JAPANESE MORNING PRESS HIGHLIGHTS 04//06

UNCLAS SECTION 01 OF 10 TOKYO 001775

SIPDIS

SIPDIS

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TAGS: OIIP KMDR KPAO PGOV PINR ECON ELAB JA

SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 04//06


Index:

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

Defense issues:
4) JDA chief to meet with Nago mayor over Futenma relocation
5) JDA deputy chief urges Nago City to give answer at an early
date on Futenma relocation plan
6) Tokyo may call off coordination with Nago City over Futenma
relocation
7) Japan may postpone troop pullout to this fall or later: MOFA
official
8) NATO mulls expanding cooperation with Japan at US overtures
9) 71% want constitutional status for SDF in Yomiuri poll

Political merry-go-round in DPJ:
10) Ichiro Ozawa gets pole position in DPJ race
11) Ozawa gaining more support in DPJ for party post
12) - This time around, Naoto Kan looking for chance to come
back as DPJ head
13) New DPJ head's term up until the end of September

Foreign ties:
14) US concerned about Iraq's nuke program, Washington to ask
Tokyo to freeze Japan's Azadegan oil stake
15) Prime Minister Koizumi to visit Africa in May, aiming to
check China infiltration
16) North Korean security official, who is expert on Pyongyang's
US policy, to visit Japan
17) Visiting Polish foreign minister in meeting with Japanese
counterpart suggests need to continue arms embargo toward China

US beef:
18) Beef panel replaces half its members, including those
cautious about resuming Japan's US beef imports
19) Farm, health ministries to hold public hearings across the
nation on US beef

Articles:

1) TOP HEADLINES

Asahi:
90% of short track training camps used skating rink run by Japan
Skating Federation Director Kameoka between 1998 and 2004 at fee
30% higher than usual; Education, Culture, Sports, Science, and
Technology Ministry to launch investigation

Mainichi, Yomiuri, Sankei, and Tokyo Shimbun:
Minshuto presidential race: Support for Ozawa expanding; Kan also
searching for ways to run in race; Hatoyama, ex-socialist,
Yokomichi groups to throw support behind Ozawa

Nihon Keizai:
Financial Services Agency to cap ATM cash transfers at 100,000
yen next year to prevent money laundering

2) EDITORIALS

Asahi:

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(1) "Invasion" versus "advances": Discussions must be conducted
based on facts
(2) Postal businesses: Newly launched watchdog has heavy
responsibility

Mainichi:
(1) Logic behind postal services expansion strategy absurd
(2) Thoughts on social disparity: A society that produces few
winners is uninteresting

Yomiuri:
(1) Time is right to revise the Constitution
(2) New Japan Medical Association president elected: Distance
from LDP not only the issue

Nihon Keizai:
(1) Newly launched Postal Privatization Committee holds key to
success of postal privatization
(2) Prime Minister Thaksin's empty victory

Sankei:
(1) Minshuto presidential race: All-party discussion essential
(2) Heisei era grand mergers: Greater efficiency takes
innovative ideas

Tokyo Shimbun:
(1) Condominium security: Cooperation of residents essential to
eliminate blind spots
(2) Thai general election: Fresh start essential

3) Prime Minister's schedule, April 3

NIHON KEIZAI (Page 2) (Full)
April 4, 2006

08:02
Met at Kantei with Deputy Chief Cabinet Secretary Futahashi.
Issued written official appointment to Cabinet Intelligence
Director Mitani, attended by Deputy Chief Cabinet Secretaries
Nagase, Suzuki, and Futahashi.

09:00
Attended Lower House Administrative Special Committee session.

11:57
Returned to Kantei.

13:00
Attended Lower House Administrative Special Committee session.

17:03
Attended LDP executive meeting.

17:35
Issued at Kantei a written official appointment to Postal
Privatization Committee Chairman Tanaka, joined by Internal
Affairs Minister Takenaka.

18:20
Enjoyed opera at Suntory Hall along with women's gold medalist
figure skater Arakawa, Suntory President Saji and his wife, and
Sankei Shimbun President Sumita and his wife.

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21:39
Met Saji and his wife and Sumita and his wife at Tokyo ANA Hotel.

23:35
Returned to his official residence.

4) Defense chief to meet with Nago mayor

NIHON KEIZAI (Page 2) (Full)
April 4, 2006

Defense Agency Director General Fukushiro Nukaga will meet with
Nago Mayor Yoshikazu Shimabukuro this evening over the issue of
relocating the US Marine Corps' Futenma Air Station in the city
of Ginowan, Okinawa Prefecture, to a coastal area of Camp Schwab
in his city. In the meeting, Nukaga will ask for the mayor's
understanding on the coastal relocation plan. Meanwhile, Defense
Agency Administrative Deputy Director General Takemasa Moriya
said in a news conference yesterday that the Defense Agency had
sent a letter to the municipal government of Nago City in late
March, rejecting the city's proposal of substantial changes to
the coastal relocation plan. "There's no change in our request,"
Shimabukuro told reporters, stressing his intention to urge the
government go make concessions.

In the meantime, Japan and the United States will hold a three-
day session of intergovernmental working-level consultations in
Washington from today, with senior officials for foreign and
defense affairs attending. Their discussion will focus on the
issue of sharing the cost of relocating US Marines from Okinawa
to Guam. "It will be considerably difficult (this time)," Vice
Foreign Minister Shotaro Yachi told a news conference yesterday.
"If we can reach an agreement this month, that's good," he added.

5) Defense Agency urges Nago to provide early answer on Futenma
relocation plan

MAINICHI (Page 3) (Full)
April 4, 2006

The Defense Agency has now called on the city of Nago, Okinawa
Prefecture, to give an answer at an early date on the
government's modified plan to relocate the US Marine Corps'
Futenma Air Station to a coastal area on the premises of Camp
Schwab in Nago. "The government will not make any more
proposals," Defense Agency Administrative Deputy Director General
Takemasa Moriya told a press conference yesterday.

Meanwhile, Nago Mayor Yoshikazu Shimabukuro yesterday called for
the government to make still greater concessions. Moriya revealed
that the government documented an agreement to move the flight
paths of US military aircraft from the skies over the city's
residential areas when Nukaga and Shimabukuro met March 26.
Moriya said Nago City would consider the documented agreement.

6) Defense Agency may break off talks with Nago on Futenma
relocation; Senior official criticizes the city's stiffened
stance

SANKEI (Page 2) (Abridged)
April 4, 2006

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A senior Defense Agency official indicated yesterday that if
there was no progress, the government might discontinue revision
talks with Nago on a plan to relocate the US Marine Corps'
Futenma Air Station. The official thus criticized Nago's
stiffened stance toward the Defense Agency's proposal to make
minor changes, such as changing the angle of the planned runway.
The government may give up on obtaining local consent, a factor
specified in an interim report on the realignment of US forces in
Japan.

Since March 21, Defense Agency Director General Fukushiro Nukaga
and Nago Mayor Yoshikazu Shimabukuro have held a total of four
days of talks on making changes to the plan to relocate Futenma
Air Station to the coastline of Camp Schwab in Nago. They were
scheduled to meet again on March 29, but it was postponed due to
the death of former Nago Mayor Tateo Kishimoto.

Their next meeting has not been set. Shimabukuro indicated to
reporters yesterday that he would not respond to a call for talks
unless the Defense Agency presents further concessions, saying,
"(Talks) will be held if there are some changes to (the
government's plan)." Shimabukuro also reiterated his call to make
major changes and remove the site for an alternate facility to
the ocean side.

Administrative Vice Defense Minister Takemasa Moriya also in a
press conference yesterday explained developments in revision
talks and rebutted Shimabukuro's standpoint.

Nukaga and Shimabukuro sorted out basic policy in writing in
their March 26 meeting, including the following: (1) the Defense
Agency proposed paying attention to the safety of local
residents, environmental conservation, and feasibility based on
the government's plan; (2) Nago called for measures to remove the
flight paths from the Henoko, Toyohara, and Abu districts; and
(3) the two sides agreed to respect each other's views and reach
a conclusion swiftly.

In the talks with Nukaga, Shimabukuro reportedly refused to give
his consent on the spot with the Defense Agency's plan to make
minor changes to remove some municipalities from the flight paths
in mind, saying, "I'll have to consult with local communities if
I can put together Nago's views." Moriya indicated that Nago
should first present its view on the government's "slightly
modified plan," saying, "We will be waiting for a sincere reply."

A senior Defense Agency official criticized Shimabukuro's
response, saying, "The defense chief and the mayor stopped short
of reaching an agreement on removing some municipalities from the
flight paths. But the mayor later explained something different
to local communities. He spoke with a forked tongue." The
official also suggested that the government might discontinue
revision talks depending on how Shimabukuro reacts to the
government, saying, "If talks are protracted, we will have to
make a decision." However, if the government gives up on
obtaining local consent, Washington may become even more
distrustful of Tokyo.

7) Yachi: GSDF withdrawal may occur in fall or later

NIHON KEIZAI (Page 2) (Full)

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April 4, 2006

A few days ago, Foreign Minister Taro Aso indicated that Japan
might not withdraw Ground Self-Defense Force troops from southern
Iraqi city of Samawah until this fall or later. Touching on Aso's
comment, Vice Foreign Minister Shotaro Yachi said in a press
conference yesterday: "Theoretically, this is possible. I have an
impression that the timing has been slipping somewhat (from
originally planned)."

8) NATO willing to expand military ties with Japan in response to
US proposal

SANKEI (Page 2) (Excerpts)
April 4, 2006

Minoru Kageyama, London

The North Atlantic Treaty Organization (NATO) has been studying
the possibility of expanding its strategic relations with Japan
and other countries in response to a proposal made by the United
States, according to the April 3 edition of the British newspaper
Financial Times. NATO hopes to strengthen its ties with nonmember
countries in the Asia-Pacific region, including Japan, South
Korea, Australia, and New Zealand. Senior Foreign Vice Minister
Yasuhisa Shiozaki met with NATO Secretary General Jaap de Hoop
Scheffer when he visited Europe late last year. The two shared
the need to strengthen relations between Japan and NATO, but it
remains unknown what kind of cooperation is possible in the
military area.

According to a senior NATO official, the US has called on NATO to
strengthen its military ties with Japan and South Korea. NATO has
already established close military relations with Sweden,
Finland, Australia, and New Zealand, which have not joined NATO,
through their dispatch of troops to operations by the NATO-led
International Security Assistance Force (ISAF) in Afghanistan.

Some NATO officials take the view that it would be possible to
persuade Japan to accept the NATO offer if it proposes that Japan
transfer Self-Defense Force (SDF) troops now stationed in Iraq to
Afghanistan when they are reorganized, according to the
newspaper.

NATO has arranged to hold a summit meeting to discuss the
reorganization of its membership, but the Japanese Foreign
Ministry plans to make no specific approach, including a dispatch
of troops to Afghanistan.

9) Poll: 71% want Constitution to clarify SDF existence

YOMIURI (Page 1) (Excerpts)
April 4, 2006

The Yomiuri Shimbun conducted a nationwide opinion survey March
11-12. The survey showed that 56% said that the Constitution
should be amended, the ninth consecutive year that a majority of
pollees in similar surveys have favored revising the
Constitution. It also showed 71% said that the supreme law should
clarify the existence of the Self-Defense Forces. November will
mark the 60th anniversary of the promulgation of the
Constitution. The results of the poll have again brought to light

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public support for a new basic law responsive to changes in
society.

Regarding Article 9 of the Constitution, 39% - the fifth-
consecutive new high - said it should be revised because there
was a limit to interpreting the article and putting it into
practice. The survey showed that 33% said the article should be
handled as it has been so far, but 21% said it should be strictly
upheld and that its spirit should not be watered down through
changing interpretations.

Concerning the right to collective self-defense, 27% said the
Constitution should be amended to allow the country to exercise
the right, while 23% said interpretation of the Constitution
should be changed to allow for the right to be exercised. As a
result, 50 % favored exercising the right, while 44% said the
right should not be exercised.

Asked which constitutional issues they were interested in, 19% of
respondents named the war-renouncing article and the SDF, the top
for the fifth consecutive year, followed by the Emperor and the
imperial family with 31% and Prime Minister Koizumi's visits to
Yasukuni Shrine with 28%.

10) Minshuto (Democratic Party of Japan) presidential race: Tide
of opinion now favoring Ozawa, with few moves to back another
candidate

ASAHI (Page 1) (Full)
April 4, 2006

The main opposition party, Minshuto, will choose its new leader
on April 7. Ichiro Ozawa, former vice president of the party, is
gaining support from a large number of party members. The trend
toward supporting Ozawa is spreading to a conservative group and
a former socialist group in the party, while other groups in the
party are slow to put up an opponent candidate. Yesterday,
Secretary General Yukio Hatoyama in trying to build consensus in

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the party separately met with Ozawa and former party president
Naoto Kan.

Late yesterday, lawmakers supporting him, including former Vice
President Hiroshi Nakai, visited Ozawa at his office and urged
him, "If you decide to run for the race, we will do our utmost to
back you." Ozawa reportedly told them, "I appreciate your
encouragement."

Some 30 lawmakers close to Hatoyama gathered at his office
yesterday afternoon. Many of them lauded Ozawa for his strong
leadership, pointing out the fact that when he had been the head
of the former Liberal Party (Jiyuto),he decided to merge with
Minshuto and helped the party gain more seats. They agreed to
back Ozawa as a presidential candidate. The group of former
socialists, including Lower House Vice Speaker Takahiro
Yokomichi, also gathered at a restaurant in Tokyo. Many of them
were of the opinion that they should support Ozawa.

Meanwhile, Kan told the press corps after questioning at a Lower
House Administrative Reform Special Committee session yesterday:
"Even if I were to do a handstand, that would have no meaning
unless our party wins public confidence. The first thing to do is
to think about the party as a whole." When asked about Ozawa, Kan

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stated with some implications about coordination: "He has vast
experience and high support among the public. I think he is an
important person with whom I have to cooperate."

Kan and some 20 lawmakers close to him gathered in Tokyo
yesterday. According to House of Representatives member Satoshi
Arai, many insisted that Kan should run in the presidential race,
but after the meeting, Kan made only this remark to the
reporters: "I have yet to make a final decision at this point. I
will exchange views with many members of the party."

One leading lawmaker at this gathering indicated a positive
attitude about unifying candidates, but there is concern in the
party that if the new president were chosen by discussion, it
could be criticized as a rigged election.

Hatoyama met with Kan in the Diet building yesterday, and the two
shared the view that the new president should be chosen openly,
and that all lawmakers should join hands with whomever is chosen.
Late yesterday, Hatoyama also met with Ozawa. Ozawa told
Hatoyama: "There is a tendency to hate discussion itself, but
that is somewhat strange."

While trying to avoid criticism of closed-door discussion,
Hatoyama intends to pursue coordination in the party in trying to
build consensus on Ozawa and to ensure that no bad aftertaste
will be left after an election.

11) Minshuto presidential election: Ozawa winning greater
support, plans to meet Kan shortly

MAINICHI (Top Play) (Lead paragraph)
April 4, 2006

In the run-up to the presidential election scheduled for April 7,
full-scale coordination has begun within the Democratic Party of
Japan (Minshuto). Yesterday afternoon, Secretary General Yukio
Hatoyama met with former Vice President Ichiro Ozawa, former
President Naoto Kan, and others. Various groups in the party also
discussed yesterday what response they should make, and the
Hatoyama-led group decided to support Ozawa's bid for the party
presidency. As support for Ozawa increases within the party, Kan
in a meeting of lawmakers supporting him last night also made
remarks that could be taken as a willingness to support Ozawa's
bid, saying: "In order to unite the party, there is the
possibility that Mr. Ozawa and I will support each other." Ozawa
and Kan are expected to meet soon to confer on a final response.

12) Minshuto presidential race; Hatoyama group, former JSP
members to support Ozawa's bid, while Kan considers running

YOMIURI (Top Play) (Lead paragraph)
April 4, 2006

The Democratic Party of Japan (Minshuto) held a joint plenary
meeting of party members of both houses of the Diet yesterday and
formally decided to hold an election on April 7 to select a
successor to President Maehara. Former party President Naoto Kan
met with supporters last night and indicated that he would
consider running in the election. Meanwhile, former Vice
President Ichiro Ozawa expressed his willingness yesterday to
seek the top party post. In response, lawmakers from a group led

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by Secretary General Hatoyama and those who came from the former
Japan Socialist Party have decided to support Ozawa. The
presidential race may be a one-on-one fight between Ozawa and
Kan.

13) Minshuto sets expiration of term of office for new president
at end of September

ASAHI (Page 4) (Full)
April 4, 2006

In a joint plenary meeting of party members of both houses of the
Diet held at party headquarters yesterday, the Democratic Party
of Japan (Minshuto) decided on details concerning the election of
a successor to President Maehara. The party will hold the
election at a Tokyo hotel on April 7, and the term of office of
the new president will run through this September - the remainder
of Maehara's term.

14) US asks Japan to suspend Azadegan oil field development

YOMIURI (Page 2) (Full)
April 4, 2006

Takashi Sakamoto, Washington

The US administration has decided to ask the Japanese government
to immediately suspend Azadegan oil field development and to
implement financial sanctions on Iran without a UN resolution if
negotiations on sanctions against Iran at the United Nations
fail, a US State Department official told a Yomiuri Shimbun
correspondent.

The official revealed the view that Japan's indication of the
possibility of scrapping the contract on Azadegan oil development
would induce a concession from Iran, saying, "It will become a
tool to apply pressure on Iran to abandon nuclear weapons."
Washington will convey this policy to Tokyo before late June,
when Prime Minister Junichiro Koizumi visits the United States.

15) Prime Minister Koizumi to visit Africa during Golden Week
holidays in bid to check China

SANKEI (Page 5) (Excerpts)
April 4, 2006

Prime Minister Junichiro Koizumi will visit Ethiopia, Ghana, and
Sweden during the Golden Week holiday period. The purpose of
Koizumi's trip to Africa appears to be to check China, which has
actively developed Africa diplomacy in an attempt to secure
resources.

Koizumi will spend seven days for this overseas trip from April
29 through May 5. He is expected to hold talks with Ethiopian
government and African Union (AU) leaders at the AU headquarters
in Addis Ababa, the capital of Ethiopia. He intends to play up
Japan's stance of strengthening relations with African countries
and dealing with poverty and starvation. It will be the first
time for a Japanese prime minister to visit the AU headquarters.

Koizumi said, " I'm not looking for short-term success." He seems
to be seeking to check China, which has been making efforts to

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gain African support.

16) North Korean official for security affairs who took part in
Japan-DPRK talks to come to Japan at the invitation of a private
organization

ASAHI (Page 4) (Full)
April 4, 2006

North Korea's Foreign Ministry America Bureau Deputy Director
Jong Thae Yong, who was responsible for security talks in the
Japan-DPRK Comprehensive and Parallel Talks held in February,
will visit Japan in mid-April, several sources familiar with
Japan-DPRK relations revealed yesterday. At the invitation of a
private sector organization, Jong will visit Japan, and he is
reportedly expected to attend a security-affairs-related
conference. Jong is an expert on US affairs. He also took part in
the six-party talks dealing with the North Korean nuclear
programs.

17) "It is necessary to continue arms embargo against China,"
says Polish foreign minister

ASAHI (Page 4) (Full)
April 4, 2006

Foreign Minister Aso last evening met with his Polish counterpart
Meller at the Foreign Ministry's Iikura Guest House in Tokyo.
During the meeting, Aso expressed his concern about the EU
mulling the possibility of lifting the embargo on exports of
weapons to China: "China's military spending lacks transparency.
It is showing growth of more than 10%. I am against the idea of
lifting the arms embargo on China."

Meller indicated understanding for Japan's position, noting: "In
my view, the arms embargo should be maintained. At present, no EU
members are in favor of lifting the measure."

18) Half the members of Prion Expert Council responsible for
discussing BSE issue replaced: Members cautious on resuming US
beef imports rotate out

TOKYO SHIMBUN (Page 9) (Slightly abridged)
April 4, 2006

The Cabinet Office's Food Safety Commission (FSC) yesterday
announced the renomination of members of the Prion Expert Council
and the Agricultural Expert Council as of April 1. Six out of 12
members of the Prion Expert Council, which has pursued
discussions on domestic measures to prevent BSE infection and
conditions for resuming US beef imports, have been replaced.
Several members who had been cautious about a US beef import
resumption have stepped aside. There are 16 expert councils under
the FSC, and there is no fixed term of office for members. In
June 2004, the Cabinet Office decided to set the term of office.
Following this decision, 14 councils established the term of
council members and held elections on October 1 last year.

Tokyo Medical College Professor Kiyotoshi Kaneko, one of the six
members who quit, had been wary about a resumption of US beef
imports. He made this remark: "Some newly-elected members take a
cautious view on the issue. I believe they will fulfill their

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role. I found it hard to express views that are different from
the government's. I hope to see the consolidation of an
environment that respects such views."

19) Nationwide town-hall meetings to exchange views on US beef
import ban to start from Apr. 11

MAINICHI (Page 3) (Full)
April 4, 2006

The Ministry of Agriculture, Forestry, and Fisheries (MAFF) and
the Ministry of Health, Labor, and Welfare (MHLW) yesterday
announced a plan to hold town-hall meetings to exchange opinions
with consumers on the ban on US beef imports between April 11 and
April 21 at nine locations across the country. During the
meetings, MAFF and MHLW will explain the US Department
Agriculture's report on the inclusion of vertebral columns in a
US beef shipment and its replies to questions posed by Japan.

About 150 to 250 participants will be invited to each session.
Those who want to take part can obtain an application form from
the websites of the two ministries and send the form in by fax.
The schedule of the meetings is as follows: Naha on the 11th,
Sapporo on the 12th, Sendai on the 13th, Osaka on the 14th,
Niigata on the 17th, Nagoya on the 18th, Hiroshima on the 19th,
Fukuoka on the 20th, and Tokyo on the 21st.

DONOVAN