Identifier
Created
Classification
Origin
06TOKYO2048
2006-04-17 00:58:00
UNCLASSIFIED
Embassy Tokyo
Cable title:  

JAPANESE MORNING PRESS HIGHLIGHTS 04/17/06

Tags:  OIIP KMDR KPAO PGOV PINR ECON ELAB JA 
pdf how-to read a cable
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RUEAWJA/USDOJ WASHDC PRIORITY
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RUAYJAA/COMPATWING ONE KAMI SEYA JA
RUEHNH/AMCONSUL NAHA 8348
RUEHFK/AMCONSUL FUKUOKA 5717
RUEHOK/AMCONSUL OSAKA KOBE 8894
RUEHNAG/AMCONSUL NAGOYA 5708
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RUEHUL/AMEMBASSY SEOUL 7930
RUCNDT/USMISSION USUN NEW YORK 9819
UNCLAS SECTION 01 OF 12 TOKYO 002048 

SIPDIS

SIPDIS

DEPT FOR E, P, EB, EAP/J, EAP/P, EAP/PD, PA;
WHITE HOUSE/NSC/NEC; JUSTICE FOR STU CHEMTOB IN ANTI-TRUST
DIVISION; TREASURY/OASIA/IMI/JAPAN; DEPT PASS USTR/PUBLIC AFFAIRS
OFFICE; SECDEF FOR JCS-J-5/JAPAN,
DASD/ISA/EAPR/JAPAN; DEPT PASS ELECTRONICALLY TO USDA
FAS/ITP FOR SCHROETER; PACOM HONOLULU FOR PUBLIC DIPLOMACY
ADVISOR; CINCPAC FLT/PA/ COMNAVFORJAPAN/PA.

E.O. 12958: N/A
TAGS: OIIP KMDR KPAO PGOV PINR ECON ELAB JA

SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 04/17/06


Index:
UNCLAS SECTION 01 OF 12 TOKYO 002048

SIPDIS

SIPDIS

DEPT FOR E, P, EB, EAP/J, EAP/P, EAP/PD, PA;
WHITE HOUSE/NSC/NEC; JUSTICE FOR STU CHEMTOB IN ANTI-TRUST
DIVISION; TREASURY/OASIA/IMI/JAPAN; DEPT PASS USTR/PUBLIC AFFAIRS
OFFICE; SECDEF FOR JCS-J-5/JAPAN,
DASD/ISA/EAPR/JAPAN; DEPT PASS ELECTRONICALLY TO USDA
FAS/ITP FOR SCHROETER; PACOM HONOLULU FOR PUBLIC DIPLOMACY
ADVISOR; CINCPAC FLT/PA/ COMNAVFORJAPAN/PA.

E.O. 12958: N/A
TAGS: OIIP KMDR KPAO PGOV PINR ECON ELAB JA

SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 04/17/06


Index:

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

4) Jiji poll shows Koizumi Cabinet approval has slipped 3.2
points to 43.9%

USFJ realignment talks:
5) Okinawa governor to attach new conditions for accepting
Futenma relocation plan
6) US, Japan agree on relocation of air-refueling planes to
Iwakuni base, with long-term training at Kanoya, Guam
7) NLP to move from Iwojima Island to Kyushu or Seto Inland Sea
area as part of Atsugi aircraft transfer to Iwakuni
8) Chief Cabinet Secretary Abe links consideration of local
development package to move of US aircraft to Iwakuni
9) Defense Deputy Under Secretary Lawless meets JDA chief
Nukaga to discuss issue of cost of relocating Okinawa Marines to
Guam
10) Gap remains between US, Japan on Japan's share of Guam
relocation cost
11) US, Japan to meet at cabinet-level in early May to seal the
USFJ realignment agreement, with Guam relocation cost the only
issue left to resolve

Iraq reconstruction assistance:
12) GSDF troops may not withdraw from Iraq until after this
autumn
13) Government may leave the decision on SDF withdrawal to Iraq
to the next administration after Prime Minister Koizumi

Iran's nuclear ambitions:
14) Worried about future of its oil field project, Japan to seek
talks with Iran on nuclear issue
15) The question of oil field rights in Iran also involves China

China issues:
16) China bans navigation in median-line waters between it and
Japan
17) Tokyo not informed officially of Beijing's ban of navigation
in median-line waters
18) Japan to end grants to China, as well, shift ODA focus to

India

Issues with Republic of Korea:
19) Japan to start maritime research in waters near disputed
Takeshima isles
20) South Korea asks Japan to halt planned maritime research in
waters near Takeshima isles

Political agenda:
21) Minshuto head Ozawa meets leader of Komeito-backer Soka
Gakkai, setting off alarms in ruling parties
22) Foreign Minister Aso raps Ozawa for Yasukuni remark
23) With Fukuda, Abe now contenders for Koizumi's post, former
faction head Mori says faction may chose candidate between the
two by talks

Articles:


TOKYO 00002048 002 OF 012


1) TOP HEADLINES

Asahi:
Recycling of mobile phones remains stagnant, with only 20%
collection rate

Mainichi:
Government urges local authorities to upgrade system to prevent
suicides, enact new legislation to support victims' families

Yomiuri:
Japan, US aim to transfer night landing practice facility from
Iwojima in fiscal 2009

Nihon Keizai:
Wage hikes average 1.65%, or more than 5,000 yen, for first time
in five years

Sankei:
China bans vessels near gas field in East China Sea without
officially informing Japan of the decision

Tokyo Shimbun:
Police to question Kimura Construction, Huser executives over
falsified quake-resistance data

2) EDITORIALS

Asahi:
(1) In case of Kanemi oil poisoning, government must make up for
delay in helping victims
(2) Long detention of man suspected of molesting woman intended
to force confession?

Mainichi:
(1) On US force realignment, settlement that can convince people
urged
(2) Gap in society (part 15): Adopt competitive market mechanism
to enable making use of colleges basic research

Yomiuri:
(1) Standard test results should be released
(2) Discussion on organ transplant law should not be delayed any
longer

Nihon Keizai:
(1) Companies facing major challenge of how to form next-
generation-type research institutes

Sankei:
(1) Net reduction in number of public servants: Government
agencies must be aware of public's harsh view
(2) Government urged to take steps from space to prevent
expansion of neglected forests

Tokyo Shimbun:
(1) Airline companies urged to safety operation measures
(2) China must take action to protect intellectual property
rights

3) Prime Minister's Official Residence (Kantei)


TOKYO 00002048 003 OF 012


Prime Minister's schedule, April 15

NIHON KEIZAI (Page 2) (Full)
April 16, 2006

08:53
Hosted a gathering to view cherry blossoms at Shinjuku Gyoen.

09:59
Returned to residence.

15:25
Delivered a stump speech in front of Daiei Shin-Matsudo Store in
Matsudo City, Chiba Prefecture.

16:16
Delivered a stump speech at North Exit of JR Minami-Nagareyama
Station in Nagareyama City.

17:50
Delivered a stump speech in front of the Noda City Office
Building in Noda City.

19:48
Returned to residence.

Prime Minister's schedule, April 16

NIHON KEIZAI (Page 2) (Full)
April 17, 2006

Stayed at residence all day.

4) Poll: Cabinet support rate down to 43.9%

TOKYO SHIMBUN (Page 2) (Abridged)
April 16, 2006

The approval rating for the Koizumi cabinet in April was 43.9%,
down 3.2 percentage points from March, in a public opinion survey
released by Jiji Press yesterday. The disapproval rating also
dropped 0.9 points to 34.4%. The leading opposition Democratic
Party of Japan (DPJ or Minshuto),now headed by Ichiro Ozawa as
its new president, stood at 9.1% in public support, showing a
slight increase of 0.3 points. The DPJ still hovered low at a one-
digit percentage even under the new leadership.

The survey was conducted April 7-10 by sampling a total of 2,000
persons chosen from among males and females, aged 20 and over,
across the nation. The rate of valid respondents was 69.0%.

In the breakdown of public support for political parties, the DPJ
remained flat at one-digit levels for the sixth month in a row.
The ruling Liberal Democratic Party stood at 27.0%, up 1.0 points
from last month. Among other political parties, the Japanese
Communist Party was at 3.0%, up 0.8 points; the New Komeito party
at 2.8%, down 1.3 points; the Social Democratic Party (SDP or
Shaminto) at 1.2%, down 0.1 points; the People's New Party (PNP
or Kokumin Shinto) at 0.1%, remaining flat from last month.

5) Okinawa governor leaves latitude for pragmatic response to
Futenma relocation issue; Hints at new conditions

TOKYO 00002048 004 OF 012



MAINICHI (Page 1) (Full)
April 17, 2006

Okinawa Governor Keiichi Inamine on April 14 noted that provided
that the governments of Japan and the US reach a final agreement
on the revision to the plan to relocate US forces' Futenma Air
Station from downtown Ginowan to the coastal part of the Camp
Schwab, he would "respond to the decision as a matter of course."
He indicated his intention to propose new conditions to prevent
the relocated heliport from becoming a permanent base, just as he
attached such conditions as the 15-year limit to the use of the
facilities when he accepted the plan to use reclaimed land off
Henoko (previous plan). Inamine's stance leaves open the
possibility of a pragmatic response, while firmly maintaining the
basic position of calling for relocating the functions outside
the prefecture unless the original plan is adopted.

Inamine made this comment during a regular press briefing. He
highly evaluated the development of the realignment issue as a
whole. Regarding the revised coastal plan, which Nago and the
Defense Agency have recently agreed upon, Inamine noted, "There
are sometimes occasions when we need to make a judgment, taking
into account whether what should be done for Okinawa in the long
term. In my view, we can only opt for a better plan." He hinted
at the possibility of proposing during future talks with the
government conditions designed to avoid base facilities from
becoming permanent, including altering the shape of the site and
making the use of facilities temporary.

6) Japan, US reach broad agreement to transfer air tankers from
Futenma to Iwakuni and conduct long-term training at Kanoya and
Guam

YOMIURI (Page 2) (Full)
April 15, 2006

Japan-US senior working-level talks were held in Tokyo yesterday
between foreign and defense officials of the two countries on the
realignment of US forces in Japan. As a result, regarding the
relocation of KC-130 aerial tankers now based at the US Marine
Corps' Futenma Air Station, the two countries reached a broad
agreement to build a facility, including housing, at Iwakuni Air
Station in Yamaguchi Prefecture and conduct long-term flight
training at the Maritime Self-Defense Force's Kanoya base in
Kagoshima Prefecture and Guam. Daily training will be conducted
at the Iwakuni base.

Although the Kanoya base is specified in the interim report as
the primary site for the relocation of KC-130s, the US has been
calling for a shift to the Iwakuni base in terms of user-
friendliness. Japan has finally given in to the US call. In the
March 12 plebiscite, the overwhelming majority of Iwakuni
residents said "no" to the transfer of carrier-borne aircraft
from Atsugi Naval Base to the base in the city. The broad
agreement reached between Japan and the US yesterday may again
draw a fierce reaction from Iwakuni residents.

In anticipation of Iwakuni's strong reaction, the US has decided
to relocate eight CH-53 helicopters from the Iwakuni base to Guam
to reduce the noise level. The US has also decided to allow
building a civilian air terminal at the Iwakuni base in

TOKYO 00002048 005 OF 012


compliance with Japan's request.

7) US aircraft's night-landing practice to be transferred from
Iwojima by 2009 to Kyushu or Seto Inland Sea

YOMIURI (Top play) (Excerpt)
April 17, 2006

The Japanese and US governments have reached an agreement to
build a regular facility, with 2009 as the target, for night-
landing practice (NLP) that has been carried out temporarily by
US carrier-based aircraft attached to Atsugi Air Station
(Kanagawa Prefecture) on the island of Iwojima (under Tokyo
jurisdiction). This was revealed by a government source on April

16. The aircraft are planned for relocation to the US Marines'
Iwakuni Air Station (Iwakuni City, Yamaguchi Prefecture) in
fiscal 2008 or later, so the US has been seeking a training
facility close to that base either in Kyushu or the Seto Inland
Sea area. The Japanese government would like to reduce the
aircraft-noise level as much as possible, but it has no specific
candidate site in mind, and the process of selecting one is
likely to be difficult.

8) US air wing redeployment to Iwakuni: Abe says gov't to mull
economic packages for local communities

MAINICHI (Page 2) (Full)
April 17, 2006

Chief Cabinet Secretary Shinzo Abe yesterday visited the city of
Iwakuni, Yamaguchi Prefecture, for a campaign speech in the run-
up to the city's mayoral election scheduled for April 23. In the
speech, Abe asked for local understanding on issue of relocating
a US carrier-based air wing to the US Iwakuni base and reiterated
the government's intention to make efforts for local economic
development. "The government will definitely support those
shouldering the burden," Abe said.

Abe also said, "Japan's national security is protected under its
alliance with the United States." He went on, "We will complete
(the Iwakuni base's) offshore extension at the earliest possible
time, and those helicopters currently deployed here will be asked
to go to Guam."

9) Lawless, Nukaga discuss Okinawa Marines relocation

YOMIURI (Page 2) (Full)
April 15, 2006

Senior foreign and defense officials of Japan and the US failed
yesterday to reach an agreement on the two countries' shares of
the expenses required for the relocation of US Marines from
Okinawa to Guam. They will meet again in Washington starting on
April 24. The two countries plan to hold a Japan-US Security
Consultative Committee meeting of foreign and defense ministers
on May 2 to approve the final report. Japan had earlier proposed
extending 3 billion dollars, or 333 billion yen based on the
fiscal 2006 exchange rate, in loans for the planned relocation.
In the latest talks, Japan has conveyed to the US its readiness
to disburse an additional 3 billion dollars from the general
account.


TOKYO 00002048 006 OF 012


Last night, Defense Agency Director General Fukushiro Nukaga also
discussed the relocation cost issue for about one hour in Tokyo
with US Deputy Under Secretary of Defense Richard Lawless and US
Ambassador to Japan Thomas Schieffer. A source connected with the
Japanese government expressed confidence about settling the
relocation cost issue yesterday, saying, "It's only a matter of
time. A settlement is in sight."

10) In talks on transfer of Marines to Guam, US presents reduced
relocation cost, but no agreement reached on Japan's share

ASAHI (Page 3) (Excerpts)
April 15, 2006

In talks on the realignment of US forces in Japan held in Tokyo
on April 13-14 by Japanese and US foreign and defense deputy
directors general, Japan revealed it was considering a plan to
finance part of its share of the cost to relocate US Marines from
Okinawa to Guam from the national treasury in addition to the
already announced payment under a loan formula. In response to
Japan's call for a reduction in the transfer cost, the US said
that the cost would be less than 10 billion dollars
(approximately 1.18 trillion yen). As a relocation site for 12
aerial refueling planes stationed in the US Marine Corps Futenma
Air Station in Okinawa, both sides agreed in general to conduct
training at the Maritime Self-Defense Force Kanoya Base in
Kagoshima Prefecture and to build housing for personnel and their
dependents, as well as the command center at the US Marine Corps'
Iwakuni Air Base in Yamaguchi Prefecture.

Japan and the US, however, failed to find common ground on
Japan's share of the Guam relocation cost. The two sides have
decided to hold another deputy director-level meeting in
Washington on April 24.

In the talks held so far, the US estimated the total relocation
cost at 10 billion dollars and asked Japan to pay 75% (7.5
billion dollars or about 880 billion yen) of the amount. In
response, Japan presented a plan to pay about 3 billion dollars
(about 350 billion yen) in government loans as expenses to
construct housing and facilities related to their daily lives.

According to Japanese government sources, Japan indicated in the
latest talks the possibility of financing infrastructure
building, such as roads near the relocation site, with taxpayer
money in addition to the loans.

In a call for slashing the project 10 billion dollars as the cost
of relocating Marines to Guam, Japan also asked the US to review
its basis for the cost estimate. According to the sources, the US
showed a list of itemized amounts totaling slightly less than 10
billion dollars.

11) Cabinet-level meeting at beginning of May between Japan-US on
USFJ realignment, with issue of Guam relocation cost now in final
stage of coordination

NIHON KEIZAI (Page 1) (Excerpt)
April 15, 2006

In connection with the realignment of US forces in Japan, the
Japanese and US governments have reached a basic agreement to

TOKYO 00002048 007 OF 012


hold in Washington at the beginning of next month a meeting of
the Security Consultative Council (2-plus-2) of cabinet-level
officials responsible for foreign and security-affairs. With
coordination on the issue of sharing the cost of relocating US
Marines on Okinawa to Guam now in the final stage, the outlook is
for a final agreement to be reached on realignment issues at the
2-plus-2 meeting.

12) Government to defer GSDF withdrawal from Iraq to fall or
later due to unstable security situation

TOKYO SHIMBUN (Page 1) (Full)
April 17, 2006

The government decided yesterday to defer the withdrawal of
Ground Self-Defense Force troops from the southern Iraqi city of
Samawah to the fall or later.

The decision is ascribable to the unstable security situation in
Iraq and unclear prospects for establishing a new government. The
government also concluded it extremely difficult to conduct
withdrawal work in the summer, when the temperature can reach 60
degrees centigrade.

The Defense Agency will issue an order later this month to launch
the 10th 500-strong contingency mostly composed of the Eastern
Army for rotational deployment to Samawah.

The government had been making preparations for a GSDF withdrawal
beginning later this month. But in talks held in London on April
10, Japan, the US, the UK, and Australia shared the view that
given the unpredictable security situation in Iraq, activities by
multilateral forces would remain critical for the country, even
if a permanent government is launched. As a result, Tokyo has
decided to delay pulling its troops out of Iraq.

The US has informally asked Japan to deploy troops in the
southern Iraqi city of Basra and other places. The government
intends to reject the US request, citing the prolonged GSDF
deployment in Samawah.

Prime Minister Koizumi is expected to discuss the withdrawal
issue with President Bush during his US visit in June.

13) Iraq deployment: Japan troops to stay on, withdraw under next
premier

SANKEI (Top play) (Abridged)
April 16, 2006

Japan will continue its current deployment of Ground Self-Defense
Force (GSDF) troops in the southern Iraqi city of Samawah and
will postpone their pullout to this fall, government sources said
yesterday. This decision is based on an analysis of the situation
in Iraq at a meeting in London on April 10 of foreign and defense
affairs officials from Japan, the United States, Britain, and
Australia. The Defense Agency will shortly report this to Prime
Minister Junichiro Koizumi. It is certain that Koizumi will
decide to continue Japan's troop deployment in Iraq and to send
reinforcements there in May. Consequently, it has now become
effectively impossible to complete the withdrawal of GSDF troops
during the premier's term, which is due to run out in September.

TOKYO 00002048 008 OF 012


The next prime minister will take over the GSDF's Iraq
deployment.

The recent London meeting of officials from the four countries
focused on the political process in Iraq, which has been thrown
into confusion. They also spared much of their time discussing
how to deal with the deterioration of local public security
resulting from religious conflicts. Japan therefore could not
propose recalling GSDF troops at an early date.

In the meantime, Britain, as well as Japan, has had plans to
withdraw its troops from Iraq at an early date. However, the
British government told the Japanese government that Iraq, even
after its permanent government is established, would likely ask
the multinational force to stay on. This shows that the British
government deems it difficult for its troops to pull out of Iraq
at an early date, because Iraq's security forces cannot be
expected to take over the multinational force's duties. The
Japanese government judged that Japan would inevitably have to
act in concert.

The Defense Agency had initially intended to extend the 9th Iraq
Reconstruction Assistance Group's deployment, which started in
February and is scheduled to end in May, to prepare for its
withdrawal with backup troops to be sent from Japan to Iraq, if
the prime minister made a decision on early withdrawal. However,
their withdrawal will now be substantially delayed. The
government therefore decided to dispatch another detachment.

The government also factored in Iraq's weather. "Iraq is so hot
in the middle of summer," a government source said, adding: "The
temperature is over 50 degrees (centigrade),so it's hard to
strike camp during the hot summer." Japan's troop withdrawal will
be completed this fall or afterward even if there is progress in
the political process in Iraq, according to the source.

14) Government to hold talks with Iran to discuss its nuclear
programs; Will convey that its nuclear development program will
affect development of oil field

NIHON KEIZAI (Page 1) (Full)
April 17, 2006

The governments of Japan and Iran have reached a basic agreement
to hold bureau-director-level talks in Tehran to discuss Iran's
nuclear programs as early as later this month. Japan will call on
Iran to immediately suspend its uranium enrichment program. It
will convey its concern that if Iran disregards Japan's call, it
could affect the plan to jointly develop the Azadegan oil field
located in the southern part of the nation. The project is
expected to begin in 2008. The focus of the talks will be on how
the Iranian government will respond.

The meeting will bring together Foreign Ministry Middle Eastern
and African Affairs Bureau Director General Motohide Yoshikawa
from Japan and Foreign Ministry East Asian and Oceanian Affairs
Bureau Director General Izadi from Iran. Yoshikawa will convey to
Izadi that the UNSC chairman's late March statement calling on
Iran to suspend its uranium enrichment activities within 30 days
is an indication of the wishes of the international community. He
will then press the Iranian side to end its nuclear development
program so as to avoid direct confrontation with the US.

TOKYO 00002048 009 OF 012



The Azadegan oil field is an undeveloped oil field located in the
southern part of Iran. It has the largest oil reserves in the
Middle East, with estimated deposits of between 5 billion and 26
billion barrels. Japan has a 75% stake in the development
project. A cancellation would definitely affect Japan's energy
policy. Foreign Minister Taro Aso in late February met with his
Iranian counterpart Motaki and told him that Iran should suspend
its nuclear development.

15) Japan-Iran nuclear talks; Future of oil field interests
involves China as well

NIHON KEIZAI (Page 2) (Full)
April 17, 2006

The government is now intensifying its efforts to persuade Iran
to stop its uranium enrichment activities. Part of the reason for
Tokyo's move is the concern that there is a possibility of China
taking over Japan's interests over the oil field, if its plan to
jointly develop Azadegan Oil Field with Iran has to be cancelled.
Tokyo and Beijing are in fierce competition over energy policy,
including the development of gas fields in the East China Sea.
Chances are that the development of the Azadegan Oil Field could
spark new friction.

Iran was the third largest supplier of crude oil to Japan,
following Saudi Arabia and the United Arab Emirates, in 2005. If
the Azadegan Oil Field is developed in 2008 as planned, Japan's
independently developed crude oil imports are expected to rise 50
%. If this precondition collapses, the government will have to
reconsider its energy policy to a considerable degree.

Japan-US relations are also greatly affecting the situation. The
US has adopted a hard-line policy toward Iran, including the
possible use of force. The US has been wary of Japan's
participation in the joint Azadegan Oil Field development plan
right from the beginning. Japan has taken part in the project
nevertheless. If Iran continues its uranium enrichment
activities, Japan could find it difficult to embark on the joint
project with Iran.

16) China bans ship navigation in waters around Japan-China
equidistant line; Japan asks for China's accounting

NIHON KEIZAI (Page 1) (Excerpts)
April 16, 2006

By Katsuhiko Iino, Beijing

It was learned yesterday that the Chinese government had issued a
notice prohibiting ship navigation, except for such boats as
workboats, in the waters around the Japan-China equidistant line,
as part of its ongoing exploration of gas fields in the East
China Sea. According to an official at the Japanese Embassy in
Beijing, the banned area includes Japanese territory, crossing
over the equidistant line claimed by Japan as the border of its
exclusive economic zone (EEZ) with China. Tokyo has inquired of
Beijing about the matter and asked for an explanation because no
prior announcement was given to Japan.

According to the website of China's Maritime Bureau, which has

TOKYO 00002048 010 OF 012


jurisdiction over ship security and traffic, the traffic ban
notice was issued as of March 1. The notice says all ship traffic
will be banned during the period from March 1 through Sep. 30 in
the waters around the Pinghu gas field, where exploration is
continuing. The purpose is to lay pipeline and cables.

17) No formal notice of ship traffic ban in East China Sea comes
from China; Possibility of violating UN Convention on the Law of
the Sea

SANKEI (Top play) (Lead paragraph)
April 17, 2006

The Chinese government issued a notice banning general ship
traffic in the waters around the Japan-China median line claimed
by Japan in order to promote the exploration of gas fields in the
East China Sea, but it failed to formally inform Japan of the
notice for nearly one and a half months, several government
officials revealed. China's move may violate such laws as the
United Nations Convention on the Law of the Sea. The government
is gearing up to lodge a protest with the Chinese government as
early as today.

18) Government plans to cut off ODA grants to China, shift
priority to India

SANKEI (Page 2) (Excerpt)
April 17, 2006

The government yesterday firmed up its intention to cut off non-
reimbursable grant aid to China that is part of its official
development assistance (ODA) program to that country. It will
officially make the decision possibly this summer. In addition to
the recognition that accompanying China's economic development,
it is no longer appropriate to provide that country with non-
reimbursable economic aid, the decision was made in consideration
of strong domestic criticism of China for its handling of various
issues, such as historical views and gas-field development in the

E. China Sea. The government plans to shift to India the amount
of ODA reduced to China. It will take a clear stance of placing
ODA priority on India.

19) Government to send a JCG ship to waters around Takeshima for
survey and collect data necessary for nautical chart

NIHON KEIZAI (Page 2) (Excerpts)
April 15, 2006

The Japan Coast Guard (JCG) yesterday announced a plan to sent a
survey ship to the waters around Japan's exclusive economic zone
(EEZ) near Takeshima (or Dokdo in Korean),an island claimed by
both Japan and South Korea. On the same day, Chief Cabinet
Secretary Shinzo Abe told a press briefing that the purpose is

SIPDIS
"to collect data necessary for creating a marine chart." The
South Korean government, via diplomatic channels, filed a protest
and called on Japan to stop the survey, but the Japanese
government intends to launch the survey as planned.

Survey likely to cause a dispute between Japan, ROK

According to the JCG, the planned survey of the waters around
Takeshima will be the first large-scale undertaking in about 30

TOKYO 00002048 011 OF 012


years. The survey had not begun as of yesterday. Seoul will
surely raise stronger objections if the survey ship enters the
waters near Takeshima. This move is likely to add a new dispute
to the already strained relations between Japan and South Korea,
for instance, a suspension of "shuttle diplomacy" between the top
leaders of the two countries.

20) Seoul calls for immediate cancellation of survey

NIHON KEIZAI (Page 2) (Excerpts)
April 15, 2006

By Motohiro Ikeda, Seoul

South Korea's Vice Foreign Minister for Foreign Affairs and Trade
Yu Myung Hwan yesterday called Japanese Ambassador to South Korea
Shotaro Oshima to his office and asked for an immediate
cancellation of Japan's planned maritime survey by a Japan Coast
Guard (JCG) boat in the sea area around Takeshima (or Dokdo in
Korean).

Pointing out that the planned area for the survey includes its
exclusive economic zone (EEZ),South Korea asserts: "Conducting
the survey without our consent is in violation of international
law. We strongly oppose the survey." If Japan were to conduct the
survey, South Korea would take necessary proceedings in
accordance with international law and relevant domestic laws.
Given this, "this matter could have a serious impact on bilateral
relations," Yu warned. Oshima rebutted: "The survey will be
conducted within Japan's EEZ."

21) Minshuto head Ozawa meets with Soga Gakkai chairman, setting
off alarms in ruling camp

YOMIURI (Page 4) (Full)
April 16, 2006

Minshuto (Democratic Party of Japan) President Ichiro Ozawa met
on April 11 with Soka Gakkai Chairman Einosuke Akiya and Vice
Chairman Masaaki Masaki, the Yomiuri Shimbun leaned on April 15.
The religious sect Soka Gakkai is the chief support body of the
New Komeito, the coalition partner of the ruling Liberal
Democratic Party (LDP).

Ozawa visited the religious sect's headquarters in Shinanomachi,
Tokyo, on the evening of April 11 soon after telephoned to the
headquarters, as part of his efforts to tell them his assumption
of the presidency of the main opposition party. Ozawa has known
the two Soga Gakkai leaders since he played a major role in
forming a coalition with the New Komeito under the governments of
Prime Minister Morihiro Hosokawa and Prime Minister Tsutomu Hata
during the 1993-1994 period. The three met for about 10 minutes,
according to a source concerned.

Since Ozawa has called at such LDP's support bodies as the Japan
Association for the Bereaved Families of the War Dead, the Japan
Medical Association, and the Japan Dental Association after he
assumed his post, the ruling parties are growing alarmed.

22) Foreign Minister Aso blasts Minshuto President Ozawa's
Yasukuni comments


TOKYO 00002048 012 OF 012


MAINICHI (Page 5) (Full)
April 15, 2006

Speaking at a press conference on April 14, Foreign Minister Taro
Aso strongly criticized Minshuto (Democratic Party of Japan)
President Ichiro Ozawa's remarks that enshrining war criminals
went against the spirit of Yasukuni Shrine, saying:

"Even though Yasukuni Shrine has said it cannot disenshrine Class-
A criminals from the other war dead, (Mr. Ozawa) says that the
shrine can do so. I think his remarks go beyond his authority."

Aso again expressed his opposition to the disenshrinement of
Class-A war criminals from Yasukuni Shrine.

23) "Fielding single candidate for LDP presidential race possible
through talks," former Prime Minister Mori says

MAINICHI (Page 5) (Excerpts)
April 15, 2006

In an interview recorded on April 14 for TBS television, former
Prime Minister Yoshiro Mori indicated that it would be possible
for Chief Cabinet Secretary Shinzo Abe and former Chief Cabinet
Secretary Yasuo Fukuda to make a decision through talks on which

SIPDIS
of the two would run in the next presidential election of the
Liberal Democratic Party. Mori said, "It's not good for a company
to have two persons struggling for the presidency. The two should
discuss it."

Mori sought to check Abe and Fukuda, saying, "Mr. Fukuda is not a
person who will say, 'I'll do it,' when Mr. Abe has his own
intentions. I wonder whether Mr. Abe will say, 'Wait, It's my
turn,' when Mr. Fukuda decides to run in the race backed by many
supporters."

SCHIEFFER