Identifier
Created
Classification
Origin
06TOKYO1598
2006-03-28 00:48:00
UNCLASSIFIED
Embassy Tokyo
Cable title:  

JAPANESE MORNING PRESS HIGHLIGHTS 03/28/06

Tags:  OIIP KMDR KPAO PGOV PINR ECON ELAB JA 
pdf how-to read a cable
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RUAYJAA/COMPATWING ONE KAMI SEYA JA
RUEHNH/AMCONSUL NAHA 7971
RUEHFK/AMCONSUL FUKUOKA 5335
RUEHOK/AMCONSUL OSAKA KOBE 8486
RUEHNAG/AMCONSUL NAGOYA 5347
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RUCNDT/USMISSION USUN NEW YORK 9480
UNCLAS SECTION 01 OF 11 TOKYO 001598 

SIPDIS

SIPDIS

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

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

SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 03/28/06


Index:
UNCLAS SECTION 01 OF 11 TOKYO 001598

SIPDIS

SIPDIS

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

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

SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 03/28/06


Index:

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

4) Government plans 76.5 billion yen ODA loan to Iraq to build
infrastructure

5) Russia's President Putin to visiting former prime minister
Mori: "Regrettable we still don't have a peace treaty"

Prime Minister Koizumi meets the press:
6) Koizumi stresses end of deflation by September in press
conference
7) Text of Koizumi's comments in press conference on economy,
LDP election, Iraq, and Yasukuni Shrine issue

Defense and security issues:
8) Obituary: Once key player on Futenma relocation issue,
former Nago City mayor Kishimoto dies
9) Where will the government and Nago City come down finally in
talks on shifting location of Futenma alternate facility?
10) Unlikely that final agreement on USFJ realignment can be
reached by end of month, likely to slip to April or later
11) US, Japan to meet on March 30-31 on final coordination on
Marine relocation cost sharing
12) Kyodo poll finds majority of Japanese negative about Japan
bearing cost of moving Marines from Okinawa to Guam
13) US bases to refuse transit or refuge to Japanese civilians
under Tokyo, Okinawa emergency plans
14) Joint unified command over three self-defense forces
designed to respond flexibly to terrorist attacks, disasters

Economic agenda:
15) Poll shows public now favors social welfare over boosting
economy as priority policy area
16) Family assets dropped 11% in five years survey shows,
further proof of expanding income disparity in Japan

17) Minshuto has lost its momentum as opposition force since e-

mail fiasco

18) Movement to restart US beef trade as US, Japanese experts
meet in Tokyo

Articles:

1) TOP HEADLINES

Asahi, Mainichi, Yomiuri, Sankei & Tokyo Shimbun:
Death sentence for Aum Shinrikyo founder Asahara likely to become
final as high court dismisses appeal

Nihon Keizai:
Sapporo, other firms to change articles of association ahead of
legal change

2) EDITORIALS

Asahi:
(1) Basic rules needed for disconnecting life support

TOKYO 00001598 002 OF 011


(2) LDP likely to dominate debate on policy in the second half
of the Diet session

Mainichi:
(1) Introduction of pluthermal program dependent on zero
accidents
(2) The social divide: Will next prime minister be chosen from
among LDP lawmakers?

Yomiuri:
(1) Pluthermal power the way of the future
(2) Legal improvements necessary for disconnecting life support

Nihon Keizai:
(1) Death sentence for Asahara likely to be finalized without
further appeal
(2) Nuclear fuel cycle must be pushed forward

Sankei:
(1) Heavy responsibility lies on Aum Shinrikyo founder Asahara's
attorneys
(2) We praise Saga Prefecture's foresight on pluthermal power

Tokyo Shimbun:
(1) Consumption tax hike: Government should show many choices
(2) Consent needed for disconnecting life support

3) Prime Minister's Official Residence (Kantei)

Prime Minister's schedule, March 27

NIHON KEIZAI (Page 2) (Full)
March 28, 2006

08:02
Met with Deputy Chief Cabinet Secretary Suzuki at the Prime
Minister's Official Residence (Kantei).

09:00
Upper House Budget Committee meeting.

11:58
Arrived at the Kantei.

13:00
Upper House Budget Committee meeting.

15:47
Handed a party endorsement certificate to a person expected to
run in the Lower House Chiba Constituency No. 7 by-election. Then
attended an executive meeting.

16:06
Arrived at the Kantei.

16:41
Upper House plenary session.

17:29
Met with LDP Secretary General Takebe. Then visited Upper House
President Ogi and Vice President Tsunoda, and senor officials of
the ruing parties to report the passage of the budget bill.

TOKYO 00001598 003 OF 011



18:30
Press conference at the Kantei. Then met with former Executive
Council Chairman Ozato.

19:32
Dined with Chairman Sata and ruling party-member directors of the
Lower House Steering Committee at Chinese restaurant at Hotel
Okura. Chief Cabinet Secretary Abe and Deputy Chief Cabinet
Secretary Nagase were present.

SIPDIS

21:10
Arrived at the official residence.

4) Government to offer 76.5 billion yen in yen loans to Iraq for
irrigation, power plants, port improvement projects

YOMIURI (Page 1) (Full)
March 28, 2006

The government decided yesterday to provide Iraq with 76.5
billion yen (approximately 655 million dollars) for irrigation,
power plants, and port improvement projects in the near future.
The money will be disbursed from the 3.5 billion dollars in yen
loans set aside by the government for Iraq. Foreign Minister Aso
will announce the decision today. With an eye on a withdrawal of
Ground Self-Defense Force (GSDF) troops from Iraq, Japan will
reveal its intention to continue to help reconstructing Iraq even
after their withdrawal. Japan suspended yen loans to Iraq in

1985. It will resume the assistance for the first time in 20
years.

The yen loans will finance projects to construct irrigation
facilities and power plants across Iraq, as well as to improve
ports in the southern part of the nation. The Iraqi side has
asked Japan to provide this kind of assistance, citing the
serious lack of cultivated land and water due to successive wars
there.

The Japanese and Iraqi governments are expected to sign an
agreement for the yen-loan projects after a permanent Iraqi
government is inaugurated, and the projects are likely to be
implemented in or after May.

The Japanese government announced at the fall 2003 international
conference on Iraq reconstruction to offer 3.5 billion dollars
worth of loans and 1.5 billion dollars worth of grant aid. Almost
all the grant money has already been used, but the 3.5 billion
dollars in loans has been left untouched due to delays in
reducing the debt Iraq owes Japan.

5) "It is regrettable that there is no peace treaty with Japan,"
says Russian president in talks with former Prime Minister Mori

NIHON KEIZAI (Page 2) (Full)
March 28, 2006

Members of the Japan-Russia Eminent Persons Conference, including
former Prime Minister Yoshiro Mori are now visiting Russia. They
met with President Putin at the annex to the President's Office
at noon yesterday (evening of the same day, Japan time). During
the meeting, the president underscored, "It is regrettable that

TOKYO 00001598 004 OF 011


there is no peace treaty between the two countries. The only
means to settle this situation would be (to settle the Northern
Territories issue),based on criteria set under international
law, national interests of the two countries and the building of
trust and friendship." He thus indicated his intention to
continue efforts to settle the Northern Territories issue.

During the meeting of the Eminent Persons Conference, Putin
visited the annex and extended a greeting for several minutes:
"Russia is aiming to settle every issue with Japan. I hope we can
find solutions that are acceptable to our two countries."

6) Prime Minister Koizumi voices hopes of getting economy out of
deflation by September, expects successor to keep reform policy
on track

NIHON KEIZAI (Page 1) (Full)
March 28, 2006

Prime Minister Junichiro Koizumi expressed his determination to
work hard to get the economy out of deflation by September, when
his term of office as Liberal Democratic Party president expires.
The prime minister said in a press conference last night after
the government's budget for fiscal 2006 cleared at the House of
Councillors' plenary session:

"I would like to bring the economy onto a solid recovery track
and get it out of deflation as soon as possible. I am determined
to do my best to fulfill my official responsibilities as prime
minister until my tenure in office expires in September."

In reference to his successor, Koizumi said: "I hope a successor
will put on a stable track the reform drive that the Koizumi
cabinet has carried out in cooperation with the ruling parties."
On the question of whether to withdraw Self-Defense Force troops
stationed in Iraq, he just said: "We are not in the stage of
speaking of the timing of their withdrawal for now."

Asked if he would make another visit to Yasukuni Shrine before he
steps down, the prime minister replied: "I will make a proper
judgment." Regarding the Chinese and South Korean governments'
criticism of him, the prime minister commented: "It is still hard
to understand. These are the only two countries that continue to
cut off summit talks because of antagonism over the issue."

Now that the budget has passed the Diet, the focus of
deliberations will be shifted to such key legislation as a bill
amending the Basic Education Law, those related to promoting
administrative reform, and a national referendum bill governing
procedures for constitutional revision. Struggle among potential
post-Koizumi candidates is also likely to intensify now.

7) Main points from Prime Minister Koizumi's press conference
March 27

YOMIURI (Page 4) (Full)
March 28, 2006

Economic management

I would like to get the economy out of deflation as soon as
possible by consolidating the economic recovery.

TOKYO 00001598 005 OF 011



LDP presidential election

I want my successor to push ahead with the reform drive by
following the path paved by the Koizumi cabinet. It is said that
being a leader requires three qualities: a sense of mission,
insight, and passion. I hope that armed with those qualities, my
successor will deal with matters appropriately.

Iraq

A rocky path lies ahead of the Iraqi people's effort to establish
their own stable and democratic government. It is too early to
mention when Japan will withdraw the (Ground) Self-Defense Force
troops.

Visits to Yasukuni Shrine

I will make an appropriate decision on my visit to Yasukuni
Shrine (during my tenure in office). I cannot understand the
Chinese and South Korean governments' criticism of my visits to
Yasukuni Shrine. It would make no sense for any country not to
hold summit talks because of a single issue (paying homage at
Yasukuni Shrine). Progressive Japanese people, intelligent
people, and critics all say, "Japan-China relations have gone
awry because of visits to Yasukuni Shrine." Is this correct? If
Japan does as China says, does that mean progress in Japan's
policy toward Asia? The answer is no. We must develop relations
with China and South Korea regardless of clashes of opinions over
a matter or two.

8) Former Nago Mayor Kishimoto, who accepted relocation of
Futenma Air Station, dies

YOMIURI (Page 39) (Full)
March 28, 2006

Tateo Kishimoto, former mayor of Nago City, Okinawa Prefecture,
died at 6:50 p.m. yesterday. He was 62 years old. His home is at
256-1, Umosa, Nago City. The schedule for the funeral service and
the location of the funeral have yet to be decided. In 1999,
Kishimoto declared his intention to accept the plan to relocate
the US Marine Corps Futenma Air Station in Ginowan City to a
place offshore from Henoko in Nago City. But in the interim
report on the realignment of US forces in Japan released last
October, the relocation site was changed to the coastal area of
Camp Schwab. Kishimoto had been opposed to that change.

In December 1997, when Kishimoto served as deputy mayor, then
Mayor Tetsuya Higa announced he would accept the relocation plan
for the Futenma airfield and resigned from the post. As his
successor, Kishimoto ran in the mayoral election and won his
first election. In December 1999, he formally declared he would
accept the relocation plan.

In February 2002, he won reelection, but in May 2004, he was
hospitalized and underwent an operation. He never recovered from
his illness. This past January, he abandoned plans to run again.

9) Futenma relocation flight paths: What is the settlement line?
Government intends to try to get away with minor changes, while
Nago wants to see flight paths moved to ocean side of residential

TOKYO 00001598 006 OF 011


area

YOMIURI (Page 4) (Full)
March 28, 2006

Defense Agency Director General Fukushiro Nukaga is scheduled to
hold another round of talks later this week with Nago Mayor
Yoshikazu Shimabukuro in order to settle quickly the question of
relocating the US Marine Corps' Futenma Air Station in Okinawa
Prefecture to the coastline of Camp Schwab in the prefecture.
However, with views between the central government and Nago
remaining wide apart over making changes to the alternate
facility's flight paths, whether Nukaga and Shimabukuro can find
common ground remains unclear.

Around yesterday noon, Nago Vice Mayor Bunshin Suematsu briefed
the Henoko, Toyohara, and Kushi district mayors on the minor
changes proposed by the central government. As a result, they
agreed to oppose them at present.

Shimabukuro held talks yesterday afternoon with Gov. Keiichi
Inamine and briefed him on his talks on March 25-26 with Nukaga.
Shimabukuro is reportedly asked Nukaga to move (the flight paths)
to the ocean side of the residential area in accordance with the
Nago's call to move the government's plan 450 meters further out
to sea. The government proposed, among other things, turning the
direction of the runway about 10 degrees counter-clockwise. It
would be difficult to set the flight paths on the ocean side of
the Abu district.

Meanwhile, Vice Defense Minister Takemasa Moriya in a press
conference yesterday expressed displeasure with Nago, saying:
"According to government surveys, there is a valuable marine
habitat there for the dugongs. But local people said, 'There is
no marine habitat,' and 'We haven't seen dugongs here for
decades.'"

Former Nago Mayor Tateo Kishimoto passed away yesterday evening.
He was opposed to the government plan. Nukaga and Shimabukuro
initially planned to meet tomorrow, but they decided to postpone
it. A Defense Agency official said, "With the death of Kishimoto,
the overall timetable for talks may be delayed."

10) Final agreement between Japan and US on USFJ realignment to
slip to next month or later

NIHON KEIZAI (Page 2) (Full)
March 28, 2006

Following the death of former Nago Mayor Tateo Kishimoto, the
planned March 29 talks between Defense Agency Director General
Fukushiro Nukaga and incumbent Nago Mayor Yoshikazu Shimabukuro
will likely be put off, government officials revealed yesterday.

Chances are now strong that a final agreement between Japan and
the United States on the relocation of the US Marine Corps
Futenma Air Station will be delayed to April or later although
the two countries initially planned for the end of March if the
talks between the central government and Nago City are postponed.

11) Japan-US talks reset for Mar. 30-31 over USJF realignment


TOKYO 00001598 007 OF 011


MAINICHI (Page 2) (Abridged)
March 28, 2006

Japan and the United States will hold another round of talks in
Washington on March 30-31 over issues regarding the realignment
of US forces in Japan, with senior officials for foreign and
defense affairs attending. The Japanese and US governments have
already agreed to wind up the realignment talks in late March and
are expected to enter into the final phase of coordination over
pending issues, such as Japan's share of the cost of moving US
Marines from Okinawa to Guam. With the talks scheduled ahead, the
Japanese government is now coordinating with the municipal
government of Nago City, Okinawa Prefecture, on the issue of
relocating the US Marine Corps' Futenma Air Station. Tokyo wants
to reach an agreement with Nago before the talks. Tokyo,
Washington, and Nago will be in the climax of negotiations this
week over the US military realignment.

12) Kyodo News poll on relocation of US Marines: 51% reluctant
about cost-sharing, with over 40% in favor of

TOKYO SHIMBUN (Page 2) (Excerpts)
March 28, 2006

Kyodo News Services conducted a nationwide telephone opinion poll
on March 25-26 concerning the ongoing talks between the Japanese
and US governments on the realignment of US forces in Japan, now
in the final stage. On the focal question of whether Japan should
share the cost of relocation of US Marines in Okinawa to Guam,
the poll found that a total of 51.3% of the respondents were
reluctant, including those who said, "Japan should not pay the
cost at all" and those who said, "Japan should not pay much of
the cost."

Yet, the poll revealed that with a total of 45.3% being positive
about cost sharing, the public is divided over the issue.

Those who said, "I support the Koizumi cabinet," came to 50.4%,
the figure being almost the same as 51.8% of the previous survey
conducted in February. Those who said, "I don't support it,"
reached 41.0%, up 3.8 points.

On the developments of the talks on the US force realignment,
local municipalities, including Okinawa Prefecture and Iwakuni
City in Yamaguchi Prefecture, are raising strong objections to
the realignment plans. In response to the question asking what
the Japanese government should do to reach a final agreement,
those who said, "Japan should make efforts to reach a conclusion,
giving consideration to both (the United States and local
residents),accounted for the largest percentage of 56.6%,
greatly topping 35.5% of the respondents who said, "Japan should
give priority to local wishes," and 5.7% of the respondents who
said, "Japan should give priority to agreement with the US."

The US government has estimated the relocation cost at a total of
10 billion dollars, or approximately 1.18 trillion yen. It has
asked the Japanese government to pay 75% of the cost. When asked
about this cost-sharing, 2.4% of the respondents said, "Japan
should pay as large a share of the cost as possible," and 42.9%
said, "Japan should pay the cost to some extent." On the other
hand, 37.0% said, "Japan should not have too large a share of the
cost," and 14.3% said, "Japan should not pay anything at all."

TOKYO 00001598 008 OF 011


13) US bases in Tokyo, Okinawa to give no right of way for
emergency evacuation

MAINICHI (Page 2) (Abridged)
March 28, 2006

The United States is refusing to give the right of way through
the premises of its military bases in Tokyo and Okinawa for base-
neighboring local communities' evacuation of their residents in
the event of armed attacks against Japan and other emergencies,
sources revealed. The Tokyo metropolitan and Okinawa prefectural
governments had incorporated such emergency evacuation in their
respective initial civilian protection plans. The central
government will cross it out in its plan to be adopted in a
cabinet meeting on March 31. The United States, according to the
sources, has cited crisis management as a primary reason for its
disagreement. However, the US Air Force's Yokota base in Tokyo
covers an area of 714 hectares and stretches over five cities and
a town. In Okinawa, US military bases occupy about 10% of its
land area. The two local governments are at a loss, with one of
their officials saying, "We can't facilitate local evacuation
during emergencies because their bases stand in our way." Other
municipalities hosting US bases have similar trouble, according
to the sources. The problem will likely involve many more base-
hosting localities.

The Okinawa prefectural government had planned to take necessary
measures, including on-base traffic and evacuation, because a
large number of local residents live in areas situated between US
military bases and the sea and they may be isolated. The Tokyo
Metropolitan government had also incorporated similar measures in
order to evacuate Yokota base neighbors during emergencies.

According to Cabinet Secretariat and other government officials,
the Foreign Ministry and other relevant government offices held
consultations with the US Embassy and US forces. However, the US
side refused the Japanese proposal for security reasons, saying
it will be impossible to tell terrorists from the general public
on base. The Tokyo metropolitan and Okinawa prefectural
governments therefore decided to delete these on-base traffic and
evacuation measures from their respective plans. However, both
Tokyo and Okinawa will continue their requests to the US side.

14) SDF starts integrated operations

SANKEI (Page 2) (Abridged)
March 28, 2006

The Self-Defense Forces yesterday integrated the operations of
its land, sea, and air branches for rapid deployment in the event
of terrorism, disasters, and various other contingencies. The
Joint Staff Council (JSC),which has liaised with the Ground,
Maritime, and Air Self-Defense Forces (GSDF, MSDF, and ASDF),has
now been reorganized into the Joint Staff Office (JSO). JSC
Chairman Lt. Gen. Hajime Massaki has become the first JSO chief.

The GSDF, MSDF, and ASDF, which used to assist the Defense Agency
director general through their respective chiefs of staff, will
launch joint task forces in order to deal more effectively and
rapidly with missile defense (MD),major earthquakes,
international emergency relief, and various other situations. The
JSO chief will now assist the defense chief and command the three

TOKYO 00001598 009 OF 011


SDF services.

The SDF's operational integration is based on a July 2005
amendment to the Defense Agency Establishment Law. The three SDF
services could not team up and liaise well at the time of the
Great Hanshin Earthquake in 1995. In addition, the SDF needed to
have an integrated point of contact with US Forces Japan. The
GSDF, MSDF, and ASDF chiefs of staff, who have respectively led
the three SDF services, will be held responsible for education,
training, defense buildup, and other managerial functions. The
three top brass officers, remaining aides-de-camp to the defense
chief, will be in charge of rear-echelon logistics in the event a
joint task force is organized.

15) Poll: Economic measures gradually down among priority issues
for Koizumi cabinet

NIHON KEIZAI (Page 5) (Full)
March 28, 2006

The Nihon Keizai Shimbun conducted a public opinion survey on
March 24-26, in which respondents were asked to pick one or more
policy issues they want the Koizumi cabinet to pursue on a
priority basis. In response to this question, social security,
such as pensions and welfare services, topped all other issues at
55%, followed by economic measures at 26%, educational reform at
23%, tax reform at 22%, fiscal reconstruction at 21%, and
employment measures at 21%.

In the survey, the proportion of those who picked social security
leveled off from a survey conducted in December last year, with
that of those picking economic measures down 3 percentage points.
Economic measures topped all other issues over 60% for a while
after the Koizumi cabinet came into office in the spring of 2001.
With the nation's economy recovering, however, economic measures
have declined in public precedence.

The general public is also taking a bullish outlook for the
economy. In the survey, respondents were asked if they thought
the nation's economy would improve. In response, "yes" accounted
for 24%, up 4 points from last December's survey.

The survey was taken by Nikkei Research Inc. over the telephone
on a random digit dialing (RDD) basis. For the survey, samples
were chosen from among males and females, aged 20 and over,
across the nation. A total of 1,488 households with one or more
voters were sampled, and answers were obtained from 846 persons
(56.9%).

16) Household assets decrease 11% over five years, according to
survey by Internal Affairs Ministry

TINUYRU (Page 2) (Full)
March 28, 2006

The Internal Affairs and Communications Ministry yesterday
released the results of the fact-finding survey on national
consumption the ministry conducts every five years. The total
amount of assets held by one household as of the end of November
2004 was 39 million yen on average, down 11.1% from the previous
survey (1999). The decline in land prices has brought down
residential land equity, which accounts for 56% of all household

TOKYO 00001598 010 OF 011


assets, by 18.6% and home equity by 2.3%. Financial assets grew
6.1% due to increased savings reflecting the recent economic
recovery.

Classifying all households into 10 groups according to annual
income, the ministry found that the average amount of all assets
held by those in the highest-income group, with an average annual
income of 16.68 million yen, was 81,61 million yen. Families in
the lowest-income group, with an average annual income of 2.12
million yen, possessed 24.34 million yen in assets on average,
making the differential in assets between the groups 440%. The
asset differential between the rich and the poor was 600% in
1989, when the survey was started. The gap was 440% in 1994, and
410% in 1999, showing a tendency to narrow, but it widened in the
latest survey for the first time.

17) With feeling of despair due to e-mail uproar, Minshuto unable
to go on the offensive

NIHON KEIZAI (Page 2) (Full)
March 28, 2006

The Diet approved yesterday the budget for fiscal 2007. The main
opposition party Minshuto (Democratic Party of Japan) has,
however, found it hard to recover from the e-mail fiasco.
Minshuto is smothered in a strong sense of helplessness because
the party failed to put an end to the e-mail issue even though
the party had come up with its own draft proposals regarding
decentralization and reform of the public servant system to
counter the government's administrative reform promotion
legislation.

Citing administrative reform and medical system reform bills as
important issues in the second half of the ongoing Diet session,
party head Seiji Maehara told reporters, stressing that his party
would "maintain a policy line of presenting counter proposals."

Minshuto has formulated its own plans: one is a "decentralization
vision" under which the state's responsibilities would be split
into eight areas, including foreign policy and market monitoring;
and the other is a public servant system reform plan calling for
slashing the national public servants' personnel costs by more
than 20% over three years. The party intends to adopt the
proposals in a meeting of the "Next Cabinet" as early as March

29. It wants to make them as a pillar of its administrative
counterproposals.

Regarding the e-mail issue, however, it has been decided to
summon the middleman, who provided the copy of a false e-mail to
Minshuto lawmaker Hisayasu Nagata, to testify as a witness before
a House of Representatives Committee on Discipline session on
April 4. Many in the largest opposition party have called on
lawmaker Nagata, who caused the uproar by bringing up the false e-
mail issue at the Diet, to quit his Diet seat. Mizuho Fukushima,
who heads the small opposition party Social Democratic Party,
criticized Minshuto, saying, "It is regrettable that the largest
opposition party has weakened its pursuit (of the government and
the ruling coalition)."

Lower House Disciplinary Committee confirms Diet testimony of
Nishizawa


TOKYO 00001598 011 OF 011


The Lower House Committee on Discipline reconfirmed yesterday
that it would summon Takashi Nishizawa, who allegedly provided
Nagata with the copy of the faked e-mail suggesting Livedoor Co.
founder Takafumi Horie had transferred money to a son of Liberal
Democratic Party Secretary General Tsutomu Takebe, to testify
before its session on April 4. Committee Chairman Tetsundo
Iwakuni told reporters, "If he took Mr. Nagata for a ride to make
him raise the e-mail at the Diet, his action would be an act of
terrorism."

With this regards, Nishizawa's attorney stated at a press
conference yesterday, "I wonder testifying a private person at
the Diet is appropriate." He stopped short of saying, "He will
explain before too long" about the circumstance he provided the e-
mail to Nagata.

18) Japan, US beef experts to meet today; Moves to resume imports
likely to appear

ASAHI (Page 11) (Excerpts)
March 28, 2006

Experts of the Japanese and US governments will meet in Tokyo
today and tomorrow to discuss ways to deal with the US beef
import ban by Japan. Some kind of move to reinstate beef trade
will likely appear during the meeting.

A number of senior US government officials have made statements
urging an early resumption of US beef imports since mid-
March?prompted by the decision by the Hong Kong Special
Administrative Region (SAR),which was unveiled on the 13th.

Beef bones, a material banned in Hong Kong as a mad cow disease
risk, were found in a US beef shipment, but the Hong Kong SAR
imposed an embargo only on beef from the leading meat packer that
shipped the products in question. A Japanese agriculture ministry
source pointed out, "Hong Kong's judgment that only the company
that shipped the products in question should be subject to the
import ban heightened US discontent with Tokyo, which is
continuing a total import ban."

It took two full years to lift the previous embargo, which was
imposed in December 2003. Many government officials see that the
reason why the embargo became protracted was that the Food Safety
Commission, which has as members many experts who are skeptical
about the US food safety control system, discussed conditions for
resuming US beef imports.

SCHIEFFER