JAPANESE MORNING PRESS HIGHLIGHTS 03/15/06

UNCLAS SECTION 01 OF 12 TOKYO 001354

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
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OFFICE; SECDEF FOR JCS-J-5/JAPAN,
DASD/ISA/EAPR/JAPAN; DEPT PASS ELECTRONICALLY TO USDA
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E.O. 12958: N/A
TAGS: OIIP KMDR KPAO PGOV PINR ECON ELAB JA

SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 03/15/06

Index:

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

4) Foreign Minister Aso to visit US during Golden Week
holidays, meet Secretary Rice

5) Premier Wen says that improvement of China-Japan relations
will not come until Koizumi leaves

6) Former chief cabinet secretary Fukuda to travel to Seoul on
parliamentary fence-mending effort

Defense and security issues:
7) Breaking with peaceful-use-of-space principle, LDP panel is
drafting bill that would allow MD or spy satellite-related
military use of outer space
8) USFJ realignment: Japan informed that resettling Okinawa-
based US Marines in Guam to cost over 1 trillion yen
9) Japan proposes footing 40% of cost of Marine move to Guam,
with the rest of financing coming as loans
10) US, Japan agree to partial return of Yokota Air Base's air
control space
11) Hit-run accident in Hachioji: USFJ reduces pay of sailor as
punishment
12) Father of boy hit by US sailor in car accident angry at
"light punishment"

Beef woes:
13) Discovery of third BSE-infected cow in US further erodes
Japanese consumer confidence in US beef
14) MAFF reports that three of US facilities certified as ready
to ship beef to Japan were on the USDA's inspection report for
improper BSE procedures
15) Minshuto (Democratic Party of Japan) sending questionnaires
to all 37 US facilities with licenses to ship beef for Japan

Minshuto in crisis:
16) Poll shows public expects Ichiro Ozawa to be the next head
of Minshuto
17) Text of advertisement inserted in major dailies by disgraced
Minshuto lawmaker Nagata apologizing for phony e-mail
18) Nagata refuses to resign his Diet seat
19) Minshuto erupts in anger of statements by party president
Maehara

Articles:

1) TOP HEADLINES

Asahi:
LDP committee considering use of space for defense purposes under
new law

Mainichi:
Tokyo District Court decides keeping news sources secret is
illegal; Media reporters not allowed to refuse to testify if news
report found to be in violation of confidentiality

Yomiuri: Sankei:

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Former Livedoor President Horie found to have ordered window-
dressing; Tokyo District Public Prosecutors Office indicts five
former executives

Nihon Keizai:
Moving primary balance into black: Achieving 2% of GDP to be
aimed on assumption of 3% nominal growth

Tokyo Shimbun:
USEN and Livedoor to seal tie-up deal possibly before end of
month

2) EDITORIALS

Asahi:
(1) Livedoor: Market vulnerability that allowed company to
violate law
(2) National flag, anthem: It is too much to punish teachers for
not following orders by Tokyo Education Board

Mainichi:
(1) Delisting of Livedoor: It is necessary to take a second look
at market control
(2) System of using lockup as alternative prison should be
abolished

Yomiuri:
(1) Keeping news sources secret: Court decision denies meaning
of press reports
(2) Series of leaks: Is Winny the only problem?

Nihon Keizai:
(1) Stem the downward spiral in strained China-Japan relations
(2) Bureaucracy to blame for bid-rigging involving Defense
Facilities Administrative Agency officials

Sankei:
(1) Special pricing system for newspapers essential for media
choice
(2) Livedoor: Market watchdogs need change of consciousness

Tokyo Shimbun:
(1) Livedoor incident is not over yet
(2) Paralympics: Participation from broader spectrum of people
needed

3) Prime Minister's Official Residence (Kantei)

Prime Minister's schedule, March 14

NIHON KEIZAI (Page 2) (Full)
March 15, 2006

09:02
Attended a cabinet meeting in the Diet building. Agriculture
Minister Nakagawa stayed behind. Followed by Defense Agency
Director General Nukaga.

09:48
Arrived at Kantei.

10:15

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Met Deputy Chief Cabinet Secretary Suzuki. Followed by Lower
House member Taizo Sugimura.Prime Minister: "Congratulations"
(hearing he will get married in May). Study hard and do your
best.

14:30
Met Foreign Ministry Middle Eastern and African Bureau Director
General Yoshikawa. Later met Secretary General Takebe and
Regional System Research Council Chairman Ibuki.

16:00
Met Public Security Investigation Agency Director General Oizumi.

17:33
Attended a meeting of the Central Traffic Safety Measures
Council.

18:24
Returned to his official residence.

4) Foreign Minister Aso to visit US during early May Golden Week
holidays

NIHON KEIZAI (Page 2) (Full)
March 15, 2006

Foreign Minister Taro Aso has decided to visit the US during the
Golden Week holidays that start in late April. He plans to meet
with Secretary of State Condoleezza Rice. He will also stop in
San Francisco, where former Prime Minister Shigeru Yoshida, his
grandfather, signed the Peace Treaty in Sept. 1951. The aim is to
stress his stance of giving priority to the Japan-US alliance and
play up his candidacy in the Liberal Democratic Party's (LDP)
presidential election in September.

During the foreign ministerial meeting, Aso will discuss the
situation in Iraq and the nuclear development programs of Iran
and North Korea in the run-up to summit between President Bush
and Prime Minister Junichiro Koizumi, who is scheduled to visit
the US possibly in late June, and. During his stop in San
Francisco, he plans to visit the Opera House, where the ceremony
for the Peace Treaty took place, and the Golden Gate Club, where
the Japan-US Security Treaty was actually signed.

5) Chinese premier makes clear China's stance of excluding Prime
Minister Koizumi

ASAHI (Page 2) (Excerpts)
March 15, 2006

By Nobuyoshi Sakajiri, Beijing

Chinese Premier Wen Jiabao said yesterday the Japanese people
were not to blame for the strains in Japan-China relations. He
even tacitly proposed promotion of private-sector exchanges in a
bid to ease strained ties. He made it clear, however,
that China would seek to repair its relations with Japan by
excluding Prime Minister Junichiro Koizumi, who he said has made
no efforts to bridge the gulf between the two countries due to
his visits to Yasukuni Shrine.

Wen also said: "If this (Yasukuni) issue is not resolved, it will

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be difficult for bilateral relations to develop smoothly under a
post-Koizumi government."

He made the remarks during a press conference broadcasted live
across China. It is extremely rare for a Chinese leader to
clearly state that the source of the current situation does not
lie with the Japanese people.

At a news conference after China's annual session of Parliament
at the Great Hall of the People, Wen said:

"The source of the current situation does not lie with China, nor
with the Japanese people, but with the Japanese leader. Repeated
visits to Yasukuni Shrine, which enshrines Class-A war criminals,
by Japanese leaders have offended the people of China and other
Asian countries."

In the background of Wen's statement, China's messages to improve
its relations with Japan have not conveyed to the Japanese side,
according to a Chinese government official.

6) Former Chief Cabinet Secretary Fukuda to visit ROK

TOKYO SHIMBUN (Page 2) (Full)
March 15, 2006

Former Chief Cabinet Secretary Yasuo Fukuda of the Liberal
Democratic Party (LDP) will make a three-day visit to South Korea
starting today. He, along with former Prime Minister Yasuhiro
Nakasone and others, will attend a joint general meeting of the
Japan-ROK and ROK-Japan Cooperation Committees composed of
lawmakers and academics from Japan and South Korea. The general
meeting will take place in Seoul. A conversation with President
Roh Moo Hyun and others is being arranged to occur tomorrow.

Fukuda is deputy director of the committee. The general meeting
will hold symposiums focusing on politics, the economy and
culture. The theme of the conference is "Japan-ROK cooperation
aimed at creating an East Asia community." Fukuda is scheduled to
participate in a panel discussion on politics.

7) LDP mulls legislation for defense-purpose space exploration

ASAHI (Top play) (Full)
March 15, 2006

The ruling Liberal Democratic Party will seek to create a new
law, aiming for the promotion of Japan's space activities in the
defense area. Japan's space exploitation, based on the
government's interpretation, has been limited to activities for
nonmilitary purposes only. However, the newly planned
legislation, initiated by an LDP special committee on space
activities, is intended to ease the government's interpretation.
It will pave the way to Japan's space exploration for
unaggressive defense-oriented purposes involving reconnaissance
satellites and missile defense (MD). In addition to research and
development as the core of Japan's space activities, the LDP will
also weigh space exploitation for national security, disaster
prevention, and industrial development. The LDP leadership would
like to introduce the legislation to the Diet at next year's
ordinary session after coordination within the ruling coalition.


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In 1969, the Diet adopted a resolution on the peaceful uses of
outer space. In conformity with this parliamentary principle, the
government has restricted Japan's space exploitation to
activities in nonmilitary areas only. Meanwhile, the Self-Defense
Forces' use of satellites is also limited to commercial-off-the-
shelf technologies.

The LDP-initiated legislation is aimed at easing the government's
conventional interpretation of space activities. Its easing will
lead Japan to a major turning point. For example, it will be
possible for Japan to develop spy satellites outdoing civilian
satellites in resolving power. In addition, Japan currently
depends on the United States for its early detection of ballistic
missile launches. However, the legislative step will also make it
possible for Japan to do so with its own early warning
satellites.

In addition, the LDP will further seek to exploit outer space for
strategic purposes. To that end, its bill is intended to improve
the efficiency of space-related policy measures that have been
separately promoted by several government ministries and
agencies, such as the Ministry of Education, Culture, Sports,
Science and Technology and the Ministry of Economy, Trade and
Industry. The bill is also aimed at creating a system to unify
their disparate space-related programs. At the same time, it will
require the government to establish a cabinet portfolio for space
exploitation and to set up a council for apace strategies under
the cabinet.

In late February, the LDP set up a subcommittee on the peaceful
uses of outer space under its special committee on space
activities. The subcommittee, regarding the government's
interpretation as internationally peculiar, has discussed the
advisability of allowing space exploration for unaggressive
defense-oriented purposes, with former Education, Science and
Technology Minister Takeo Kawamura presiding.

The LDP had initially intended to call on the government to
reinterpret the Diet resolution. However, the LDP will aim for a
package of legislative measures in order to dissolve various
issues related to space activities. The subcommittee will meet on
March 28 to adopt the legislation, and then it would like to work
out a draft bill by August for further discussions.

"We will work it out in the ruling coalition, and if possible,
we'd like to present it to the Diet during next year's ordinary
session," says an LDP executive. However, the LDP is scheduled to
elect its new president in September and its executive lineup
will also change. Even more, the LDP will have to go through
coordination with its coalition partner, the New Komeito party.
As it stands, there are hurdles to clear before the LDP presents
the bill to the Diet.

In 1998, North Korea test-launched a ballistic missile. In the
aftermath of that incident, Japan developed an intelligence-
gathering satellite, which was at the same level as private-
sector satellites with the resolution of up to one meter in
conformity to the government's interpretation of nonmilitary
activities. In 2004, the Japan Business Federation (Nippon
Keidanren) proposed reviewing the Diet resolution as well as
Japan's self-imposed three principles on arms exports.


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8) Cost of redeployment of US Marines from Okinawa to Guam likely
to exceed 1 trillion yen, according to modified estimation;
Japan's share to reach as much as 75%

TOKYO SHIMBUN (Page 2) (Excerpts)
March 15, 2006

During the recent working-level talks of foreign and defense
officials from Japan and the United States held in Hawaii on
March 7-11, the US team had estimated as the overall cost of the
redeployment of US Marines from Okinawa to Guam approximately 10
billion dollars - a figure that exceeded the initial estimate.
This comes to about 1.1 trillion yen at the exchange rate used
for the fiscal 2006 budget bill. The Tokyo Shimbun learned this
yesterday. Given a possible expansion in the redeployment cost,
both sides have decided not to specify such items as the overall
cost and the cost-sharing percentages of Japan and the United
States. Meanwhile, the two nations have agreed in principle on a
scheme of Japan providing loans to the US in the way to shoulder
a portion of the US share.

The US has insisted on the need to construct infrastructure in
Guam, such as barracks, housing, recreation facilities, roads and
water works. The US initially had estimated the overall
relocation cost to be 8 billion dollars, or 888 billion yen, but
after re-estimating the cost, it modified it upward.

The relocation cost is to be shared by Japan and the US. But in
part because of fiscal difficulties, the US called on Japan to
provide loans to the US to cover a portion of the US share, with
one official reportedly saying: "If no financial assistance comes
from Japan, US Marines based in Okinawa would have no choice but
to remain there."

Both negotiating teams have reached a general agreement on a loan
formula, but by the US re-estimation, the redeployment cost has
ballooned. The Japanese team then asked the US to present a clear
basis for the re-estimation, with one Japanese official saying:
"Otherwise we cannot convince the people at home about the need
for Japan's payment." The US officials replied to the Japanese
side that it would be difficult to come up with it quickly.

9) Cost of relocation of US Marines from Okinawa to Guam: Plan
floated for Japan to pay 40% of the cost

NIHON KEIZAI (Page 2) (Excerpts)
March 15, 2006

The Japanese government has floated an idea of Japan paying 40%
of the relocation cost of US Marines from Okinawa to Guam, an
issue that has drawn much attention in the realignment of US
forces in Japan, sourced revealed yesterday. The remaining 60%
would be covered by loans from the Japan Bank for International
Cooperation (JBIC) and other means. The purpose is to constrain
Japan's payment. However, the US has asked Japan to cover 75% of
the overall cost. With both sides far apart, the two nations will
narrow the gap in working-level talks of foreign and defense
officials that are to reopen as early as next week.

The idea of Japan paying a 40% share of the cost was brought up
by a Japanese official during the recent working-level talks held
in Hawaii on March 7-11. The US initially had estimated the

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overall relocation cost at 8 billion dollars, but in the recent
talks, the US pointed out the necessity of adding 2 billion
dollars to the previous cost, insisting that 10 billion dollars,
or about 1.75 trillion yen, would be required for the relocation.
If the US request goes as is, Japan's payment will run to 7.5
billion dollars or approximately 881.2 billion yen.

Based on the previous US estimation of 8 billion dollars for the
relocation cost from Okinawa to Guam, Japan had estimated the
overall cost of the realignment of US forces in Japan to be 3
trillion yen or so if its payment of the relocation cost is held
down to 40%. But the US has raised the requested amount of
Japan's payment in every round of talks. If Japan accepted such a
request, its payment would expand even further.

Of the Guam relocation cost, it is assumed that Japan will cover
the costs of constructing a headquarters, barracks, and training
facilities, as well as things like hospitals and schools. Japan
plans to pay 40% of the total relocation cost from the defense
budget in the general account over 10 years.

10) Part of Yokota RAPCON area to be returned in USFJ
realignment; Tokyo, Washington agree in general principle

YOMIURI (Page 2) (Excerpts)
March 15, 2006

In realigning US forces in Japan, the governments of Japan and
the US agreed in general principle that the US side return to
Japan part of Yokota Air Base's radar approach control (RAPCON)
area. The plan is to return the uppermost region of the space
area. Tokyo and Washington are speeding up efforts for the
coordination of the scale to be returned and a timeline for that.
The two countries aim for the planned return by the end of 2009,
when the fourth runway is expected to be constructed at Haneda
Airport. The return of the airspace, if realized, will lead to
easing flight routes above the Tokyo Metropolitan area
overcrowded with civilian planes.

The agreement was reached during the working-level talks of
defense and foreign affairs officials held Mar. 7-11 in Hawaii.
Defense Agency Director General Nukaga yesterday met with Prime
Minister Koizumi in the Diet building and reported the details of
the talks to him. The prime minister responded: "I would like you
to appropriately deal with bilateral realignment talks and do
your utmost in order to obtain understanding from the affected
local communities." He thus ordered Nukaga to compile a final
report on the USFJ realignment before the end of March, while
making efforts to obtain understanding from concerned local
governments.

11) US Navy Command punished hit-and-run US sailor with pay cuts
without opening military court

MAINICHI (Page 31) (Full)
March 15, 2006

US military authorities have punished a 23-year-old female sailor
based at the US Navy's Atsugi base (which straddles Yamato and
Ayase cities in Kanagawa Prefecture) with a pay cut and other
penalties, sources revealed yesterday. The sailor was under
arrest on suspicion of running down three schoolboys with her

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vehicle in Hachioji, Tokyo, last year and then fleeing the
accident scene, a violation of the road traffic law. She was
released later in the day, however, the reason being that she was
"on duty" -- treatment that is in accordance with the Japan-US
Status of Forces Agreement. The case took the form of legal
procedures instead of a court-martial.

According to US Navy Headquarters in Yokosuka in Kanagawa
Prefecture, the decision was made on March 2. The punishments
included: (1) a 50-%, two-month base-pay cut worth 1,551 dollars,
or 180,000 yen; (2) a 45-day suspension from duty (suspended);
(3) and a demotion (also suspended). The sailor received such
punishments for her "reckless driving." In a military trial
presided over by a judge, a prosecutor and a defense lawyer are
present. But in the case of "disciplinary action" that does not
follow judicial procedures, the captain of the vessel concerned
plays the main role.

While driving a wagon at around 1:00 p.m. Dec. 22, 2005, the
sailor ran down three elementary schoolboys on a national highway
in Hachioji, injuring them. Hachioji police officers subsequently
found her parked along the road about 1 kilometer away from the
scene and arrested her on suspicion of violating the road traffic
law and other charges.

In Japan, a hit-and-run case that involves multiple victims could
result in a jail sentence. But in the case of the US sailor, only
her pay will be cut, and the demotion and other penalties were
suspended. A source connected with the US military explained:
"Making comparison is difficult as the form of court and the
concept of faults are different between the two countries. The
view that punishments against US servicemen are too lenient is
biased. We believe the punishment this time is severe."

12) A victim's father angry

MAINICHI (Page 31) (Full)
March 15, 2006

Learning of the punishment against the female sailor, Shinya
Onari, 41, of Hachioji, the father of one of the victims, said in
an angry tone: "In Japan, if one commits a traffic accident, that
person would lose his social status and everything else. The
punishment of a pay cut is way too light."

13) US finds 3rd case of BSE, casting shadow over Japanese
consumers' trust in US beef

MAINICHI (Page 9) (Excerpts)
March 15, 2006

The discovery of a third case of BSE in the US may increase
Japanese consumers' concern about the safety of US beef, though
the case will not directly affect Japan-US negotiations on
whether Japan will resume US beef imports. Recently, banned bones
were also found in a US beef shipment to Hong Kong.

Health, Labor, and Welfare Minister Jiro Kawasaki and
Agriculture, Forestry, and Fisheries Minister Shoichi Nakagawa
said in their respective press conferences yesterday that the new
case of BSE would not affect Japan-US beef negotiations, given
that the infected cow was over 10 years of age and that the case

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was confirmed because the US inspection system functioned.

Japan has provided as conditions for imported beef: (1) beef from
cattle 20 months of age or younger and the removal of specified
risk materials; and (2) imports only from plants authorized by
the US government. Theoretically, even if the potential BSE risk
of US beef is high, there will be no problem as long as the
conditions are observed. Agriculture Department chief
veterinarian John Clifford stated: "Of the about 650,000 cows
tested in the US, only two were found infected. The possibility
of contracting BSE is extremely low."

Japanese consumers, however, now cast a shadow over the safety of
US beef. One consumer said: "The number of cattle subjected to
inspection is far smaller in the US than in Japan, which has
mandated blanket testing. A considerable number of infected cows
might have been overlooked." The Food Safety Commission has also
been calling on the US to expand its inspection system and
tighten feed regulations.

14) Three meat-processing plants certified for exporting to Japan
included among nine whose improper anti-BSE process pointed out
by OIG

TOKYO SHIMBUN (Page 8) (Excerpts)
March 15, 2006

The Office of Inspector General (OIG) of the US Department of
Agriculture stated in its report that the process of removing
specified risk materials had not been properly carried out at
nine meat-processing plants in the US. On this issue, the
Agriculture, Forestry and Fisheries Ministry revealed yesterday
that three plants certified by the US government to export beef
to Japan were among the nine, according to an additional
explanation from the US. The ministry added, though, that since
OIG inspection had been conducted before they were authorized for
exporting beef to Japan and improvement measures had been taken,
there is no problem at present.

The Japanese government sent a list of questions to the US
government in response to a report from the OIG this February.
Washington has replied to the questions as of March 13.

15) Minshuto to send questionnaires to offices of 37 plants
authorized for exporting beef to Japan

ASAHI (Page 4) (Full)
March 15, 2006

The BSE issue taskforce of the Democratic Party of Japan
(Minshuto),headed by Vice President Kenji Yamaoka, decided
yesterday to send questionnaires to the offices of the 37 meat-
processing plants certified by the US government to ship beef to
Japan. The opposition party plans to ask the questions of whether
it is possible to (1) accurately select cattle 20 months of age
or younger; (2) separate cattle that have not been fed meat-and-
bone meal from others; and (3) implement blanket testing.

16) Poll: Ozawa tops all others at 18% for next DPJ president,
Kan at 17%, Maehara in 4th place

YOMIURI (Page 2) (Full)

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March 15, 2006

Ichiro Ozawa, who once was a vice president of the leading
opposition Democratic Party of Japan (DPJ or Minshuto),topped
all others at 18% as the most appropriate candidate to head the
party for the next term, the Yomiuri Shimbun found from its face-
to-face nationwide public opinion survey conducted March 11-12.
Former DPJ President Naoto Kan ranked second at 17%, followed by
DPJ Secretary General Hatoyama at 13%. The party's incumbent
president, Seiji Maehara, ranked fourth at 10%. Maehara is losing
his grip on the party due to his clumsy handling of the 'fake
email' incident that the DPJ took up in the Diet. Few wanted him
to see him elected for another term.

In the survey, respondents were asked to pick only one from among
nine likely candidates expected to run in the DPJ's presidential
election scheduled for this September. Even among DPJ supporters,
Ozawa stood at 28%, with Kan at 25%. Maehara ranked fourth at
11%. Broken down into age brackets, Ozawa was popular among those
in their 60s and Kan among those in their 20s.

Respondents were also asked who they thought would be the most
appropriate candidate to become the ruling Liberal Democratic
Party's president after Prime Minister Koizumi who will step down
in September. Among nine names given, Chief Cabinet Secretary Abe
topped all others at 45%, securing his top position from the last
survey taken in February. Among others, former Chief Cabinet
Secretary Yasuo Abe stood at 11%, Foreign Minister Aso at 6%,

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former LDP Secretary General Koichi Kato at 3%, Internal Affairs
and Communications Minister Takenaka at 3%, and Finance Minister
Tanigaki at 2%. There was no marked change in their popularity
percentages and standings.

Abe was picked by 58% of those in support of the Koizumi cabinet
and by 60% of those in support of the LDP. He was also the first
pick among those in support of other political parties and among
those not in support of the Koizumi cabinet.

Fukuda, who ranked second, gained support to a certain extent-14%
among those not in support of the Koizumi cabinet and 18% among
those in support of the DPJ.

17) Text of newspaper advertisement offering apology for "fake e-
mail"

YOMIURI (Page 39) (Full)
March 15, 2006

There was no truth in the e-mail claimed (by Hisayasu Nagata and
Minshuto) that (former Livedoor President Takafumi Horie) had
instructed his subordinate to transfer 30 million yen to the
second son of Liberal Democratic Party Secretary General Tsutomu
Takebe. The e-mail was totally groundless.

We deeply apologize for it.

Through budget committee meetings and party-head question-and-
answer sessions, House of Representatives member Hisayasu Nagata
and Minshuto (Democratic Party of Japan) pointed out as if
Livedoor had transferred 30 million yen to a bank account held by
Mr. Takebe's second son and that Livedoor funds had flowed to
people close to Secretary General Takebe. Those statements were

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totally groundless.

We sincerely apologize to Mr. Takebe, his second son, and people
connected with the company run by him for severely defaming their
reputations. We also deeply apologize for causing tremendous
trouble to the operations of the company.

We will request the portion defaming them be expunged from the
Diet minutes. Fully aware of the influence of statements by Diet
members, we will face question-and-answer sessions at the Diet,
which is thoroughly investigating the facts.

March 15, 2006

Minshuto (Democratic Party of Japan)
Hisayasu Nagata, House of Representative member

18) Minshuto lawmaker Nagata refuses to resign, but will offer
apology at disciplinary panel

ASAHI (Page 2) (Excerpts)
March 15, 2006

House of Representatives member Hisayasu Nagata of the main
opposition party Minshuto (Democratic Party of Japan),whose
party membership has been suspended due to the uproar he created
in the Diet by alleging that Livedoor Co. founder Horie sent an e-
mail ordering his staff to transfer money to Liberal Democratic
Party (LDP) Secretary General Tsutomu Takebe's son, yesterday
again rejected the possibility of his resigning from the Diet. He
told reporters in the Diet building: "Since I have entrusted my
political fate to the disciplinary committee, I'm waiting for its
judgment." Some Minshuto lawmakers have called on him to quit his
Lower House seat.

The Lower House Committee on Discipline decided yesterday in a
meeting that it would hold a session tomorrow to explain the
action planned against Nagata. The panel is now coordinating a
plan to let Nagata express an apology on March 22. The ruling
camp has proposed making Nagata's apology and questioning him in
the same session, but Minshuto has rejected a question-and-answer
session.

In negotiations between the ruling and opposition camps of the
disciplinary committee, Minshuto lawmakers have expressed their
intention to respond to the ruling bloc's demand that a person
who provided the false e-mail to Nagata be summoned to testify as
a witness before the committee if Nagata would agree to do so.
Minshuto's chief committee director Hirofumi Hirano said, "We
have judged that summoning of the person in question is
unavoidable in order to supplement his account of his actions."
The party will not respond to a request for his testimony should
the ruling camp do so.

19) Many executive board members criticize Maehara

ASAHI (Page 2) (Excerpts)
March 15, 2006

Many member of the executive board of Minshuto (Democratic Party
of Japan) criticized and voiced objections in a meeting yesterday
against party head Seiji Maehara over his remarks about the

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political fate of party lawmaker Hisayasu Nagata. Maehara and
other executive members were busy offering apologies. The present
Minshuto leadership appears to be losing momentum. Nobutaka
Tsutsui blasted Maehara for having expressed his view in a speech

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on March 13 that he would leave it up to Nagata as to whether he
would give up his Diet seat. "If we present information little by
little while watching the trends of public opinion. You at first
said that he did not need to resign." Maehara then apologized,
saying, "What I meant is that the party has already punished him.
There is no change in my remarks."

SCHIEFFER