JAPANESE MORNING PRESS HIGHLIGHTS 04/03/06

UNCLAS SECTION 01 OF 10 TOKYO 001749

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SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 04/03/06


Index:

1) Top headlines
2) Editorials
Prime Minister's weekend, daily schedule: None

Opinion poll:
3) Koizumi cabinet's support rate levels off at 48%, DPJ at
12%, lowest ever, in Mainichi poll
4) Mainichi poll shows Abe tops at 36%, Fukuda at 18% in post-
Koizumi race
5) DPJ President Maehara criticized for belated decision to
quit over email fiasco: Yomiuri poll
6) Ozawa, Kan rank top for DPJ presidency in Kyodo poll
7) Ozawa tops at 25% for DPJ head, Kan at 17% in Mainichi poll

Political issues & foreign relations:
8) Ozawa willing to run in DPJ presidential election
9) Abe, Aso rap China leader for remarks over Prime Minister
Koizumi's Yasukuni visit

Defense issues:
10) Japan mulls rescheduling GSDF pullout for this fall or later
11) Tokyo considers bilateral ties with US
12) US, Japan to resume talks tomorrow over US Marine relocation
to Guam
13) Local coordination over Futenma relocation likely to be
protracted

Trade issues:
14) Japan to pay 130 billion yen for ITER project
15) Japan, China enter into customs agreement to bust fake brand-
name products
16) Toyota plans to sell over 10 million cars around world,
targeting US, China markets

Articles:

1) TOP HEADLINES

Asahi:
Starting in June, commissioned private firms to take photos of
automobiles left on street even for short period of time to
reduce illegal parking

Mainichi:
Focusing on growing disparity behind uniform social system (Part
3 - Section 1): Miyauchi of Administrative Reform Council
Deregulation Panel eager to implement deregulation

Yomiuri:
1,078 corporations provided jobs to retired bureaucrats in fiscal
2004, costing the country 6 trillion yen

Nihon Keizai:
KDDI, Tokyo Electric Power Co. reach agreement to merge their
optical communication businesses to become claim fourth largest
share

Sankei
Minshuto presidential race: Ozawa eager to run for presidency
with eye on Kan

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Tokyo Shimbun:
Kyodo poll on Minshuto's new leader: Ozawa, Kan neck and neck;
75% think Maehara's resignation too late

2) EDITORIALS

Asahi:
(1) Killing of 9-year-old at condo in Kawasaki: Security cameras
not enough
(2) "One Seg" digital TV broadcasting for cell phones: Growth of
industry requires tough orders

Mainichi:
(1) Chinese President Hu's statement: How will prime ministerial
candidates respond to it?
(2) Bid-rigging-oriented corporate Japan contributing to growing
social disparity

Yomiuri:
(1) Splitting the bill for reorganizing US forces
(2) "One Seg" services should become national

Nihon Keizai:
(1) Transparency essential in nuclear cycle

Sankei:
(1) Territorial descriptions in high school textbooks
commendable
(2) Organ Transplant Law must be revised quickly

Tokyo Shimbun:
(1) Basic Environment Law: Give thought to ways to maintain
prosperity
(2) High school textbooks: Insight essential

3) Poll: Minshuto support rate drops 8 points to record low of
12%; Cabinet approval rating remains unchanged at 48%

MAINICHI (Page 2) (Full)
April 3, 2006

Public support for the Koizumi cabinet remained unchanged from
the previous survey in February at 48%, according to a nationwide
poll conducted by the Mainichi Shimbun on April 1-2. Those who
said they disapprove of the cabinet decreased 4 points to 36%.

Broken down by party, 33% said they supported the Liberal
Democratic Party (LDP),up 2 points, while only 12% supported the
Democratic Party of Japan. This figure is down 8 points and is
the lowest ever level since it was merged with Jiyuto (Liberal
Party) in September 2003. The poll underscored the seriousness of
the email fiasco involving the largest opposition party.

Of those who rated the Koizumi cabinet favorably, 41%, down 5
points, offered the reason for their support that "the nature of
politics may change." Other reasons included: "The prime minister
is from the LDP," up 6 points. Meanwhile, 46% said they
disapproved of the cabinet because "economic recovery has been
delayed," up 17 points from the previous poll. Those who
supported no specific party increased 7 points to 43%.


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4) Poll: Abe top public choice for next prime minister at 36%,
followed by Fukuda with 18%

MAINICHI (Page 1) (Excerpts)
April 3, 2006

Chief Cabinet Secretary Shinzo Abe came in first with 36% in a
nationwide (telephone) survey by the Mainichi Shimbun on April 1-
2 on who should be the next prime minister from among six Liberal
Democratic Party members, followed by former Chief Cabinet
Secretary Yasuo Fukuda with 18%. Compared with the previous

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survey in January, the difference in support for the two top
candidates significantly narrowed from 28 points to 18 points.
Foreign Minister Taro Aso and Finance Minister Sadakazu Tanigaki
came in a distance third and fourth with 3% and 1%, respectively.

In the previous survey, which included Democratic Party of Japan
lawmakers as potential candidates, 38 favored Abe, while 10%
picked Fukuda.

5) Poll: 69% say announcement of resignation by Minshuto head
Maehara too late; Ozawa most favored to succeed Maehara, followed
by Kan

YOMIURI (Page 1) (Full)
April 2006

Following the announcement by Minshuto (Democratic Party of
Japan) President Seiji Maehara that he would resign from his
post, Yomiuri Shimbun conducted a nationwide opinion poll on
April 1-2. According to the results of the poll, 38% of the
respondents said Maehara's resignation was only natural, while
41% said he had no choice but to quit his post. As a result,
nearly 80% of the respondents said that they accepted his
resignation as reasonable. Of the 80%, 69% said that Maehara's
decision came too late. Only 15% said that he did not need to
step down.

The survey showed that 24% said that Ichiro Ozawa, former vice
president of the party, was the best choice among nine
heavyweight Minshuto members to succeed Maehara, followed by
Naoto Kan, former president, with 19%, Secretary General Yukio
Hatoyama with 10%, and Diet Affairs Committee Chairman Kozo
Watanabe with 6%. Among Minshuto supporters, 32% supported Ozawa,
while 27% favored Kan.

According to the poll, 66% said that it was only natural for
House of Representatives member Hisayasu Nagata to resign, and
25% said that he had no choice but to do so. More than 90% said
that his resignation was acceptable. Only 6% said he did not need
to give up his Diet seat. Nagata brought up the fake e-mail in
the Diet.

Forty-nine% said that the way Minshuto handled the scandal was
unacceptable, compared to 40% who approved of the party's
handling of the matter. The figures indicate that most people do
not believe Minshuto has sufficiently explained who made the
fabricated e-mail and why it was produced. Fifty-four percent of
Minshuto supporters said that they could not accept the party's
handling of the fiasco.

Asked whether Minshuto had the capability of assuming the

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political reins, 67% said it did not, compared with 22% who
deemed it capable.

The approval rate for the cabinet of Prime Minister Junichiro
Koizumi gained two percentage points from the previous month's
survey to 56.8%, while its disapproval rate was 34.3%.

6) Kyodo poll: Ozawa, Kan have almost equal public support to be
Minshuto president; 75% say resignations came too late

TOKYO SHIMBUN (Top Play) (Excerpts)
April 3, 2006

Minshuto (Democratic Party of Japan) President Seiji Maehara and
other top party executives have announced they will resign en
masse over the fake email fiasco that suggested that the son of
Liberal Democratic Party (LDP) Secretary General Tsutomu Takebe
received money illicitly from Takafumi Horie, the founder of
Internet firm Livedoor Co., who is now under arrest. Following
the announcement of the mass resignation, Kyodo conducted a
nationwide telephone survey on April 1-2 to seek public opinion
about who should assume the main opposition party Minshuto
(Democratic Party of Japan) presidency. The results of the poll
showed that Ichiro Ozawa, former vice president of the party, and
Naoto Kan, former party head, had almost equal public support as
next party president, Ozawa with support from 22.1% from the
respondents and Kan with 21.1%. As to the timing of the
resignation of the current executives, 75.8% said it came too
late, compared to 16.8% who felt the timing was appropriate,
while 58.9% said it was natural for the party leadership to step
down. Those who responded to the poll expressed their harsh
perspectives on Maehara and other top executives.

Regarding the resignation of House of Representative member
Hisayasu Nagata, who brought up the false email in the Diet,
76.6% said it was to be expected, while 7.5% said it was not
necessary for Nagata to resign.

The approval rate for the Koizumi cabinet rose 4.1 percentage
points from the survey in late March to 54.5%, while the
disapproval rate declined 5.4 points to 35.6%.

The poll also found that Yukio Hatoyama came in third place with
13.5%, followed by Katsuya Okada, former DPJ president, with 6.1%
and Takashi Kawamura with 4.1%. Ozawa had 34.5% support from
Minshuto supporters, with Kan at 28.5%.

The results showed the Liberal Democratic Party with 43.3%
support, up 2.4 points from the previous survey, Minshuto with
16.9% support, a 2.3-point drop, the New Komeito up 1.4 points to
4.5%, the Japanese Communist party up 1.1 points to 4.3%, the
Social Democratic Party down 0.6 point to 2.2%, New Party Nippon
down 0.1 point to 0.4%, People's New Party up 0.1 point to 0.3%,
and 26.5%, up 7.0 points, who supported no particular party.

7) Poll: Ozawa favored as new Minshuto head by 25% of public,
followed by Kan with 17% support

MAINICHI (Page 1) (Excerpts)
April 3, 2006

Asked who they would prefer to be the next Democratic Party of

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Japan (Minshuto) head among six party members prior to the party
presidential election on April 7, 25% picked former party Vice
President Ichiro Ozawa, followed by former President Naoto Kan.
To a question asking if Minshuto today has the ability to hold
the reins of government, 69% said "no," while only 21% said
"yes," highlighting growing public distrust in the opposition
party in the wake of the falsified email imbroglio, which led to
the resignation of party President Seiji Maehara.

Besides Ozawa and Kan, Secretary General Yukio Hatoyama was
picked by 9%, followed by former President Katsuya Okada with 7%,
Diet Affairs Committee Chairman Kozo Watanabe with 4%, and
Constitution Committee Chairman Yukio Edano with 2%. The poll,
however, found that the largest number of respondents, 26%, said,
"There is no appropriate candidate among the six," thus
underscoring a shortage of human resources in the party.

8) Ozawa eager to head Minshuto, while watching moves by Kan

SANKEI (Top Play) (Excerpts)
April 3, 2006

Ichiro Ozawa, former vice president of the Democratic Party of
Japan (Minshuto),yesterday expressed his eagerness to run for
the party presidential election. But Ozawa is expected to stop
short of referring to his candidacy during a press conference
today, though he will stress the importance of building a unified
party. He intends to carefully watch moves by former party
President Naoto Kan, who is also viewed as a likely candidate,
but some party members offer negative views about selecting the
party president through talks. In the run-up to the voting on
April 7, a tug-of-war will intensify starting today.

Appearing on the Fuji TV program Hodo 2001 yesterday (recorded on
March 31),Ozawa indicated his eagerness to run in the
presidential race, saying: "I will do my best, regardless of
whether I am running at the top or at the bottom." He also said:
"Minshuto is still an incomplete political party, but I would
like the people to understand that the party may be able to
dethrone the government. In this sense, I am willing to devote
myself to changing the party."

9) Abe, Aso criticize Chinese President Hu's recent remark,
arguing, "It's strange to use the Yasukuni issue as a
precondition for holding a summit meeting"

ASAHI (Page 1) (Full)
April 3, 2006

Chief Cabinet Secretary Abe and Foreign Minister Aso yesterday
appeared on TV talk shows and expressed critical views of Chinese
President Hu Jintao's recent remark that he would agree to a
summit when the Japanese leader stops visiting Yasukuni Shrine.
Hu's remark implies that in his foreign policy toward Japan in
the years ahead, he will take into account whether the successor
to Prime Minister Koizumi will visit Yasukuni Shrine. Abe and
Aso, both viewed as major contenders for the prime minister's
position, expressed displeasure with the Chinese president's
remark.

Appearing on a TV Asahi talk show and other programs, Abe
criticized China's policy: "It's a wrong policy to use the option

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of not holding a summit meeting as a precondition for achieving a
political goal. . . . Under such a policy, if other issues
involving the two nations emerged, China could say, 'We can't
hold a summit meeting.' I wonder if it is a good thing to
sacrifice our political and economic assertions to hold a summit
meeting," Abe stressed and added, "Various matters could happen
in the political area, so I think it is necessary to establish
rules to prevent them from affecting (economic ties)."

In responding to the question of whether he will visit Yasukuni
Shrine if he becomes prime minister, Abe went no further than to
say: "I have no intention to make a Yasukuni visit a political
slogan. This issue should be eliminated from the diplomatic
agenda." When asked, "Have you decided not to visit the shrine?"
Abe replied: "No. Of course not. I think it is wise not to
declare everything. Talking about Yasukuni Shrine could trigger a
diplomatic issue and hurt our national interests."

Aso also appeared on TV programs yesterday, such as a Fuji-TV
talk show. Referring to Hu's remark, Aso said, "If there is need
for the top leaders to meet, it is important for them to do so,"
indicating that refraining from visiting Yasukuni Shrine should
not be made a precondition for holding a summit meeting. He went
on, "Stopping (a shrine visit) would only make the issue even
more complicated. Given that the prime minister is the
representative of the nation, a stronger call (for stopping the
shrine visit from other nations) would simply make the situation
even more difficult."

Speaking of the question of separate enshrinement of Class-A war
criminals, Aso pointed out, "As a religious corporation, Yasukuni
Shrine asserts that separate enshrinement is impossible. The
government is not constitutionally allowed to intervene in the
business of a religious corporation."

10) Government reconsidering timetable for SDF withdrawal from
Iraq, likely to be fall or later due to delay in launching new
Iraqi administration

NIHON KEIZAI (Page 1) (Excerpts)
April 3, 2006

The government yesterday began taking a second look at a
timetable for starting the withdrawal of Ground Self-Defense
Force (GSDF) personnel helping with Iraq reconstruction in
Samawah with this fall or later in mind. The government had
originally planned to pull out GSDF troops in two stages between
April and June. However, the launching of a permanent Iraqi
government, the premise for the decision on a pullout, has been
delayed substantially. Some take the view that it would be
difficult to pull out GSDF personnel at an early stage when
Australian troops, which are assigned to guard GSDF troops, and
US troops, the key component of the multinational forces, are
still in Iraq.

Commenting on procedures for a GSDF pullout, Foreign Minister
Taro Aso on a TV Asahi talk show noted that there would be a time
lag between the decision and the timetable for actually pulling
out GSDF troops. He said that there would be a possibility of the
decision being made by September, when Prime Minister Junichiro
Koizumi's tenure as the president of the Liberal Democratic Party
(LDP) expires, but that the actual withdrawal of GSDF troops

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might not take place before the fall or later. This was the first
time for any cabinet minister to mention that a timeline for a
GSDF withdrawal could be in the fall or later.

11) Option of withdrawing GSDF from Iraq not until fall or later
surfaces out of consideration for Japan-US relations

NIHON KEIZAI (Page 2) (Full)
April 3, 2006

Commentary

The government has begun considering postponing the withdrawal of
Ground Self-Defense troops from Iraq until this fall or later out
of consideration for the United States, which is still deeply
committed to Iraq militarily. Japan-US relations have been
delicate due to Japan's reinstatement of a ban on US beef imports
in connection with BSE and the realignment of US forces in Japan.
Tokyo obviously does not want to increase factors that would rock
relations with the US.

Foreign Minister Taro Aso is scheduled to visit the US later this
month to discuss the question of withdrawing the GSDF with
Secretary of State Condoleezza Rice. He is also scheduled to hold

SIPDIS
talks with British Foreign Secretary Jack Straw during his visit
to Japan in May. Prime Minister Junichiro Koizumi is also
expected to visit the US in late June to hold talks with
President Bush. The view is spreading in the Japanese government
that a withdrawal from Iraq before the planned Koizumi-Bush talks
would be difficult. Aso also indicated difficulty in making moves
in the summer heat. All those views seem to explain why the
option of postponing the withdrawal until the fall or later has
surfaced.

12) Japan produces Guam relocation housing plan allowing Japanese
firms to build and mange housing and US military to lease land
for 50 years; Coordination to start with senior-working-level
talks tomorrow

NIHON KEIZAI (Page 2) (Abridged slightly)
April 3, 2006

The Japanese government outlined yesterday a housing plan for the
relocation of US Marine Corps from Okinawa to Guam, the focal
point in the realignment of US forces in Japan. The plan is
designed to: (1) allow the Japan Bank for International
Cooperation (JBIC) to finance the project to let Japanese
corporations construct and manage housing in Guam; (2) let the US
military lease land to Japanese corporations for 50 years; and
(3) allow Japanese firms to collect rent from US military
families occupying the housing. The government envisages 2.55
billion dollars from the JBIC for the housing project.

The government's Guam housing plan is aimed at constraining its
outlays from the general-account budget. The United States has
estimated the Guam relocation cost at 10 billion dollars. Of
this, Washington has repeatedly asked Tokyo to pay 7.5 billion
dollars. If Tokyo accepts Washington's request, Japan's direct
fiscal outlays would swell to 900 billion yen.

At the senior-working-level meeting of Japanese and US diplomatic
and defense officials to be held in Washington for three days

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from April 4, Japan will present the US with its Guam housing
plan to seek Washington's understanding. Japan also intends to
ask for a detailed US explanation of its estimate and tell the US
that Japan cannot accept the total cost and Japan's share asked
by the US.

The JBIC is not allowed to invest in or extend loans to Japanese
corporations, as the JBIC Law is basically applicable to projects
for aid to developing countries. The government is planning to
submit a US force realignment promotion bill to the current Diet
session spelling out legal grounds for revising the JBIC Law. The
JBIC and Japanese corporations will jointly provide security for
financing the project and against the event of the US military
closing its base in Guam.

Japanese corporations are examining Japanese housing makers and
other firms. They will elicit investment from private financial
institutions, as well. The envisaged system is designed to allow
US military personnel and their families to use their housing
allowances for rent and Japanese firms to use rent paid to
improve and maintain the housing. Japan intends to utilize the
JBIC to cover a little over 3 billion dollars for building
infrastructure, such as housing for the Marines and their
families, power generation, and water-supply facilities.

13) Futenma relocation: Local coordination likely to be
protracted

MAINICHI (Page 2) (Abridged)
April 3, 2006

The government and the city of Nago, Okinawa Prefecture, have now
foregone a meeting scheduled to take place early this week
between Defense Agency Director General Fukushiro Nukaga and Nago
Mayor Yoshikazu Shimabukuro over the pending issue of relocating
the US Marine Corps' Futenma Air Station to a coastal area of
Camp Schwab in Nago. Their coordination over the Futenma
relocation will now likely be protracted. Meanwhile, Japan and
the United States are to hold an intergovernmental meeting of
senior officials in Washington on April 4-6 to talk about the
realignment of US forces in Japan. The government is working on
Nago City to resume coordination at an early date while being
poised to release a final report with the US government even
without Nago's consent to the government's relocation plan.

Nukaga yesterday visited Nago City, where he attended a funeral
service for the late former Nago Mayor Tateo Kishimoto. Nukaga
there asked Shimabukuro to resume talks early this week. The
mayor, however, did not agree. "It's our understanding that we
will be in touch with each other this week to coordinate," Nukaga
told reporters at Naha Airport yesterday evening. However, the
mayor told reporters that he would like to uphold the city's
standpoint in his talks with the government. There is no knowing
if the mayor will respond to the defense chief's proposal to meet
this week.

14) Government-level talks on share of construction, operational
expenses for ITER; Japan to pay 130 billion yen

ASAHI (Page 2) (Full)
April 2, 2006


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A vice-ministerial meeting of seven countries that will take part
in the International Thermonuclear Experimental Reactor (ITER)
project, including Japan, the US, and the EU, took place on April
1 in Tokyo. The meeting reached an agreement on each country's
share of construction and operational expenses for the reactor.
The agreement will go into effect possibly before the end of the
current fiscal year after being ratified by the participating
countries. Construction will then start.

It was agreed on at the meeting that Japan, the US, the EU,
Russia, South Korea, China, and India would bear the costs of the
project as follows: The EU will bear 45.5% of the construction
expenses (approximately 570 billion yen),and the rest of the
countries will defray the remaining amount with each absorbing
9.1%. Operational expenses are expected to total approximately
600 billion yen over a 20-year period. The share of the EU for
this spending item is 34%, followed by Japan and the US with 13%
and the rest of the countries with 10% each. Japan's share will
total approximately 130 billion yen.

15) Japan signs customs agreement with China: Prevention of
smuggling of fake brand-name products eyed

TOKYO SHIMBUN (Page 3) (Full)
April 3, 2006

The Mutual Customs Assistance Agreement to enable Japanese and
Chinese customs officials to exchange information for the
prevention of smuggling went into effect yesterday. The aim of
the accord is to prevent the rapidly increasing smuggling of fake
brand-name products, illegal drugs, and firearms. The governments
of the two countries yesterday concluded the accord yesterday in
Beijing.

Under the accord, Tokyo and Beijing will mutually provide
information on smugglers and methods they employ so as to
strengthen border controls. They will also cooperate to simplify
customs procedures for smoother trade.

In 2004, Japanese customs halted imports of 9,143 items that
infringed on intellectual property rights, up 23% from the
preceding year.

16) Toyota Motors plans to sell 10.4 million vehicles in 2010,
increase of 3 million units mainly in US, China

TOKYO SHIMBUN (Page 1) (Full)
April 3, 2006

It was learned yesterday that Toyota Motors plans annual sales of
10.4 million vehicles on the global market in 2010. Toyota would
be the first company among automakers in the world to break the
10 million level. Backed by its upbeat overseas business, the
company will aim to boost sales by approximately 3 million units
over the next five years with a focus on North America, its main
market, and China, whose robust economy is growing rapidly.

If the plan is realized, Toyota's share in the global market will
rise from the current 11% or so to around 15% over the next five
years. The Toyota Group, including Hino Motors and Daihatsu
Motors, aims to obtain a share of 15% by 2010. The plan takes
that into account.

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By region, Toyota aims to sell around 3.3 million units in North
America, up about 800,000 units. With this, its sales will top
the 3 million level for the first time as a foreign automaker,
excluding the US Big Three. Chances are that it might overtake
Ford Motors, which now ranks second in the North American market.

Toyota's plan for the Chinese market is to sell 1 million units,
about five times the present level. It will also aim to boost
sales in Europe and Asia, excluding Asia, by around 200,000 -
500,000 units.

As growth in sales in the Japanese market are projected to remain
low, Toyota intends to accelerate overseas operations in such
countries as the US and China.

Toyota has estimated that its sales in 2010 would reach around 73
million, based on the projection that the auto market as a whole
would grow 2% a year over the next five years. Anticipating that
demand for hybrid vehicles and fuel-efficient compact cars will
increase, the company, which sold 7.26 million vehicles in the
world in 2005, expects that growth in its sales will outdo growth
of the auto market.

DONOVAN