination is necessary."

US force realignment will not realize without local consent. At
present, prospects are gloomy even for holding a Japan-U.S.
Security Consultative Committee meeting of foreign and defense
ministers (2 plus 2) in later this month.

Some have questions about Mayor Ihara's intent

Apparently relieved with the outcome of the plebiscite, Iwakuni
Mayor Katsusuke Ihara said in a press conference last evening,
"The opinion of Iwakuni residents is now clear, and I'm
relieved."

Armed with yesterday's referendum that overwhelmingly rejected
the government's plan to relocate US carrier-borne AIRCRAFT to
the city, the mayor plans to urge the central government to
rescind the plan.

Some have questions about to what extent Ihara intends to oppose
the plan.

Ihara was reluctant to accept a plan to relocate a large
transport helicopter unit from Hawaii to Iwakuni in late 2001,
but he shifted his stance and accepted the plan in the following
year. The city subsequently received subsidies for building the

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new city office building, which is now under construction.

In Iwakuni, the subsidies are regarded as the quid pro quo for
the turnaround. "Mayor Ihara has obtained substance by keep
opposing the relocation plan," a Defense Agency official familiar
with the circumstances explained.

In offering an explanation to residents prior to the plebiscite,
Ihara also stated: "We can gain more by speaking our minds. We
won't get much if we willingly (accept) the plan."

The plebiscite that overwhelmingly rejected the government plan
carries great weight. Depending on what the city can get in
return for the outcome of the plebiscite, the municipal
government may come under fierce criticism, ending up imposing a
burden on the city.

According to the Asahi Shimbun's exit poll, 38% of the voters
accounted for LDP supporters and of them 86% voted against the
plan. Toshiyuki Kuwahara, president of the city assembly, did not
go to the polls. He feared that if an overwhelming majority voted
against the plan, that would be tantamount to waging a war on the
central government and talks on economic stimulus measures would
not move forward.

Visibly upset by the results, a Yamaguchi prefectural official,
who had worked hard for accepting the plan, also commented: "If
opposing the plan would serve in the interests of the prefecture,
that should be the people's choice. It's important to make a
clever decision. It would be too unfortunate if people opposed
the plan and received nothing in return."

(2) Editorial: National security ignored in Iwakuni plebiscite

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

In the March 12 plebiscite, a vast majority of residents of
Iwakuni, Yamaguchi Prefecture, rejected the government's plan to
relocate US carrier-borne AIRCRAFT from the US Navy's Atsugi base
to the air station in the city. The government still intends to
maintain the relocation plan, as agreed upon with the US last
October.

Chief Cabinet Secretary Shinzo Abe stated yesterday, "Basically
when an agreement is reached through Japan-US talks, that will be
our final conclusion." The government's response is natural in
view of the security environment surrounding Japan.

The relocation plan is specifically designed to transfer 57 US
carrier-borne AIRCRAFT and 1,600 servicemen to the Iwakuni base
once the construction of an offshore runway is completed in
fiscal 2008.

Defense Agency Director General Fukushiro Nukaga noted, "For the
security of Japan, the Iwakuni plan must be realized at all
costs." The relocation is a key factor in the planned US force
realignment intended to improve deterrent capability and reduce
burdens on municipalities hosting US bases. The transfer of
carrier-borne AIRCRAFT is unmistakably intended to deal with
China and North Korea.

The Japan-US Security Consultative Committee of foreign and

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defense ministers (2 plus 2) confirmed last year that the two
countries would jointly deal with China's military buildup, North
Korea, which test-fired two short-range missiles March 8, and
other types of threats including international terrorism.

To begin with, it is not appropriate to take a local vote on a
matter directly connected with the peace and security of Japan,
which is the top priority for the central government. Local
referendums must be limited to regional themes, such as mergers
of municipalities.

Moreover, Iwakuni's local referendum ordinance will become void
once it merges with seven neighboring municipalities March 20.
Mayor Katsusuke Ihara, who proposed the plebiscite, will also
step down from his post March 19. The new city's mayoral election
will question again the propriety of the transfer plan in April.
Ihara noted in a press conference March 12, "National defense
policy rests with the central government, and (local areas) do
not have the authority to dictate it." Ihara thus acknowledged
that the relocation plan was not subject to the Iwakuni
referendum in the first place. What was the plebiscite all about?

In 1997, Nago conducted a referendum on the relocation of Futenma
Air Station, which threw the city into deeper turmoil. There is
still no prospect for the relocation of the air station.

Mindful of the interests of the entire country, local governments
must not forget that they are responsible only for regional
matters.

(3) Editorial: Realignment of US bases in Japan requires firm
persuasion

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

In the March 12 plebiscite, Iwakuni residents said "no" to the
plan to shift carrier-borne AIRCRAFT from the US Navy's Atsugi
base to the air station in the city, which is specified in the
bilateral plan to realign US bases in Japan. Although local
residents have the right to express their wishes based on local
ordinances, national security rests with the central government.
When there are gaps in views between the central and local
governments, there is no other way but to aim for an agreement
through talks.

Talks were held last week between senior foreign and defense
officials of Japan and the US. They have been working hard to
produce a final report on US force realignment before the end of
this month. The final report, which will essentially be a
concrete implementation plan, is expected to clearly specify
timeframes. But in many cases, Tokyo has yet to obtain the
consent of affected local governments.

The government plans to give priority to the Japan-US agreement
and convince local governments based on it. Some are criticizing
such a step as jumping the gun, but the central government is
allowed to act at its own discretion to some extent. It is
international common sense that the Japan-US alliance is
functioning to bring stability to the Asia-Pacific. The
government's stance also comes from the fact that political
parties supporting the Japan-US security system garnered large
numbers of seats in past national elections.

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The plan to transfer AIRCRAFT from the Atsugi base in the
residential area to an offshore base in Iwakuni resembles the
relocation of Futenma Air Station to Nago. In view of the risks
of the two cases, it is undoubtedly desirable to relocate them to
new sites. But when it comes to the base issue, people tend to
agree in principle and oppose the specifics. A concept has
surfaced to discuss a realignment promotion bill to get it
approved in the Diet to convince local governments.

The bill could be a carrot or a stick to local governments. It
will allow the central government to provide local governments
supportive of US force realignment with subsidies to revitalize
their economies beyond the conventional base measures. The
legislation may also pave the way for shifting some powers from
local governments to the central government to make it difficult
for local governments to put up resistance or delay actions based
on their legal powers.

The step, which seems difficult to build consensus even in the
government and ruling bloc, is expected to draw strong reaction
from local governments. The government and ruling bloc are
expected to take the step as the last resort after their
strenuous efforts failed to win local consent. They can take some
other steps before resorting to it. Liberal Democratic Party and
New Komeito lawmakers are required to take action from a broad
perspective instead of just serving the interests of their
constituencies. Members of Minshuto (Democratic Party of Japan),
the largest opposition party attaching importance to the Japan-US
alliance, should do the same.

Prime Minister Junichiro Koizumi and post-Koizumi contenders must
visit Okinawa and Iwakuni. After all, national security rests on
the central government.

(4) Junior LDP members meet Abe, may support his candidacy in
presidential race

YOMIURI (Page 4) (Full)
March 14, 2006

Chief Cabinet Secretary Abe met with about 10 House of
Representatives members of the Liberal Democratic Party (LDP) at
a Japanese restaurant in Tokyo last night. The LDP members from
various factions agreed to hold a meeting periodically. According
to a participant, those serving two to five terms in the Lower
House joined the meeting, including Yoshimi Watanabe
(independent),Midori Matsushita (Mori faction),Taimei Yamaguchi
(Tsushima faction),Yoichi Miyazawa (Niwa/Koga faction),
Yoshitaka Masuhara (Ibuki faction); and Shinji Inoue (Kono
faction).

These LDP members met at LDP headquarters just after Prime
Minister Koizumi dissolved the Lower House on Aug. 8 of last
year, under this slogan: "Let's form a young LDP centering on Mr.
Abe." There is the possibility that the group would support Abe
in the LDP presidential race slated for September. In the
meeting, Abe did not refer to the presidential election. The
participants reportedly exchanged views on the situation in
electoral districts and other matters.

(5) SDF integration set for Mar. 27; Massaki named to top joint
command

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

The Defense Agency will integrate the three Self-Defense Force
services' respective chains of command on March 27. The SDF Joint
Staff Council (JSC),currently in place to top the Ground,
Maritime, and Air Self-Defense Forces (GSDF, MSDF, and ASDF),
will be abolished and will be replaced with a reorganized body
named the Joint Staff Office (JSO),which will serve as the SDF's
integrated joint command. The GSDF, MSDF, and ASDF currently have
their respective staff offices authorized to command their
respective operations. The JSO will integrate their operations
under its command for more efficient operations. Hajime Massaki,
currently in the post of JSC chairman, will be the first JSO
chief to represent the three SDF branches and serve as an aide-de-
camp to the director general of the Defense Agency.

Under the SDF's current chains of command, the Defense Agency
director general issues directives and orders to the GSDF, MSDF,
and ASDF through their respective chiefs of staff, who are
basically entitled to command their respective operations. The
three SDF services use different languages and have different
cultures, according to a GSDF brass officer. At the time of the
1995 Hanshin (Osaka-Kobe) earthquake, for instance, the SDF's
airlift of foodstuffs was delayed in disparate heliborne
operations.

The Defense Agency plans to place the JSO chief between its
director general and the three SDF branches in order to beef up
their joint operations under the SDF's integrated chain of
command, thereby expediting decision-making and commanding for
the SDF's rapid and effective readiness.

The JSO, under its chief and deputy chief, will have four
elements for administration, operational planning, defense
planning, and command and communications systems. In addition,
the JSO will also have a spokesman. The JSC is currently staffed
with about 400. The JSO's staffing, however, will be increased to
about 500.

In its actual operational planning, the JSO will call up troops
from the three SDF services to organize joint task forces to be
readied for ballistic missile defense (BMD),major earthquake
disasters, incursions on Japan's outlying islands, evacuation
activities for Japanese nationals overseas, international
emergency relief operations, and various other possible
contingencies.

(6) Government to set up two new organizations with eye on
applying pressure on Pyongyang; Strict application of law

NIHON KEIZAI (Page 2) (Slightly abridged)
March 14, 2006

The government's special assignment team to deal with the
abduction issue (chaired by Deputy Chief Cabinet Secretary Seiji
Suzuki) yesterday decided to establish two cross-sectional
organizations designed for stricter application of existing laws
and strengthened information collection capability. The aim is to
strengthen pressure on North Korea. The government will aggregate
information on wrongdoings by North Korea and strengthen a
crackdown system. It will not invoke economic sanctions for the

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time being, but it will aim to extract concessions from Pyongyang
by switching to a policy of applying pressure.

Crackdown on misdeeds, including illegal exports, to be toughened

The organizations to be established anew are the Law Enforcement
Team and the Information Collection Council. The Law Enforcement
Team will consist of department director generals and councilors
of the Justice Ministry, the Finance Ministry (MOF),the Ministry
of Economy, Trade, and Industry (METI),the Financial Services
Agency, the National Police Agency, and the Japan Coast Guard.
The team will collect information on illegal exports of products
convertible for military use and the smuggling of narcotics and
counterfeit money. At the same time, strict inspections will be
carried out on North Korean vessels. Police and the Japan Coast
Guard will establish a joint investigation system. The team will
have its first meeting today.

The umbrella body of the Law Enforcement Team is an informal
taskforce set up by Chief Cabinet Secretary Shinto Abe last
December. The teamwork has already produced results, as can be
seen in the fact that the Yamaguchi Prefectural Police raided a
Tokyo trading company on suspicion of violating the Foreign
Exchange Law by illegally exporting freeze-dryers, which can be
converted to make biological weapons.

The Information Collection Council will be comprised of the
Public Security Investigation Agency director general, the vice
foreign minister, the National Police Agency director general,
and the Cabinet Intelligence director. The panel will analyze
information on North Korea's illegal activities so that its
efforts can lead to identifying abductors and confirming whether
abductees are alive in North Korea.

The Law Enforcement Team will mainly be in charge of measures to
apply pressure on North Korea, which involves cooperation among
several agencies. Revising the reduced rate currently applied to
the property tax imposed on facilities related to the General
Federation of Korean Residents in Japan (Chongryun) and
strengthening surveillance on money laundering have been
suggested as measures to be taken by each government agency,
based on laws under its jurisdiction.

Abe during yesterday's press conference underscored: "I will face
North Korea with dialogue and pressure. The ultimate pressure
will be applying economic sanctions. However, there are many ways
of applying pressure before reaching that stage."

Some have suggested that North Korea may take some action in
order to move forward its relations with Japan with an eye on
September when Prime Minister Koizumi's tenure expires. There are
signs that North Korea expects Japan to play the role of broker
for improving relations between the US and North Korea.

Measures to apply pressure through strict application of current
laws

Measures taken jointly by six government agencies
METI will make a list of companies that are suspected of
illegally exporting products convertible for military use.
Police will provide information on counterfeiting and drug
smuggling
Police and the Japan Coast Guard will jointly inspect North

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Korean vessels anchored at Japanese ports
The Justice Ministry and the Finance Ministry will assign
personnel at immigration control and customs offices for
for
strengthened surveillance of belongings (of North Korean
travelers).
Police officers who can speak Korean fluently will be
dispatched to immigration control offices and customs houses.

Measures to be taken individually by each government agency

Make boat state control on North Korean vessels stricter
Strengthen surveillance of money laundering
Appropriate taxation on facilities related to Chongryun
Strengthen inspections of mail in order to prevent illegal
transfers of money

(7) Editorial: Will forest environment tax really contribute to
conservation?

TOKYO SHIMBUN (Page 5) (Full)
March 13, 2006

Moves are afoot across the nation to introduce a forest
environment tax as part of efforts to control floods and secure
water resources by preserving forests. Its philosophy makes sense
to some extent, but if no explanations are given to residents on
the details of planned projects and procedures, it will be
difficult to obtain their agreement.

nt.

Local governments are allowed to introduce a forest tax or forest
environment tax as a special tax. Kochi Prefectural Government
was the first prefecture to adopt the tax in fiscal 2003. Since
then, 13 prefectures have introduced or have decided to introduce
the tax. Shiga Prefecture plans to adopt it in fiscal 2006, and
Aichi Prefecture is studying the matter.

According to authorities, the purpose of the tax is to prevent
disasters and secure water resources by preventing further
devastation of privately own forests that have been left untended
due to the stagnant forestry business. Tax revenues will be used
to finance measures to thin out forests, grow broad-leaved trees,
and to publicize the need to preserve forests. However, the
government has yet to give accurate explanations about problems
resulting from deforestation. Discussions on effective projects
have not been fully conducted, either.

In the farmland reform that was promoted as part of postwar
democratization, absentee landowners were done away with, and
ownership of the land was given over to farmers. But no measures
were carried out regarding forest possession. Domestic lumber was
in high demand from the early postwar period through the early
1970s. During this period, forestry businesses earned huge
profits.

Later, though, the forestry industry declined. Tax money is about
to be poured into the industry to finance measures to take care
of even privately owned forests. This is an utterly unreasonable
approach. There are some individuals and organizations making
efforts to grow and take care of forests despite poor sales.
Unfair treatment must be avoided.

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Local governments that have decided to adopt plans to preserve
neglected private forests with public funds should enforce
regulations to strictly restrict afforestation, tree trimming,
and land use by land owners and leaseholders, as well as to have
them return accrued profits to the government's coffers.

In the technical field, detailed research and study will become
necessary to work out effective ways of planting trees and
cutting forests in order to preserve forested mountains.

Heavy rainfalls in September 2000 caused landslides in the region
around the Yahagi River running from Nagano Prefecture through
Aichi and Gifu Prefectures. As a result of the floods, about
35,000 square meters of driftwood covered the Yahagi dam
reservoir.

The Honokuni Morizukuri no kai (Association for Promoting
Mountain Afforestation),including Minoru Morita, conducted
research to find out the age, species, and place of origin of the
driftwood. The research results provide useful guidance.
Specifically, the following contents were made clear: (1) If cut
trees are left untouched on a mountain, they tumble down the
mountainside when the area is flooded; (2) if Japanese cedars or
Japanese cypress are planted on a mountainside, heavy rain will
tear up the trees, so bushy trees are desirable; and (3) planting
trees in areas of rocky soil susceptible to weathering will not
be effective.

In order to protect forests, such measures as trimming trees and
increasing broad-leaved trees are not sufficient. It is
imperative to explore effective means to preserve forests while
taking into consideration such elements as geological conditions,
climate, landforms, and possible disasters first and then to
implement projects. The blithe idea that introducing the new tax
should come first is unacceptable.

SCHIEFFER