JAPANESE MORNING PRESS HIGHLIGHTS 04/07/06

UNCLAS SECTION 01 OF 10 TOKYO 001859

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SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 04/07/06


Index:

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

DPJ race:
4) DPJ to elect new head today, Ozawa leading Kan
5) Ozawa, Kan basically not differ on security policy,
constitutional reform

USFJ realignment & defense topics:
6) JDA chief, Nago mayor to meet today for final agreement on
Futenma airfield relocation plan
7) Gov't to propose another change to Futenma relocation plan
8) Political decision sought for Guam relocation, with eye to
Futenma
9) JDA wants to create joint document with local host on
Futenma relocation
10) Solution sought also for other pending realignment issues
11) Guam relocation issue now on cabinet agenda
12) Cabinet ministers to consult on Guam relocation
13) Yokota AB: US C-130 transport's fuel blowdown in flight not
abnormal

Diplomatic agenda:
14) Japan, Russia urge North Korea to sit down at negotiating
table
15) Japan-Russia summit set for July
16) 6-party delegates to meet in Tokyo
17) Japan to call on China for foreign ministerial meeting
18) Japan, Saudi Arabia to seek diplomatic solution for Iran's
nuke program

Economic topics:
19) Japan's economic expansion equal 'bubble'
20) Beef panel chairman nixes political clout behind recent
reshuffle

Articles:

1) TOP HEADLINES

Asahi:
Ozawa camp confident of winning majority in Minshuto presidential
election

Mainichi:
Land, Infrastructure, and Transport Ministry officials also
arranged bid rigging for public works

Yomiuri & Tokyo Shimbun:
Ozawa winning greater support than Kan ahead of Minshuto
presidential race today

Nihon Keizai:
Matsushita, NEC, Texas Instruments to tie up on mobile phone
components

Sankei:
Meteorological Agency to provide advance information on
earthquakes

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2) EDITORIALS

Asahi:
(1) How about stopping screening for high school textbooks?
(2) France facing difficulty creating jobs

Mainichi:
(1) Unified standards based on citizens' will needed on the
issue of ventilator removal
(2) Social disparity: Establish a nation in which people can
comfortably live without savings

Yomiuri:
(1) Will law revision fuse TV, Net?
(2) Chaos in France: Vested interests hobbling employment reform

Nihon Keizai:
(1) We should consider English education in elementary school in
constructive manner
(2) US force realignment talks making slow progress

Sankei:
(1) Revision of Education Basic Law: LDP should take the lead
(2) Deregulation of media: Transparent, wide-ranging discussion
needed

Tokyo Shimbun:
(1) US bill for relocating Marines to Okinawa too high for Japan
(2) One year after anti-Japanese demonstrations: Ending tit-for-
tat criticism

3) Prime Minister's Official Residence (Kantei)

Prime Minister's schedule, April 6

NIHON KEIZAI (Page 2) (Full)
April 7, 2006

10:50
Met at Kantei with MOFA Middle Eastern and African Affairs Bureau
chief Yoshikawa, METI Trade Policy Bureau chief Kitamura, and
others.

13:08
Attended a Lower House plenary session.

15:52
Met at Kantei with LDP Administrative Reform Promotion
Headquarters chief Eto and Secretary General Hayashi.

16:05
Met Asahi Beer adviser Yuzo Seto, followed by National Police
Agency Commissioner General Uruma.

17:28
Met Economic and Fiscal Policy Minister Yosano.

18:40
Met with Prince Sultan of Saudi Arabia. Afterward jointly signed
an MOU on policy talks.


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19:17
Hosted a dinner party.

20:41
Met former Prime Minister Mori.

4) DPJ presidential election today; Ozawa leading Kan

YOMIURI (Top Play)
April 7, 2006

The Democratic Party of Japan (DPJ = Minshuto) will hold a
plenary meeting of its members of the both Diet chambers this
afternoon and pick a successor to Seiji Maehara, who has
announced his intension to step down, through a vote of its 192
lawmakers. Ichiro Ozawa (63),former party vice president, and
Naoto Kan (59),former party president, will file their
candidacies in the morning. Individual interviews with DPJ
members by the Yomiuri Shimbun found that as of yesterday
evening, Ozawa was in the lead, gaining support from 97, a
majority. Kan is catching up, however, securing support from mid-
tier and junior members. Ozawa and Kan met in Tokyo yesterday
evening and agreed to work to enhance unity within the party
regardless of who is elected party leader.
5) Minshuto (Democratic Party of Japan) presidential race: No
essential difference found between Ozawa, Kan in their respective
views of security, Constitution

YOMIURI (Page 4) (Excerpts)
April 7, 2006

Minshuto's presidential race is certain to be a contest between
two veteran lawmakers in the party. Former party Vice President
Ichiro Ozawa and former party President Naoto Kan will today
announce their candidacies. The focus of the election is how the
two influential lawmakers will hammer out their respective
roadmaps to rebuild the party and what policy they will come up
with to counter the Koizumi administration. There is no essential
difference between the two in terms of their respective policies
and their methods of party management, but a difference in their
unique abilities stemming from their respective political
experiences is felt.

At the time of the September 2003 merger between Minshuto and the
former Liberal Party (Jiyuto) led by Ozawa, there was a gap in
security policy between Ozawa and Kan. Ozawa's idea is to set up
a standby unit for United Nations-led peacekeeping operations
separately from the Self-Defense Forces in order to realize
Japan's active participation in UN activities. Kan later came
around to Ozawa's idea in 2004, when he served as president of
the party. Basically, the two now share the same stance on
security policy.

Ozawa has shown his enthusiasm about revising the Constitution.
Kan also, when he was president of the party in 2004, declared
his intention to put together an amendment to the Constitution.
In the area of foreign affairs, both Ozawa and Kan emphasize
relations with the United States as well as China. There is no
essential difference in policies between the two.

6) Futenma relocation: JDA chief to meet with Nago mayor for last-
minute consultations

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MAINICHI (Page 2) (Full)
April 7, 2006

By Hiroe Ueno

In order to discuss the planned relocation of the US military's
Futenma Air Station from Ginowan City, Okinawa Prefecture, to a
coastal area of Camp Schwab in Nago City in the prefecture, Nago
Mayor Yoshikazu Shimabukuro will today come to Tokyo. He will
meet with Defense Agency (JDA) Director General Fukushiro Nukaga
and hold last-minute consultations with him in trying to reach an
agreement on the relocation issue. A plan is being considered in
the government that if the two reach an agreement, Okinawa Gov.
Keiichi Inamine will come to Tokyo as early as tomorrow and meet
with Prime Minister Junichiro Koizumi.

Shimabukuro met with Nukaga on April 4. As of April 6, he spelled
out the results of the consultations between him and the central
government to the heads of three districts - Henoko, Toyohara,
and Kushi - located in the vicinity of Camp Schwab, the ruling
groups of the municipal assembly, senior members of his support
group, and others. He has been given a free hand by them on
whether to accept Tokyo's proposal. Nago City has stated, "We
intend to finalize the issue during the consultations this time."
Depending on what the JDA comes up with in the planned meeting
(today),the relocation issue could be settled all at once.

On the coastal plan for the relocation of the airfield, Nago City
has called on the central government to remove the districts of
Henoko, Toyohara, and Abe from the flight routes of US aircraft
and move the relocation site offshore. The JDA has offered minor
changes to the plan that will turn the runway 10 degrees
counterclockwise and move it a few dozen meters toward the ocean
side.

7) Futenma relocation: Government to present revised plan;
Nukaga, Shimabukuro to make final coordination today

ASAHI (Page 1) (Abridged)
April 7, 2006

Defense Agency Director General Fukushiro Nukaga and Nago Mayor
Yoshikazu Shimabukuro are scheduled to hold revision talks in
Tokyo this afternoon to make final arrangements for reaching an
agreement on a plan to relocate Futenma Air Station from Ginowan
to Cape Henoko in Nago. The Defense Agency is expected to present
a revised, compromise plan to Nago, which has been calling for
moving the envisaged runway further offshore.

Administrative Vice Defense Minister Takemasa Moriya said in a
press conference yesterday, "We definitely want to reach a
conclusion with Nago." A government source also noted, "The two
sides could reach an agreement any moment now."

Prime Minister Koizumi, a proponent of the Cape Henoko plan in
principle, has left talks with Nago entirely to Nukaga. Prior to
his talks with Shimabukuro today, Nukaga is scheduled to see
Koizumi to brief him on past developments and discuss policy on
today's talks.

In past talks with Nago, the Defense Agency has proposed turning

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the runway to be built at Cape Henoko 10 degrees counterclockwise
in order to remove residential areas from the flight path. But
Nago insisted on moving the runway further offshore.

Shimabukuro told a confidant yesterday: "I was able to elicit
major concessions from the government. I expect the government
will present a (revised) plan in the next talks." Nago intends to
make a decision after seeing the plan.

Shimabukuro held talks with Okinawa Gov. Keiichi Inamine in
Okinawa City last night, in which the mayor said, "In dealing
with the government, I will continue to stick to the conditions
presented by Nago." In response, Inamine reiterated that Okinawa
would not accept the government plan.

8) USFJ realignment: Moves afoot for political settlement of
dispute over Guam relocation cost

YOMIURI (Page 2) (Abridged slightly)
April 7, 2006

Japan and the United States ended their talks on the realignment
of US forces in Japan on April 5 one day earlier than expected,
with the two sides remaining divided over the cost of relocating
US Marines to Guam from Okinawa. Some officials in the government
are now calling for a political settlement at minister-level
negotiations. A Foreign Ministry official said, "A settlement at
a meeting of administrative officials would be difficult."

In an April 4-5 meeting, the US side proposed that Japan pay 75%
of the 10 billion dollar (1.1 trillion yen) cost of moving the
Marines, but the Japanese side reiterated its position that it
would offer to lend the US 3 billion dollars (333 billion yen)
for housing. As a result, the talks ended with the gulf remaining
wide. Washington also proposed grant assistance, besides loans,
from the general account budget. Tokyo reportedly refused the
request, however.

The reason for the talks ending earlier than scheduled is because
coordination has been stalled between the Japanese government and
local communities on a plan to move the US Marine Corps Futenma
Air Station to the coast of Camp Schwab.

The US side has stated that a final report on the USFJ
realignment will not be crafted unless the coordination with
local communities is concluded. Prime Minister Junichiro Koizumi
also said, "I would like to make efforts as much as possible to
obtain understanding and cooperation from (local residents)."
Tokyo and Washington have to move ahead with their talks while
watching the development of coordination between the government
and the city of Nago in Okinawa.

At a press conference yesterday, Vice Defense Minister Takemasa
Moriya stated on the Guam relocation cost issue:

"A final judgment will be made by the defense chief. We are
negotiating based on the thinking that administrative officials
should boil down details prior to talks between the defense
chiefs."

Moriya indicated that the issue would be resolved by Defense
Agency Director General Fukushiro Nukaga and US Secretary of

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Defense Donald Rumsfeld.

9) Futenma relocation: JDA during today's talks to sound out Nago
about mapping out joint paper

NIHON KEIZAI (Page 2) (Full)
April 7, 2006

In a bid to bring progress to the issue of relocating US forces'
Futenma Air Station in Ginowan to Nago, Okinawa Prefecture, the
Defense Agency (JDA) yesterday started considering the
possibility of sounding out the city about the drafting of a
joint paper outlining the relocation plan. In order to find a
breakthrough in the continuing confrontation with the city, the
JDA wants to use the joint paper as a basis for future talks, by
incorporating in it principles which both sides find acceptable.

JDA Director General Fukushiro Nukaga will meet with Nago Mayor
Yoshikazu Shimabukuro again today. He will work on him to agree
to map out a joint paper.

The JDA conveyed its view to Nago in late March that it would be
difficult to substantially alter the government's relocation
plan. The joint paper will be drafted in line with this policy
stance. However, taking Nago's request into consideration, the
planned paper will mention that the flight routes for US military
aircraft will avoid residential areas. The paper will likely stop
short of mentioning how the planed flight routes will be moved.
It will instead just note that the issue will be worked out in
the future. How Nago will respond to the proposals will be the
focus of today's meeting.

Vice JDA Minister Takemasa Moriya during yesterday's press
briefing announced that today's meeting with Shimabukuro will be
the final negotiations with the city. Regarding the cost of
relocating the US Marine Corps to Guam, he explained, "We will
report the issue to related cabinet ministers for a political
judgment." He thus revealed plans to seek a settlement at
bilateral defense talks between Nukaga and US Defense Secretary
Rumsfeld, after a policy decision is made at a meeting of related
cabinet ministers.

10) Tokyo aims to settle outstanding issues in US force
realignment at working-level talks set for next week

MAINICHI (Page 2) (Excerpts)
April 7, 2006

By Yoso Furumoto

With a meeting between Defense Agency (JDA) Director-General
Fukushiro Nukaga and Nago Mayor Yoshikazu Shimabukuro arranged
for today, local coordination by the central government on the
planned relocation of the US military's Futenma Air Station is
about to enter the homestretch. Japan-US working-level talks on
the realignment of US forces in Japan, which had started in
Washington on April 4, were called off after two days of
discussion, but the talks have been rescheduled to occur in Tokyo
April 13-14. This move apparently has come out of the necessity
of waiting for the completion of local coordination on the
Futenma relocation plan.


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Nukaga intends to obtain consent from Nago City (on the
relocation plan) before the end of the week and then look to
finalize the issue of cost sharing between Japan and the United
States on the relocation of US Marines from Okinawa to Guam at
Japan-US working-level talks set for next week.

In order to prepare during the current session of the Diet
legislation necessary for Japan to facilitate the US force
realignment, including Japan's payment of the Guam relocation
cost, Tokyo thinks it is necessary for both the countries to
reach a final agreement by mid-April. If Tokyo fails in
coordination with Nago City, it will be forced to make a
difficult decision on whether to push ahead with what is included
in the Japan-US agreement without local consent. Depending on the
circumstances, the US could toughen its stance.

11) Five cabinet ministers to reconsider Japan's response,
following end of Japan-US talks on Guam relocation cost without
agreement

ASAHI (Page 4) (Full)
April 7, 2006

Japan and the US ended talks between their foreign and defense
deputy directors general on the realignment of US military forces
in Japan on April 5 (local time). Both sides remained divided
over the cost of relocating US Marines from Okinawa Prefecture to
Guam. The Japanese government will revamp its proposals in
preparation for talks scheduled for April 13-14. But the US
government is still calling on Japan to pay 75% of the total
relocation cost. No prospects are in sight for an agreement.

A senior official of the Defense Agency (JDA) admitted that there
is still a wide gap between Japan and the US over relocation cost
sharing.

The US has proposed that Japan pay about 7.5 billion dollars
(881.5 billion yen) of the total cost of 10 billion dollars. But
Japan reportedly restated that it would defray approximately 3
billion dollars (352.5 billion yen),mainly for constructing
housing, under a loan formula.

Administrative Vice JDA Director General Takemasa Moriya said in
a press conference yesterday: "I will report it to five relevant
cabinet ministers," indicating that the five cabinet ministers
would reconsider what response Japan should take.

12) Guam relocation to shift to cabinet-level talks

TOKYO SHIMBUN (Page 2) (Abridged)
April 7, 2006

Japan and the United States ended senior-working-level talks held
in Washington on the realignment of US forces in Japan yesterday,
one day earlier than scheduled. They failed to reach a settlement
on the cost for relocating US Marine Corps from Okinawa to Guam.
Working-level officials are scheduled to meet again on April 13-
14 in Tokyo. Given difficulties in administrative-level talks,
Defense Agency Director General Fukushiro Nukaga is expected to
take part in talks.

In the talks in Washington, the US asked Japan to pay 7.5 billion

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dollars of the estimated 10 billion dollars for building military
facilities, including infrastructure, in Guam. Japan, on the
other hand, announced its willingness to contribute 3 billion
dollars, mostly loans. The two sides remained wide apart.

The focus will shift to America's efforts to constrain the cost
and Japan's coordination to determine its share. In the Japanese
government, there is strong resistance to shouldering a large
share, especially in the Finance Ministry. As a result, Nukaga is
likely to deal directly with the US after working out measures
with Chief Cabinet Secretary Shinzo Abe, Foreign Minister Taro
Aso, and Finance Minister Sadakazu Tanigaki.

13) US aircraft drops fuel over Tama River

TOKYO SHIMBUN (Page 27) (Abridged)
April 7, 2006

Around 10:15 a.m. April 6, a C130 transport airplane suddenly
made three sharp turns while emitting something that appeared to
be a vapor trail from its right wing in the sky above the Tama
River in Hamura City, Tokyo. Freelance journalist Kenji
Kawashima, 58, captured this moment in a photograph.

The aircraft repeated the maneuver about 300 meters above the
Tama River. A Yokota Air Base Public Affairs official commented:
"The aircraft elected some fuel in order to lower the gas
pressure in the fuel tank. It was nothing unusual."

Kawashima presented the photograph to the city. A city official
responsible for base affairs then asked Yokota Air Base about the
vapor through the Yokota Defense Facilities Administration
Office. In response, the office quoted the base as explaining the
vapor as steam released from the fuel tank. The office later
revised its reply and announced that it was fuel, not steam.
Yokota Air Base has 13 C130 propeller planes on a regular basis.

14) Tokyo, Moscow agree to urge Pyongyang to come back to talks

MAINICHI (Page 5) (Full)
April 7, 2006

Foreign Ministry Asia and Oceanian Affairs Bureau Director
General Kenichiro Sasae, Japan's chief delegate to the six-party
talks on North Korea's nuclear ambitions, yesterday met with the
Russian delegate, Vice Foreign Minister Alexeieff, at the Foreign
Ministry. They agreed to work on Pyongyang to come back to the
six-party talks promptly and unconditionally.

15) Japan-Russia summit in July

ASAHI (Page 4) (Excerpts)
April 7, 2006

A meeting of senior Japanese and Russian government officials was
held yesterday at the Foreign Ministry's Iikura Guest House in
Tokyo. The two sides have agreed to hold a summit between Prime
Minister Junichiro Koizumi and President Vladimir Putin on the
sidelines of the Group of Eight (G8) Summit, which will take
place in Russia in July. They also have agreed to hold a Japan-
Russia foreign ministerial on the sidelines of the G8 foreign
ministerial talks planned for June in Russia.

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16) Six-party negotiators to assemble in Tokyo; Chinese vice
minister to visit Japan

ASAHI (Page 1) (Excerpts)
April 7, 2006

Yusaku Yamane, Beijing

The Chinese Foreign Ministry announced yesterday that Vice
Foreign Minister Wu Dawei, chair of the six-party talks on North
Korea's nuclear program, would visit Japan soon. Chief
negotiators of the six-party talks, including North Korean Vice
Foreign Minister Kim Kye Gwan and US Assistant Secretary of State
for East Asian and Pacific Affairs Christopher Hill, plan to
visit Tokyo to attend a conference sponsored by a private sector
organization, which will start on April 9. Negotiations will be
carried out in Tokyo on a resumption of the six-party talks,
which have been suspended since the United States invoked
financial sanctions against North Korea, as well as on the
North's nuclear issue.

17) Japan to sound China out on a foreign ministerial meeting in
Qatar next month

YOMIURI (Page 4) (Excerpts)
April 7, 2006

Foreign Minister Taro Aso decided yesterday to attend an Asia
Cooperation Dialogue meeting to be held May 23-24 in Qatar. Since
Chinese Foreign Minister Li Zhaoxing is likely to take part in
the session, the Japanese side intends to sound China out on a
meeting between Aso and Li there.

Japan-China foreign ministerial talks have been suspended since
Prime Minister Junichiro Koizumi visited Yasukuni Shrine last
October. If realized, Aso will meet with his Chinese counterpart
for the first time.

18) Japan, Saudi Arabia in joint statement confirm need for
diplomatic solution to Iranian nuclear issue

SANKEI (Page 5) (Slightly abridged)
April 7, 2006

Prime Minister Junichiro Koizumi and visiting Saudi Arabian Crown
Prince Abdullah ibn Abd al-Azis issued a joint statement after
their meeting at the Prime Minister's Official Residence last
night. The statement reiterated the importance of resolving the
Iranian nuclear issue diplomatically.

The statement noted: "It is important to make the Middle East a
region in which there are no weapons of mass destruction or
transport means for such weapons." It also specified (1) the need
to promote high-level political dialogue, including a foreign
ministerial; (2) Saudi Arabia's support for Japan's bid for a
permanent seat on the United Nations Security Council; and (3)
welcoming the decision to start negotiations on concluding a free
trade agreement (FTA) between Japan and the Gulf Cooperation
Council (GCC).

Referring to Iraq's reconstruction, Prime Minister Koizumi said:

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"I hope that Iraq will swiftly establish a new government and
that the Iraqi people will make efforts to build their country."

19) Ongoing economic expansion ties "bubble" economy

SANKEI (Page 1) (Lead paragraph)
April 7, 2006

A key gauge of the current state of the economy stood above the
boom-or-bust line of 50% in February for the seventh straight
month. The index of coincident economic indicators - released by
the Cabinet Office yesterday - reached 55.6% (95% of last month).
The index of leading indicators, predicting economic developments
months ahead, also stood at 80% (81.8% of last month). It seems
that Japan is experiencing its second-longest period of economic
expansion in the postwar era, tying the "bubble" economy. Some
observers anticipate that the current economic expansion could
continue until November and surpass the "Izanagi economy," which
marked the longest period of economic growth.

20) FSC rules out political impact behind mass resignation of
Prion Expert Council members

ASAHI (Page 2) (Full)
April 7, 2006

Half the members of the Food Safety Commission's (FSC) Prion
Experts Council, which has been responsible for discussing the
safety of US beef, have stepped down. Referring to this, Chairman
Masaaki Terada yesterday noted: "It is not my understanding that
they resigned because they were dissatisfied. According to what I
have learned through direct talks with them, they resigned
because they judged that if they continued to dedicate themselves
to their activities as panel members, they would not be able to
pursue research or teaching." He thus countered the view that
those members were forced to quit because they had been wary of
resuming US beef exports.

Commenting on the reasons for their resignations, Terada noted,
"It is not possible that there was any political influence."

SCHIEFFER