JAPANESE MORNING PRESS HIGHLIGHTS 04/05/06

UNCLAS SECTION 01 OF 12 TOKYO 001801

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 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