Identifier
Created
Classification
Origin
06TOKYO1903
2006-04-10 01:47:00
UNCLASSIFIED
Embassy Tokyo
Cable title:  

DAILY SUMMARY OF JAPANESE PRESS 04/10/06-1

Tags:  OIIP KMDR KPAO PGOV PINR ECON ELAB JA 
pdf how-to read a cable
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UNCLAS SECTION 01 OF 11 TOKYO 001903 

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: DAILY SUMMARY OF JAPANESE PRESS 04/10/06-1

INDEX:

Defense issues:

(1) Nago mayor OK's V-shaped airstrips for Futenma relocation

(2) Nago mayor accepts V-shaped runways for Futenma alternative
airfield

(3) Tokyo, Nago agree to lay down 2 tarmacs on new airfield for
Futenma

(4) Chronology of Futenma events

(5) Gov't, Okinawa to continue talks over Futenma relocation

(6) Washington not to oppose Tokyo's remodified relocation plan

(7) Tokyo gives first consideration to feasibility, but barriers
still ahead

(8) Gov't, Nago give way to each other on Futenma relocation plan

(9) Futenma accord between JDA chief, Nago mayor unexpected to
Okinawa Gov. Inamine

(10) Nago mayor's acceptance of 2 runways 'out of the blue' to
governor

(11) JDA chief asks Okinawa governor for understanding on new
airstrip plan

(12) JDA chief meets Okinawa governor, asks for understanding on
remodified plan

(13) Gov't mulls subsidizing localities hosting US bases

(14) Okinawa governor rejects 2 runways plan

(15) Okinawa governor opposed to airstrip plan

(16) Okinawa governor rejects new airstrip proposal over Futenma
relocation, Tokyo to push for relocation with Nago's consent as
leverage

(17) Runway direction changed at 11th hour

(18) Pentagon wants Tokyo to share Guam relocation cost

(19) US missile cruiser to be deployed to Yokosuka in August

ARTICLES:

(1) Nago mayor accept new proposal on Futenma relocation, agrees
to build two runways in V-shape

SANKEI (Top Play) (Excerpt)
April 8, 2006

Defense Agency (JDA) Director General Fukushiro Nukaga and Nago
Mayor Yoshikazu Shimabukuro met in the JDA building yesterday and
agreed to build two runways in a V-shape to prevent US military
aircraft from flying over residential areas. The deal has ended a

TOKYO 00001903 002 OF 011


bitter battle over the relocation of the heliport functions of
the US Marine Corps' Futenma Air Station, one of the major
obstacles facing the Japanese and US government in finalizing the
US military realignment in Japan.

(2) Gov't, Nago agree on V-shaped runways

ASAHI (Top play) (Abridged)
April 8, 2006

The Defense Agency and the city of Nago, Okinawa Prefecture,
basically agreed yesterday to build two runways in a V-shape at
the site of a new airfield to be built in the city as an
alternative for the US Marine Corps' Futenma Air Station in
Ginowan. The Japanese and US governments had agreed in October
last year to relocate the heliport functions of Futenma airfield
to an area across the cape of Henoko in the northern coastal
city, a major issue pending in their ongoing talks over the
realignment of US forces in Japan. The Japanese government will
incorporate this plan in a final report to be shortly released
with the US government on their realignment talks. Japan and the
United States agreed in 1996 on the return of Futenma airfield.
About 10 years later, however, the airfield has yet to be
returned to Japan. The two governments will now likely move ahead
for the return of Futenma airfield.

Defense Agency Director General Nukaga and Nago Mayor Yoshikazu
Shimabukuro reached the agreement after meeting for about four
hours at the Defense Agency.

"The city of Nago agreed (to the government's Futenma relocation
plan),and it's a landmark," Nukaga told a joint press conference
following the meeting. "I want to do my best to maintain our
overall deterrence and alleviate the burden," the defense chief
added. Shimabukuro also said, "I'm very glad that the city's
standpoint has been accepted." The mayor added, "I will explain
this (to the city's local population),and then I want to obtain
consent."

The agreed plan is to build two runways in the shape of a V from
the southwest to the northeast in the almost same area as planned
to be reclaimed at both ends from the sea and to lay down the new
airfield across the cape of Henoko. Aircraft and choppers will
come from the southwest in their landing approach but will use
another clockwise runway in their takeoff. This will make it
possible for US warplanes-at least under their visual flight rule
(VFR)-to avoid flying over the city's residential areas as
desired by the city's local communities concerned about safety.

"We presented this V-shaped-runway plan to our US counterparts,"
a government official said yesterday evening. "They consented to
the plan, so we showed it to the city of Nago," the official
added. Nukaga, however, suggested the need for the Japanese
government to talk about details with the US government, although
Tokyo has obtained Washington's basic understanding. Nukaga also
said the government would set up a consultative body with Nago
and other base-hosting municipalities to proceed with local
coordination over the plan's feasibility and economic promotional
packages.

However, Okinawa Governor Keiichi Inamine remains committed to
opposing the Henoko coastal relocation plan. Inamine will visit
Tokyo today to meet with Nukaga and oppose the plan.

TOKYO 00001903 003 OF 011



(3) Futenma relocation: Government, Nago agree on two-runway plan
to remove residential areas from flight path

YOMIURI (Page
UNCLAS SECTION 01 OF 11 TOKYO 001903

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: DAILY SUMMARY OF JAPANESE PRESS 04/10/06-1

INDEX:

Defense issues:

(1) Nago mayor OK's V-shaped airstrips for Futenma relocation

(2) Nago mayor accepts V-shaped runways for Futenma alternative
airfield

(3) Tokyo, Nago agree to lay down 2 tarmacs on new airfield for
Futenma

(4) Chronology of Futenma events

(5) Gov't, Okinawa to continue talks over Futenma relocation

(6) Washington not to oppose Tokyo's remodified relocation plan

(7) Tokyo gives first consideration to feasibility, but barriers
still ahead

(8) Gov't, Nago give way to each other on Futenma relocation plan

(9) Futenma accord between JDA chief, Nago mayor unexpected to
Okinawa Gov. Inamine

(10) Nago mayor's acceptance of 2 runways 'out of the blue' to
governor

(11) JDA chief asks Okinawa governor for understanding on new
airstrip plan

(12) JDA chief meets Okinawa governor, asks for understanding on
remodified plan

(13) Gov't mulls subsidizing localities hosting US bases

(14) Okinawa governor rejects 2 runways plan

(15) Okinawa governor opposed to airstrip plan

(16) Okinawa governor rejects new airstrip proposal over Futenma
relocation, Tokyo to push for relocation with Nago's consent as
leverage

(17) Runway direction changed at 11th hour

(18) Pentagon wants Tokyo to share Guam relocation cost

(19) US missile cruiser to be deployed to Yokosuka in August

ARTICLES:

(1) Nago mayor accept new proposal on Futenma relocation, agrees
to build two runways in V-shape

SANKEI (Top Play) (Excerpt)
April 8, 2006

Defense Agency (JDA) Director General Fukushiro Nukaga and Nago

Mayor Yoshikazu Shimabukuro met in the JDA building yesterday and
agreed to build two runways in a V-shape to prevent US military
aircraft from flying over residential areas. The deal has ended a

TOKYO 00001903 002 OF 011


bitter battle over the relocation of the heliport functions of
the US Marine Corps' Futenma Air Station, one of the major
obstacles facing the Japanese and US government in finalizing the
US military realignment in Japan.

(2) Gov't, Nago agree on V-shaped runways

ASAHI (Top play) (Abridged)
April 8, 2006

The Defense Agency and the city of Nago, Okinawa Prefecture,
basically agreed yesterday to build two runways in a V-shape at
the site of a new airfield to be built in the city as an
alternative for the US Marine Corps' Futenma Air Station in
Ginowan. The Japanese and US governments had agreed in October
last year to relocate the heliport functions of Futenma airfield
to an area across the cape of Henoko in the northern coastal
city, a major issue pending in their ongoing talks over the
realignment of US forces in Japan. The Japanese government will
incorporate this plan in a final report to be shortly released
with the US government on their realignment talks. Japan and the
United States agreed in 1996 on the return of Futenma airfield.
About 10 years later, however, the airfield has yet to be
returned to Japan. The two governments will now likely move ahead
for the return of Futenma airfield.

Defense Agency Director General Nukaga and Nago Mayor Yoshikazu
Shimabukuro reached the agreement after meeting for about four
hours at the Defense Agency.

"The city of Nago agreed (to the government's Futenma relocation
plan),and it's a landmark," Nukaga told a joint press conference
following the meeting. "I want to do my best to maintain our
overall deterrence and alleviate the burden," the defense chief
added. Shimabukuro also said, "I'm very glad that the city's
standpoint has been accepted." The mayor added, "I will explain
this (to the city's local population),and then I want to obtain
consent."

The agreed plan is to build two runways in the shape of a V from
the southwest to the northeast in the almost same area as planned
to be reclaimed at both ends from the sea and to lay down the new
airfield across the cape of Henoko. Aircraft and choppers will
come from the southwest in their landing approach but will use
another clockwise runway in their takeoff. This will make it
possible for US warplanes-at least under their visual flight rule
(VFR)-to avoid flying over the city's residential areas as
desired by the city's local communities concerned about safety.

"We presented this V-shaped-runway plan to our US counterparts,"
a government official said yesterday evening. "They consented to
the plan, so we showed it to the city of Nago," the official
added. Nukaga, however, suggested the need for the Japanese
government to talk about details with the US government, although
Tokyo has obtained Washington's basic understanding. Nukaga also
said the government would set up a consultative body with Nago
and other base-hosting municipalities to proceed with local
coordination over the plan's feasibility and economic promotional
packages.

However, Okinawa Governor Keiichi Inamine remains committed to
opposing the Henoko coastal relocation plan. Inamine will visit
Tokyo today to meet with Nukaga and oppose the plan.

TOKYO 00001903 003 OF 011



(3) Futenma relocation: Government, Nago agree on two-runway plan
to remove residential areas from flight path

YOMIURI (Page 1) (Excerpts)
April 8, 2006

Defense Agency Director General Fukushiro Nukaga held talks with
Nago Mayor Yoshikazu Shimabukuro at the Defense Agency on April 7
to discuss a plan to relocate the US Marine Corps' Futenma Air
Station from Ginowan to the coastline of Camp Schwab in Nago. As
a result, the two reached an agreement on building two runways,
one for takeoffs and the other for landings. Shimabukuro agreed
to the government's revised plan presented by Nukaga designed to
remove residential areas from the flight path. The government
intends to produce a final US force realignment plan with
Washington after conducting senior-working-level talks on April
13-14 and cabinet-level talks later this month.

The revised plan agreed on by the government and Nago is designed
to build two runways in a V-shape. The main runway to be built by
turning the direction of the government plan's runway slightly
counterclockwise will be used for takeoffs and landings in good
visibility and landings in poor visibility. The other runway to
be built further offshore by slightly modifying the government's
plan will be mainly used for takeoffs in bad weather.

Main points agreed upon on the Futenma relocation plan


1. The flight paths will avoid the skies over the Henoko,
Toyohara, and Abu districts in Nago.


2. In determining the construction site based on the
government's plan, consideration will be given to: (a) the safety
of the residents near the new airfield; (b) natural conservation;
and (c) the feasibility of the construction project.


3. Affected local governments, including the Okinawa
prefectural and Nago municipal governments, will earnestly
continue talks on the construction plan.


4. Prior to making a cabinet decision on a Japan-US agreement
on the realignment of US forces in Japan, the government will
hold talks with Okinawa, Nago, and other municipalities.

(4) Chronology of Futenma events

ASAHI (Page 2) (Full)
April 8, 2006

September 1995: A local schoolgirl was raped by US servicemen.

April 1996: Prime Minister Hashimoto and US Ambassador to Japan
Mondale agreed on the return of Futenma airfield.

November 1997: The government presented Nago City, Okinawa, with
a plan to build a sea-based heliport as an alternative to take
over the heliport functions of Futenma airfield.

December 1997: Nago City polled its residents over whether to
accept the government-proposed sea-based heliport construction
plan. (In the plebiscite, anti- and conditionally anti-heliport
votes accounted for 53%, with pro- and conditionally pro-heliport

TOKYO 00001903 004 OF 011


votes accounting for 45%.) Nago Mayor Tetsuya Higa accepted the
sea-based heliport plan and resigned.

February 1998: Okinawa Gov. Masahide Ota rejected the sea-based
heliport plan. Nago City's Deputy Mayor Tateo Kishimoto elected
Nago mayor.

November 1998: Keiichi Inamine became Okinawa Prefecture's new
governor with a campaign pledge to precondition his acceptance of
Futenma relocation to a site in Okinawa Prefecture on building a
dual-purpose airport for joint military and civilian use.

November 1999: Gov. Inamine designated an area off the coast of
Henoko, Nago City, for Futenma relocation.

July 2002: An alternative facility conference (consisting of the
Japanese government, Okinawa prefectural government, and local
municipalities) adopted a basic plan to build a 2,500-meter
facility at a reclamation site in waters off Henoko.

August 2004: A US military helicopter crashed onto the campus of
Okinawa International University.

October 2005: Nago Mayor Kishimoto clarified that he would not
run for a third term. The Japanese and US governments agreed to
relocate Futenma airfield to a coastal area across the cape of
Henoko in Nago.

January 2006: Yoshikazu Shimabukuro elected Nago mayor.

March 2006: Defense Agency Director General Nukaga and Nago city
officials, including Mayor Shimabukuro, began consultations to
retouch the Henoko coastal relocation plan.

April 2006: The Defense Agency and Nago City reached a basic
agreement.

(5) Futenma relocation: Gov't, Okinawa to continue talks; Gov.
Inamine rejects remodified plan

MAINICHI (Page 1) (Abridged)
April 9, 2006

Defense Agency Director General Fukushiro Nukaga and Okinawa
Prefecture's Governor Keiichi Inamine met yesterday. In the
meeting, Inamine indicated that he could not accept the
government's plan to relocate the US Marine Corps' Futenma Air
Station to a coastal area of Camp Schwab in the city of Nago,
Okinawa Prefecture, while the government and the city's mayor
have now agreed to remodify the plan. "Okinawa Prefecture will
continue to uphold its stance," Inamine told Nukaga in the
meeting. At the same time, however, Inamine also said he would
respect the city's judgment. With this, the governor showed some
understanding. He also implied that there was some room to give
way to the government, saying, "We will continue talks with the
government."

(6) Futenma relocation: US not opposed to remodified plan

YOMIURI (Page 2) (Full)
Eve., April 8, 2006

Aya Igarashi, Washington

TOKYO 00001903 005 OF 011



The Japanese government and the city of Nago, Okinawa Prefecture,
have now concurred on a remodified plan to relocate the US Marine
Corps' Futenma Air Station to the city. In response to the
concurrence, US State Department Spokesman McCormack met the
press on April 7 and revealed that the US Defense Department was
now checking to see if there would be problems from the
perspective of US military operations. "The Department of Defense
is now studying the proposal from Japan," McCormack said.

The Pentagon will not oppose the remodified plan, taking the
position that it would not substantially affect the Japanese and
US governments' agreement of October last year and that the local
agreement will improve the plan's feasibility.

(7) Commentary: Feasibility considered, challenges still in store

ASAHI (Page 1) (Slightly abridged)
April 8, 2006

The government sought feasibility, with the city of Nago
insisting on the safety of its residents. Tokyo and Nago
basically agreed yesterday on a plan to build two V-shaped
runways as the kind of greatest common denominator between the
two sides to take over the heliport functions of Futenma
airfield.

The Defense Agency stuck to its land-based plan in order to
heighten the feasibility of construction. The government had
initially planned to build a sea-based facility off the coast of
Henoko. However, this offshore installation plan suffered a
setback in the face of local opposition. The government therefore
did not want to be frustrated again. The sea-based heliport plan
foundered on local protests out at sea.

Meanwhile, Nago strongly called for moving the planned facility
to a site at sea. Eventually, however, the government gave up on
an offshore installation. The agreed plan will avoid flying over
residential areas. Yet, there are still questions, such as how to
ensure that US warplanes fly along their flight paths. In
addition, some government officials are also concerned about
noise pollution. Laying down an additional runway will result in
enlarging the acreage of land reclamation from the sea, which
could also bring about environmental damage. For instance,
dugongs will lose the underwater forest of seaweed they depend
on.

"The government gave first consideration to the safety of local
residents in their daily lives, and we didn't make light of the
environment," Nukaga stressed. However, such an account is
unconvincing. Furthermore, the cost of construction will also
balloon.

In the meantime, Okinawa Prefecture's Governor Keiichi Inamine
has called for the government to build a dual-use airfield for
joint military-civilian use and set a 15-year time limit on the
US military's use of the newly planned facility in order to
prevent the new base from becoming permanent. The agreed plan,
however, fails to guarantee these points. The governor is not
expected to accept the remodified plan.

Gov. Inamine has authority for coastal reclamation off the cape
of Henoko. This reclamation work is expected to start in several

TOKYO 00001903 006 OF 011


years' time. However, the government, should it fail to obtain
the Okinawa prefectural government's understanding, will likely
move ahead for special legislation intended to transfer coastal
reclamation authority from the governor to Tokyo. Such a move
could likely cause Tokyo and Okinawa to square off again.

(8) On Futenma relocation, JDA chief, Nago mayor reach compromise
agreement complying with calls for both coastal base and one that
avoids residential areas

TOKYO SHIMBUN (Page 1) (Excerpts)
April 8, 2006

The deal, reached between Defense Agency (JDA) Director General
Fukushiro Nukaga and Nago Mayor Yoshikazu Shimabukuro in Tokyo
yesterday, complies with both sides' positions by constructing
two runways.

Nukaga's call was for constructing an alternative heliport on the
coast line of Camp Schwab as agreed on between Japan and the US.
Meanwhile, Shimabukuro's assertion was that a runway should be
built on reclaimed land with the aim of avoiding noise pollution
in nearby residential areas and also of producing economic
benefits to the local economy. To comply with both sides'
desires, the government came up with the new plan.

(9) Okinawa Gov. Inamine: Futenma agreement between central
government, Nago City wholly unexpected

TOKYO SHIMBUN (Page 26) (Excerpts)
April 8, 2006

A plan to relocate the US Marine Corps' Futenma Air Station,
which is surrounded by residential areas, is now about to get
underway. Defense Agency Director General Fukushiro Nukaga and
Nago Mayor Shimabukuro agreed on the night of April 7 to build
two runways in a V-shape at the planned heliport on the coast of
Camp Schwab. Shimabukuro said, "My city's opinion was accepted."
Okinawa Gov. Kenichi Inamine, however, showed a firm expression,
saying, "It was wholly unexpected." Okinawa Prefecture, which has
suffered from US bases, is being shaken by the sudden agreement
between the central government and the Nago City.

At a press conference held at the Defense Agency, Shimabukuro
said, "I'm paying my respects to the defense chief," and the two
shook hands. They believe that using separate takeoff and landing
runaways will be able to prevent US military aircraft from flying
over residential areas.

Inamine told reporters, "I will maintain my previous stance." He
expressed that there was no change in his position that unless
the Futenma base is relocated to an offshore airfield to be built
on a reclaimed land, the base should be moved from Okinawa.

Miyagi Minoru, 67, director of Nago City's Toyohara Ward, located
under the flight rout, said, while watching the news on TV: "I
was surprised at the idea of building two runaways. I'm glad that
the flight rout was changed in consideration of the safety of
citizens." He then continued: "I don't think US military aircraft
will take that rout. I would like specific explanations from the
mayor when he returns home. I will then make a judgment."

(10) Okinawa governor takes Nago government's agreement as

TOKYO 00001903 007 OF 011


"unexpected"

SANKEI (Page 1) (Full)
April 8, 2006

Hearing the news of the Nago municipal government's agreement on
a revised plan on the relocation of the Futenma Air Station,
Okinawa Governor Keiichi Inamine stated last night: "I would like
to respect the independent decision of Nago."

In a meeting with Defense Agency Director General Fukushiro
Nukaga in Tokyo today, though, Governor Inamine is determined to
say that he will not accept any plan other than the initial
offshore plan, as he remarked, "I will convey my determination to
maintain the prefecture's stance." The governor said: "Of
importance is that the cabinet decision on the initial offshore
plan was made through a lot of effort." He then commented that
Nago municipal government's agreement was "unexpected."

(11) Futenma relocation: Nukaga seeks Inamine's support for two-
runway plan

NIHON KEIZAI (Page 1) (Abridged slightly)
Evening, April 8, 2006

Defense Agency Director General Fukushiro Nukaga held talks with
Okinawa Gov. Keiichi Inamine at the agency around noon today. In
the talks, the defense chief sought Inamine's understanding of a
plan to build two runways in a V-shape, as was agreed upon with
Nago. The new plan to build two runways requires land
reclamation, for which the governor's approval is essential.
Inamine is believed to have rejected the V-shaped runway plan.

In his talks with Nago Mayor Yoshikazu Shimabukuro yesterday,
Nukaga presented a modified Camp Schwab relocation plan out of
concern for the sentiment of local residents who were worried
about possible noise pollution. Nukaga won Shimabukuro's consent
by promising that US aircraft would not fly over the Henoko,
Toyohara, and Abu districts.

But Inamine reiterated that he would not accept any plan other
than the agreement reached in 1999 with the government to
relocate the airfield to waters off Henoko, saying, "We will
continue maintaining our previous stance."

In the event the governor refuses to accept the new plan, the
government may take a special legislative step to transfer powers
from the governor to the state to use the surface of public
waters.

(12) Meeting with Okinawa governor, JDA chief seeks understanding
for revised Futenma relocation plan

YOMIURI (Page 1) (Slightly abridged)
Eve, April 8, 2006

Defense Agency (JDA) Director General Nukaga met with Governor
Keiichi Inamine at the JDA yesterday to discuss the issue of
relocating the heliport functions of the US Marine Corps' Futenma
Air Station in Ginowan to a coastal area of Camp Schwab in Nago.

Following an agreement between Nukaga and Nago Mayor Yoshikazu
Shimabukuro to place two runways at a US airfield to be built in

TOKYO 00001903 008 OF 011


the city, Nukaga spelled out the new agreed plan to Inamine.
Without the agreement of the governor, the central government
cannot reclaim public waters. Inamine, though, has expressed his
opposition to this plan.

Governor Inamine approved the government's initial plan to
construct an offshore airport off the Henoko district of Nago,
attaching such conditions as joint use of the base as a military-
civilian airport and a 15-year time limit. The new proposal does
not include these conditions.

Inamine said in a press conference on the night of April 7: "I
will stick to the plan to build the base farther offshore." Given
this, the government is considering the possibility of arranging
a meeting between Prime Minister Koizumi and Governor Inamine.

(13) Government to consider new three-stage subsidy program for
base-hosting local governments

YOMIURI (Page 1) (Excerpts)
Evening, April 8, 2006

In a bid to steadily implement a final report due out soon by the
Japanese and US governments on the realignment of US forces in
Japan, the government decided yesterday to set up a program to
provide subsidies to local governments on which a heavier burden
of the US military presence will inevitably be imposed as a
result of US force realignment.

The new subsidy program will be modeled after the one for local
governments housing nuclear power plants. Under the new program,
the government would pay subsidies in stages according to the
progress of construction. Should construction work be delayed due
to local opposition, payments would be frozen. The government
intends to make the new program more detailed than the current
system, introducing flexible calculation standards that would
reflect increases in new facilities, units, and training.

Under the current system, the government provides base-hosting
local governments with base subsidies and compensatory subsidies.
The government plans to add more to these and to adopt a three-
stage payment formula that covers the environmental impact
assessment, start of construction work, and beginning of facility
operations.

(14) Futenma relocation: Gov. Inamine objects to two-runway plan

ASAHI (Top play) (Excerpt)
Evening, April 8, 2006

Following an agreement reached between the Defense Agency and
Nago on a plan to relocate the US Marine Corps' Futenma Air
Station from Ginowan, Okinawa Gov. Keiichi Inamine held talks
with Defense Agency Director General Fukushiro Nukaga at the
agency this morning. Inamine has the power to approve reclaiming
land for building the envisaged runways. In his talks with the
defense chief, Inamine is believed to have expressed his
opposition to the plan, saying he could not accept the revised
plan based on a Japan-US agreement reached last October to
relocate Futenma Air Station to Cape Henoko in Nago.

(15) Futenma relocation issue still unfinished; Okinawa governor
opposes revised plan

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NIHON KEIZAI (Page 2) (Excerpts)
April 9, 2006

The issue of relocating US forces' Futenma heliport from Ginowan,
Okinawa, has now entered a new phase with the government
proposing a new plan for constructing two runways. Next on the
agenda for a final agreement will be coordinating views with the
governor, who has authority to approve the use of publicly owned
waters, and settling the cost of relocating US Marines in Okinawa
to Guam.

Defense Agency (JDA) Director General Fukushiro Nukaga on April 8
met with Okinawa Governor Keiichi Inamine and sought
understanding from him for the new government plan to construct
two landing strips in a V-shape on the Camp Schwab coast. Inamine
replied that he could not accept the plan as the situation now
stands, saying, "I will firmly maintain the prefecture's stance."

He also noted: "I will respect Nago's independent judgment. The
government has exclusive control over foreign and defense
affairs." Some JDA officials took this comment as tacit approval.
However, the governor is outwardly maintaining his usual stance
of not approving any relocation plan other than the Henoko Point
plan.

Provided that the governor adamantly opposes the two-runway plan,
the issue will emerge of how to deal with the governor's right to
authorize the use of the public waters when proceeding with the
construction plan. Chances are that if the talks between the
government and the prefecture run into snags, calls for the
enactment of a special measures law designed to transfer the
right from the prefecture to the central government might grow
among government and ruling party officials.

(16) Okinawa governor opposes new proposal over Futenma
relocation; Gov't to push for Futenma relocation, with Nago's
consent as leverage

SANKEI (Page 3) (Full)
April 9, 2006

Defense Agency Director General Fukushiro Nukaga met with Okinawa
Prefecture's Governor Keiichi Inamine yesterday at the Defense
Agency over the planned relocation of the US Marine Corps'
Futenma Air Station in the city of Ginowan, Okinawa. In the
meeting, Nukaga asked for the governor's understanding on a
remodified plan-which has now been agreed to by Nukaga and Nago
City-to install two runways in the shape of V. Inamine, however,
reiterated his rejection of any plan except the Henoko offing
airstrip installation plan adopted in a 1999 cabinet meeting. "I
will respect the (city's) decision but will firmly maintain the
prefecture's stance," Inamine said. "The governor is not in a
position to consider each single (facility)," Nukaga noted after
the meeting. With this, the defense chief indicated that the
government would continue talks with Okinawa to obtain its
understanding on a package of realignment plans, including the
relocation of US Marines from Okinawa to Guam. However, he also
stressed that the government would push for Futenma relocation on
the basis of its agreement with Nago City.

Japan and the United States will hold a two-day session of
intergovernmental consultations on April 13-14 over the

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realignment of US forces in Japan, with senior officials
attending. On that occasion, the Japanese and US governments will
discuss the issue of sharing the cost of moving Okinawa-based
Marines to Guam. The two governments will continue working-level
consultations thereafter. The Japanese government will determine
its share in a cabinet ministerial meeting and will then enter
into the final phase of bilateral coordination with the US
government. The two governments will hold a "two-plus-two"
foreign and defense ministerial meeting of their security
consultative committee this month. The Japanese government will
make a cabinet decision to adopt a final report incorporating the
remodified Futenma relocation plan as well, and will formally
retract the Henoko offing plan.

(17) Nukaga, Shimabukuro reach agreement at eleventh hour on plan
to change direction of runway

ASASHI (Page 1) (Full)
Evening, April 8, 2006

The Defense Agency and Nago reached an agreement last night on a
revised plan to relocate the US Marines Futenma Air Station to
Cape Henoko in Nago. What was discussed last night between the
two sides became clear today. Nago was strongly opposed to the
direction of one the two V-shaped runways. A deal was struck at
the eleventh hour by turning its direction.

The direction was turned for the one offshore to be used
exclusively for takeoffs. After taking off, US aircraft will head
east-northeast.

According to a source connected with Nago, the Toyohara district
was on an extension of the runway in the plan presented by Nukaga
at the outset of the talks. The reverse flight path of this
runway would fly over the Toyohara area. Given the situation,
Shimabukuro threatened to break off the talks, saying, "I cannot
convince local residents with such a plan."

In response, Nukaga said, "The US military will not use it in the
other direction. You have to trust the government." But
Shimabukuro still insisted: "We cannot trust the US military.
They could use it in the other direction depending on wind and
other factors."

Nukaga and Shimabukuro continued their talks after two
intermissions and finally reached an agreement to move this
runway further offshore.

(18) Gaps in views of Japan, US over sharing cost of transferring
US Marines to Guam; US focuses on relocation cost, unhappy with
loan system

NIHON KEIZAI (Page 2) (Excerpts)
April 9, 2006

The Defense Agency (JDA) and Nago, Okinawa City have struck a
deal on the relocation of Futenma Air Station. The US regards the
costs of relocating Futenma functions and transferring US Marines
in Okinawa to Guam as a package. It intends to strengthen its
call on Japan to pay 75% of the relocation cost, based on the
agreement on the transfers.

Commenting on the Futenma relocation issue, US Department of

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State Spokesman McCormack on April 7 told a news conference, "I
believe the Department of Defense is now vetting Japan's
proposal." Since the new proposal is different from the agreement
reached last October, the US side appears to have found it
necessary to check whether there are any obstacles to the
operation of the US military in the new plan.

For the US, negotiations with a local community that hosts a
relocation site are Japan's domestic issue. The problem for it is
rather the gap in the views of the two countries over the sharing
of the cost of relocating US Marines to Guam, which the US
estimates at 10 billion dollars. The US insists that Japan should
pay 7.5 billion dollars, while Japan has proposed extending 3
billion dollars in loans. The US appears to be dissatisfied with
both the amount and the loan method proposed by Japan. The
predominant view in Japan is that 75% is far too much and that
this must be a bargaining ploy on the part of the US.

The US views the costs of relocating Futenma functions, reducing
the burden on Okinawa, and transferring US Marines to Guam as a
package. Its logic is that Futenma functions cannot be relocated
until the two countries reach agreement on the sharing of costs.
It is bound to call on Japan to make concessions. Tokyo and
Washington will hold working-level talks by officials responsible
for foreign and defense affairs in Tokyo starting on April 13. A
political judgment at the cabinet-minister-level will likely be
made for a final settlement.

(19) US Navy to deploy new missile warship to Yokosuka in August

ASAHI (Page 4) (Full)
April 8, 2006

The US Navy will deploy the USS Shiloh, a guided missile cruiser,
to Yokosuka base in August, US Naval Forces Japan announced
yesterday. The Shiloh, which has a displacement of 9,600 tons at
full load, is equipped with SM-3 sea-based missiles to intercept
ballistic missiles. The US Navy has already been staging Aegis-
equipped destroyers in the Sea of Japan on the alert for
ballistic missile launches. The cruiser's deployment can be taken
as an effort to step up their intercept readiness.

SCHIEFFER