JAPANESE MORNING PRESS HIGHLIGHTS 04/05/06

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E.O. 12958: N/A TAGS: OIIP KMDR KPAO PGOV PINR ECON ELAB JA SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 04/05/06 Index: 1) Top headlines 2) Editorials 3) Prime Minister's daily schedule Political merry-go-round: 4) Ozawa, Kan to run in DPJ race 5) Prime Minister Koizumi ties Nakasone in longevity Defense issues: 6) 3 cabinet ministers meet on USFJ realignment 7) Tokyo, Nago still at odds over Futenma relocation plan 8) JDA chief, Nago mayor to reach conclusion in next meeting on Futenma relocation 9) JDA chief says there was progress in talks with Nago mayor on Futenma relocation, shortly to meet again 10) JDA chief, Nago mayor fail to agree on Futenma relocation plan 11) Gov't mulls reusing US military sites in Okinawa for IT, medicare, healthcare centers 12) Reusing US military sites in Okinawa aimed for local economic self-sustainability 13) 53% of Japanese public opposed to sharing US Marine relocation cost Economic agenda: 14) Japan to double produce exports, aiming to strengthen international competitiveness: farm strategy paper 15) Food safety panel's new lineup may have repercussions on Japan's resumption of US beef imports 16) Japan steps up ODA projects overseas, with emphasis on Iraq aid 17) Japan-ASEAN FTA talks to kick off 18) METI minister initiates 16-nation economic partnership involving East Asia 19) But METI's FTA initiative perplexes MOFA, other gov't offices Diplomatic issues: 20) Pyongyang's 6-party delegate to visit Japan, possibly meeting with US, South Korean officials 21) MOFA to create new office for South Asian affairs, targeting India 22) MOFA deported Ivory Coast diplomat at persona non grata Articles: 1) TOP HEADLINES Asahi, Mainichi, and Yomiuri: Minshuto presidential race: Ozawa, Kan set to announce candidacies today for one-on-one battle Nihon Keizai: Corporations begin improving treatment of part-time workers; 17% of part-time workers acquired full-time status in 2005; Training allowances also paid Sankei: Thaksin announces resignation to settle chaos TOKYO 00001801 002 OF 012 Tokyo Shimbun: Foreign Ministry rejects accepting Ivory Coast diplomat, suspecting his involvement in gambling 2) EDITORIALS Asahi: (1) Minshuto presidential race: Candidates must fight fairly and squarely (2) Thaksin's resignation: Another election essential Mainichi: (1) Minshuto presidential race: Reconsider unified approach (2) Thoughts on social divide: Academic polarization must be avoided Yomiuri: (1) Koizumi as third-longest-serving prime minister: Challenges remain in social disparity and Asia diplomacy (2) Rebuilding GM: Develop automobiles that can sell Nihon Keizai: (1) Show effectiveness of municipal mergers to the people (2) Free up high school textbooks first Sankei: (1) Abe's critical comment: Do not switch contentions (2) Postal Privatization Committee: Downscaling is original purpose Tokyo Shimbun: (1) Heisei era municipal mergers: Calmness essential in Act Two (2) Specific plans essential for Tokyo to host 2016 Olympic Games 3) Prime Minister's Official Residence (Kantei) Prime Minister's schedule, April 4 NIHON KEIZAI (Page 2) (Full) April 5, 2006 08:31 Attended Cabinet meeting in Diet building. Held talks with Agriculture Minister Nakagawa, followed by Deputy Chief Cabinet Secretary Futahashi. SIPDIS 08:58 Taped message at LDP headquarters for Lower House by-election for Chiba No. 7 constituency. 09:16 Returned to Kantei. 15:30 Met with Ambassador to Afghanistan Okuda. 16:16 Met with LDP policy chief Nakagawa and deputy policy chief Amari. Met later with Financial Affairs Minister Yosano. 17:31 TOKYO 00001801 003 OF 012 Attended meeting of the Food, Agriculture, and Farming Villages Promotion Headquarters. 18:39 Returned to his official residence. 4) Minshuto (Democratic Party of Japan) presidential race likely to be a one-on-one contest between Ozawa, Kan ASAHI (Top play) (Lead paragraph) April 5, 2006 Former Minshuto Vice President Ichiro Ozawa, 63, and former President Naoto Kan, 59, yesterday made up their minds to come forward as candidates for the party presidential election slated for April 7. The two will formally announce their candidacies today. Attention is now focused on whether the two, after the election, can work together to unify the party. Ozawa has a presence, while Kan's forte is his aggressiveness. The upcoming election is likely to be a one-on-one fight between the leading actors of the opposition camp in the political realignment that has continued since the beginning of the 1990s. 5) Prime Minister Koizumi marks 1,806 days in office - ties Nakasone as Japan's third-longest-serving postwar premier TOKYO SHIMBUN (Page 2) (Full) April 5, 2006 Prime Minister Junichiro Koizumi today will tie Yasuhiro Nakasone as the third-longest-serving prime minister in Japan's postwar history. He will mark 1,806 days in office since April 26, 2001. Koizumi told reporters yesterday evening: "An everyday person has been doing a job this long because many people have supported and offered cooperation. I have been fortunate. I think I have to do my best." Chief Cabinet Secretary SHINZO ABE commented in a press conference yesterday afternoon on the long rule of the Koizumi government: "I think it's because the government has clear goals and has explained them to the public." Former Prime Minister Eisaku Sato is the longest-serving prime minister, serving for 2,798 days, followed by Shigeru Yoshida at 2,616 days. If Koizumi steps down in September as he has said he will, he will have served in the post for about 2,000 days, leaving him in the position as the third-longest-serving prime minister. 6) 3 cabinet ministers meet on USFJ realignment SANKEI (Page 5) (Full) April 5, 2006 Japan and the United States will hold another session of intergovernmental working-level consultations in Washington today on the realignment of US forces in Japan, with senior officials attending. Ahead of the realignment talks, Foreign Minister Taro Aso, Chief Cabinet Secretary SHINZO Abe, and Defense Agency Director General Fukushiro Nukaga met in the Diet yesterday. "Our two countries will now enter into the final round of talks over TOKYO 00001801 004 OF 012 the pending issues, so it's our understanding that we're also watching how the talks will proceed," Nukaga told a press conference after the meeting. 7) Gap over Futenma relocation remains wide; Nago mayor, JDA director general to meet again shortly TOKYO SHIMBUN (Page 1) (Full) April 5, 2006 Defense Agency (JDA) Director General Fukushiro Nukaga yesterday evening met with Nago Mayor Yoshikazu Shimabukuro at the JDA and discussed the issue of relocating US forces' Futenma Air Station in Ginowan to the coastal part of the US Marine Corps Camp Schwab in Nago. Though they failed to reach a consensus, they affirmed their intention to meet again shortly. During the talks, Nukaga sought understanding from Shimabukuro for the relocation of Futenma functions to the coast by indicating a slight revision to the original plan, including moving the planned runway site counterclockwise at an angle of 10 degrees so that noise pollution in nearby areas can be avoided. Though Shimabukuro called for moving the site offshore on the southern side of Camp Schwab, he indicated understanding for the Nukaga proposal to a certain degree. He called on Nukaga to do his utmost so that aircraft will not fly over nearby municipalities. Both submitted to interviews to reporters after the meeting. Nukaga noted, "We failed to reach a consensus, but our talks have made some progress." The meeting was the first since March 26. Talks had been delayed due to such events as the funeral of former Mayor Tateo Kishimoto, who passed away suddenly. 8) Futenma relocation: JDA chief, Nago mayor to reach conclusion in next round of talks possibly to occur by end of week NIHON KEIZAI (Page 2) (Slightly abridged) April 5, 2006 Defense Agency (JDA) Director-General Fukushiro Nukaga yesterday met at the JDA with Mayor Yoshikazu Shimabukuro of Nago City, where the US military's Futenma Air Station in Ginowan City, Okinawa Prefecture, will be relocated. In the two and a half hour meeting, Nukaga explained to the mayor about the government's policy that no major changes would be made to the current coastal plan for relocating the airfield to a coastal area of Camp Schwab but that the communities of such districts as Henoko and Toyohara would be excluded from the flight routes of US aircraft. Shimabukuro said, "I will consult the people of my city and the city assembly about this. The two officials agreed to reach a conclusion in the next round of talks. They will meet again by the end of the week. After the meeting, Nukaga told reporters: "It's not that I offered a new proposal. Both of us exchanged views freely about a number of ideas." Shimabukuro stated: "I have asked the central government to give maximum consideration to the wishes of Nago City. I'd like to discuss the matter with sincerity." TOKYO 00001801 005 OF 012 In facilitating the realignment of US forces in Japan, Japan and the United States intended to reach a final agreement at the end of March, but because of Tokyo's failure to coordinate views with the municipalities affected by the realignment, including Nago City, Tokyo and Washington have postponed reaching a final agreement. The concern of Prime Minister Junichiro Koizumi is that a significant delay in reaching a final agreement could have a harmful effect on Japan's ties with the US, given such pending issues as when to resume the imports of US beef. Koizumi has instructed Nukaga and other concerned officials to finalize the issue by the end of April. If Shimabukuro does not budge from his call for major changes, there is a possibility that many in the government will insist on going ahead with the relocation plan without local consent. The Liberal Democratic Party's joint research panel on the Japan- US alliance and base issues chaired by Taku Yamasaki in its meeting yesterday affirmed the policy of not allowing Japan and the US to reach a final agreement without local consent. 9) JDA chief on Futenma plan: "There was some progress"; Plans to meet Nago mayor again soon YOMIURI (Page 1) (Slightly abridged) April 5, 2006 Defense Agency (JDA) Director General Nukaga held last-minute negotiations with Nago City Mayor Yoshikazu Shimabukuro for about two and a half hours last night on a plan to build an alternate facility in a coastal area of Camp Schwab in Nago City, Okinawa, to relocate the US Marine Corps' Futenma Air Station in Ginowan City. Nukaga and Shimabukuro appeared in a joint news conference after their meeting. Nukaga said: "There was some progress," adding that he would like to reach a conclusion with Shimabukuro in their next meeting soon. Nukaga, though, declined to comment on the details of their talks. Shimabukuro said: "I would like to continue to discuss the issue with sincerity." In the talks held so far, the government proposed minor revisions, including changing the runway direction by about 10 degrees counterclockwise so that the envisioned flight path will not pass over residential areas. But Nago City's demand was that the runway be largely moved offshore. As it stands, both sides remain divided. In the joint press conference, Shimabukuro reiterated his standard position. In the talks last night, Nukaga and Shimabukuro reportedly exchanged views in line with these agreements reached in their previous meeting on March 26: (1) The JDA will use the government plan as a basis and give consideration to safety, environmental protection, and feasibility; and (2) Nago City demands that the envisioned flight path not go over the Henoko, Toyohara, and Abu districts. The JDA expects it would be possible to meet Nago City's demand by moving the runway 280 meters further offshore and changing the runway direction counterclockwise. However, when Japan and the US TOKYO 00001801 006 OF 012 reached an agreement last October, Tokyo rejected the US proposal to move the runway 200 meters further offshore than in the coastal plan. Given this, observers anticipate that the government will find it difficult to accept the Nago demand. 10) Defense chief, Nago mayor fail to reach agreement on Futenma relocation ASAHI (Page 2) (Abridged) April 5, 2006 Defense Agency Director General Nukaga and Nago Mayor Yoshikazu Shimabukuro from Okinawa Prefecture met at the Defense Agency yesterday evening for about two and a half hours over the pending issue of relocating the US Marine Corps' Futenma Air Station in the city of Ginowan in the island prefecture to the city of Nago. The two agreed to reach a conclusion in their next meeting. "We've yet to reach an agreement," Nukaga said after the meeting. However, the defense chief also said there was "progress to a certain extent," adding: "We will meet in the near future and will make efforts to reach a conclusion." Shimabukuro also said he would like to talk sincerely with the government. Their next meeting will be coordinated from now on. 11) Government plans to turn vacated US military bases in Okinawa into special medical and IT zones MAINICHI (Page 1) (Abridged) April 5, 2006 The government outlined a plan yesterday for reusing vacated US military bases in Okinawa, such as Futenma Air Station in Ginowan and Makiminato Service Area in Urasoe, which are scheduled to be returned to Japan as part of the planned realignment of US forces in Japan. The government plans to designate those areas as "information and telecommunications" and "medical and health" special zones by giving tax breaks to entice IT-related corporations and cutting-edge clinical research institutions. The government also intends to avoid economic losses by leasing land to a third party to manage and operate such businesses. To flesh out the plan, the government established in the Cabinet Office a panel to study the information and telecommunication industry. The US military is expected to return over 1,000 hectares of land in Okinawa to Japan. This would help reduce the burden on Okinawa. It has also sparked concern over a loss of base subsidies, jobs, and base rent that would dampen the local economy. The envisaged information and telecommunications special zone is designed to create a base for local corporations to jointly develop software based on orders from firms outside Okinawa. Equipped with a software-testing center, the special zone will also function as a backup center to protect the information systems of national institutions and private corporations against major natural disasters. In the medical and health zone, the government plans to build highly specialized hospitals, such as those handling heart transplants, to conduct clinical research. The government also envisages attracting medical institutions, nursing-care TOKYO 00001801 007 OF 012 facilities, and firms that will develop and produce health foods by using products unique to Okinawa. In terms of taxes, the government aims to apply a 35% income credit to firms, including branch offices of corporations based outside Okinawa, to entice firms from mainland Japan. Also planned is the improvement of infrastructure, such expanding the capacity of high-speed fiber-optic networks connecting Okinawa and mainland Japan. A tie-up with the planned Okinawa Science and Technology University Graduate School in Onna Village will also be studied. At the same time, landowners are expected to lose base rent, which would damage the local economy. To make up the anticipated losses in income, the government is also considering developing a third sector to continue to lease returned land to local firms. 12) Government produces reutilization plan to help Okinawa economy become independent of US bases; Local communities may react negatively MAINICHI (Page 5) (Abridged) April 5, 2006 Commentary Once US bases in Okinawa are returned to Japan as part of the realignment of US forces, the government intends to make them into "information" and "medical" special zones to attract promising firms to help the Okinawa economy become free of dependence on the US bases. At the same time, the planned return of US bases might dampen the local economy. The government plans to obtain local understanding of the Futenma relocation plan by presenting the base reutilization plan and the US base realignment issue as a set. Okinawa's unemployment is the worst in the nation at 7.6%, as opposed to the national average of 4.7%. The average per capita income is 2.04 million yen, which is about 70% of the national average. The government has been paying 76.6 billion yen annually to some 33,000 people leasing land to the US military. The labor cost for base employees comes to 46.1 billion yen annually. This clearly demonstrates that US bases are supporting the local economy. As a means of revitalizing the Okinawa economy, some in the Liberal Democratic Party are calling for large-scale public works projects, such as roads and railways. But a government official indicated that they would not produce any industries in the future. The government has been planning a system to: (1) revitalize the private sector; (2) create jobs; and (3) maintain the framework to continue to provide landowners with rent. The government intends to flesh out the plan while watching local opinion closely so as not to be criticized as forcing its revitalization plan on Okinawa. 13) Poll: 53% oppose Japan's paying for US Marines relocation to Guam MAINICHI (Page 3) (Excerpts) April 5, 2006 TOKYO 00001801 008 OF 012 The Mainichi Shimbun conducted a nationwide opinion poll April 1- 2 on a plan for Japan to pay for the relocation of US Marines from Okinawa to Guam. The survey found that 53% opposed the plan, while 38% said that Japan had no choice but to shoulder the cost. The United States has called on Japan to pay 7.5 billion dollars (about 880 billion yen),but Tokyo has responded that that it will be able to lend 25 billion dollars (about 300 billion yen). Coordination has thus been difficult. The results of the survey showed that many Japanese people were uncomfortable with the idea of Japan paying for US military facilities in the United States. The poll also showed that 68% said that it was meaningful that Iwakuni City had conducted a referendum on the relocation of a carrier air wing to the US Iwakuni Base, while only 20% agreed with the government and ruling coalition view that the referendum was not appropriate, as the issue is connected to foreign and security policy. 14) New Agricultural Policy 2006 aims to double total amount of agricultural exports; Strengthening international competitiveness eyed YOMIURI (Page 2) (Full) April 5, 2006 The government's Food, Agriculture, and Agricultural Village Policy Promotion Headquarters, chaired by Prime Minister Koizumi, yesterday adopted the 21st Century New Agricultural Policy 2006, an initiative that aims to shift the nation's agricultural policy from its current import-centered stance by strengthening the international competitiveness of its agricultural and marine products. The initiative mentions numerical targets, including that the total amount of exports of agricultural, fisheries, and forestry products should be doubled to 600 billion yen by 2009. With the aim of doubling such exports, the report noted the need to set up a system of assistance for sales promotion activities, citing specific export target items. Another target included in the report is raising the sales of overseas affiliated companies of the food service industry operating in East Asia, such as China and South Korea, to around 110 to 125 billion dollars, up 30% -40% from the current level. The initiative also aims to promote the development of new food products that use Japan's highly developed technology, such as rice that is effective in easing the symptoms of pollen allergy, and expand the market for such products to the size of approximately 70 billion yen by fiscal 2010. The report also noted that it is necessary to improve the quality of the domestic agricultural environment, including the nurturing of new farming personnel and the consolidation of farmland and irrigation systems. To that end, the report proposed supporting agricultural training for "freeters" (job-hopping part-time workers),thereby securing 12,000 young new farmers a year. The New Agricultural Policy 2006 was mapped out based on the Basic Food, Agriculture, and Agricultural Village Program, adopted by the cabinet in March 2005. 15) FSC experts quit; Discussion on conditions for resuming US TOKYO 00001801 009 OF 012 beef imports likely to be affected NIHON KEIZAI (Page 5) (Full) April 5, 2006 The Food Safety Commission's (FSC) Prion Expert Council has played a major role in setting conditions for the resumption of US beef imports. Half of the members of the panel, mainly those who had been wary of resuming imports, quit at the end of March. Since the government has no intention of altering conditions for imports of US beef, which are now under suspension for the second time, their resignation will not affect bilateral beef talks for the time being. However, Washington is bound to call for easing the import condition that only cows up to 20 months of age are eligible for export, once the beef trade is reinstated. The resignation of the members, who had been cautious about resuming US beef imports, could affect future discussion of such terms. Six members, including Acting Chairman Kiyotoshi Kaneko, a professor at Tokyo Medical College, and Morikazu Shinagawa, former executive of the Prion Research Center at the Animal Hygiene Research Center, resigned. Their posts have been filled by newly-appointed experts. Shinagawa and other members who quit had reportedly been dissatisfied with the way discussions have been pursued. 16) ODA loans substantially increase last year NIHON KEIZAI (Page 5) (Full) April 5, 2006 The Organization for Economic Cooperation and Development (OECD) yesterday released the results of official development assistance (ODA) in 2005. The statistics showed that the amount of ODA loans Japan extended last year substantially increased to 13.1 billion dollars (approximately 1.44 trillion yen),up 46.8% from the preceding year. 17) FTA talks with ASEAN to start on April 10 NIHON KEIZAI (Page 5) (Full) April 5, 2006 The Foreign Ministry announced yesterday that Japan would start talks on concluding a free trade agreement (FTA) with the Association of Southeast Asian Nations (ASEAN) in Tokyo on April 10-12. The talks will be held for the first time since August ¶2005. 18) METI minister proposes East Asia EPA concept involving 16 countries MAINICHI (Page 9) (Excerpts) April 5, 2006 Minister of Economy, Trade, and Industry Toshihiro Nikai yesterday announced the concept of an East Asia economic partnership agreement (EPA). The concept involves 16 countries, including Japan, China, South Korea, India, the Association of Southeast Asian Nations, Australia, and New Zealand. METI aims to start negotiations in TOKYO 00001801 010 OF 012 2008 and conclude an EPA in 2010. The concept will be included in the government's 10-year trade strategy. An EPA - a broader economic accord than a free trade agreement (FTA),which focuses mainly on tariff reductions - also includes investment and exchanges of personnel. Japan has signed FTAs with Singapore and Malaysia. It has also reached a basic agreement with Thailand and the Philippines. 19) Government officials perplexed at METI plan for broad FTA in East Asia, focusing on consistency with bilateral FTA talks NIHON KEIZAI (Page 5) (Slightly abridged) April 5, 2006 Some government officials have been perplexed with the idea put forward by the Ministry of Economy, Trade, and Industry (METI) for a comprehensive free trade agreement (FTA) to be concluded in the East Asia region. Under the proposal, Japan would start negotiations with six economies in 2008, including the Association of Southeast Asian Nations (ASEAN) and China. By concluding such an accord, METI aims to realize a broad economic partnership in the region instead of bilateral partnerships. But other government agencies, including the Foreign Ministry, have posed questions about consistency with bilateral FTA talks Japan has so far sought. In its concept, METI proposes that common rules be set in such sectors as investment, services, and intellectual property in the region, in addition to liberalization in the trade in products. Japan has fallen behind in the FTA race in the region, with China and South Korea taking increasingly to bilateral and regional FTAs. Given this, METI also aims to regain the lead in the race. The concept, however, does not refer to such thorny issues as agriculture and foreign workers. A government official was overheard saying: "The plan offers few benefits for other countries, so it is uncertain whether each nation will positively respond to the plan." 20) North Korean official for six-party talks to arrive in Japan on April 7, likely to meet with high-level ROK, US officials SANKEI (Page 2) (Excerpts) April 5, 2006 The North Korean Foreign Ministry's US Affairs Bureau Deputy Director Jong Thae Yang, who led the North Korean delegation as deputy chief to the six-party talks, will visit Japan and attend an academic symposium that will take place in Tokyo, several government sources revealed. The symposium will bring together officials for the six-party talks from South Korea and the United States as well. Given that the conference is sponsored by the Japan Center for International Exchange (JCIE),to which former Deputy Foreign Minister Hitoshi Tanaka belongs, who orchestrated the landmark Japan-North Korea summit meeting, it seems likely that there will be informal contacts between the North Korean official and other countries' officials, including those from the US. Jong, who is in charge of security issues, including nuclear and missile programs, will arrive in Japan on April 7 together with TOKYO 00001801 011 OF 012 three other officials. He is scheduled to attend an academic conference on security affairs in Northeast Asia April 9-11 and return home on April 14. The symposium is expected to be attended by the South Korean Foreign Affairs & Trade Ministry Foreign Policy Office Chief Chon Yong U, who is the ROK representative to the six-party talks. Participation in the symposium by either US Assistant Secretary of State Hill for East Asia and the Pacific or Deputy Assistant Secretary of State Stevens is being considered. SIPDIS With no prospect for the resumption of the six-party talks in sight, many observers believe that behind the symposium, there will be contacts between the US and North Korea and between the US and South Korea. Attention is now focused on a response by the North Korean side. 21) Foreign Ministry to establish a South Asia Department, attaching importance to India and checking China SANKEI (Page 2) (Excerpts) April 5, 2006 The Ministry of Foreign Affairs has decided to set up a South Asia Department, which would be in charge of countries including India and the Association of Southeast Asian Nations (ASEAN). The ministry will clarify its policy stance of placing importance on India, which has gained political and economic presence. It also aims to check China, which has strengthened its influence in Asia. At present, the First Southeast Asia Division, the Second Southeast Asia Division, and the Southwest Asia Division of the Asia and Oceanian Affairs Bureau are in charge of Southwest Asian countries, including India and Pakistan, and ASEAN. The planned South Asia Department will then be responsible for Southwest Asia and ASEAN. A bureau-director-level official will head the department. The ministry will establish the department after the ongoing Diet session is over. It will consider whether to place the First Southeast Division, the Second Southeast Asia Division, and the Southwest Asia Division under the South Asia Department or to reorganize the three divisions. The government has strengthened relations with India in an attempt to secure sea-lanes to the Middle East, on which Japan depends for about 90% of its crude oil imports. Specifically, the government has deepened security dialogue and exchanges between defense officials. It has decided to start negotiations on an Economic Partnership Agreement in order to promote trade and investment, probably this summer. 22) Foreign Ministry refuses to accept Cote d'Ivore's diplomat on suspicion of involving in gambling TOKYO SHIMBUN (Top Play) (Lead Paragraph) April 5, 2006 The Ministry of Foreign Affairs gave the Embassy of the Republic of Cote d'Ivore in Shibuya Ward, Tokyo, formal notice that it would refuse to accept its diplomat because of allegations that TOKYO 00001801 012 OF 012 the diplomat involved in baccarat gambling last October by leasing a room in a building he had rented on his own, but the Tokyo Metropolitan Police were unable to investigate because of his diplomatic immunity, although the police were aware of the gambling, it was learned yesterday. The diplomat returned to his country immediately before receiving the notification. SCHIEFFER