Identifier
Created
Classification
Origin
06TOKYO2550
2006-05-11 00:56:00
UNCLASSIFIED
Embassy Tokyo
Cable title:  

JAPANESE MORNING PRESS HIGHLIGHTS 05/11/06

Tags:  OIIP KMDR KPAO PGOV PINR ECON ELAB JA 
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ZNR UUUUU ZZH
P 110056Z MAY 06
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RUEHOK/AMCONSUL OSAKA KOBE 9314
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UNCLAS SECTION 01 OF 10 TOKYO 002550 

SIPDIS

SIPDIS

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

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

SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 05/11/06

Index:
UNCLAS SECTION 01 OF 10 TOKYO 002550

SIPDIS

SIPDIS

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

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

SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 05/11/06

Index:

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

Japan's new diplomacy:
4) Sparks likely to fly between Japan, China in newly
established UN Human Rights Council
5) Japan to take more aggressive stance on abduction issue in
UN, G-8 Summit

6) Impressed perhaps by strong US-Japan ties, China taking
softer stance toward Japan with agreement to resume meetings of
foreign ministers

Yasukuni Shrine issue:
7) Business leaders' call on Prime Minister Koizumi to stop
visiting Yasukuni strikes resonant chord in ruling camp
8) New Komeito head Kanzaki lauds Keizai Doyukai stance against
Koizumi's Yasukuni Shrine visits
9) Prime Minister Koizumi dismisses business leaders report on
Yasukuni visits, denies connection with economic relations with
China
10) Keizai Doyukai's anti-Yasukuni stance seen as indirect
support of Yasuo Fukuda to be next prime minister, alarming
Shinzo Abe supporters

11) Japanese employee strike at Yokosuka Navy Base averted

12) US-Japan meeting next week on US beef issue likely to move
closer to a down-to-the-wire decision allowing imports to flow
again

Political agenda:
13) Mori faction finally agrees to allow two candidates run for
LDP president from the faction
14) Ruling camp to present national referendum bill to current
Diet session to start Constitutional reform process rolling

Articles:

1) TOP HEADLINES

Asahi: Mainichi:Yomiuri:
ChuoAoyama handed 2-month suspension from July; 2,300 client
companies to be affected; US partner to set up new auditing
corporation


Nihon Keizai:
Listed companies post record profits for three consecutive years;
Current profits up 20% over preceding term, Nikkei survey finds;
Steel, oil serve as driving force

Sankei:
Toyota's sales top 20 trillion yen for first time; Production
expected to rank first before year's end

Tokyo Shimbun:
Majority of nursing-care funds in Tokyo preserved despite
guidance by Labor, Health, and Welfare Ministry, expecting
increase in payouts

TOKYO 00002550 002 OF 010



2) EDITORIALS

Asahi:
(1) Chuo Aoyama Audit Corporation: The lies that threaten the
firm's existence
(2) Proposals made by Keizai Doyukai: Business world concerned
over the prime minister's visits to Yasukuni Shrine

Mainichi:
(1) Image of US: Improve it not through publicity campaign but
with action
(2) Long-term interest rates rise to 2%; Positive indicator of
economic vitality

Yomiuri:
(1) Conspiracy legislation: Work it out cautiously to wipe away
concern
(2) Connections between businesses and crime syndicates must be
stopped

Nihon Keizai:
(1) Tougher diplomacy needed to stave off Iran crisis
(2) Auto industry likely to level off

Sankei:
(1) Social withdrawal is a problem concerning society as a whole
(2) Upbeat corporate financial statements: Companies should play
role in correcting income disparity

Tokyo Shimbun:
(1) Proposals by Keizai Doyukai could help China meddle in
Japan's internal affairs
(2) Taping interrogations will make lay judge system more
effective

3) Prime Minister's Official Residence (Kantei)

Prime Minister's schedule, May 10

NIHON KEIZAI (Page 2) (Full)
May 11, 2006

10:31
Arrived at Kantei.

11:07
Took a stroll on the south garden of Kantei. Recorded for the
government's Internet TV.

14:00
Met with Agriculture Minister Nakagawa.

15:00
Met with Ambassador to France Iimura, followed by NPA Director
General Uruma.

16:33
Met Asahi Shimbun columnist Yoichi Funabashi.

17:22
Attended meeting of Council on Economic and Fiscal Policy.

TOKYO 00002550 003 OF 010



19:55
Had a haircut at Murayoshi Barbershop in Capital Tokyu Hotel.

21:02
Visited the residence of the late former Lower House member Raizo
Matsuno to pay respects.

21:18
Returned to his official residence.

4) New UN Human Rights Council elects 47 nations as members,
leaving seeds of conflicts; Gulf between developing and
industrialized nations yet to be bridged; US absence likely to
make the Council unstable

NIHON KEIZAI (Page 6) (Excerpts)
May 11, 2006

By Hiroyuki Nakamae, New York

The members of the new United Nations Human Rights Council were
elected on May 9, ahead of its first meeting set to start in
Geneva in June. The 47 members of the Council, including Japan,
will keep watch on despotism and tyranny around the world.
Compared to the days of the Human Rights Commission, the
predecessor body criticized as dysfunctional, the number of
nations violating human rights has decreased drastically. But
because disputes between the developing and industrialized
nations over particular issues are yet to be resolved, the
Council is likely to follow a zigzag path.

The Council members elected by the UN General Assembly include
six nations, such as Cuba, Russia, and China, designated by the
international human rights organization Human Rights Watch as
violators of human rights. But the organization gave high marks
to the election, noting: "The predecessor Human Rights Commission
had many more nations ignoring human rights."

This comment came because some Commission members, such as Sudan
and Zimbabwe, did not run for the membership on the Council.

The Commission (composed of 53 states) was a subordinate body to
the UN Economic and Social Council (ECOSOC). Its members were
chosen from among the members of ECOSOC. The Commission's
regionally allocated seats were rotated among the states in the
region. This system served as a breeding ground for collusive
ties among them. The status of the Council is higher than that of
the Commission. The Council is under the direct supervision of
the UN General Assembly. States wishing to become members of the
Council need to be endorsed by a majority of the UN member
states. There is also a provision to suspend membership.

The Commission held a meeting (that lasted for six weeks) once a
year in spring, but the Council will meet at least three times a
year (for a total of 10 weeks or more). The Council can also
convene an emergency meeting. After the election on May 9, UN
General Assembly President Eliasson said proudly: "Protection of
human rights, security, and development assistance are the three
pillars of the UN."

Based on this outcome, Senior Vice Foreign Minister Yasuhisa

TOKYO 00002550 004 OF 010


Shiozaki, now visiting the US, expressed his enthusiasm for
resolving the abduction issue, saying: "We'd like to appeal
steadfastly to the international audience on the issue."

On the abduction issue, the Commission adopted a resolution
denouncing North Korea for three years in a row. The General
Assembly also adopted a similar resolution last year. The family
members of abductees recently met with US President Bush. The
abduction issue has been given a boost in recent years.

But these developments are rather exceptional. If North Korea had
not admitted to the abductions, the Commission would certainly
have stopped investigating.

More than 100,000 people have been killed in the genocide in
Durfur, Sudan, but a resolution denouncing Sudan was not adopted
due to objections from some Commission members.

Can we expect that a Council that does not include Sudan and
other nations violating human rights will make great strides? One
diplomat said, "I have no idea at present." There are no major
differences between the Council and the Commission in terms of
investigations and recommendations. In addition, "Many developing
member states tend to voice strong opposition to recommendations
naming developing nations by name," arguing that industrialized
nations have an arbitrary human rights policy, the same diplomat
said. The moves of the US, which did not run for the Council
membership, could make the Council unstable.

5) Japan to take diplomatic offensive to achieve progress in
abduction issue

NIHON KEIZAI (Page 2) (Abridged)
May 11, 2006

The government will now further its diplomatic efforts to achieve
progress on the issue of Japanese nationals abducted by North
Korean agents. Meanwhile, Japan has been elected to a seat on the
United Nations Human Rights Council (UNHRC),a new UN body
scheduled to be launched in June. As a member of the new UN
council, Japan will lay emphasis on the inhumanity of abductions
in the international community. In addition, Japan will also work
on other Group of Eight (G-8) members to take up the abduction
issue at this July's St. Petersburg G-8 summit.

"Japan has been making a consistent appeal to the world (on the
abduction issue)," Senior Vice Foreign Minister Yasuhisa Shiozaki
told a press conference in New York yesterday after Japan's entry
into the UNHRC. In his press remarks, Shiozaki stressed the
importance of resolving the abduction issue while referring to a
recent meeting of Sakie Yokota, mother of Megumi Yokota, one of
those abducted to North Korea, and US President Bush in
Washington.

All eyes are on North Korea's nuclear and missile development in
the international community. However, Japan will try to draw an
international attention on the abduction issue in an aim to close
in on North Korea. While the six-party talks over North Korea's
nuclear ambitions have now been deadlocked, the United States is
trying to break the ice with "human rights" as a keyword. The
Japanese government is taking it as a tailwind for its efforts.


TOKYO 00002550 005 OF 010


In June last year, Bush met with a Chosun Daily News reporter who
once spent time at a camp in North Korea. The US government later
appointed a special envoy for North Korea's human rights. In
March this year, US Ambassador to Japan Schieffer visited Niigata
to see the place where Megumi Yokota was abducted.

"If we take up the human rights problem in a positive way, it
will be possible to apply pressure on China and Russia, which
have been showing consideration for North Korea," a US government
official was quoted as saying. Late last year, the Japanese
government also established an ambassadorial post in charge of
human rights. At the same time, the Foreign Ministry picked one
of its parliamentary foreign secretaries as an official in charge
of human rights.

6) China softens stance toward Japan, reflecting strong Japan-US
ties; Agrees to resume foreign ministerial

SANKEI (Page 3) (Excerpts)
May 11, 2006

Japan and China have agreed to resume later this month bilateral
foreign ministerial talks after a suspension of about one year.
The Japanese government hopes to accelerate the dialogue in a
drive to resolve issues pending between the two countries,
including oil and gas field development in the East China Sea.
According to the government's analysis, behind China's switch in
its stance toward Japan is the judgment that the previous hard-
line posture only prompted the US to take a tougher line toward
it, given the current close ties between Japan and the US.

Prime Minister Junichiro Koizumi told reporters yesterday: "China
might have noticed that it was irrational to continue to reject a
summit because of a single issue," adding: "The Yasukuni issue is
no longer diplomatic leverage."

A senior government official also stressed that Japan had not
made any concessions to bring about a meeting, saying: "While we
kept the door open, the other side voluntarily stepped in." The
official also cynically commented on China's response: "Using the
issue of whether or not to hold a meeting as a bargaining chip is
indisputably the same approach as North Korea's."

In the cabinet reshuffle in late last October, the prime minister
appointed Shinzo Abe and Taro Aso, both hard-liners toward China,
to the positions of chief cabinet secretary and foreign minister,
respectively. This reflects his priority to strengthening
relations with the US and Southeast Asian nations. In the meeting
with President Bush in Kyoto last November, the prime minister
spent much time explaining his motives behind his visits to
Yasukuni Shrine.

When Chinese President Hu Jintao visited the US late last month,
Tokyo reportedly had analyzed in detail China's moves prior to
the visit and had asked Washington to avoid China from directing
the brunt of its criticism at Japan during the planned Bush-Hu
talks. Owing to this approach, China made no reference to Japan
during the summit. No joint statement was issued, either. A
diplomatic source said: "China lost face and received a serious
blow."

Washington has promised that it would treat him as a state guest

TOKYO 00002550 006 OF 010


when Prime Minister Koizumi visits to the US planned for late
June. A senior government official remarked: "China might be
concerned that the Japan-US summit might be used as an arena to
contain China."

7) Doyukai's Yasukuni proposal splits ruling bloc

NIHON KEIZAI (Page 2) (Full)
May 11, 2006

Following the presentation of Keizai Doyukai's (Japan Association
of Corporate Executives) proposal that Prime Minister Junichiro
Koizumi stop visiting Yasukuni Shrine, debate erupted within the
ruling coalition yesterday. Koizumi said on May 9, "Business and
politics are two separate matters." But New Komeito
Representative Takenori Kanzaki told a press conference
yesterday: "The business community thinks that his shrine visits
have begun taking their toll on the economy. I hope (the prime
minister) will take appropriate measures by grasping the actual
situation correctly."

Meanwhile, a group of junior LDP lawmakers supporting the prime
minister's Yasukuni visits adopted a statement yesterday reading,
"The Doyukai proposal is overly tilted toward economic gains,
losing sight of the dignity of spiritual culture, the foundation
for the existence of a state."

8) Komeito's Kanzaki gives high marks to Doyukai proposal
opposing Yasukuni visits

TOKYO SHIMBUN (Page 2) (Full)
May 11, 2006

New Komeito Representative Takenori Kanzaki in a conference
yesterday expressed his support for Keizai Doyukai's (Japan
Association of Corporate Executives) proposal opposing Prime
Minister Koizumi's visits to Yasukuni Shrine, saying:

"I think the organization has a sense of crisis, seeing (the
Yasukuni issue) not only as a political matter but also as having
adversely affected the economy."

In reaction to Koizumi's rebuttal that politics and business were
two separate matters, Kanzaki noted, "I would like to see the
prime minister grasp economic reality correctly and take measures
accordingly."

Kanzaki also indicated that the Yasukuni issue must not be turned
into a campaign issue for the LDP presidential race, saying:

"If a candidate pledges to visit Yasukuni Shrine, that may become
an obstacle to running the administration when he actually
becomes prime minister. The matter must be discussed as an issue
concerning Japan's policy toward entire Asia."

9) Prime minister, in response to corporate leaders' Yasukuni
proposal, rules out effect of shrine visits on economic relations
with China

SANKEI (Page 3) (Full)
May 11, 2006


TOKYO 00002550 007 OF 010


In response to a call by the Japan Association of Corporate
Executives (Keizai Doyukai) on Prime Minister Junichiro Koizumi
to forgo visits to Yasukuni Shrine, the prime minister told
reporters at his official residence last night: "Economic
relations between Japan and China are expanding as never before,
and bilateral exchanges are also increasing." He denied there had
been any effect of his visits to the shrine on the economic
relationship.

In a press conference yesterday, Chief Cabinet Secretary Shinzo
Abe expressed his displeasure at the economic organization's
advice, saying:

"The prime minister visits the shrine to pay respects and offer
condolences to the war dead. If the meaning of a visit to
Yasukuni Shrine has been misunderstood, a full explanation is
necessary."

The association of junior lawmakers hoping for peace, considering
real national interests and supporting Yasukuni visits, a group
of Liberal Democratic Party's like-minded lawmakers headed by
Hiroshi Imazu, adopted a statement strongly criticizing Keizai
Doyukai, noting: "If we are overly eager to pursue economic
benefits, we will lose sight of the dignity of our spiritual
culture, the basis for the existence of the state."

10) Doyukai's Yasukuni proposal may be intended to support
Fukuda; Abe supporters alarmed

MAINICHI (Page 2) (Full)
May 11, 2006

A set of proposals released on May 9 by Keizai Doyukai (Japan
Association of Corporate Executives) urging Prime Minister
Koizumi to cease visiting Yasukuni Shrine has sent a shockwave
through the government and the ruling coalition. The proposal can
be taken to mean that the business organization supports former
Chief Cabinet Secretary Yasuo Fukuda, who shares the same
standpoint, as a candidate in the heated post-Koizumi race. The
proposal has also alarmed aides to Chief Cabinet Secretary Shinzo
Abe, a prime candidate to replace Koizumi who supports shrine
visits.

Prime Minister Junichiro Koizumi brushed aside the view yesterday
that his shrine visits have adversely affected relations with
China by stating to reporters, "Economic relations and
interaction between Japan and China have expanded." Abe, too,
expressed a sense of displeasure, saying, "If the significance of
shrine visits is misunderstood, we must offer a clear
explanation."

Abe supporters fear that the Doyukai proposal will underpin and
accelerate the view that the business community is mostly
supportive of Fukuda. Given the fact that the business body
released its proposal the day before Fukuda's departure for the
United States, a mid-level Liberal Democratic Party lawmaker
commented, "It seems that the organization is tightening the
noose around Abe." A group of junior lawmakers supportive of
paying homage at Yasukuni Shrine in the hope of peace and true
national interests (chaired by Lower House member Hiroshi Imazu)
also released an emergency statement yesterday reading, "The
proposal is utterly unacceptable."

TOKYO 00002550 008 OF 010



11) Union calls off strike at Yokosuka base

TOKYO SHIMBN (Page 27) (Full)
May 11, 2006

A labor union of Japanese workers at US military bases in Japan
has called off its strike, which had been set to take place on
May 18 at the US Navy's Yokosuka base. The All Japan Garrison
Forces Labor Union (Zenchuro),which affiliates about 16,000
Japanese employees working at US military bases in Japan, has
squared off with the Japanese government and US Forces Japan
(USFJ) over employment conditions. Zenchuro entered into an
agreement yesterday with its employer, the Defense Facilities
Administration Agency, announcing that its demands have now been
almost satisfied.

Zenchuro demanded that the government continue in principle to
employ all of those base workers desiring continued employment
after the retirement age under a revised law for the
stabilization of employment for the aged, which came into effect
on April 1. However, Japan and the United States faced rough
going in their negotiations. Zenchuro notified the DFAA on May 8
of its intention to go on a strike for eight hours from the start
of work on May 18.

The labor-management agreement stipulates that the government
will continue its employment of base workers if they satisfy a
set of standards, including their will to work and health
conditions. "We've generally cleared our standpoints," Kazuo
Yamakawa, chief of the secretariat to Zenchuro, stated. "But,"
the union executive added, "we will need to keep tabs on a
revision of the bilateral labor agreement that details our
employment conditions." Zenchuro will notify the DFAA today of
its intention to put off the strike, the union exec said.

12) US beef: Japan, US to hold meeting possibly next week to boil
down details prior to decision on import resumption

TOKYO SHIMBUN (Page 9) (Full)
May 11, 2006

It is likely that Tokyo and Washington will hold a meeting of
experts to discuss the US beef import resumption issue next week.
During the envisaged experts meeting, the two countries will
likely work out details so that a decision can be reached on
whether to resume beef imports. The Japanese side is considering
proposing rules to address potential problems that might crop up
after the resumption of beef imports.

Agriculture, Forestry and Fisheries Minister Shoichi Nakagawa
yesterday met with Prime Minister Junichiro Koizumi. After the
meeting he told reporters that the US government had noted that
it would be able to report to Japan the results of the
reinspections of 37 meat processing plants authorized to export
to Japan. He also touched on the holding of the experts meeting
saying, "Now that town meetings with consumers that were held at
10 locations throughout the nation are over, we can move to the
next step of exchanging information.

If it was judged at the experts meeting that inspections revealed
no problems with US meat packers, the Japanese government will

TOKYO 00002550 009 OF 010


then discuss in specific terms the conditions for resuming US
beef imports.

Experts will likely discuss how prior inspections of US meat
processing facilities by Japan should be carried out, the
strengthening of quarantine procedures, and the setting up of
rules on measures to deal with problems that might occur after
imports resume.

In the event that the governments of Japan and the US reach a
consensus on conditions for restarting beef trade, the Japanese
government will again hold town meetings with consumers and
formally decide to resume imports.

Chances are that such a decision will be reached around the
bilateral summit to be held in June.

13) Mori faction to allow two candidates to run in LDP
presidential race

YOMIURI (Page 1) (Excerpts)
May 11, 2006

Former Prime Minister Yoshiro Mori, who heads a faction in the
Liberal Democratic Party (LDP),has decided to allow two faction
members, Chief Cabinet Secretary Shinzo Abe and former Chief
Cabinet Secretary Yasuo Fukuda, to run as candidates in the
September LDP presidential election, if they decide to do so.
Mori will reveal the decision in a general meeting today of his
faction.

Mori formerly had said that it would be desirable for his faction
to field a single candidate. However, Prime Minister Junichiro
Koizumi, who used to belong to the Mori faction, then said that
it would not be necessary for the faction to field only one
candidate. Many junior lawmakers in the faction subscribe to
Koizumi's view.

Mori, therefore, appears to have determined not to create discord
in his faction by forcing his opinion on the members. The faction
will hold a general meeting today 30 minutes earlier than the
scheduled noon session in which Mori will explain his view in a
polite way.

In view of the importance of maintaining the faction's unity,
Mori still believes that his faction should field one candidate.
He will likely to exchange views actively with his fellow
lawmakers, though he will not work to select a single candidate.

14) LDP, New Komeito to submit referendum bill to current Diet
session, enact it in next session

YOMIURI (Page 2) (Excerpts)
May 11, 2006

Ruling Liberal Democratic Party (LDP) Policy Research Council
Chairman Hidenao Nakagawa and the main opposition party, Minshuto
(Democratic Party of Japan) Policy Research Committee Chairman
Takeaki Matsumoto discussed yesterday the handling of a national
referendum bill that stipulates procedures for amending the
Constitution. The two reached an agreement that the ruling
coalition would submit the bill to the ongoing Diet session and

TOKYO 00002550 010 OF 010


let the largest opposition party seek revisions to the bill
during deliberations. The ruling coalition intends to submit the
bill to the Diet before the end of this month, but to enact it
during the next session. The ruling camp has given up on passing
it during the current Diet session, since there are wide gaps in
views with Minshuto on such issues as the age at which people
should be allowed to vote in the referendum.

At yesterday's meeting, Matsumoto, referring to Minshuto
President Ichiro Ozawa's May 9 refusal of the ruling camp's
proposed joint introduction of the bill, told Nakagawa: "It is
difficult to accept the ruling coalition's bill. So I suggest
that the ruling camp alone submit its own bill, and then you
revise it, accepting our views. What about this idea." Nakagawa
then accepted the suggestion, saying, "Next best thing."

The ruling and opposition camps have remained at odds over three
issues: the minimum age for granting voting rights; the method of
writing pros and cons on ballots; and the coverage of the
referendum. Regarding these three points, many Minshuto lawmakers
are taking a hard-line stance that they cannot accept the ruling
coalition's bill unless all of Minshuto's proposals are accepted.
A senior LDP member, therefore, commented that it would be
extremely difficult to arrive at an agreement with Minshuto
without a relationship of trust with that party.

SCHIEFFER