DAILY SUMMARY OF JAPANESE PRESS 04/10/06-3

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SUBJECT: DAILY SUMMARY OF JAPANESE PRESS 04/10/06-3


INDEX:

(30) Okinawa Gov. Inamine has to make tough choice on Futenma
relocation

(31) Why is Futenma relocation difficult? Greatest attention
focused on local consent

(32) Editorial - fresh agreement on Futenma relocation; Okinawa
Prefecture should look for a pragmatic response

(33) Editorial: Inamine must cooperate on Nukaga-Shimabukuro
agreement

(34) Editorial: Government must steadily advance Futenma
relocation work

(35) Editorial: Government must take Nago's decision on Futenma
relocation to heart

(36) What are the conditions for withdrawal of GSDF troops from
Iraq? A clear roadmap for next round of assistance essential;
Security operations, reconstruction assistance in southern Iraq
to enter next stage shortly 8

(37) US force realignment following a wild path (Part 2): Toxic
agents and use of vacated land

(38) Vertically segmented society: Origin of income disparity;
"Gaiatsu" pressure for reform; Japanese side takes advantage of
shared interests with US

ARTICLES:

(30) Okinawa Gov. Inamine has to make tough choice on Futenma
relocation

ASAHI (Page 1) (Slightly abridged)
April 9, 2006

Soon after 2:00 p.m. on April 8 at the Defense Agency, after a
meeting with Defense Director General Fukushiro Nukaga, Okinawa
Gov. Kenichi Inamine chose his words carefully and spoke slowly:
"I respect Nago City's decision. However, the prefectural
government will maintain its own position." He talked in his
usual style, but in a harsh tone.

Over the relocation of the US Marine Corps' Futenma Air Station
(located in Ginowan City),the main issue of the realignment of
US forces in Japan, Nukaga and Nago City Mayor Yoshikazu
Shimabukuro agreed to build two runaways in a V-shape, changing
the Futenma relocation plan agreed on last October between the
governments of Japan and the United States. Inamine, however,
indicated that the Okinawa prefectural government would continue
to call for relocating the Futenma base to an offshore airfield
to be built on a reclaimed land and oppose the V-shaped runaway
plan. In order to implement the plan agreed by Nukaga and
Shimabukuro, it is absolutely necessary to secure approval from
the governor, who has authority over sea-floor reclamation.
Inamine's opposition, therefore, has some degree of the weight
for the central government.

Inamine has also said that he would continue discussions with the

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central government, since if he discontinues the dialogue, he
would lose the means to realize Okinawa's view.

When Inamine accepted the 1999 Futenma relocation plan, he set
two conditions: a 15-year limit on the use of the replacement
facility and joint civilian-military use.

There are no signs that Tokyo and Washington discussed those two
conditions during negotiations on the replacement plan agreed
last October. Inamine intends to ask the government whether it
will make efforts to realize the 15-year limit and whether it
will consider promotion measures in place of the joint military-
civilian use.

Since the plan to build an alternative air station on the coast
of Camp Schwab was decided on last year, different plans were
worked out in Okinawa. One of the plans was to relocate
tentatively only the heliport facility to the land in Henoko,
building a helipad. The plan would eliminate the danger from the
areas surrounding the Futenma base, as well as reduce the levels
of noise and risk. If the helipad plan is realized, the
alternative air station will be greatly scaled down.

Inamine has not mentioned anything about his course of action
after his tenure in office expires in December. If a potential
successor advocates the helipad plan in the fall gubernatorial
election and if that candidate wins the race, the helipad plan
will become the will of the Okinawa people. This is a scenario
envisioned by senior Okinawa government officials.

However, Nago City has already agreed with the central
government. The prefectural government, therefore, has begun to
feel pressed. A senior Okinawa government official commented on
the night of April 7: "The governor is now facing a crucial
moment. We have to review our strategy. I wonder whether we
should take the V-shaped heliport plan seriously."

Shimabukuro held a press conference on the night of April 7 in
Nago City. Asked about whether the agreement with the central
government violated his campaign pledge, the mayor responded,
"Yes, it does." He has searched for dialogue with the central
government since he was elected as mayor of Nago in January. He
has a different policy stance from Inamine, who has called for
the offshore air station plan. He had sought a substantial
change, but he accepted the plan to relocate the Futenma similar
to the offshore plan.

If a mood of accepting the V-shape heliport plan spreads in Nago
City, obstacles outside the prefecture will disappear. Therefore,
Vice Governor Hirotaka Makino warned Nago Deputy Mayor Suematsu
not to make any easy concessions.

Inamine himself cannot see how far he will be able to maintain a
hard-line stance. In order to meet with Prime Minister Junichiro
Koizumi, Shimabukuro and the heads of towns and villages around
Nago City were waiting at the Defense Agency for Inamine, who was
holding talks with Nukaga. Inamine, however, headed for Haneda
Airport, after saying, "I cannot meet the prime minister at
present."

(31) Why is Futenma relocation difficult? Greatest attention
focused on local consent


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ASAHI (Page 33) (Full)
April 7, 2006

Question: We have recently often heard about Futenma in news
reports, haven't we?

Answer: It's the US Marines Futenma Air Station in Okinawa
Prefecture. The United States has promised to return it to Japan.
So the Japanese government and Nago City have been conducting
last-minute negotiations on the relocation of the Futenma base.

Question: Why did the United States decide to return Futenma
airfield to Japan?

Answer: Futenma is located in the middle of Ginowan City,
accounting for about 25% of the city's total area. There are
residential areas and schools around the base. Residents have
pointed out the risk of accidents and noise. The agreement on the
return of the airfield was reached in a meeting between Prime
Minister Ryutaro Hashimoto and President Bill Clinton ten years
ago.

As a condition for the return of Futenma airfield, the Japanese
government decided to relocate it to an offshore airfield to be
built on reclaimed land off Nago City. Okinawa Prefecture and
Nago City at one point accepted the government's plan. However,
the offshore airfield plan spurred vehement opposition from
conservation groups, because dugongs inhabit waters where the
government planned to build the alternative air station. The
government was unable to move forward with the plan. Okinawa
residents have criticized the central government for trying to
relocate the base within Okinawa. Okinawa hosts about 75% of US
bases in Japan.

Question: Has Futenma Air Station been used since then?

Answer: Yes. In the summer two years ago, a US military
helicopter crashed into a university adjacent to the base. What
Okinawa residents were concerned about became a reality. As a
result, there were increasing calls for the return of Futenma.

Question: Therefore, the government started discussing Futenma
relocation again.

Answer: The discussion coincided with US President George W.
Bush's decision to review the locations of US bases worldwide in
dealing with terrorism. The Japanese and US governments have
decided to relocate Futenma as part of the global transformation
of US forces. Tokyo and Washington last fall worked out a plan to
relocate the Futenma Air Station to the coast of Camp Schwab.

Question: Is the plan likely to follow that line?

Answer: No. Although the Japanese government agreed on the plan
with the US administration, it did not give Okinawa Prefecture
and Nago City full explanations on the plan. The US thinks that
obtaining local consent is important for the stable use of the
alternative air station. Futenma relocation is a symbol for
whether the realignment of US forces will come out well.

(32) Editorial - fresh agreement on Futenma relocation; Okinawa
Prefecture should look for a pragmatic response


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SANKEI (Page 2) (Full)
April 9, 2006

The decade-old outstanding issue between Japan and the United
States of the relocation of the US military's Futenma Air Station
has achieved major progress toward a resolution, as Defense
Agency (JDA) Director-General Fukushiro Nukaga and Mayor
Yoshikazu Shimabukuro of Nago City, which is expected to provide
the relocation site, agreed on the evening of April 7 on a plan
to construct two runways in a V-shape in order to exclude
residential areas from flight paths.

Although coordination with the Okinawa government still remains
on the central government side, this agreement has evidently
removed a major obstacle standing in the way of the efforts by
Japan and the US to reach a final agreement on the realignment of
the US forces in Japan. We give high marks to both the JDA, which
managed to bring about an accord while paying close attention to
such factors as the safety of residents, as well as Nago City's
pragmatic decision that has come from its attitude of emphasizing
co-existence with the base.

Japan and the United States agreed to come up with a final
agreement on the US force realignment before the end of March,
but they failed to meet the deadline. One reason is perhaps due
to the Futenma issue, and the other is because of the deep gulf
over how to share the costs of the relocation of US Marines from
Okinawa to Guam. In order to uphold and boost the Japan-US
alliance, the governments of the two countries must resolve the
remaining pending issues swiftly in a way that will be acceptable
to both sides' peoples.

Unless Japan and the US work together to deal with new threats,
such as international terrorism and the proliferation of weapons
of mass destruction, in addition to a rising China on the
military front and North Korea's nuclear ambitions, Japan cannot
secure its own peace and safety.

The basic agreement between the central government and Nago City
specifies that the central government should get approval from
Okinawa Prefecture, as well as all affected municipalities in the
prefecture.

In particular, reclaiming land from the sea for the relocation
requires permission from the governor in accordance with the Law
on Reclaiming Publicly Owned Waters. How Okinawa Prefecture will
respond to the agreement is therefore drawing attention. Okinawa
Gov. Keiichi Inamine yesterday met with Nukaga and reiterated
that his prefectural government would firmly maintain its
previous position, even though he respects Nago City's decision.

The previous position means that the prefectural government has
accepted the initial plan to relocate Futenma to site offshore
from the Henoko district on the condition that a new facility
should be available to both the military and the private sector
and that the term of the use of a new facility should be limited
to 15 years. The governor raises an objection to the agreement
this time, citing its lack of consideration of these conditions.

But Inamine derailed the initial plan due to the fact that his
campaign pledge guaranteeing a 15-year limit on the use of the
alternate facility was not accepted. He insists on the initial
plan, but that plan does not exist anymore.

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The relocation of Futenma is linked to a reduction of 8,000
Marines and the return of US military facilities located in the
southern part of the prefecture. Inamine also values the
relocation itself in view of alleviating the burden on Okinawa.
Given all this, he is indeed required to make a pragmatic
response.

(33) Editorial: Inamine must cooperate on Nukaga-Shimabukuro
agreement

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

An agreement has been reached between Defense Agency Director
General Fukushiro Nukaga and Nago Mayor Yoshikazu Shimabukuro on
a plan to construct two runways for the planned relocation of the
US Marine Corps' Futenma Air Station. The plan designed to build
two separate runways -- one for takeoffs and the other for
landings -- is intended to reduce noise for the concerned
communities.

Upon being briefed on the plan by Nukaga, Okinawa Gov. Keiichi
Inamine expressed opposition. As governor of Okinawa, Inamine is
in a position to swiftly eliminate dangers associated with
Futenma Air Station. He must cooperate with the central
government and Nago without worrying about losing face.

Prior to the production last October of a Japan-US interim
report, the Defense Agency proposed an inland plan, while Nago
and the US military called for a reef plan. The inland plan,
which would make it easy to block demonstrators, attached
importance to the ease of construction, whereas the reef plan
gave priority to usability, including the noise level. The reef
plan was reportedly able to generate tremendous economic benefits
as well.

The Japan-US interim report specified a plan combining the inland
and offshore plans. Shimabukuro did not support this plan when he
ran in the Nago mayoral race in January. But his campaign pledge
to hold talks with the central government if it was able to come
up with a convincing plan won him the post. Nukaga and
Shimabukuro held talks on an extension of this policy line and
revised the relocation plan in compliance with local requests.

But the agreement sparked criticism in Okinawa. The Ryukyu
Shimpo, for instance, knocked it as a "cheap trick" on April 8.
Such a reaction is natural from the position calling for moving
Futenma Air Station out of Okinawa. What is most important is to
make efforts to swiftly eliminate dangers associated with Futenma
Air Station being surrounded by residential areas. To that end,
Nukaga and Shimabukuro repeatedly held talks. A joint press
conference held by the defense chief and Nago mayor was epochal
in view of the past sense of distrust between Tokyo and Okinawa.

The agreement between the central government and Nago could put
Gov. Inamine in a difficult position; Inamine was elected in 1998
on a pledge to realize a military-civilian airport that the US
military could use for up to 15 years. Meeting with US
resistance, the 15-year proposal has substantially delayed the
realization of the Futenma relocation plan. Operation of civilian
planes at Nago, about an hour's drive from Naha, would end up
creating another unprofitable local airport.

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Some members in Okinawa connected with the Liberal Democratic
Party are supportive of the Nukaga-Shimabukuro agreement.
Cooperating for the agreement is a proper step, not a violation
of a public pledge. Face-saving resistance would only help the
current trend of permanent base arrangements in Japan. It was ten
years ago, in 1996, that Tokyo and Washington reached an
agreement to return Futenma Air Station to Japan in five to seven
years. The Futenma relocation must not be deferred any further.

The agreement between Tokyo and Nago would result in major public
works projects in Okinawa under the supervision of the
organization that will take over the Defense Facilities
Administration Agency. It is necessary to keep a closer watch to
make certain that taxpayer's money would not be wasted by bid
rigging and other practices.

(34) Editorial: Government must steadily advance Futenma
relocation work

YOMIURI (Page 3) (Full)
April 8, 2006

A settlement has been finally reached on the issue of relocating
the US Marine Corps' Futenma Air Station in Ginowan to the
coastline of Camp Schwab in Nago.

Giving utmost consideration to controlling noise pollution, the
central government proposed adding one more runway to the Camp
Schwab plan, and the Nago municipal government accepted the
proposal yesterday.

The relocation of the heliport functions of Futenma is a symbolic
measure in the realignment of US forces in Japan. The government
must swiftly translate the relocation plan into practice upon
obtaining local communities' agreement, even from the viewpoint
of stabilizing and strengthening the Japan-US alliance.

In the final report of the Special Action Committee on Okinawa
(SACO) in 1996, the Japanese and US governments agreed to
relocate Futenma Air Station to reclaimed land off the Henoko
district of Nago. In the face of opposition from local residents,
however, the government was unable to implement the plan, with no
progress made even on the environmental impact assessment.

This time, the US, dissatisfied with the present situation, urged
Japan to realize the coastal plan under the context of
reorganizing US forces in Japan. If Japan fails again to resolve
the impasse on the relocation issue, the relationship of trust
between Japan and the US, the foundation of their alliance, will
unavoidably be undermined.

The relocation of Futenma functions will put a heavy burden on
the Nago municipal and nearby local governments.

On this issue, Okinawa Governor Keiichi Inamine has expressed his
opposition to the government's plan. When he accepted the plan,
Inamine attached such conditions as joint use of the base as a
military-civilian airport and a 15-year time limit. His
opposition supposedly reflects his reaction to the absence of his
requests in the government's plan.

Uncertainty is now looming large over the security environment in

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the region, given China's military buildup and other elements. In
promoting US force realignment in Japan, the Pentagon has kept in
mind the threat posed by the "arc of instability," an area
stretching from Northeast Asia to the Middle East. Given the
situation, the presence of US military bases in Okinawa is
becoming more important.

With a 15-year time limit, it would be impossible to cope with
changes in the security situation in the region, and the peace
and national security of Japan might be negatively affected.

Soliciting agreement from local communities on the Futenma
relocation plan is a precondition for the proposed transfer of
about 8,000 US Marines from Okinawa to Guam. The Guam transfer
plan should also be desirable for Governor Inamine, because the
plan will lead to reducing the security burden on Okinawa.

With the deal between the central government and the Nago
municipal government, the Futenma relocation plan has taken a
step forward.

However, such plans as relocating a carrier-based air wing now
stationed at the Atsugi base in Kanagawa Prefecture to the US
Marine Corps' Iwakuni Air Base in Yamaguchi Prefecture, as well
as transferring aerial tankers from Futenma Air Station to Kanoya
Base in Kagoshima Prefecture, have been left unsolved.

In order to strengthen the Japan-US alliance for the sake of
maintaining peace in Japan and the region, the government must
step up efforts to resolve the problems at an early date on its
own responsibility.

(35) Editorial: Government must take Nago's decision on Futenma
relocation to heart

MAINICHI (Page 5) (Full)
April 9, 2006

The planned relocation of the US Marines' Futenma Air Station,
one of the thorniest issues in the realignment of US forces in
Japan, has finally taken a step toward settlement.

As a result of their talks, Defense Agency Director General
Fukushiro Nukaga and Nago Mayor Yoshikazu Shimabukuro signed an
agreement April 7 to build two runways in a V-shape at the
planned relocation site on the coastline of Camp Schwab.

Although Nukaga decided to accommodate Nago's wishes to remove
residential areas from the envisioned flight path, he did not
agree to its call for moving the runway over 400 meters offshore.

Shimabukuro made an anguished decision. His decision may draw
fire from local municipalities in Okinawa. The government must
take Shimabukuro's decision seriously.

Nukaga also met with Okinawa Gov. Keiichi Inamine April 8, and
the governor reiterated his opposition to the revised plan while
indicating that he would respect Nago's independent decision. The
focus will now shift to the central government's efforts to
convince the Okinawa prefectural government.

The danger of aircraft accidents has long been mentioned
regarding Futenma Air Station, which sits in the middle of

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residential areas in Ginowan. Okinawa cannot afford to leave the
Futenma relocation issue unaddressed. Despite the Japan-US
agreement, the issue has been in limbo over the last decade.

The Futenma relocation plan was triggered by the 1995 schoolgirl
rape. In 1996, the Special Action Committee on Okinawa (SACO)
produced its final report specifying the relocation of Futenma
Air Station. In 1999, a decision was made to build a sea-based
airport off Henoko in Nago by reclaiming land.

But Inamine advocated a joint military-civilian airport that the
US military could use for up to 15 years. The Futenma relocation
plan essentially went down the drain due to an anti-base movement
and other factors.

Building an offshore airport on reclaimed land would be
tremendously beneficial to the local economy, but it might have a
serious adverse impact on the natural environment. Anti-base
demonstrations at sea may also force the government to
temporarily halt construction work for building a sea-based
airport.

In restudying the Futenma relocation plan, the government gave
high priority to feasibility and consequently came up with the
Camp Schwab coastal plan. The government also explained that the
relocation to Camp Schwab, an existing US base, would not result
in another US base in the prefecture.

But many residents in Okinawa, which hosts the bulk of US bases
in Japan, are still calling for removing the air station from
their prefecture. Although Shimabukuro's decision may come under
fierce fire, he should offer a thorough explanation to the local
residents and persistently convince anti-relocation residents.

Needless to say, the responsibility for US force realignment
rests entirely on the central government. The government is to
blame for a number of mistakes, such as its failure to offer
sufficient explanations to concerned local municipalities at an
early stage. There is every reason for the central government to
come up with measures to revitalize the economy of Okinawa, which
lies under a heavy base burden.

Tokyo and Washington failed to produce their final US force
realignment report in late March, as planned. Now that the
agreement has been reached with Nago on the Futenma relocation
plan, the government should devote all its efforts to addressing
the remaining challenges to obtain national understanding.

(36) What are the conditions for withdrawal of GSDF troops from
Iraq? A clear roadmap for next round of assistance essential;
Security operations, reconstruction assistance in southern Iraq
to enter next stage shortly

YOMIURI (Page 11) (Abridged)
April 6, 2006

Commentary

By Hidemichi Katsumata

There is a lot of speculation about the timing of a pullout of
Ground Self-Defense Forces (SDF) troops from Iraq. What are the
conditions for the withdrawal?

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The initial outlook for the withdrawal was that preparations
would be started in late March and the pullout will be completed
before the end of May. Later, the timing was changed to
preparations in April and a pullout in June. Now again, the
timing has become increasingly opaque. "It may slip to this
fall," Foreign Minister Aso said.

The outlook for withdrawal preparations in late March was based
on the record high voter turnout of the national assembly
elections in Iraq late last year, which was viewed as the last
event in the completion of the political process in that country.
With the elections participated in by both the majority Shiites
and the minority Sunnis, there was optimism that a new government
would be established by March.

But after the Shiite United Iraq Alliance chose a candidate for
premiership in February, there was an outbreak of terrorism
allegedly committed by Sunnis, and since then exchanges of
attacks between the two groups have continued.

A senior Defense Agency (JDA) official said, "We hope to see
major cabinet posts filled and a new government formed by mid-
May." Once a new government is launched, Japan will be able to
shift its ongoing assistance to full reconstruction assistance,
such as by providing 3.5 billion yen in yen loans.

But is the birth of a new government a requisite for the pullout
of GSDF troops?

The GSDF and the British and Australian forces have stationed
their troops in Muthana Province (with a population of some
600,000) centering on Samawah in southern Iraq. The GSDF's
mission is to help reconstruct Iraq, while British and Australian
troops are engaged in maintaining the public safety of the
province, as well as training local security forces.

Speaking of the current state in the province, a senior GSDF
officer who had returned home from there gave this account:
"Security operations by means of patrolling have already mainly
been turned over to Iraqi forces and police. Local security has
already completed the training courses prepared by British forces
at the end of February. The local Iraqi police with a strength of
6,000 have already been formed in the region." Late January, the
British Defense Ministry told Japan, the United States, and
Australia that it would begin pulling out its troops in March,
apparently perceiving that its security mission that started
during the postwar chaos was shifting to a new stage.

When it comes to how far Samawah has recovered from wartime
devastation, brick and cement factories are in operation
everyday, unlike two years ago, when GSDF troops set foot in the
region. Late last year, a construction rehabilitation committee
was set up in Muthana Province.

The GSDF has created short-term jobs in repairing pubic
facilities, such as schools and roads, and it has consistently
employed at least 1,000 local residents, but it needs to have a
long-term employment program designed to hire tens of thousands
in the future. "The GSDF has engaged in assistance to Iraq as the
first runner of Japan, but its role is coming to a close," said a
senior GSDF officer. This remark is persuasive.


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Late March, the government announced that it would provide Iraq
with approximately 76.5 billion yen in loans as part of
reconstruction assistance in such fields as rebuilding ports and
improving electric power supply to Baghdad. This will be the
first step toward Japan's full-fledged financial assistance. In
this context, it seems time for the government to accept
candidates for reconstruction assistance from its ministries and
agencies, as well as the private sector, as the second runner
following the GSDF. The Special Measures Law on Assistance to
Iraq in its Article 10 states that the government should actively
accept candidates for reconstruction assistance. The government
should promptly sketch out what it will do after the GSDF
pullout.

Japan, Britain, and Australia are "unable to pull out their
troops from Iraq, because the US has yet to give them the go-
ahead," according to a senior JDA official. Given the present
state of Muthana Province, where full-scale reconstruction has
begun, the government needs to persuade the US to issue the go-
ahead, as well as clarify its roadmap for full-fledged assistance
to local administrative offices in Iraq. Doing so should be a
condition for the GSDF pullout.

(37) US force realignment following a wild path (Part 2): Toxic
agents and use of vacated land

TOKYO SHIMBUN (Page 22) (Excerpts)
April 3, 2006

The site vacated by the US military Onna Communications, covering
63.1 hectares, is now desolate. The facilities were returned to
Japan in 1995.

In 1996, polychlorinated biphenyl (PCB),hazardous waste, was
found on the site. The contaminated soil and mud was stored in
700 metal drums, and the sealed drums were moved to the Self-
Defense Force (SDF) base in Onna Village. The drums have yet to
be removed from there.

Yasushi Yamashito, an Onna municipal government official,
commented: "Besides the contamination, there is another issue of
how to use the vacated site." About 400 landowners have come up
with different suggestions, some calling for using their land as
farmland or housing lots, and others for building lots for sale.

The Onna municipal government has looked into ways to use the
site at a newly established study committee. Yamashiro said:

"Not the local government but the landowners will make a
decision. But since they are getting old, an energetic discussion
cannot be expected. I wonder how many more years it will take for
a conclusion."

Whenever US military facilities and areas in Okinawa are returned
to Japan, the issues of environmental contamination and land use
emerge as problems. Former Okinawa Governor Masahiko Ota, now a
House of Councillors member, stated:

"It will take at least 10 years until a land-use plan is
implemented. Meanwhile, the subsidies paid to landowners will be
terminated in three years. The government might be expecting
landowners to say, 'The government does not need to return our
land.'"

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Japan and the US have agreed to incorporate in a final report on
US force realignment in Japan an agreement on the return of
military bases in the southern and central part of Okinawa,
including Naha Military Port and Camp Zukeran. All local
communities housing US military bases have similar problems.

In Makiminato Service Area in Ginowan City, whose return is now
under consideration, a hexavalent chromium spill in the sea made
headlines in 1975. Hexavalent chromium is a deadly poison.

The toxic material was generated from the car-cleaning agents
brought in from Vietnam during the Vietnam War. An American
soldier removed the stopper of the storage tank against the
advice of Japanese base employees. Afterward, the cleaning agents
were stored in drums that were piled up at the site. Later,
however, they disappeared.

Takahiro Ina, an executive member of the Makiminato branch of the
Union of Workers at US Military Bases in Okinawa, said: "I think
the drums in question have been buried."

Ina made the above prediction in view of the facts that a
Japanese government inspection of the former Camp Kuwae in Chatan
in 2002 turned up metallic arsenic and hexavalent chromium from
the soil and that 20 drums containing waste oil had also been
found underground near a rifle range. Last February, 10,300 live
shells, including rocket ammunition, were also found underground.

Article 3 of the Japan-US Status of Forces Agreement stipulates
that the US may take all measures necessary for the
establishment, operation, safeguarding, and control of bases.
Under Clause 1, Article 4, the United States is not obligated,
when it returns facilities, to restore them to the condition they
were at the time they became available to the US armed forces.

Ina said: "The US military has used base facilities as they like.
Even if the facilities and areas are returned to us, the burden
on Okinawa will not immediately be removed."

The Japanese and US governments have agreed on a plan to reduce
8,000 Marines in Okinawa as a measure to reduce the base burden
there. But Ina is skeptical of the plan's credibility.

In response to an inquiry from the Tokyo Shimbun about the total
number of Marines in Okinawa, the US military command office
replied, "The number is 17,000 to 18,000," but it added, "Because
some have been dispatched to fight terrorism, the current number
is 15,000."

It is uncertain how many Marines will be kept in Okinawa after
the reduction proposal is implemented, and it is difficult to
verify it.

Estimating the total cost of relocating Marines from Okinawa to
Guam at about 10 billion dollars (about 1.16 trillion yen),the
US has asked Japan to pay 75% of the cost. Needless to say, it
will be the Japanese government's duty to clean up the
contaminated soil after facilities and areas are returned to
Japan.

(38) Vertically segmented society: Origin of income disparity;
"Gaiatsu" pressure for reform; Japanese side takes advantage of

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shared interests with US

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

Twenty-seven mentally handicapped people work at "Friendly," a
welfare workshop in Kitamoto, Saitama Prefecture. They are all
insured through the Yamabiko Mutual Aid Society (with
approximately 5,200 members),an unauthorized mutual aid
association not regulated by the Insurance Business Law.

Osamu Miyamoto (22) is frequently hospitalized for pneumonia. He
relies on the Mutual Aid Society to pay his hospital fees,
because its premium is low. His mother Kimiko (50) noted that
insurers denied him insurance just because he was mentally
handicapped.

The revised Insurance Business Law stipulates that mutual aid
societies should be staffed with insurance experts. The Financial
Services Agency (FSA) explained that the regulation is intended
to make the financial standing of mutual aid societies sound for
the protection of consumers. The administrative offices of mutual
aid societies are concerned that if they hire insurance experts,
most of the premiums paid by policyholders will be used up to
cover personnel expenses.

The FSC in January 2004 referred the possibility of regulating
unauthorized mutual aid associations to the Financial Services
Advisory Council along with a list of requests. The list was
excerpts from the requests that insurance business organizations
and the US filed with the Comprehensive Regulatory Reform Council
chaired by Yoshihiko Miyauchi, chairman of Orix. In seeking
regulation on mutual aid associations, the US used the strongest
words: all mutual aid associations should be regulated in the
same way that insurance companies are regulated. Behind this move
is a sense of alarm that mutual aid associations might grab their
market share.

Even Kimio Morisaki, vice chairman of the Association of Foreign
Non-life Insurance Companies and an expert member of the FSC
pointed out, "If such a strict regulation were adopted in a hasty
manner, some might tend to suspect that the aim is to force
mutual aid associations out of business."

There were already moves seen over mutual aid associations last
fall. The American Chamber of Commerce and Industry (ACCI) called
on the government to regulate them. The US also included this
request in its annual US-Japan Enhanced Initiative on
Deregulation and Competition Policy, a list of requests for
deregulation to Japan.

In January 1994, President Clinton received a report from Glen S.
Fukushima that stated: "The administration does not know when,
how, or to what extent the US should apply pressure on Japan in
order to achieve its targets most effectively without incurring
opposition." According to Fukushima, the president underlined
this segment of the report, jotting, "This is correct." He then
reportedly ordered Secretary of State Christopher and United
States Trade Representative (USTR) Kantor to read the report.

Fukushima is a second-generation Japanese-American. He once
studied in Japan. He became the president of the ACCJ after
working at the USTR Japan Desk for five years under the Reagan

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and Bush administrations.

The US government at the time was at an impasse in negotiations
to cut the US trade deficit with Japan. The US dispatched USTR
Japan Desk Director General Charles Lake, now ACCJ chairman, to
Japan nine months after the Fukushima report was issued. The aim
was to convey to the Japanese side the US policy shift to seeking
deregulation from Japan. The US interests coincided with those of
the Ministry of International Trade and Industry and the Japan
Business Federation (Keidanren),which believed that free
competition was the way to enhance Japan's competitiveness.

Washington in November 1994 presented its first annual US-Japan
Enhanced Initiative on Deregulation and Competition Policy to
Japan. Fukushima revealed: "Japanese business leaders, government
officials, and politicians once asked us to include their
requests in our report." A senior official of the Keidanren
administrative office categorically said: "We have used gaiatsu,
when needed. The US is the only country to rely on when we want
to use gaiatsu."

The Regulatory Reform Committee, chaired by Miyauchi, in November
2000 invited US Ambassador Foley. He explained the US-Japan
Enhanced Initiative on Deregulation and Competition Policy there.
One committee member said, "It is regrettable that the US has not
come up with a view calling for deregulation of the strongly
regulated medical services area. Deregulating this area will help
the US increase its business opportunities."

As foreign companies operating in Japan employ more Japanese
employees, Japanese individual members of the ACCJ have come to
account for 60% of its total membership -- approximately 3,000.

Requests filed by those Japanese employees, who are versed in
Japan's corporate society, are making gaiatsu more powerful.

In 2001, the ACCJ chose Miyauchi as its person of the year. It
was to honor his many years of vigorous activities for
deregulation and structural reforms.

In mid-February this year, about 40 ACCJ members split up and
visited influential lawmakers and government agencies. This is a
lobbying activity called the Diet-door knock. The ACCJ's action
policy for this year is to serve as a supporter for Japan's
reform.

SCHIEFFER