JAPANESE MORNING PRESS HIGHLIGHTS 04/26/06

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SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 04/26/06

Index:

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

Koizumi in action:
4) Today is the 5th anniversary of Prime Minister Koizumi's
taking over the helm
5) Asahi poll: 42% say living situation has worsened under
Koizumi reforms; 18% say things got better
6) Shinzo Abe still most favored post-Koizumi contender with
45% popularity rating, followed by Yasuo Fukuda with 20%
7) Prime Minister speaking to "Koizumi's children," the
freshman class of LDP lawmakers, says, "You don't listen to what
I tell you"
8) Koizumi being asked by US scholars to give speech before US
Congress, becoming first Japanese prime minister to do so in 45
years
9) Koizumi meets with former Secretary of State Kissinger
10) Former Chief Cabinet Secretary Yasuo Fukuda setting us own
Asia policy in preparation for LDP presidential race this fall
11) Koizumi: China, South Korea will someday "regret their
criticism of me for visiting Yasukuni Shrine"

12) In wake of President Roh's hard-nosed statement on
Takeshima, Japan would like to separate the island dispute from
other issues with South Korea

Defense affairs:
13) High-level US official would like to see Japan, NATO engaged
in tactical discussions
14) Japan's share of Guam relocation cost will drop to 57.6% due
to economizing in housing construction plan
15) Defense Agency, Finance Ministry clash looming over funding
resources for Japan's share of relocating Okinawa Marines to Guam
16) Sagimihara mayor, satisfied with reversion of some US base
land to city, will support the USFJ realignment agreement
17) Five opposition parties to support joint candidate in
Okinawa gubernatorial election

18) USDA now re-inspecting meat-packers that ship to Japan

Articles:

1) TOP HEADLINES

Asahi:
Eight directors of Japan Skating Federation to quit over
inadequate accounting in international section

Mainichi:
Eight persons to be arrested today over fake earthquake-
resistance building code fabrications

Yomiuri:
Urban Renaissance Agency loses structural calculation papers for
1,879 condominium buildings; 30% of papers that should be
preserved

Nihon Keizai:
Privatized Japan Postal Services to make inroads into personal

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loan market; Ceiling of postal insurance also eyed

Sankei:
Financial Services Agency to impose administrative punishment on
Sumitomo Mitsui Banking over forced sales of financial products

Tokyo Shimbun:
2016 Summer Olympic Games; Tokyo Metropolitan government plans
main stadium that can accommodate 80,000 people at Harumi;

2) EDITORIALS

Asahi:
(1) Five years since Koizumi took over premiership: Shelf-life
about to expire
(2) South Korean President Roh: Precariousness about insisting
on principle alone

Mainichi:
(1) Statement of President Roh: Cool-headed dialogue needed
(2) One year since JR West Japan accident: Regain pride and self-
awareness as railway company

Yomiuri:
(1) President Roh's statement: Bring the case to international
law court, if he is confident of his claim
(2) WTO talks: Search for breakthrough to avoid breakdown in
negotiations

Nihon Keizai:
(1) We should not forget the lessons learned from Chernobyl
(2) Ordeal in establishing permanent Iraqi government

Sankei:
(1) Five years since inauguration of Koizumi administration:
Achieve reform without abandoning efforts
(2) Halted Yamanote Line services: Pile up evidence by
inspection

Tokyo Shimbun:
(1) One year since Amagasaki railway accident: Do not forget the
pledge
(2) Chernobyl: No end to pursuit of safety

3) Prime Minister's Official Residence (Kantei)

Prime Minister's schedule, April 25

NIHON KEIZAI (Page 2) (Full)
April 26, 2006

09:01
Attended a Cabinet meeting in the Diet building. Chief Cabinet
Secretary Abe and JDA Director General Nukaga stayed behind.

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09:24
Arrived at Kantei.

10:00
Reported to the Emperor in private.

11:00

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Met at Kantei with Swedish Ambassador Lindstrom and others.
Followed by Lower House Foreign Affairs Committee Chairman
Harada.

14:30
Met Abe.

15:05
Met former US State Secretary Kissinger and others. Later, met
Foreign Ministry Deputy Director General Nishida, African Affairs
Deputy Director General Otabe, and others.

16:50
Met Science and Technology Policy Minister Matsuda and others.

17:07
Met Education, Culture, Sports, Science and Technology Minister
Kosaka. Attended a meeting of the Science and Technology
Conference.

18:49
Attended a launch party of the Hachisann kai, a group of the
first-term Lower House members of the LDP at the Hotel New Sanno.

19:22
Met New Komeito head Kanzaki, Secretary General Takebe, Abe, and
others at Kantei.

4) Koizumi government marks 5th anniversary; Reform policy
promoted economic recovery but public remains concerned about the
future

MAINICHI (Page 1) (Full)
April 26, 2006

The government of Prime Minister Junichiro Koizumi today
celebrates its fifth anniversary. The government's view is that
since it has been working on deregulation under the slogan of
promoting structural reforms, the Japanese economy is now being
pulled back from the brink of a deflationary spiral, but it
insists that a social divide has not been created. However,
people are increasingly concerned about the "negative effects" of
reform, such as the rapidly falling birthrate and rising crime.

Koizumi categorically told reporters yesterday:

"I destroyed the forces that relied on support organizations and
protected certain vested interests. I'm the first Liberal
Democratic Party member who became prime minister without support
from the largest faction called the Tanaka, Takeshita and now
Tsushima faction. I broke down the party's traditional faction-

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based politics and faction-centered personnel appointments."

He also stressed: "Criticism of the social gap is a reflection of
criticism of the Koizumi government. For anti-Koizumi forces
these phrases are the easiest ones to use."

The Koizumi government still garners almost 50% of the public's
support. The prime minister remains influential in the upcoming
party presidential race. The economy, which slowed down soon
after he took office, is now firmly on a recovery path. Most
economic indicators have turned upward.

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Looking at other indicators, however, there are outstanding
negative aspects, as well, including the declining birthrate and
rising crime (excluding burglaries and violations of traffic
rules) that could shake the social foundation.

The number of Self-Defense Forces personnel dispatched to
overseas missions increased to 1,440 (as of April 1) from zero
when the Koizumi government was inaugurated. The position of the
SDF has greatly changed from that before Koizumi assumed the
prime ministership.

5) Poll: 42% feel worse off, 18% well off

ASAHI (Page 1) (Full)
April 26, 2006

The Asahi Shimbun conducted a telephone-based public opinion
survey across the nation on April 22-23, in which respondents
were asked to give their overall ratings for the Koizumi cabinet
over the past five years since coming into office. Asked if the
Koizumi cabinet has done well to date. 46% answered "yes," with
21% saying "no." Respondents were also asked about their
circumstances over the past five years. In response, 42% answered
that they were worse off than five years ago, with 18% feeling
better off. There was a split of opinion among those who answered
that they were worse off than five years ago when they were asked
if that was because of the Koizumi cabinet's policy measures.

In addition to overall ratings for the Koizumi cabinet's
performance, respondents were further asked to evaluate its
economic policy, administrative reform, and social security
policy. Among positive ratings, administrative reform, such as
postal privatization, topped at 52%, followed by economic policy
at 36%. Social security policy, such as pensions, ranked last at
16%, with foreign policy second lowest at 27%.

In the survey, respondents were asked if they were better off
than five years ago. In response, "yes" accounted for about 30%
among those in their 20s and also among those in their 30s. Among
those in their 50s and over, however, "yes" accounted for only
10% or so. Those in the upper age brackets were more pessimistic
than those in younger generations.

Those worse off than five years ago were also asked if they
thought that was because of the Koizumi cabinet's policy
measures. In response to this question, they were split in
opinion, with 43% saying "yes" and 45% saying "no." Broken down
into age brackets, "yes" went up with generations. Among those in
their 60s and over, "yes" rose up to around 60%. This shows that
many of those in the upper age brackets feel worse off than
before due to the Koizumi cabinet's structural reforms.

Those better off were also asked with the same question. In
response, "yes" accounted for 29%, with "no" at 64%. Even among
those who positively rated the Koizumi cabinet's economic policy,
"yes" accounted for 42%, with "no" at 49%.

6) Abe leads post-Koizumi race at 45%, Fukuda levels off

ASAHI (Page 4) (Full)
April 26, 2006

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"Who do you think is appropriate for the next prime minister?" In
response to this question asked in a recent Asahi Shimbun poll,
Chief Cabinet Secretary Shinzo Abe topped all other post-Koizumi
candidates at 45%, followed by former Chief Cabinet Secretary
Yasuo Fukuda at 20%, Foreign Minister Taro Aso at 4%, and Finance
Minister Sadakazu Tanigaki at 3%.

In the survey this time, respondents were asked to pick one from
among four ruling Liberal Democratic Party lawmakers and others.
Last month, Abe ranked top at 47%, with Fukuda standing at 20%,
Aso at 5%, and Tanigaki at 4%. Abe slipped in the latest survey,
but Fukuda stayed flat. The gap between the two has shrunken only
a little.

Among those respondents who gave positive evaluation to the
Koizumi cabinet over the past five years since the prime minister
came into office, Abe was most popular with 55%, followed by
Fukuda with 18%. Among those negative about the Koizumi cabinet's
performance, however, Fukuda stood at 26%, with Abe at 23%.

7) Prime Minister Koizumi seeks to check "Koizumi's children" --
freshman class in the Diet -- saying, "You don't listen to what I
say"

MAINICHI (Page 5) (Full)
April 26, 2006

The new lawmakers of the Liberal Democratic Party (LDP),who were
elected to the Diet in last fall's House of Representatives
election, yesterday held a fund-raising party at a Tokyo hotel in
which they celebrated the publication of a book "UBUDAS 83 LDP
First-Termer Lower House Members' Directory." The fresh lawmakers
call themselves "Hachisan Kai" or "Group of 83."

Prime Minister Junichiro Koizumi, who was invited to the party,
gave a speech, "You are called Koizumi's children, having been
elected to the Diet. Children now days don't obey their parents.
You are Diet members. I understand that you, too, don't listen to
what I say." He sought to check Hachisan members' recent moves
such as entering factions and formation of study groups. The
party was very well attended by about 300 persons, including LDP
Secretary General Tsutomu Takebe.

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8) Scholars and others in US clamor for Prime Minister Koizumi to
give speech before US Congress; If so, would be the first by a
Japanese premier in 45 years; Good chance to publicize the
alliance

SANKEI (Page 7) (Excerpts)
April 26, 2006

By Eiro Kesen in Washington

With coordination continuing for Prime Minister Junichiro Koizumi
to visit the United States in late June, US scholars and other
are calling for the Prime Minister at the same time to give a
speech before the US Congress. There has not been a speech by a
Japanese premier before the Congress in 45 years, the last one
given by Prime Minister Hayato Ikeda. Given the personal
friendship between Koizumi and President Bush, the view is for
the Prime Minister to make such a speech to impress domestic and

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foreign audiences with the importance of the Japan-US alliance.

Kent Calder, director of the Reischauer East Asia Research
Center, said: "President Bush in 2002 gave a speech before the
Japanese Diet. If Prime Minister Koizumi gives a speech, it would
not only stress the importance of the US-Japan relationship, it
would also impress the American public with the difference
between that and US-China ties."

Former Ambassador to the US Armacost said, "It is a good idea,"
expressing his hope that the timing could be worked out with the
Congress. Michael Green, former senior Asia director at the
National Security Council, stated: "If there is an obstacle to
it, it would be the problem of restarting US beef exports to
Japan, as well as whether the Congress is in session. But given
Japan's good image now, the members of Congress would likely
welcome the speech."

9) Prime Minister Koizumi meets for first time with Henry
Kissinger

MAINICHI (Page 5) (Full)
April 26, 2006

Prime Minister Junichiro Koizumi met yesterday at his office with
former US Secretary of State Henry Kissinger. It was the first
meeting between Koizumi and Kissinger, who is now visiting Tokyo
to attend a private-sector-sponsored conference of experts from
Japan, the United States and Europe. Kissinger told reporters
after the meeting, "The topic of our conversation was friendly
relations between Japan and other Asian countries."

10) Former Chief Cabinet Secretary Fukuda reveals plan to craft
Asia policy, expressing eagerness to run for LDP presidency

MAINICHI (Page 1) (Full)
April 26, 2006

Former Chief Cabinet Secretary Yasuo Fukuda of the Liberal
Democratic Party revealed a plan yesterday to formulate a new
Asia policy based on the "Fukuda doctrine," proposed in August
1977 by the late Prime Minister Takeo Fukuda, his father, as
basic policy toward Southeast Asia. Fukuda revealed the plan in
his speech yesterday in Tokyo. He also criticized Prime Minister
Junichiro Koizumi's visits to Yasukuni Shrine. Although he did
not mention the LDP presidential election in September, for
former chief cabinet secretary is believed to have expressed his
eagerness to run in the race by announcing his plan to revamp
Japan's Asia policy.

Fukuda announced his plan to come up with a new Asia policy based
on the rise of China and a move to launch the East Asian
Community, saying:

"We cannot use the same doctrine which is already 30 years old.
Japan now has the foundation for forging heart-to-heart relations
(owing to the doctrine),and we need to add another floor to it."

Fukuda also rapped Koizumi's Yasukuni visits, stating:

"The same person visited the shrine over and over again. He
initially didn't explain (that he visited there in his private

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capacity),but he now insists on it. It's a problem."

Fukuda underlined the need to improve relations with China and
South Korea.

Although he is regarded as one of the contenders for the LDP
presidency, Fukuda brushed aside the rumor as a creation by the
media. But he did not deny the possibility of his candidacy,
saying:

"Prime Minister Koizumi didn't come forward until a month before
(the presidential election). The same was true with former prime
ministers Ryutaro Hashimoto and Keizo Obuchi."

11) Prime Minister rebuts criticism of visits to Yasukuni Shrine:
"China and South Korea may feel regret"

NIHON KEIZAI (Page 2) (Full)
April 26, 2006

In reference to the fact that China and South Korea have cut off
top-level meetings in reaction to his visits to Yasukuni Shrine,
Prime Minister Junichiro Koizumi told reporters at his official
residence yesterday: "I think they (China and South Korea) will
regret it sometime in the future." Asked about a time when
summits could be resumed, Koizumi replied: "It will take time
because they need to save their honor."

12) Government aims to separate Takeshima issue during EEZ talks
in response to South Korea's hard-line position

NIHON KEIZAI (Page 2) (Full)
April 26, 2006

South Korean President Roh Moo Hyun outlined a hard-line stance
toward Japan in a special speech yesterday. By separating the
issue of sovereignty over the Takeshima (Dokdo) islets from other
issues, Tokyo would like to somehow find common ground with Seoul
in the planned bilateral talks on demarcating their exclusive
economic zones (EEZ) in May. The president, though, said: "To our
people, Dokdo is a symbol of complete restoration of
sovereignty." Both sides are expected to clash head-on from the
beginning of the talks.

In a press briefing yesterday, Chief Cabinet Secretary Shinzo Abe
said: "Although a gap exists in both sides' positions, we will
aim to reach an amicable settlement in a cool-headed manner" in
the EEZ talks.

Under the Japan-South Korea fisheries agreement that came into
effect in 1999, fishing grounds near Takeshima are defined as
provisional waters controlled jointly by the two countries. But
Japanese fishing boats are not allowed to engage in fishing
operations as they like. Vice Foreign Minister Shotaro Yachi
welcomes the resumption of EEZ negotiations, saying: "If a
borderline is set, an EEZ will be made clear."

South Korea is expected to take a stern attitude in the upcoming
talks. In the special speech, President Roh said that South Korea
"will reconsider in full scale" its response to the Takeshima
issue. He indicated that Seoul would link the matter to things
like Prime Minister Junichiro Koizumi's visits to Yasukuni Shrine

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and Japan's history textbooks. Some observers anticipate that
South Korea would come up with a tougher position than before in
the EEZ talks.

13) Senior US official unveils initiative to create venue for
strategic talks between NATO, Japan

YOMIURI (Page 2) (Full)
April 26, 2006

Takashi Sadahiro, Washington

Deputy Assistant Secretary of State Kurt Volker revealed on April
14 an initiative to created a venue in NATO for US partners,
including NATO and Japan, to discuss strategies with countries
outside the region to allow them to deal flexibly and jointly
with international crises and conflicts.

Secretary of State Condoleezza Rice will propose the vision at

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the NATO informal foreign ministerial conference to be held in
Bulgaria April 27-28 with the aim of reaching an agreement at the
NATO summit in November. Foreign Minister Taro Aso is expected to
discuss cooperation with NATO during his May 4 visit to the NATO
headquarters in Brussels.

14) Japan's share of Guam relocation cost to drop to 57.6% with
420 million dollars saved by utilizing private-sector capital

YOMIURI (Page 2) (Full)
April 26, 2006

Japan and the US agreed on 10.27 billion dollars (1.14 trillion
yen at the exchange rate used for the fiscal 2006 budget) as the
total cost of relocating Okinawa-based Marines to Guam as part of
the realignment of US forces in Japan. But this amount will
decrease to 9.85 billion dollars (1.934 trillion yen) because the
cost of constructing housing for the families of the troops will
save 420 million dollars (46.6 billion yen) by utilizing private-
sector capital. Japan's share of the total cost thus will be
reduced to 57.6% or 5.67 billion dollars (629.4 billion yen),
according to government sources yesterday.

Under the agreement reached between Japan and the US on April 23,
Japan's share is 59.3% or 6.09 billion dollars (676 billion yen)
of the total relocation cost. Of the amount, 2.55 billion dollars
(283 billion yen) is to finance the construction of housing for
families. Both sides have agreed that the 2.55 billion dollars
will be broken down into: (1) the government's investment of 1.5
billion dollars (166.5 billion yen) in a special-purpose company
through the Japan Bank for International Corporation (JBIC); (2)
630 million dollars (69.9 billion yen) in loans offered by the
JBIC and other institutions; and (3) 420 million dollars as the
saved portion.

When he met US Defense Secretary Rumsfeld on April 23, Defense
Agency Director General Nukaga requested that agreement should be
reached on an amount that excluded the 420 million dollars. But
the US reportedly asked Japan to include that portion because it
would find it easier to obtain approval from the Congress if
Japan's share is set higher, and Japan accepted the request.

15) Guam relocation cost: Major difficulties lie ahead over

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fiscal resources; Finance Ministry, Defense Agency; Confrontation
inevitable over spending cut policy

ASAHI (Page 2) (Full)
April 26, 2006

A number of difficulties have emerged regarding the fiscal
resources to fund Japan's share of the cost of relocating US
Marines in Okinawa to Guam, which totals 6.09 billion dollars.
The Finance Ministry (MOF) plans to press ahead with sweeping
cuts in expenditures, premised on the need to hike taxes. MOF
intends to call on the Defense Agency (JDA) to cut expenditures
in other areas so that the overall defense budget will not
expand. The JDA is bound to oppose such a proposal. The
government is now trying to scale down the overseas financing
sector of the Japan Bank for International Cooperation (JBIC) as
part of efforts to reform its policy financing. At such a time,
it is questionable to let that bank extend a huge loan to the US.

Meeting the press after a cabinet meeting yesterday, Finance
Minister Tanigaki took the view that a possible cut in "sympathy
budget" allocations to US forces in Japan (232.6 billion yen in
fiscal 2006),while bearing the cost of relocating Marines to
Okinawa, should be looked into. He noted, "Due to the severe
fiscal condition, we must discuss this problem, including host
nation support, as well."

Vice Finance Minister Hosokawa on April 24 also advocates a
policy of not creating a separate budget framework for covering
the Guam relocation cost, noting, "The relocation cost should
basically be regarded as defense-related expenditures."

In its share of the relocation cost, the Japanese government will
pay 2.8 billion dollars or approximately 320 billion yen at
government expense. Provided that the relocation takes seven to
eight years, an annual budget allocation of 40 to 50 billion yen
will become necessary on average. The defense budget for fiscal
2006 is approximately 4.8 trillion yen. Mandated payments due
this year for past purchases of vessels and aircraft and other
obligatory expenses, such as personnel expenses, command 80% of
the entire defense budget, leaving little room for spending cuts.
The fuel procurement cost has also been increasing due to the
rise in crude oil prices.

If the US Marines on Okinawa move to Guam, Japan's host nation
support expenses will decrease. However, in order to
substantially cut these, it is necessary to review the special
measures agreement. It is unlikely that the US side will easily
agree to do so.

Many challenges exist in extending the 1.79 billion dollars
(approximately 200 billion yen) as well. The JBIC, which is
expected to serve as a vehicle in extending such loans, ended its
loan extension business targeting advanced industrialized
countries in fiscal 2002. Its operations now focus on services
for developing countries. Chances are that if loans to the US are
to be extended through the JBIC, it would be necessary pass new
legislation.

The government has introduced an administrative reform bill,
including the integration of government-affiliated financial
institutions, to the current Diet session. Since extending loans

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for the relocation of US Marines is contrary to that policy, the
issue will likely be pursued during deliberations on that bill.

16) Sagamihara mayor to accept final report on USFJ realignment

TOKYO SHIMBUN (Page 1) (Full)
April 26, 2006

Japan and the United States are expected to shortly wrap up their
intergovernmental talks over the realignment of US forces in
Japan and release a final report. Meanwhile, Defense Agency
Director General Fukushiro Nukaga yesterday met with Isao Ogawa,
mayor of Sagamihara City, Kanagawa Prefecture, and told the mayor
that the United States would return an additional area of about
two hectares for railway and road use in Sagami Depot, a US Army
facility covering a total area of 214 hectares.

The Japanese and US governments talked about a plan to make joint
use of that two-hectare land portion but then decided to return
it to the city at its strong request. In response, the city is
expected to accept the final report. The United States, which has
already agreed to return 15 hectares in the depot, will return a
total of 17 hectares.

The city has also claimed some other US military areas, including
a road on the eastwardly rim of a housing area in the city and a
peripheral road along a golf course in Camp Zama stretching in
the cities of Zama and Sagamihara. The Japanese and US
governments will talk about their reversion in their bilateral
joint committee.

The United States has plans to revamp the US Army's 1st Corps and
move its command functionality to Camp Zama. In the meantime, the
Defense Agency also has plans to set up the Central Readiness
Command (CRC) in the Ground Self-Defense Force and locate CRC
headquarters at Camp Zama. However, the mayor positively
evaluated the government's response, saying, "We could generally
talk about our requests for the time being." With this, the mayor
implied that the city would have no choice but to accept the new
US Army command since the Japanese and US governments are
scheduled to release the final report soon.

17) Five Okinawa opposition parties against US force realignment
to join efforts for November gubernatorial race

MAINICHI (Page 2) (Full)
April 26, 2006

Representatives of five opposition parties in Okinawa -- Minshuto
(Democratic Party of Japan),Japanese Communist Party, Social
Democratic Party, Jiyu Rengo, and Okinawa Social Mass Party --
met yesterday and confirmed the policy to oppose US force
realignment and join efforts for the November gubernatorial
election. They will discuss how to determine their candidate at a
later date.

The five parties also searched for ways to join efforts in the
2002 gubernatorial race, but their efforts to determine their
candidate ended in failure. As a result, Keiichi Inamine, who was
backed by the Liberal Democratic Party and New Komeito, won his
reelection. Inamine has been mum regarding whether to seek his
third term.

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18) US re-inspecting meatpacking facilities; When completed, will
enter talks with Japan to resume US beef exports

ASAHI (Page 12) (Excerpts)
April 26, 2006

The Ministry of Agriculture, Forestry and Fisheries (MAFF) has
revealed that the US government on April 24 local time began to
re-inspect facilities in the United States that export beef to
Japan. Word of that came from the US Embassy in Tokyo. Since
carrying out a re-inspection was promised by the US late last
month at a meeting of Japanese and US government experts, the
move is seen as an important procedure leading to the resumption
of imports of US beef into Japan.

In addition to the US' promise at the experts' meeting to re-
inspect the meat-packing facilities, the Japanese government
decided to hold meetings with consumers to exchange views on
resumption of US beef imports. The meetings that were held in 10
places across the country came to an end on April 24.

As soon as the re-inspections are completed, expected to be in
two weeks or so, the Japanese and US governments plan to meet
again and discuss the specific process for restarting US beef
imports. According to MAFF, there have been consultations three
times on what points to re-inspect at the export facilities in
question.

DONOVAN