JAPANESE MORNING PRESS HIGHLIGHTS 03/22/06

UNCLAS SECTION 01 OF 13 TOKYO 001469

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SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 03/22/06


Index:

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

4) President Bush in speech refers to Prime Minister Koizumi as
"one of my best buddies" in the international community

Poll:
5) Koizumi Cabinet support rate recovers to 46% in Asahi poll
6) Though 47% of public favor Shinzo Abe as next prime minister
in Asahi poll, support for Yasuo Fukuda jumps to 20%
7) Asahi poll shows 78% of public against Japan picking up most
of the tab for relocating US Marines from Okinawa to Guam

Defense and security issues:
8) Prime Minister Koizumi agrees to "minor revisions" in
Futenma relocation coastal plan
9) Talks to continue with Nago City mayor about accepting
revised government plan to relocated Futenma to coast portion of
Camp Schwab
10) Government compromises by allowing minor changes to Futenma
relocation plan, but local community holding out for major
revisions
11) JDA chief Nukaga to continue efforts to break deadlock with
local government over Futenma relocation issue
12) What are the "minor revisions" that the government is
willing to make in Futenma relocation plan?
13) Kadena Air Base F-1 jet training to be relocated to six
other bases on mainland Japan
14) Moving Okinawa Marines to Guam may be financed by GOJ loans
15) Government decides to extend SDF ocean-refueling operations
in the Indian Ocean by a half-year, giving priority to GSDF
pullout from Iraq

Beef issue:
16) With still no prospect of resuming beef exports to Japan,
irritated US could turn issue into a trade dispute
17) US, Japan still not close to reaching agreement on removal
of US beef ban
18) USDA Secretary Johanns: We replied to Japan's beef questions
"swiftly and thoroughly"

Political agenda:
19) SDP (former Japan Socialist Party) and Japanese Communist
Party leaders meet formally for the first time in 28 years
20) Chief Cabinet Secretary Abe rebuts charge by Foreign
Minister Aso that he is weak on economics
21) Minshuto's Okada meets Taiwanese president in Taipei

22) Japan may adopt a 2% real economic growth target

Articles:

1) TOP HEADLINES

Asahi: Mainichi:Yomiuri: Sankei: Tokyo Shimbun:
Japan on top of the world, beating Cuba in inaugural WBC final;
Pitcher Matsuzaka awarded MVP

Nihon Keizai:

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Recruitment of college graduates will increase 21% next spring,
according to first-stage tabulation of Nihon Keizai survey;
Financial services and electronics makers serve as driving force

2) EDITORIALS

Asahi:
(1) Japan wins inaugural WBC title: Victory after cliffhanger
games
(2) Put off implementation of PSE mark approval system for
electric appliances planned for April

Mainichi:
(1) Japan on top of the world in inaugural WBC: Thanks for the
excitement and memories
(2) Thoughts on social disparities by writer Yasuo Inaba: Prime
Minister takes no notice of reality and should listen to how the
public is feeling

Yomiuri:
(1) WBC: Oh's team now on to top of the world
(2) Softbank Corp.: Japanese companies are now players in the
corporate acquisition market

Nihon Keizai:
(1) Structural changes urge global-scale industrial
restructuring

Sankei:
(1) Japan wins WBC title: Honoring the achievement of the
Japanese team
(2) Gas fields in East China Sea: Countermeasures necessary

Tokyo Shimbun:
(1) Japan wins inaugural WBC title: Hope for all Japanese
(2) Bring an end to the Nagata issue:

3) Prime Minister's Official Residence (Kantei)

Prime Minister's schedule, March 21

NIHON KEIZAI (Page 2) (Full)
March 22, 2006

09:37
Attended the ceremony for the Spring Imperial Ancestors' Day at
the Imperial Palace.

10:52
Returned to his official residence.

11:10
Met with Defense Agency Director General Nukaga.

Spent the afternoon at his official residence.

4) Bush calls Koizumi his "best buddy," citing Japan as model for
Iraq

NIHON KEIZAI (Page 2) (Full)
March 22, 2006


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Hiroshi Maruya, Washington

"Prime Minister Junichiro Koizumi is one of my best buddies in
the international community. History shows that democracy changes
society. I would like to cite Japan as a model case."

President George W. Bush referred to Prime Minister Koizumi and
Japan in his speech and a subsequent question-and-answer session
in Ohio March 20.

Bush cited Koizumi and Japan in explaining the purpose of the
Iraq war, which raised the question whether democracy would take
root in the Middle East.

Bush noted:

"If someone here said 60 years ago, 'Don't worry. Japan will
become peaceful someday. The 43rd President will discuss ways to
maintain peace.' Then people would say, 'What is he thinking
about? Get him off the podium.'"

Fully aware of the difference between Iraq and postwar Japan,
Bush cited Japan as a successful example of yesterday's enemy
becoming today's ally. This also indicated that he had no other
convincing arguments to cite regarding his Iraq policy, which has
been taking a heavy toll on his popularity.

Japan-US relations have been straining due to the realignment of
US forces in Japan, suspended US beef trade, Japan's planned
withdrawal of SDF troops from Iraq, and other matters. Despite
that, bilateral relations are not in a critical situation owing
largely to Prime Minister Koizumi's presence and President Bush's
view that Japan can serve as a model for Iraq.

5) Cabinet support rate recovers to 46% in Asahi poll; 59% of
public want Nagata to quit Diet seat

ASAHI (Page 2) (Excerpts)
March 21, 2006

In a nationwide opinion survey carried out by the Asahi Shimbun
March 18-19, the Koizumi Cabinet support rate registered 46%,
with a non-support rate at 38%. The Prime Minister has recovered
from the previous poll in February when the support rate was 43%
and the non-support rate 41%. In addition, 59% of the public
called for the resignation of Lower House Minshuto (Democratic
Party of Japan) lawmaker Hisayasu Nagata, who used a fake e-mail
to pursue the Liberal Democratic Party in the Diet.

Asked if they thought Minshuto had the capability of running the
government, 68% said, "I don't think so." In the background of
the recovery of the Cabinet's support rate seems to lie the
incompetent handling of Diet affairs by Minshuto, as seen in the
e-mail fiasco.

6) Opinion poll on choice for prime minister after Koizumi: 47%
favor Abe; 20% pick Fukuda, with 5% for Aso, 4% for Tanigaki

ASAHI (Page 1) (Full)
March 21, 2006

The Asahi Shimbun carried out a nationwide poll on March 18-19 to

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query the public on who was the most popular candidate to succeed
Junichiro Koizumi as prie minister. The result found 47% choosing
Chief Cabinet Secretary Shinzo Abe as the top choice, followed by
former chief cabinet secretary Yasuo Fukuda, with 20%.

The question of who is most appropriate to be the next prime
minister had five choices: one of the four known candidates and a
fifth "other person." Abe and Fukuda were much higher than the
third contender, Foreign Minister Taro Aso, who had 5% support,
and Finance Minister Sadaichi Tanigaki, with 4%.

In a poll taken right after the Cabinet reshuffle last October,
the candidates were not yet lined up, so respondents had free
choice to choose anyone from the Diet except Koizumi. The result
was that 33% favored Abe, while 5% chose Aso, and 3% picked
Minshuto President Seiji Maehara. Fukuda and Tanigaki only
received 2% each. In a similar question in the January poll, Abe
got 28%, Fukuda 5%, Aso 2%, and Maehara and Tanigaki had one %
each. Fukuda was a distant second in the poll.

This time, with the names of the candidates settled, respondents
were asked to choose one from the group, with Abe again
maintaining his top lead, though still shy of a majority. But
Fukuda has jumped right up in the poll. Although Abe remains
overwhelmingly strong in the eyes of the public as a favorite,
the public's awareness of Fukuda's existence (as a serious
contender) has risen.

However, looking only at the LDP supporters, who have a deep
connection with the LDP presidential election, Abe is the highest
with 61% support, followed by Fukuda with a mere 15%.

7) Asahi poll: 78% of public "cannot accept" Japan's share of
cost of moving US Marines to Guam

ASAHI (Page 2) (Full)
March 21, 2006

In a nationwide opinion survey carried out by the Asahi Shimbun
(March 18-19),one of the questions was on the request by the
United States for Japan to pay approximately 900 billion yen to
build facilities and otherwise fund the relocation of US Marines
from Okinawa to Guam. The poll found a deep-seated critical view
of Japan bearing this great a fiscal burden, with 78% of the
respondents picking the answer, "I cannot accept it." Only 14%
chose the answer "I can accept it."

No matter what age bracket, over 70% were unconvinced that Japan
should bear such a burden. Among supporters of the Koizumi
Cabinet and of the ruling Liberal Democratic Party (LDP),as
well, 72% in each category found the proposed burden sharing
unacceptable. Moreover, 84% of women found such a fiscal burden
unacceptable, compared to 73% of men with a similar view. Men
over 50 tended to be somewhat more willing to accept the fiscal
burden, but even in that category, the portion was less than 30%.

The poll also confirmed a growing mood of opposition to the
realignment of US forces in Japan, as seen in recent moves by the
City of Nago in Okinawa Prefecture and the City of Iwakuni in
Yamaguchi Prefecture, both sites of planned relocations of bases
or troops. On the relocation issue, 27% of respondents replied,
"It should be the central government's decision to go forward,"

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far less than the 63% who answered, "It should be premised on the
agreement of local communities." Even among LDP supporters, a
majority urged that local agreement take precedent. Based on age
brackets, the poll found this trend quite strong among young
people in their 20s.

8) Koizumi OK's slight changes, if feasible, to Futenma
relocation plan

ASAHI (Page 1) (Abridged)
March 22, 2006

Prime Minister Koizumi yesterday met at his office with Defense
Agency Director General Nukaga to talk about the planned
realignment of US forces in Japan. During the meeting, Koizumi
indicated that he would accept modifications, if feasible, to the
government's plan to relocate the heliport functions of the US
Marine Corps' Futenma Air Station in the city of Ginowan, Okinawa
Prefecture, to a coastal area across the cape of Henoko in the
island prefecture's northern coastal city of Nago. Koizumi was
negative about retouching the relocation plan but is now deemed
to be flexible. Meanwhile, Nukaga met with Nago Mayor Yoshikazu
Shimabukuro in Tokyo yesterday evening and told the mayor that
the government would be ready to modify the plan if possible.
Nukaga and Shimabukuro agreed to work out an alternative idea
this week.

In the meeting, Koizumi and Nukaga discussed how to coordinate
with Nago City and Okinawa Prefecture. They confirmed three
points: 1) the government, based on its plan, will proceed with
local coordination; 2) the government will not rule out the
possibility of modifying the plan; and 3) there must be a
feasible plan. Koizumi has given his ruling Liberal Democratic
Party and Nukaga a free hand to coordinate with local authorities
within the scope of these three preconditions, officials said.

9) Futenma relocation: Government to make slight changes to
coastal plan; Nago City appreciates changes; Government, Nago
Mayo to meet again today

MAINICHI (Page 1) (Excerpts)
March 22, 2006

Prime Minister Junichiro Koizumi yesterday met with Defense
Agency Director-General Fukushiro Nukaga at his official
residence and on the planned relocation of the US military's
Futenma Air Station to the coastal line of Camp Schwab as agreed
on by Japan and the United States, he decided to accept slight
changes to the relocation plan, for instance, constructing the
planned runway at a site slightly closer to the ocean side, in an
effort to obtain local understanding. Koizumi also confirmed his
determination not to accept a shallow water plan as called for by
Nago City, Okinawa Prefecture, thus refusing to add a drastic
change to the present relocation plan. Late yesterday, Nukaga met
with Nago Mayor Yoshikazu Shimabukuro at a Tokyo hotel and
conveyed this government policy to the mayor. Shimabukuro again
made it clear he would oppose the coastal plan, but appreciated
an addition of slight changes to the plan and agreed to hold
talks again with the JDA today.

10) Government agrees to minor changes to Futenma plan, but local
communities continue uncompromising position

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TOKYO SHIMBUN (Page 2) (Full)
March 22, 2006

The government decided yesterday to make minor changes to its
plan to relocate US Marine Corps' Futenma Air Station in Ginowan,
Okinawa Prefecture, to a coastal area of Camp Schwab in Nago. The
proposal would include a change in the location and angle of the
planned runway. By indicating a compromising stance, the
government aims to win the cooperation of local communities
affected by the relocation.

The Nago municipal and Okinawa prefectural governments, though,
have stood fast on their position opposed to the government's
plan. It is likely to take time to obtain understanding from
them.

The central and local governments have been at loggerheads over a
relocation site. The Nago municipal government is calling for
relocating the air station to waters off Camp Schwab in hopes of
reducing noise and producing economic effects. Meanwhile, the
central government would like to push through with the coastal
plan. Keeping in mind the experience in which a plan to relocate
the air station to waters off Henoko district in Nago was
deadlocked due to protest activities, the government is willing
to construct the alternative facility in the US camp, which is
closed to all unauthorized people.

The US has asked Japan to start construction work at an early
date on its responsibility. Although the government is aiming to
move negotiations with local governments forward by making
concessions, the light at the end of the tunnel is not in sight,
with wide discrepancies in their positions.

11) Futenma relocation: Talks between Nukaga and Shimabukuro fail
to find common ground on coastal plan; Talks to continue

NIHON KEIZAI (Page 2) (Excerpts)
March 22, 2006

Defense Agency Director-General Fukushiro Nukaga held talks last
night for about two and a half hours with Nago Mayor Yoshikazu
Shimabukuro over the planned relocation of the US Marine Corps'
Futenma Air Station in Ginowan, Okinawa Prefecture. Nukaga urged
the Nago mayor to accept the plan to relocate the air station to
the coastline of Camp Schwab, as agreed upon between Japan and
the United States. But Shimabukuro insisted on moving the
airfield out to sea. The two failed to reach an agreement.
Shimabukuro will continue holding talks with the Defense Agency
today.

After his talks with the Nago mayor last night, the defense chief
said to reporters:

"We have decided to come up with a certain direction before the
end of this week. We have established a point of contact, and
that carries significance. I believe the mayor is determined not
to allow talks to break down. However, views between the
government and Mayor Shimabukuro are still wide apart."

Shimabukuro also noted: "The talks did not go anywhere. I
explained the scope of what Nago would allow."

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Prior to his talks with Shimabukuro, Nukaga met with Prime
Minister Junichiro Koizumi at his official residence, and the two
confirmed a policy direction of proceeding with local
coordination basically in line with the Camp Schwab coastal plan.
After his talks with Koizumi, Nukaga left some room for changes
to the plan by saying to the press, "It's not that the government
will not budge an inch."

With his talks with Shimabukuro later in the day in mind, Nukaga
obviously used an expression a bit different from the
government's previous position of not revising the plan. Around
that time in Naha, Shimabukuro held talks with Okinawa Gov.
Keiichi Inamine, and the two agreed to reject LDP policy chief
Hidenao Nakagawa's proposal to make minor changes to the Camp
Schwab plan.

Difficult coordination with local municipalities has given rise
to new plans in the Foreign Ministry and the ruling coalition to
make some changes, such as altering the direction of the planned
runway. But the Defense Agency is dismissive of making any
changes. Even though Japan and the US reached an agreement in
1996 to relocate Futenma Air Station, the government was never
able to begin an environmental assessment, a prerequisite for
relocation work. Learning bitter lessons from it, the agency
fears that minor changes would elicit additional changes and the
matter would eventually get out of hand.

12) How will "minor changes" be made in the Futenma relocation
plan? Will there be change in the angle of the runway? Or will
there be a major shift toward the ocean side?

SANKEI (Page 2) (Excerpts)
March 22, 2006

With only 10 days left until the end of March deadline for
conclusion of the final agreement on the relocation of US forces
in Japan, the government has turned sharply and will now allow a
revision of the plan to relocate the US Marines' Futenma Air
Station (Ginowan City, Okinawa Prefecture). The Defense Agency
(JDA),too, which has been adamant about sticking to the Camp
Schwab coastal plan (Nago City),has ended its resistance to
revising the plan, faced with pressure from all sides. But even
though the word "revision" has been uttered, difficulties are
expected in the efforts to bridge the gulf between the
government, that want a land-based plan, and the local community,
that wants an ocean-based plan.

Surprise

"That statement came as a surprise to me," a government source
who favors accepting a revision in the plan admitted, referring
to the remark made by Liberal Democratic Party (LDP) Policy
Research Council Chairman Hidenao Nakagawa. He was referring to
this statement by Nakagawa on a news program on March 19: "I
can't say that there won't be any (revision). Efforts to some
degree are conceivable during coordination with local
governments." For the government's side to hear the subject
broached of revising the coastal plan was like a thunderbolt out
of the sky.

Three days earlier, the government agreed in a meeting of cabinet

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ministers connected to USFJ realignment to consider the
possibility of a revision based on the wishes of Nago City. With
Nakagawa's statement as the trigger, the government and ruling
camp have speeded up their work on a revision.

But the gap between the central and local governments is huge,
with the government only willing to make "minor revisions" in the
plan.

13) US military to disperse flight training missions to 6
mainland bases from Kadena, other bases

OKINAWA (Page 2) (Abridged)
March 22, 2006

The Defense Facilities Administration Agency yesterday briefed
local government officials on the ongoing intergovernmental
consultations between Japan and the United States on the planned
realignment of US forces in Japan. In yesterday's briefing, the
DFAA told local authorities that the government would make
efforts to disperse US military aircraft's flight training
missions from Kadena airbase in Okinawa Prefecture and other
bases to six mainland bases this fall and afterward and to other
mainland bases in the future. The government has set a ceiling to
the number of days for bilateral joint training exercises at
each, and the US military conducts flight training within the
limits of each base's ceiling. However, the DFAA told them that
the government would like to remove the current ceiling of
flights.

According to the DFAA's account, the government will propose
dispersing US fighter jets' training from three US bases at
Kadena, Misawa in Aomori Prefecture, and Iwakuni in Yamaguchi
Prefecture to five Air Self-Defense Force bases at Chitose in
Hokkaido, Hyakuri in Ibaraki Prefecture, Komatsu in Ishikawa
Prefecture, Tsuiki in Fukuoka Prefecture, and Nyutabaru in
Miyazaki Prefecture, and also to Misawa.

The US military will start some flight training missions in the
fall of 2006 and then full-fledged training in fiscal 2007. The
DFAA also revealed that the Japanese and US governments have
agreed to make efforts for the availability of other Self-Defense
Forces bases.

14) Japan to propose loan-based funding for Marine relocation to
Guam

ASAHI (Page 2) (Abridged)
March 22, 2006

Japan will loan money to the United States in order to share the
cost of moving US Marines from Okinawa to Guam in the realignment
of US forces in Japan, according to the government's determined
course of action. This loan-based funding formula is mainly
intended to cover housing construction in Guam. Senior officials
from the Japanese and US governments will meet tomorrow in Tokyo
to hold realignment talks on a two-day schedule. On that
occasion, the Japanese government would like to propose such loan-
based funding. The government deems it easy to obtain public
understanding for this loan-based cost sharing since it can
constrain Japan's fiscal burden. However, the United States has
asked Japan to shoulder housing and other infrastructural costs.

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It is unclear if the two countries can concur.

The Japanese government plans to cover housing for US Marines and
their family dependents. Its affiliated banking institution first
invests in a US business for housing construction and management.
The US government pays back to the Japanese government on an
accrued repayment basis from its coffers, including rents to be
paid by US Marines. This system is called public-private
partnership or PPP for short.

15) Government to extend MSDF's Indian Ocean mission for six
months; GSDF troops to leave Iraq first

TOKYO SHIMBUN (Page 1) (Excerpts)
March 21, 2006

The government began coordination yesterday to extend the basic
deployment plan to allow Maritime Self-Defense Force (MSDF)
personnel to continue refueling foreign vessels in the Indian
Ocean beyond May 1 in accordance with the Antiterrorism Special
Measures Law. The government intends to extend the deadline for
six months until November 1.

The basic deployment plan was been extended every six months. The
government was planning to withdraw MSDF troops without renewing
the deployment plan in accordance with Prime Minister Junichiro
Koizumi's intention to withdraw all SDF troops from overseas in
May or later.

But now that Ground Self-Defense Force troops may begin leaving
Iraq as early April, a cautious view has surfaced about
terminating the MSDF's mission at around the same time. As a
result, the government has decided to extend the MSDF's mission
in the Indian Ocean, which has won a good reputation from other
countries, and withdraw GSDF troops from Iraq first.

16) US increasingly irritated with Japan's prolonged ban on US
beef imports; Beef issue may become trade issue; Prospect of
resuming beef imports not in sight due to Japan's cautiousness

YOMIURI (Page 11) (Excerpts)
March 22, 2006

By Tatsuya Watanabe

Japan reinstated its ban on US beef imports in January after
backbones were found in US beef shipments to Japan. The dispute
between the United States and Japan is deepening, as the US is
urging Japan to reopen its beef market quickly while Japan
remains cautious. Concerns are emerging that if this issue is
prolonged, it could turn a serious trade dispute.

The US reply released on March 20 by the Ministry of Agriculture,
Forestry, and Fisheries (MAFF) and the Health Ministry indicates
that the reason why bones were mixed in beef shipments to Japan
was that "the inspector was unaware that the plant was an
authorized facility for beef exports to Japan." The US in its
reply insists "that is not something that shows weakness in the
US export system," noting that the plant in question has been
decertified and the inspector in question is receiving training.

But on the same day, Administrative Vice Agriculture Minister

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Ishihara indicated a cautious position about reopening the beef
market to the US, saying: "We need to provide consumers with
various levels of information in order to secure transparency.
It's important to respond carefully to the matter. It's
inadequate to deal with the issue based on a political decision."
He said he plans to hold a meeting of Japanese and US experts in
Japan and listen to details of the matter from them.

The discovery of bones in beef shipments to Hong Kong after Japan
has also made Japan distrustful of the US export system. Many in
the ruling parties have come around to the view of Liberal
Democratic Party lawmakers affiliated with farm organizations
that the US is to blame and that Japan should closely probe the
matter. Japan's ban on US beef imports is likely to be prolonged.

The US is increasingly irritated with Japan's response. In a
meeting on March 18 with Foreign Minister Aso, US Secretary of
State Rice expressed strong discontent, arguing: "Isn't Japan
going too far?" US Ambassador to Japan Thomas Schieffer also
pointed out in a speech that if the ban on US beef imports
becomes protracted, it is possible that the US Congress will run
out of patience and that the issue will turn into a trade war."
As shown in the use of the provocative term "trade war" to shake
Japan, the US is apparently shifting to a hard-line stance.

17) Japan, US remain divided over issue of US beef shipment
containing banned materials; Washington pressuring Japan to
quickly resume imports

TOKYO SHIMBUN (Page 9) (Excerpts)
March 21, 2006

The US government yesterday unveiled its written replies to
Japan's questions about the incident in which vertebral columns,
a banned material due to the risk of BSE, were found in a US beef
shipment to Japan. The US replies reiterated its view that the
incident was a "unique case." While asserting there was no
problem in the inspection system itself, Washington is ratcheting
up its pressure on Japan to reopen its market to US beef at an
early date. Reflecting the gap between their positions, both
sides now expect to face stormy negotiations.

Tokyo in its questionnaire asked Washington to uncover the cause
of the incident in detail, noting: "Problems at each stage should
be sorted out in a comprehensive way and examined in detail." But
the US in its replies noted: "The US has already singled out
problems and taken appropriate preventive measures." Citing the
reason that the responsible inspector did not know about the
export conditions, the US report spelled out measures to
thoroughly train inspectors.

The US government plans to dispatch experts to Japan this week to
explain the measures it plans to take to prevent a recurrence of
a similar incident in an effort to urge Japan to resume US beef
imports.

18) Johanns: USDA has responded "swiftly and thoroughly" to
Japan's beef questions

MAINICHI (Page 10) (Full)
March 22, 2006


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Jun Kimura, Washington

Commenting on the replies the US has made to Japan's questions
about the issue of a specified risk material found in a US beef
shipment to Japan, Agriculture Secretary Mike Johanns
emphatically stated on March 20: "We responded to Japan's
questions as swiftly and thoroughly as possible." Speaking before
reporters in Washington, he added: "I hope Japan will resume US
beef imports at an early date."

The agriculture secretary said, "The incident was a unique case,"
reiterating his view that there was no problem in the US
inspection system. He added: "I would like to discuss the next
step with Japanese officials. If necessary, we will dispatch an
expert team to Japan overnight." He thus expressed his desire to
move the process of Japan's resumption of US beef imports
forward.

Johanns also emphasized the need for Japan's early resumption of
imports in order to prevent calls for sanctions against Japan
from growing stronger, saying: "Dissatisfaction in the US
Congress is intensifying. The situation might become
unpredictable."

19) Meeting of JCP and SDP top leaders to occur for first time in
28 years to prevent constitutional amendments

YOMIURI (Page 4) (Excerpts)
March 22, 2006

Japanese Communist Party (JCP) Central Committee Chairperson
Kazuo Shii and Social Democratic Party (SDP) head Fukushima will
hold talks tonight. Fukushima accepted Shii's request for a
meeting. Shii aims to forge a coalition with the SDP to prevent
constitutional reform. The leaders of the two parties will meet
for the first time in 28 years since one was held in 1978 between
JCP head Kenji Miyamoto and then Japan Socialist Party Chairman
Kazuo Asuka.

Shii and Fukushima will exchange views over dinner at a Tokyo
restaurant on measures to deal with a national referendum bill
that would set procedures for amending the Constitution. Senior
members of the two parties will join the session.

The two parties have been unable to mount joint efforts in the
Diet ever since the then Japan Socialist Party set a policy
course in 1980 of excluding the JCP and forming a coalition
government with the New Komeito. In 1999, they worked as together
to oppose the Japan-US defense cooperation guideline bills, but
their leaders never met.

The reason for the two parties having planned the meeting is
because the Liberal Democratic Party (LDP),New Komeito and the
largest opposition party Minshuto (Democratic Party of Japan)
have formulated their own proposals for constitutional reform and
are working on ironing out differences of opinions within their
parties. The three parties hold more than two-thirds of the seats
in the Diet seats -- and thus have the required number for
proposing constitutional amendments. The JCP and SDP, therefore,
have no choice but to cooperate with each other in a bid to
oppose constitutional reform.


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20) Chief Cabinet Secretary Abe rebuts Foreign Minister Aso: "I
talk about economic issues almost every day"

YOMIURI (Page 4) (Full)
March 21, 2006

Foreign Minister Taro Aso told reporters in Sydney, "I have never
seen Mr. Abe talk about his economic policy." At a regular press
conference on March 20, Chief Cabinet Secretary Shinzo Abe took
issue with Aso's remark, arguing,

"Since I'm the government spokesman, I'm not in a position to
talk about my personal economic policy. But I talk about the
government's economic policy almost twice a day (at press
briefings). What I state is the road that the Koizumi government
should take on economic policy."

21) Former Minshuto head Okada meets with Taiwan President Chen

TOKYO SHIMBUN (Page 22) (Full)
March 22, 2006

Katsuya Okada, former president of the main opposition party
Minshuto (Democratic Party of Japan),now visiting Taiwan, met on
March 21 with Taiwan's President Chen Shui-bian for about one
hour at the Presidential Office in Taipei. The pair exchanged
views on Taiwan-Japan relations among other issues.

During the meeting, Okada revealed anew his party's position of
supporting the 1972 Japan-China joint statement. He also stressed
that his party strongly opposes China's use of force against
Taiwan but it does not support Taiwan's independence.

According to Okada, Chen told him that Taiwan would need to
enhance its defense capability, since China has stepped up
pressure on Taiwan through an increasing number of missiles. He
also said to Okada that he would do his utmost to protect Taiwan
during his term of office, which has about two years remaining.

22) METI to present to CEFP real growth target of more than 2%

NIHON KEIZAI (Page 3) (Full)
March 22,2006

The Ministry of Economy, Trade, and Industry (METI) has decided
to include in a new economic growth strategy, which it will
shortly present to the Council on Economic and Fiscal Policy
(CEFP),an economic growth target of more than 2% in real terms.
METI plans to include a projection that even if the nation's
population drops, it is possible to raise growth potential
through technological advances, streamlining in the services
sector, and the effective use of information and technology (IT).

The target METI will present is for a real growth rate in 2015.
METI Minister Toshihiro Nikai will present it at a CEFP meeting
on March 29. Government officials remain at odds over the future
growth rate, a prior condition for charting the course of fiscal
reconstruction. Internal Affairs and Communications Minister
Heizo Takenaka has called for setting a nominal growth target of
4% -5% by adding price increases of about 2% to a real growth
rate of about 2%. On the other hand, State Minister for Economic
and Fiscal Policy Hajime Yosano has indicated a slightly lower

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growth rate of about 3%, premised on real growth well above the
1% level.

METI has also constructed a third scenario in which if necessary
measures are taken, the real growth rate will top all
projections. In drafting the third scenario, METI assumed
strengthened development of human resources, including the use of
older engineers, as well as technological innovation and improved
productivity through the use of IT.

SCHIEFFER