DAILY SUMMARY OF JAPANESE PRESS 04/27/06

UNCLAS SECTION 01 OF 13 TOKYO 002311

SIPDIS

SIPDIS

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

E.O. 12958: N/A
TAGS: OIIP KMDR KPAO PGOV PINR ECON ELAB JA
SUBJECT: DAILY SUMMARY OF JAPANESE PRESS 04/27/06

INDEX:

(1) Japan's sharing of US Marines relocation cost: Defense chief
Nukaga's two preparatory steps -- secret meeting with US
ambassador to Japan, visit to National Arlington National
Cemetery to reduce Japan's actual spending less than that of US

(2) Japan-US alliance entering new phase, with Japan folded into
US global strategy

(3) Japan's share of cost of US force realignment: 3 trillion yen
still a "conservative estimate"; Is Japan an automated cash
dispenser? Swelling defense spending for building anti-terrorism
networks

(4) South Korean president aims to beef up political power by
taking tough stance against Japan over Takeshima (Dokdo) issue;
Japanese government perplexed by his statement; Repairing
strained bilateral ties difficult for time being

(5) Bright and dark sides of five years of Koizumi politics (Part
1): Koizumi-Bush honeymoon relationship strengthened Japan-US
alliance

(6) Bright and dark sides of five years of Koizumi politics (Part
2): Consideration for ally boosting Japan's base burden

(7) Interview with Kent Calder, director of SAIS Reischauer
Center for East Asia Studies: Japan-US relations could
deteriorate over beef issue

(8) Yutaka Iimura picked as ambassador to France

ARTICLES:

(1) Japan's sharing of US Marines relocation cost: Defense chief
Nukaga's two preparatory steps -- secret meeting with US
ambassador to Japan, visit to National Arlington National
Cemetery to reduce Japan's actual spending less than that of US

YOMIURI (Page 4) (Full)
April 27, 2006

Japan's share of the cost of relocating US Marines from Okinawa
to Guam was reached an agreement on April 23 between Defense
Agency Director General Fukushiro Nukaga and US Secretary of
Defense Donald Rumsfeld. This newspaper looked into the backstage
of a political settlement in the unusual ministerial negotiations
after a number of rounds of senior working-level talks.

Nukaga took two preparatory steps on April 23 before meeting with
Rumsfeld. One was a secret meeting with US Ambassador to Japan
Thomas Schieffer. Nukaga enthusiastically told Schieffer:

"It is a good chance for the United States to realign US forces
in Japan while Mr. Koizumi is prime minister and I am defense
chief. (If the US does not agree to our proposal),you will miss
your chance."

Schieffer, a friend of President George W. Bush, responded: "I
think so. I will convey it to Secretary Rumsfeld." Schieffer has
influence in the Defense Department.


TOKYO 00002311 002 OF 013


The other preparatory step Nukaga made was a visit to Arlington
National Cemetery located in the suburbs of Washington. He
offered a silent prayer for US soldiers, who were killed in the
war. He made the decision to visit the cemetery after considering
it overnight, since he had obtained information that Rumsfeld
would hold talks with him after making a surprise visit to Iraq
to inquire after injured US soldiers. A Japanese Embassy official
in Washington had told him that if he started the talks with
money, the talks would come to in a rupture in ten minutes.

At the outset of the meeting held in the evening, Nukaga told
Rumsfeld that he had visited Arlington National Cemetery. He said
eventually, "Japan has supported US efforts to fight terrorism
and weapons of mass destruction for the sake of global peace and
justice."

Rumsfeld, though a hawk politically, responded gently, "We
appreciate Japan's contribution." His eyes were filled with
tears. The talks started well.

However, Rumsfeld took a tough stance in them. He retained the
stance of calling on Japan to bear 75% of the relocation cost. He
underscored:

"It is unprecedented that an economic superpower like Japan
spends only one percent of its gross domestic product (GDP). It
was Japan's request that US Marines in Okinawa be relocated to
Guam, wasn't it?"

Nukaga rebutted:

"The Japanese public will not accept the US proposal that Japan
pay 75% of the total relocation cost. I want the US to calculate
in detail as to how much is needed for the relocation of
Marines."

Nukaga moreover introduced a compromise plan suggested by
Schieffer that Japan would shoulder one-third of each: 1)
spending from the Japanese government's general account; 2)
investments and loans by Japan; and 3) costs to be shouldered by
the United States.

Nukaga loudly proclaimed: "I cannot accept ballpark figures.
Japan's share should be less than that of the United States.
Prime Minister Koizumi shares the same view. I cannot give in on
that point."

Nukaga asserted that Japan's real spending should be reduced
because investments and loans would be returned but money from
the government general account would not be paid back.

Their argument lasted for about one hour. After a break, Rumsfeld
softened his stance, making some concessions to Nukaga.

In return, the US side asked the Japanese side for 1 billion
dollars assistance for the construction of a highway that would
connect a port and an Air Force base. Nukaga, however, turned
down the request, saying, "It is possible to extend investments
and loans, but grants are impossible."

The US final plan was that Japan should pay 59% or 6.09 billion
dollars of the estimated 10.27 billion dollars. Japan's real
money outlay will be 2.8 billion dollars, which is less than the

TOKYO 00002311 003 OF 013


3.18 billion dollars to be paid by the United States.

"If you don't accept this plan, let's end the talks," Rumsfeld
said hinting at a rupture of the negotiations. He forced Nukaga
to make a decision. The US plan was acceptable for Japan because
Japan's share was within the amount agreed by Nukaga and the
Finance Ministry.

Nukaga said, "We accept it." He and Rumsfeld reached an agreement
after spending three hours negotiating.

Rumsfeld said with satisfaction, "It would be even better if the
Defense Agency is upgraded by this to the status of a ministry."

(2) Japan-US alliance entering new phase, with Japan folded into
US global strategy

NIHON KEIZAI (Page 1) (Full)
April 25, 2006

Talks on the realignment of US forces in Japan have surmounted a
crucial stage. Japan and the United States will now hold a 'two-
plus-two' foreign and defense ministerial meeting of their
security consultative committee in early May to reach a final
accord. The US military's realignment in Japan has had the aim of
building a closer partnership between the Self-Defense Forces and
the US armed forces. It is also intended to bring about a high
readiness so that they can respond to regional conflicts and
other contingencies. This means that Japan will be completely
folded into the United States' global strategy.

"This is a project that will end the 'postwar' (period) in the
true sense of the word." With this, Takemasa Moriya,
administrative deputy director general of the Defense Agency,
accounted for the US military's realignment when he called on
Prime Minister Junichiro Koizumi in private at his office last
month. "I know," Koizumi nodded. The premier then told Moriya to
continue working together with Defense Agency Director General
Fukushiro Nukaga on the US military's realignment.

Postwar Japan chose to arm itself lightly and prioritize its
economy while depending on the United States' military
deterrence. However, eventually the Cold War came to an end. It
was a prologue to the current age of regional conflicts and
terrorist attacks. The notion of security has undergone a sea
change. As a natural consequence, Tokyo and Washington began
exploring a new relationship in the process of redefining their
bilateral security alliance in 1996.

Koizumi was aware of that move, so he calls the bilateral
security arrangements an "alliance." It is taken for granted in
the international community that an alliance has military
connotations. In Japan, a cabinet minister was once driven to
resign over his interpretation of the Japan-US relationship being
an "alliance." Koizumi, however, had no hesitation. "I'll bring
it to a settlement under my cabinet." With this, Koizumi voiced
his unwavering resolve behind the scenes of the agreement reached
this time between Japan and the United States over the
realignment of US forces in Japan.

It is an inevitable task also for the United States to beef up
its bilateral alliance with Japan.


TOKYO 00002311 004 OF 013


With the protracted deployment of US troops in Iraq, there has
been increasing calls from veterans for US Secretary of Defense
Rumsfeld to resign. President Bush defended his Pentagon chief.
"He's been doing really well in the transformation of US forces
to prepare for threats in the 21st century," Bush said.

The terrorist attacks of Sept. 11, 2001 prodded the United States
to gear up for the mobility of its troops and outfits. In order
to make up for the increasing burden of military costs, the
United States asks its allies for their greater personnel
contributions and fiscal outlays. This is the Bush
administration's basic strategy. Meanwhile, the United States has
been bogged down in a long, never-ending war. Veterans calling
for Rumsfeld's resignation also admit to the significance of
realigning US forces. "It's extremely important to realign US
forces," retired Army Maj. Gen. John Batiste said.

The United States, in its global strategy, weighs its European
allies and the island of Diego Garcia in the Indian Ocean as
strongpoints. In the Asia-Pacific region, Guam and Japan are
linchpins for its military operations. "So," one US military
official says, "we will pull out of South Korea." The Pentagon's
scenario is to integrate the command functionalities of Japanese
and US forces and to deploy reinforcements to Okinawa in the
event of an emergency.

"The United States' military spending accounts for more than 3%
of gross domestic product, South Korea at 2.5%, and European
countries between 1.5% and 2%. Japan is only at 1%." This is a
pet phrase Rumsfeld always uses whenever he meets with lawmakers
from Japan.

Tokyo and Washington squared off in their realignment talks over
their respective shares of the cost of moving US Marines from
Okinawa to Guam. Japan, in its standoff with the United States,
was not unwilling to pay money. Washington, however, meant to
gauge Tokyo's commitment to the international order and its
stability.

While the Iraq war has been protracted, the international
situation over the issue of Iran's nuclear development program
has also been growing tense. For the United States, Japan was the
last to negotiate with in the global transformation of US forces.
If the Pentagon takes time to talk with Japan, the United States
cannot transform its armed forces for the 21st century. The
United States can no longer forego its military transformation.

Both Bush and Koizumi came into office in 2001. However, Koizumi
will step down in September this year. Italian Prime Minister
Berlusconi, who has pushed for cooperation with the United
States, was defeated in a recent election. In the wake of the
Sept. 11, 2001 terrorist attacks, antiterror nations shaped a
global coalition. Nowadays, this 2001 international regime is
wavering.

Meanwhile, Koizumi, since coming into office in 2001, has
restructured Japan. Under his 2001 political structure, Japan has
fallen out of gear at home and abroad. For instance, Japan is now
at odds with South Korea over an oceanographic survey around the
archipelago of Takeshima islets. In addition, Japan and China
remain unable to break the ice in their standoff. Moreover, the
ruling Liberal Democratic Party was defeated in a recent by-
election for the House of Representatives.

TOKYO 00002311 005 OF 013



In East Asia, however, there are a number of uncertainties, such
as the Korean Peninsula and the Taiwan Strait. Given such a
situation in the region, the post-Koizumi leader-whoever may
become prime minister after Koizumi-will not have a very broad
range of options. Japan is currently faced with challenges in the
process of working together with the United States to realign its
military presence in Japan. These tasks have something in common
with Japan's prospective pullout of SDF troops from Iraq. The
alliance is now about to enter a new phase. Japan and the United
States will further fuse not only in the area of military
operations but also in the area of military costs.

(This report was written by Hiroshi Marutani, Washington, and
Naoya Yoshino, Political Section.)

(3) Japan's share of cost of US force realignment: 3 trillion yen
still a "conservative estimate"; Is Japan an automated cash
dispenser? Swelling defense spending for building anti-terrorism
networks

TOKYO SHIMBUN (Pp.26-27) (Abridged)
April 27, 2006

News that Japan would have to bear 710 billion yen for the
relocation of US Marines from Okinawa to Guam came as a surprise.
Then, as if to add insult to injury, US Deputy Under Secretary of
Defense Richard Lawless announced April 25 that Japan's share of
the entire process of US force realignment would run to a total
of 2.98 trillion yen over the next six to seven years. The under
secretary also suggested that Japan's share could swell even

SIPDIS
more, calling 2.98 trillion yen a "conservative estimate." Is
Japan simply a convenient "automated cash dispenser" for the
United States? Does Japan really have to foot such a huge bill?

The news that Japan would have to shoulder 3 trillion yen for the
US armed forces sped through base-hosting municipalities already
being shaken by the relocation issue. Assemblyman Jungen Tamura
of Iwakuni City, Yamaguchi Prefecture, disgustingly said, "Why is
Japan so generous when it comes to US bases?" Tamura is also a
member of Rimpeace, an organization that monitors US bases. On
April 23, Katsusuke Ihara, an opponent of the relocation of
carrier-based aircraft, won the city's mayoral race. Tamura
sarcastically said:

"During the election campaign, Chief Cabinet Secretary Shinzo Abe
even said that the government would shoulder school lunches and
medical expenses in return for accepting the base relocation. In
addition, the government seems to be willing to extend subsidies
and several hundred billion yen. I wonder if such are included in
the 3 trillion yen."

Zenko Nakamura, head of a citizens group opposing the relocation
of Futenma Air Station to Nago, Okinawa, commented calmly:
"Finally the US seems to have gone on the offensive. It's good
that inconsistencies become clear this way."

Even Abe referred to 3 trillion yen as an "incredible sum of
money" (tondemonai kingaku). What is the basis for such an
amount?

Military analyst Motoaki Kamiura explained:


TOKYO 00002311 006 OF 013


"It is well known that Japan cut a secret deal with the US for
the reversion of Okinawa in 1972. Japan secretly paid 4 million
dollars (1.2 billion yen approximately at today's currency value)
for restoring the returned US bases to their original state,
which was supposed to be shouldered by the US. I heard that if
Tokyo and Washington reached an agreement to return part of
Kadena Air Base and Japan was forced as a result to pay the cost
of returning soil contaminated with heavy metals, similar
expenditures would be necessary."

Military journalist Tetsuo Maeda though that a plan may resurface
to relocate night-landing facilities from Iwojima to Hiroshima.
His logic is that the construction of a base in Henoko and the
work to accommodate a nuclear-powered aircraft carrier would not
cost 3 trillion yen, so there must be other major projects in the
pipeline.

Maeda continued:

"It also depends on how you count it. US force realignment is
designed to facilitate joint base use by lowering the barrier
between the US military and Japan's Self-Defense Forces. The SDF
and US military will jointly use the X-band radar to be deployed
at the Air Self-Defense Force's Shariki detachment base as part
of the missile defense system. The cost of those facilities may
have been included in Japan's share."

To begin with, what is behind US force transformation, which will
end up costing Japan so much?

It is an effort to create networks in other countries to jointly
pursue the global war on terrorism with the US military,
according to Hiromichi Umebayashi of Peace Depot, a nonprofit
organization.

Umebayashi explained:

"The US is insisting that the Japan-US alliance should move from
role sharing to power sharing, meaning that Japan should
voluntarily join America's global strategy. It's a problem that
such a critical choice is moving ahead steadily without the
government having sought the Japanese people's concurrence."

Maeda also noted:

"The question is whether the town will become safe if it pays
protection money to thugs. The missile defense system is designed
to defend only the Tokyo metropolitan area and the US bases in
Japan. Kyushu and other areas are not protected. The Defense
Agency has admitted that chances are extremely slim for Japan to
come under an armed attack. There is no need to spend such a
large amount of money on national defense."

The Japanese government has been providing the US forces in Japan
with 230 billion yen annually in host nation support (HNS). That
budget will grow dramatically over the next several years. Is the
Japan-US alliance worth that much money?

Professor Masaaki Gabe of the University of the Ryukyus stressed:

"The Iraq war has been costing the Pentagon 58 billion dollars
(approximately 6.6 trillion yen) annually. The US wants to shift
its financial burden onto its allies as much as possible, but

TOKYO 00002311 007 OF 013


there is no reason for Japan to pay for it."

People tend to justify supporting the Japan-US alliance in order
to counter terrorism and meet the threats of China and North
Korea.

Gabe took this view:

"The US military has declared that deployed aircraft carriers and
the missile defense system would be sufficient to deal with the
China threat. It also is unlikely that the threat to Japan of
terrorism in on the rise. There is no longer a need for the Japan-
US alliance. The principal reason for having one lies with Japan,
since it has no goals regarding its relations with the world and
Asia. No goals and no strategy. Japan just wants to maintain the
status quo, and therefore, it is at America's beck and call."

On the political front as well, the US refused to back Japan's
bid for a permanent UN Security Council seat. And Deputy
Secretary of State Robert Zoellick has been rejecting meetings

SIPDIS
requested by Japanese diplomats and lawmakers. Unrequited love
might lie beneath the Japan-US alliance.

Obirin University Prof. Akira Kato offered this view:

"The undercurrent of US force realignment is not political but
technological. Although exchanges between Japanese and US
lawmakers may have slackened off, such is not at all the case on
the military front. The US military has been pursing realignment
to create a network-based system that would link intelligence and
weapons. Japan's Self-Defense Forces are already part of that
system. The ultimate goal is to integrate the US military and
Japan's SDF, which is not possible under the Constitution. But
the SDF would not be able to declare its independence from the US
military. For instance, all satellite intelligence comes from the
US military. To become independent, Japan needs to launch its own
military satellites, but such a step would be criticized as a
move to become a major military power."

Technologically speaking, Japan cannot opt for "military
independence."

Given the situation, the government is likely to squeeze out 3
trillion yen by imposing a greater burden on the people.

Economist Noriko Konya explained:

"The sum of three trillion yen corresponds to 1% of the annual
consumption tax, or over 40% of the public works spending. The
government may try to scrape up the money by cutting deeper into
such areas as social security, subsidies, and education, thus
turning a blind eye to the public's difficulties."

Economic analyst Takuro Mori commented sternly:

"I don't understand why a four-member Japanese household has to
pay 100,000 yen to build a new house for the US military. It
won't cost that much to make all the highways free and help the
condo scam victims. The government may try to raise the
consumption tax rate to finance the US projects. The government
holds a tremendous amount of US bonds. It should sell them. I've
never heard of a country having paid money for the departure of
'occupation forces.'"

TOKYO 00002311 008 OF 013



(4) South Korean president aims to beef up political power by
taking tough stance against Japan over Takeshima (Dokdo) issue;
Japanese government perplexed by his statement; Repairing
strained bilateral ties difficult for time being

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

South Korean President Roh Moo Hyun released on April 25 a
special statement that he would determinedly respond to Japan's
claim to the Takeshima (Dokdo) islets in the Sea of Japan. Since
the territorial issue is a theme pulling at the heartstrings of
South Korean people, Roh's hard-line stance is apparently aimed
at recovering his political influence. All the more because South
Korea is scheduled to conduct unified local elections in late
May, Roh has no room for compromise with Japan on the Takeshima
issue. Although Prime Minister Junichiro Koizumi said that Japan
would respond calmly to Roh's comments, it is unlikely that Tokyo
and Seoul will find common ground.

Immediately after the president's special statement, South Korean
ruling and opposition parties released comments praising the
president's tough stance.

"Japan should know the South Korean public's view that the Dokdo
issue is part of the issue of past history." (Open Uri Party)

"President Roh stated what should be said on behalf of the
people." (Grand National Party)

It was unprecedented for both ruling and opposition parties to
heap praise on President Roh, particularly since the two camps
are facing off in the unified local elections coming up in late
May. A Grand National Party source having communication channels
to Japanese political circles revealed, saying, "If we criticize
the president's statement, we will be called friendly to Japan,
which will adversely affect the upcoming elections."

Takeshima is not just a bilateral issue but it will likely be
made a domestic political issue of South Korea. Open Uri Party
head Chong Dong Yong attempted to land on one of the islets in
early March when Grand National Party representative Park Kun Hye
was visiting Japan to meet with Prime Minister Koizumi. Chong's
attempt was unsuccessful due to bad weather. A source familiar
with the Open Uri Party admitted that Chong tried to play up the
policy contrast with Park.

One political commentator said, "Should the government stir up
national sentiments taking advantage of the Dokdo issue, it will
be able to strengthen its impetus." In fact, support rate for the
Roh government shot up from 35% to 50% in the poll conducted
immediately after Roh criticized as "an act of justifying Japan's
war of aggression" Shimane Prefecture's passing in March last
year of an ordinance designating a "Takeshima Day".

Roh has stressed that he is rectifying the wrongdoings committed
by past governments. He is trying to play up a tough stance of
working on the issues left behind by the past governments by
stressing his tough diplomacy regarding the Takeshima issue. He
can make clear differences with the government of President Park
Chong Hyi that shelved the Takeshima issue when it concluded a
treaty with Japan in 1965, as well as with the governments of

TOKYO 00002311 009 OF 013


President Kim Yong Sam and President Kim Dae Jung, which blurred
South Korea's exclusive economic zone (EEZ) in Japan-South Korea
fisheries negotiations conducted from 1996 to 1999.

The view is that since South Korea effectively controls the
disputed islets, it should continue calm diplomacy. However, a
ranking Presidential Office official said, "We have no leeway to
remain calm."

Many in the Japanese government have now reached the conclusion
that it will be difficult to repair the strained bilateral ties
for the time being. Japan cannot withdraw its territorial claim
over Takeshima. The government's basic policy is that it will
promote cooperation with South Korea on other areas, while
continuing negotiations on the EEZ issue. Chief Cabinet Secretary
Shinzo Abe and Foreign Minister Taro Aso have dispatched messages
calling on Seoul to improve bilateral relations, even though they
have taken a hard-line stance against China. Abe and Aso,
therefore, have increased their distrust of President Roh, who
has stepped up his criticism of Japan.

Prime Minister Koizumi yesterday stated in a press interview:
"Keeping a Japan-South Korea friendship is a major premise. I
think the two countries should discuss the matter in order to
find realistic measures to resolve it." He sought a cool-headed
response.

There is a view in the Japanese government that South Korea will
gain no benefits externally since it already effectively controls
the disputed islets. However Roh seems to have made such remarks
as economic cooperation and cultural exchanges being unable to
help resolve this matter as a means of objecting to Koizumi's
continuing to visit Yasukuni Shrine while stressing the need for
"friendly ties between Japan and South Korea." The Foreign
Ministry has taken Roh's statement seriously, with an official
saying, "If Seoul links all issues to history, we will find it
difficult to deal with them."

Regarding Japan's planned marine survey, over which the two
countries were about clash, Seoul and Tokyo have agreed to resume
negotiations on the EEZ demarcation issue probably before the end
of May. Diplomatic authorities have reached an understanding to
resolve the issue through discussions.

Some government and ruling coalition officials have begun
criticize Roh's statement released three days after the two
governments had arrived at the agreement on the marine survey
issue. The concern is that the negotiations on the demarcation
issue may become an arena for a showdown between Tokyo and Seoul.

(5) Bright and dark sides of five years of Koizumi politics (Part
1): Koizumi-Bush honeymoon relationship strengthened Japan-US
alliance

TOKYO SHIMBUN (Page 2) (Abridged)
April 26, 2006

"Relations with Japan are close, and I personally like Prime
Minister (Junichiro) Koizumi. I closely cooperated with him on a
variety of matters."

Delivering a speech in Washington April 10, US President George

W. Bush played up his relationship of trust with Koizumi.

TOKYO 00002311 010 OF 013



Bush has been preaching the importance of the war on terror
across the US on the back of growing criticism of the Iraq war.
In such speeches, Bush has referred to his relationship of trust
with Koizumi 13 times this year. The number stands out among
Japanese prime ministers.

Japan-US relations, which have been described as the best ever by
diplomatic officials of the two countries, have been supported
largely by the relations of trust between Koizumi and Bush.

Relations between the two countries were sour during the Clinton
administration. What turned them for the better in the Bush
administration? Both Japan and the US are responsible for that.

During the Clinton era, the US government often used gaiatsu, or
foreign pressure, for resolving bilateral problems. But the Bush
administration has respected Japan's "independent decisions,"
concluding that gaiatsu ruined cooperative relations between the
two countries.

Koizumi responded America's new stance with positive steps.
Following 9/11, the prime minister decided to send Maritime Self-
Defense Force vessels to the Indian Ocean to assist US forces. He
also swiftly announced his support for America's military attack
on Iraq and eventually deployed Ground Self-Defense Force troops
to help Iraq's reconstruction efforts.

"There were other options, but Prime Minister Koizumi decided to
send SDF troops," a former foreign minister noted.

Bush gave high scores to Koizumi's political style to make bold
decisions and take risks.

Koizumi and Bush have become closer since 9/11, according to
diplomatic officials of the two countries.

The Bush-Koizumi "honeymoon relationship" has significantly
strengthened the Japan-US alliance.

At the Japan-US summit in Kyoto last November, Koizumi said to
Bush: "It is because Japan-US relations are good that we have
been able to maintain good ties with all other countries,
including, China, the Republic of Korea, and the members of the
Association of Southeast Asian Nations (ASEAN)." In response,
Bush said: "It is a good idea and that, if Japan and the United
States have good relations, China also would want to strengthen
ties with Japan and the United States."

Bush invited Koizumi to the US for late June. Koizumi will be the
first Japanese prime minister to make an official visit to the US
in seven years, the last one being in April 1999 when Keizo
Obuchi was premier. Bush will host a White House dinner party for
Koizumi, as with the case of a state guest.

Bush only had a luncheon with Chinese President Hu Jintao, who
visited the US for the first time after assuming the current
post. The US government's higher treatment of Koizumi over Hu, a
chief of state, reflects the deepening Japan-US alliance.

(6) Bright and dark sides of five years of Koizumi politics (Part
2): Consideration for ally boosting Japan's base burden


TOKYO 00002311 011 OF 013


TOKYO SHIMBUN (Page 2) (Full)
April 27, 2006

"The Japanese government will shoulder a huge amount of money.
Japan will pay part (6.09 billion dollars) of the cost of
relocating Okinawa-based Marines to Guam in addition to
approximately 20 billion dollars to finance domestic relocation."
So said Richard Lawless, US deputy defense under secretary,
yesterday. He indicated that Japan would pay an estimated 26
billion dollars or approximately 3 trillion yen of the overall US
force realignment cost over six to seven years.

In this case, Japan will have to defray 500 billion yen annually.
This figure is twice as large as its annual contribution to the
cost of stationing US forces in Japan (237.8 billion yen for
fiscal 2005).

Chief Cabinet Secretary Shinzo Abe said in a press conference
yesterday: "I do not know the content of the reported figure. But
it is my impression that it is an incredible sum of money."

The realignment of US forces in Japan is part of the global US
force transformation being promoted by the Bush administration.
The US therefore naturally should pay the relocation cost.

In the force realignment in Japan, though, Okinawa's base burden
will be reduced, and many base facilities will be transferred to
other locations in the nation, whose costs should be borne by
Japan. In addition, Japan has also agreed to pay 59% of the
overall cost of relocating Okinawa-based Marines to Guam, though
such payment should be made by the US, reflecting Prime Minister
Junichiro Koizumi's stance of prioritizing the Japan-US alliance.

The decision stems from the prime minister's consideration to the
US, based on his determination that if Japan refuses to pay, the
US Congress may react sharply, and his ally, President Bush, may
be driven into corner.

Furthermore, Koizumi has dispatched Ground Self-Defense Force
(SDF) troops to Iraq on a reconstruction mission. Although an
increasing number of countries are beginning to withdraw their
troops under the worsening security situation there, Japan has
continued to deploy SDF troops.

If Japan, an important ally of the US, pulls troops out of Iraq
amid the political standstill there, it could give the impression
that the Iraq war has ended in failure. In such a case, President
Bush will find himself isolated.

Japan has deployed oil supply vessels in the Indian Ocean since
the US military launched military operation in Afghanistan. It
has yet to devise any plan to terminate the mission.

Koizumi has established close personal ties with President Bush.
In supporting Bush on the basis of such ties, Japan has responded
to US requests for financial assistance appropriate to its
strength as a nation. With Koizumi's resignation from the current
post this September, however, the current honeymoon between the
Japanese and US leaders will come to an end.

How will Japan-US relations change under a Koizumi successor? If
bilateral ties become exacerbated, the vulnerability of the Japan-
US alliance, which depends greatly on the Bush-Koizumi ties, may

TOKYO 00002311 012 OF 013


stand out in bold relief.

(7) Interview with Kent Calder, director of SAIS Reischauer
Center for East Asia Studies: Japan-US relations could
deteriorate over beef issue

TOKYO SHIMBUN (Page 2) (Full)
April 27, 2006

Beef has become a major political issue between Japan and the US.
Dissatisfaction is growing stronger at Japan among members of the
Congress lobbying for beef industry interests.

Unless the beef issue is resolved during Prime Minister Koizumi's
term in office, US-Japan relations could deteriorate. On the
political front, the prime minister has moved bilateral ties
forward, but he failed to produce any positive results in
resolving the most difficult of issues, the agricultural sector,
including beef. There also are trade issues other than
agriculture that the two countries face. For instance, many
American firms are dissatisfied with Japan's process of
privatizing postal savings and postal insurance services,
criticizing the process as ambiguous. For now, the US
government's policy interest has been directed at the security
area, and the economic area has been set aside. Under such a
situation, discontent is growing among private-sector firms that
cannot receive government financial support.

In the aftermath of the Sept. 11 terrorist attacks on the US,
Prime Minister Koizumi has found it considerably easier to
cooperate with the US government on the security front, and his
interest has been on the political area. Though this is merely a
personal view, the prime minister does not seem well versed in
economic issues. It might be said that he has been lucky because
the US government has given priority to the security area over
the economic front.

There is no need to worry, though, that Japan-US relations will
get worse immediately after the prime minister steps down. Should
Chief Cabinet Secretary Shinzo Abe, who is regarded as the most
likely candidate, become prime minister, he supposedly will step
up efforts to strengthen cooperative relations with the US on the
security front in dealing with missile defense, US force
realignment, and other issues. I believe he will continue the
current administration's reform drive based on market principles.

I think that former Chief Cabinet Secretary Yasuo Fukuda is also
a good candidate. He has maintained favorable relations with the
US. He know much about the need to have a pipeline and good
channels to Russia, so if Mr. Fukuda becomes prime minister, his
administration would have a high interest in energy policy.

(8) Yutaka Iimura picked as ambassador to France

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

The government decided in a cabinet meeting on April 25 to
appoint Yutaka Iimura, incumbent ambassador to Indonesia, as
ambassador to France and Andorra, effective as of April 25.
Shigeru Nakamura, currently director general of the Intelligence
and Analysis Service, has been be named as ambassador to Saudi
Arabia; Seiji Kojima, a Japan International Cooperation Agency

TOKYO 00002311 013 OF 013


(JICA) director, as ambassador to Pakistan; Haruhisa Takeuchi,
chief of the Cabinet Satellite Intelligence Center, as director
general of the Intelligence and Analysis Service. The
appointments of Nakamura, Kojima, and Takeuchi are effective as
of May 8.

Ambassador-designate Yutaka Iimura: Left the University of Tokyo
in mid-course; entered the Foreign Ministry in 1969; has been
serving as ambassador to Indonesia since July 2002; after serving
in such posts as director general of the Economic Cooperation
Bureau and deputy vice minister of Minister's Secretariat, age
59; hails from Tokyo.

Ambassador-designate Shigeru Nakamura: Graduated from
Hitotsubashi University; joined the Foreign Ministry in 1973; has
been serving as director general of the Intelligence and Analysis
Service since August 2004, after serving as ambassador in charge
of Iraqi Assistance Coordination; age 57; Tokyo.

Ambassador-designate Seiji Kojima: Graduated from the University
of Tokyo; joined the Foreign Ministry in 1972; has been a JICA
director since October 2004; age 58; born in Aichi Prefecture.

DONOVAN