JAPANESE MORNING PRESS HIGHLIGHTS 05/09/06

UNCLAS SECTION 01 OF 11 TOKYO 002481

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SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 05/09/06

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Index:

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

Defense issues:
4) Prime Minister Koizumi wishes to coordinate with US to
publicize the recent USFJ realignment agreement at the summit
5) Prime Minister to place efforts on convincing locals to
accept realignment pact
6) JDA chief Nukaga advises Prime Minister Koizumi to present a
defense message at the upcoming summit meeting with President
7) Nukaga wants to revised bilateral defense cooperation
guidelines to stress importance of USFJ realignment
8) Governor Inamine still pushing for temporary heliport
concept at Camp Schwab
9) Ozawa, Kan, Hatoyama to attach the USFJ realignment
agreement in Diet debate
10) Aussie troops to stay for while longer in Iraq just when
Japan mulling its own pullout
11) Finance Minister Tanigaki: Chukibo mid-range defense
procurement plan may have to be constrained to accommodate the
cost of relocating US troops

Diplomatic issues:
12) Japan to put energy conservation high of the G-8 summit
agenda
13) Chief Cabinet Secretary Abe: Coordination underway to put
the abduction issue on the G-8 summit agenda
14) Lower House Speaker Kono criticizes Prime Minister in
monthly magazine

China connection:
15) China calling for a trilateral dialogue among Japanese,
Chinese and South Korean officials
16) Government giving careful scrutiny to future of ODA to China
17) -Prime Minister's office taking lead in restructuring ODA
program, with China in mind

18) UN Secretary General Annan arrives on 16th for visit to
Japan

19) Team of US beef experts arrive next week for what may be
wrap up talks prior to decision on reopening market to US beef

Articles:

1) TOP HEADLINES

Asahi: Sankei: Tokyo Shimbun:

Half of middle-aged men are suspected of having metabolic
syndrome, according to Health Ministry survey; 20% of women

Mainichi: Nihon Keizai:
Financial Services Agency considering suspension of all business
activities by Chuo-Aoyama Audit Corporation for one to two months
due to window-dressing by Kanebo

Yomiuri:
Russia summit; Japan to propose introducing Japanese-style energy

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conservation system; Prime minister intends to work on other
countries to adopt top-runner method

2) EDITORIALS

Asahi:
(1) Can decentralization take another step?
(2) WTO: Time approaching for political decision

Mainichi:
(1) Drug use: Japanese baseball teams should take measures as
soon as possible
(2) Thoughts on social divide: Change concept of social security
benefits to prevent recipients from falling into poverty trap

Yomiuri:
(1) Certified public accountants: How should they audit
companies?
(2) Speeding up patent application screening: Delay in
examination will threaten intellectual property rights

Nihon Keizai:
(1) Remove anxiety over earthquake resistance of nuclear power
stations
(2) Still no democratic election under Singapore's Lee
administration

Sankei:
(1) Academic disparity: Revitalizing public education is of
urgent necessity
(2) Prevent heinous crimes from spreading to provincial
districts

Tokyo Shimbun:
(1) Cuts in tax allocations: Do not pass the buck to local
governments
(2) Internet and broadcasting: Reconciling copyrights and
convenience

3) Prime Minister's Official Residence (Kantei)

Prime Minister's schedule, May 8

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

10:11
Signed in to report his return at the Imperial Palace.

10:32
Met at Kantei with Nobuyuki Nakahara, former BOJ policy board
member.

11:23
Attended Overseas Economic Cooperation Council meeting.

12:02
Attended meeting of the government and ruling coalition. Met
afterwards with Foreign Minister Aso and Defense chief Nukaga.

14:00
Met with Cabinet Intelligence Director Mitani and Cabinet

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Satellite Intelligence Center head Oda, followed by LDP Secretary
General Takebe.

17:03
Attended LDP executive meeting at Diet building. Met with LDP
Upper House Chairman Aoki.

17:38
Arrived at Kantei.

19:03
Dined with Aoki, LDP Upper House Secretary General Katayama, and
New Komeito Upper House Secretary General Kusakawa at the
Japanese restaurant Yamazato in Hotel Okura.

21:16
Returned to his official residence.

4) Koizumi plans to highlight significance of US force
realignment agreement in talks with Bush

NIHON KEIZAI (Page 2) (Abridged slightly)
May 9, 2006

Prime Minister Junichiro Koizumi held talks at his official
residence yesterday with Foreign Minister Taro Aso and Defense
Agency Director General Fukushiro Nukaga. In the talks, the prime
minister confirmed that he would seek to coordinate with the
United States in the Japan-US summit talks in June to play up the
significance of the final agreement reached recently between
Tokyo and Washington on US force realignment. The prime minister
apparently wants to highlight the significance of the stability
of the Asia-Pacific region in view of China and other countries'
growing alarm against the strengthening of the Japan-US alliance.

In the talks, Nukaga urged Koizumi to lay the groundwork in the
summit talks to send a political message on the significance of
the final agreement on US force realignment and how it will
contribute to the region and the world. After the meeting,
Koizumi told reporters: "I will clearly express my views to
President Bush. I also want to discuss overall Japan-US
relations."

Chief Cabinet Secretary Shinzo Abe also said in a press
conference yesterday, "The two leaders will discuss the Japan-US
alliance in the world to share a common vision."

Koizumi also attended a government-ruling coalition liaison
meeting yesterday in which he emphatically said, "We must fulfill
our accountability to the people."

5) Koizumi orders Aso, Nukaga to make every effort to convince
local governments on US force realignment to pave way for cabinet
decision

YOMIURI (Page 2) (Excerpts)
May 9, 2006

Prime Minister Junichiro Koizumi met with Foreign Minister Taro
Aso and Defense Agency Director General Fukushiro Nukaga at his
official residence yesterday and ordered them to make every
effort to win the support of affected local governments for the

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final report on US force realignment. The government intends to
devote its efforts to convince local governments displeased with
US force realignment plans. The government also plans to make a
cabinet decision next week to implement the realignment plan as
scheduled even if it fails to win the concurrence of all the
affected local governments.

Koizumi said to Aso and Nukaga, "I want you to explain things
thoroughly to local communities to obtain their understanding and
to pave the way for a cabinet decision." Nukaga said in
connection with the Koizumi-Bush meeting, planned for June, "It
is necessary to lay the groundwork to send a political message on
what the final agreement on US force realignment means to Japan
and the US and how (Japan) will contribute to this region and the
world." Koizumi responded positively to Nukaga's advice.

6) Defense chief Nukaga proposes to Prime Minister Koizumi
dispatching political message at Japan-US summit

MAINICHI (Page 2) (Full)
May 9, 2006

Prime Minister Junichiro Koizumi was briefed yesterday by Foreign
Minister Taro Aso and Defense Agency Director General Fukushiro
Nukaga on the final report on the realignment of US forces in
Japan. Nukaga proposed to Koizumi that a political message
explaining the significance of (the realignment of the US
military facilities in Japan) for the two countries be dispatched
at the upcoming summit between Koizumi and President George W.
Bush. Koizumi expressed his understanding. Nukaga apparently
suggested that the two leaders release a joint statement at their
summit.

Koizumi told reporters last night: "(The final agreement) is
meaningful in view of the Japan-US alliance in the world. I will
clearly express my views to President Bush."

Chief Cabinet Secretary Shinzo Abe at a press conference
yesterday indicated that the strengthening of the Japan-US
alliance through the USFJ realignment would become a major topic
at the upcoming summit, saying, "I think (The two leaders) will
discuss the Japan-US alliance, which has now matured, or the
alliance in the world so that they will be able to share a common
perception.

7) Nukaga suggests need to confirm USFJ realignment's
significance in joint declaration, eyes revising defense
guidelines

ASAHI (Page 2) (Full)
May 9, 2006

Following the final agreement reached between Japan and the
United States on the realignment of US forces in Japan, Defense
Agency Director General Nukaga met with Prime Minister Koizumi
yesterday. In the meeting, Nukaga suggested the need for the two
countries' leaders to confirm a "political message" incorporating
the significance and objective of the force realignment. The
Defense Agency wants a joint declaration to be issued in a summit
for a review of the Japan-US Defense Cooperation Guidelines.
However, the Foreign Ministry remains cautious about reviewing
the guidelines. The US government is also insisting on the

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necessity of fast-tracking the realignment plan.

The Japanese and US governments are now coordinating to schedule
a summit for late next month. "I'd like to prepare an environment
(for Japan and the United States) to issue a political message,"
Nukaga explained to Koizumi. After the meeting, Nukaga told
reporters, "The prime minister also understands that, I think."

Defense Agency Administrative Deputy Director General Takemasa
Moriya also told a press conference yesterday: "It's my
understanding that the prime minister has said Japan and the
United States should issue a bilateral joint declaration to send
a clear-cut message to the peoples of Japan, the United States,
and Asia."

In 1996, the Japanese and US governments released the Japan-US
Security Joint Declaration after the Cold War. In 1997, the two
governments revised the guidelines.

The Defense Agency wants a political message now that the
bilateral alliance has entered a new phase with the US military's
realignment. "It's about time to consider renewing the goals and
ideals of the two countries' security arrangement," Nukaga said.

Japan and the United States held a "two-plus-two" meeting of
their intergovernmental security consultative committee, in which
Nukaga proposed creating a new framework to replace the 1997
guidelines. "There were more events than we had expected when we
worked out the new guidelines," Nukaga said in the two-plus-two
ministerial.

"The message must be clear," one of Koizumi's aides at his office
also said, adding, "We've yet to decide whether to issue such a
message in a joint declaration at the Japan-US summit meeting,
but the two leaders will likely agree to start discussions on a
review of the guidelines."

According to a high-ranking government official, however, the
government has yet to begin interdepartmental coordination.

So far, Koizumi has not talked about a review of the guidelines.
He stopped short of referring to the guidelines when he was asked
by reporters yesterday evening about the necessity of issuing a
political message like a joint declaration. "I'd like to think
over what to do," he said.

In the meantime, US Secretary of Defense Rumsfeld told Nukaga in
their meeting on May 3 that the United States was ready to hold
talks about a review of the guidelines. However, Rumsfeld also
laid emphasis on the necessity of carrying out the realignment
plan, noting the importance of implementing matters regarding
bilateral defense cooperation in a steady way. "We're now moving
ahead with base realignment," a Foreign Ministry official said.
This official went on, "The United States is not thinking of
going back into the world of words at this time."

8) JDA administrative vice minister: "Construction of temporary
helipad is difficult"

SANKEI (Page 5) (Full)
May 9, 2006


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At a press conference yesterday, Administrative Vice Defense
Minister Takemasa Moriya touched on Okinawa Gov. Keiichi
Inamine's counterproposal for constructing a temporary helipad at
Camp Schwab in connection with the relocation of the US Marine
Corps Futenma Air Station and indicated that it would be
difficult to accept his proposal, saying: "I'd like the governor
to understand the central government's ideas and cooperate."
Moriya pointed out: "Nago City, despite the difficulties it has
faced, has declared it would accept the relocation plan. We'd
like to respect the willingness of local communities."

9) Minshuto's Ozawa, Kan, Hatoyama determined to pursue
government on US force realignment cost

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

Minshuto (Democratic Party of Japan) President Ichiro Ozawa,
Acting President Naoto Kan, and Secretary General Yukio Hatoyama
exchanged views at party headquarters yesterday on measures for
the Diet in its closing stage. Ozawa said regarding the
realignment of US forces in Japan, "Our party must deal with the
issue fairly and squarely." The three leaders confirmed that the
party would grill the government on its accountability for
Japan's share of the cost.

10) Iraq deployment: Australia to stay on after Japan's pullout

ASAHI (Page 2) (Excerpt)
May 9, 2006

SINGAPORE-Australia will continue its troop deployment in the
southern Iraqi province of Al-Muthanna regardless of Japan's
moves, Australian Defense Minister Nelson was quoted as telling
the Australian media. "Even if Japan announces its intention to
pull out (of the southern Iraqi city of Samawah),we'd like to
continue to provide training to Iraqi forces and to conduct our
activities in that country's southern district." Australian Prime
Minister Howard has implied the possibility of continuing
Australia's troop deployment in Iraq after Japan withdraws Ground
Self-Defense Force troops. However, it is the first time an
Australian government official has clarified this course of
action.

11) On the cost for the realignment of US forces in Japan,
Finance Minister Tanigaki says, "The budget for midterm defense
buildup program needs to be constrained"

SANKEI (Page 5) (Full)
May 9, 2006

At a meeting yesterday of the Upper House Special Committee on
Administrative Reform, Finance Minister Sadakazu Tanigaki,
touching on Japan's share of the realignment of US forces in
Japan, stated, "Given the current tight state finances, we should
not tack on the realignment cost to the budget for the midterm
defense buildup program (chukibo)." He thus indicated that the
budget for chukibo needs to be constrained. At the same time he
remarked, "I have no idea how much the relocation will cost. We
need to examine it closely," and noted that the total relocation
cost and the basis for the cost calculation should be made clear.


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12) Russia Summit; Japan to propose introducing Japanese-style
energy conservation system; Prime minister intends to work on
other countries to adopt top-runner method

YOMIURI (Top Play) (Excerpts)
May 9, 2006

A Group of Eight summit is to be held in St. Petersburg, Russia,
in July. As part of energy-conserving measures, Prime Minister
Koizumi yesterday decided to work on other participating
countries during the meeting to adopt a top-runner system, under
which energy-conserving and fuel-efficiency standards to be
achieved by all industries are set in compliance with products
with the highest such performance on the market. He will also
introduce a new environment-friendly technology aimed at
promoting the use of coal and express his determination to offer
assistance to countries that introduce this technology. Amid
international concern over the sharp rise in crude oil prices and
global warming, Japan wants to contribute to settling the issue
using its advanced technology, by spreading its own strict energy-
conserving standards and technology.

The summit will be held July 15-17. Energy, education, and
measures to deal with infectious diseases will likely top the
agenda.

The meeting will also focus on energy in response to the sharp
rise in crude oil prices, which is posing a risk to the global
economy. Participants will discuss measures to stabilize prices,
including the promotion of investment in oil production,
transportation, and refining capability, as well as measures to
improve energy efficiency.

In Japan, the top-runner method was applied to 21 items,
including autos and refrigerators, based on the Energy
Conservation Law revised in 1998. Since then, this method has
been producing results. The prime minister plans to propose this
method, which is premised on performance-based competition by
companies. Among major industrialized nations, Russia is lagging
far behind in energy conservation. With that country in mind, the
government is looking into the possibility of dispatching
engineers in order to raise the level of energy-conserving
technology, a precondition for introducing the top-runner method.

13) Chief Cabinet Secretary Abe: Japan will raise abduction issue
at G-8 Summit; Government to carry out coordination with US

ASAHI (Page 1) (Full)
May 9, 2006

Chief Cabinet Secretary Shinzo Abe told senior members of the
ruling parties during a meeting of the government and ruling
coalition that Japan would raise the issue of abductions of
Japanese nationals by North Korea at the Group of Eight (G-8)
Summit, which will be held in July in St. Petersburg. The
government will begin coordination with relevant countries,
including the United States, where the abduction issue has begun
to draw wider attention. If the abduction issue becomes an
important issue at the G-8 Summit along with North Korea's
nuclear programs, it may affect the development of the six-party
talks.


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Abe, in the meeting yesterday, hailed the meeting between US
President George W. Bush and Sakie Yokota, mother of Megumi
Yokota, one of the abductees, saying:

"A strong message was sent to the world through the meeting that
the abduction issue must be resolved. We will put our all energy
into resolving the issue by strengthening cooperation with the US
and other countries. We will do our best so that the issue will
be taken up at the G-8 Summit."

Following the North Korean leader's admission in his meeting in
September 2002 with Prime Minister Koizumi of the abductions,
Japan alone raised the abduction issue at the 2003 G-8 Summit in
Avian, France, and the issue was included in the chairman's
statement. The issue was also incorporated in the summit in 2004
and 2005. Realizing that it has obtained Washington's
understanding with Yokota's visit to the US, the government
intends to present a common agenda after securing understanding
from other countries.

If realized, international movement on human rights issues,
including the abductions, may grow before the stalled nuclear
issue.

However, the G-8 Summit will take place in Russia, which
expresses understanding for the North. A government official,
therefore, pointed out, "It will not be easy to obtain
understanding from G-8 members."

14) Lower House Speaker Kono criticizes Prime Minister Koizumi's
foreign policy in monthly magazine

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

Yohei Kono, speaker of the House of Representatives, criticized
the foreign policy of the Koizumi government in the issue of the
monthly magazine Sekai that went on sale on May 8. He wrote: "I
have doubts about whether the Diet should tamely follow the
government, which blindly follows the United States because of
the Japan-US alliance." He also pointed out:

"When the US attacked Iraq, the Koizumi government immediately
expressed its support for the US. The government says Japan will
be in trouble when a problem occurs in North Korea if it does not
back the US. Diplomacy is not that simple."

15) Japan, China, South Korea to hold talks on energy in Latin
America at China's proposal, probably with aim of easing "China
as a threat" argument

ASAHI (Page 4) (Excerpts)
May 9, 2006

The Chinese government has proposed to the Japanese government to
hold talks on energy in Latin America and military cooperation.
In late April, Japan, China, and South Korea held their first
bureau-director-level talks in Beijing. Amid their strained
political relations, it is quite rare for the three countries to
hold talks over diplomacy toward countries on the other side of
the world. Some have speculated that China is also aiming to ease
the "China as a threat" argument growing in the US, focusing on

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China's activities in Latin America.

The first Latin America talks involving officials in charge of
Latin American affairs from Japan, China, and South Korea were
held on April 26 at the proposal of China. In the meeting, the
participants agreed to meet annually. They also agreed on a plan
in which their embassies in countries in Latin America will
jointly hold a trade show.

According to an attendee, the Chinese Foreign Ministry's Latin
American Bureau director general said: "I want you to accurately
understand the state of our cooperation with Latin American
countries in the energy and military areas." He then emphasized
that the increasing volume of trade in natural resources is on a
regular commercial basis. The Chinese official added that
military exchanges between China and the Latin American region,
about which the US is increasingly concerned, are "modest."

16) Government council on ODA strategy holds first meeting,
aiming for Kantei-led policymaking

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

A strategic council on Japan's official development assistance
(ODA) policy, headed by Prime Minister Junichiro Koizumi, held
its first meeting yesterday and started working out an effective
ODA strategy for the country. A number of government agencies
have been involved in ODA policy in the past. The council was
formed with the aim of the Prime Minister's Office (Kantei)
taking the initiative in offering ODA funds for projects that
will be more in Japan's national interests, focusing on such
aspects as democratization, energy, and the environment. The key
to whether the council will be able to take the lead lies in the
conceptual abilities of politicians. Potential candidates for the
next premiership will be tested over their diplomatic strategy.

Focus first on yen loans to China

"This is taxpayer money, so I want you to use ODA funds in an
effective, strategic way so that they will serve Japan's national
interests," said Koizumi.

The council is composed of Foreign Minister Taro Aso; Finance
Minister Sadakazu Tanigaki; Economy, Trade, and Industry Minister
Toshihiro Nikai; and Chief Cabinet Secretary Shinzo Abe, in
addition to the prime minister. These members will discuss the
nation's basic strategies for ODA and aid through international
institutions. Allocations for ODA will also be reviewed flexibly
at the initiative of politicians. Its meetings will not be made
public, since it aims to proceed with debates while giving
priority to national interests.

Under the current system, 13 government agencies take part in
ODA. Sectionalism has hampered overall cooperation. In a press
conference, Abe said: "Japan has not worked out its ODA policy
from an overall viewpoint, including environmental protection and
energy."

The council intends to urge recipients to resolve global warming
and other environmental or energy problems through ODA projects
and to set up a system to give priority to assistance to

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developing countries making efforts to promote democratization
and secure human rights. If the council is able to move things as
it expects, its role as a diplomatic tool will increase.

17) Deliberate discussions on yen loans to China in fiscal 2005
held at first meeting of the strategic council on ODA

SANKEI (Page 5) (Excerpts)
May 9, 2006

The government's strategic council on overseas economic
cooperation, headed by Prime Minister Junichiro Koizumi,
yesterday held its first meeting at the Prime Minister's Official
Residence (Kantei) and embarked on a discussion on ways for the
Kantei to lead strategic and efficient use of official
development assistance (ODA). The focus of the discussion at
present is what to do with yen loans to China planned for fiscal
2005, which the cabinet has not yet approved.

At a press conference yesterday, Chief Cabinet Secretary Shinzo
Abe said: "It's desirable for the council to deal with important
countries and items swiftly from the perspective of overseas
economic cooperation." Abe emphasized that the Kantei would play
the role of "control tower" to reduce red tape.

Abe also indicated the need to discuss sector-by-sector
assistance approaches, noting, "In the past Japan has lacked the
viewpoint of how it will contribute to the world in the areas of
the environment and energy."

On the question of new provision of yen loans to China, Japan and
China have agreed to end yen loans prior to the Beijing Olympics
in 2008. But calls for moving up the timing of ending yen loans
or doing so immediately are emerging in the ruling Liberal
Democratic Party (LDP),behind which are China's moves to explore
oil gas fields in the East China Sea and its proposal for joint
development of waters around the Senkaku Islands, which are
Japanese territory. After deliberate discussions, the council
intends to come up with a conclusion about what to do with
provision of yen loans to China for fiscal 2005.

18) UN Secretary General Annan to visit Japan on May 16

SANKEI (Page 5) (Full)
May 9, 2006

The Foreign Ministry yesterday announced that UN Secretary
General Annan will visit Japan for four days from April 16. Annan
will meet with Prime Minister Junichiro Koizumi and other leaders
and exchange views on the reform of the United Nations, including
whether to expand the UN Security Council, and the international
situation. Prior to his visit to Japan, Annan will visit South
Korea and meet with President Roh Moo Hyun and others. Annan will
also travel to China and Vietnam. He planned to visit these four
nations (in Asia) last December, but he was forced to delay his
tour after the UN fell into disorder over compiling its budget.

19) Japan, US to hold experts' meeting on beef issue next week to
examine US report

ASAHI (Page 3) (Full)
May 9, 2006

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The government announced yesterday that experts from the Japanese
and US governments would meet next week to discuss a resumption
of trade in US beef. This development reflects the likelihood of
Washington presenting Tokyo this week with a report detailing the
results of its second inspection starting in late April of
slaughterhouses and packing plants in the US. The Japanese and US
governments will shortly start final work in preparation for
coming up with the final decision on Japan's resumption of US
beef imports.

In the meeting, experts will closely examine the US report.
Representatives from Japan will also report on the results of
public hearings held with consumers in 10 locations nationwide
last month. If no problem is found with the contents of the US
report, both sides will discuss specific conditions for Japan to
reopen its market to US beef.

If Japan reaches broad agreement with the US on conditions for
resuming imports, it will set safety criteria. The Japanese
government will then explain such criteria to consumers across
the nation, taking about two weeks. Hearing public views there,
the government will approve the decision in mid-June, at the
earliest.

Experts from the Japanese government will then visit the US to
inspect meat-processing plants. If they confirm they are
observing Japan's safety criteria, Japan will resume US beef
imports.

SCHIEFFER