Identifier
Created
Classification
Origin
06TOKYO2630
2006-05-15 01:23:00
UNCLASSIFIED
Embassy Tokyo
Cable title:  

JAPANESE MORNING PRESS HIGHLIGHTS 05/15/06

Tags:  OIIP KMDR KPAO PGOV PINR ECON ELAB JA 
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UNCLAS SECTION 01 OF 12 TOKYO 002630 

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 05/15/06

Index:
UNCLAS SECTION 01 OF 12 TOKYO 002630

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 05/15/06

Index:

1) Top headlines
2) Editorials
Prime Minister's weekend schedule: None

Opinion polls:
3) Koizumi Cabinet support rate up a point to 49% in Nikkei
poll, while prime ministerial candidate Abe's lead over Fukuda
shrinks
4) 65% of public laud Koizumi's accomplishments as prime
minister: Nikkei
5) Ichiro Ozawa gives Minshuto a boost in Nikkei poll to 24%
party support rate
6) Mainichi poll: 38% of public favor Chief Cabinet Secretary
Abe for next premier, while former Chief Cabinet Secretary Fukuda
nets 20%
7) Minshuto recovers public support of 20% in Mainichi poll

US ties:
8) Senior US congressman in letter to House speaker demands
Koizumi promise not to visit Yasukuni if he is to give speech to
joint session of Congress
9) Special treatment for Yasuo Fukuda in US included stay at
Tennessee home of former US ambassador to Japan Baker

10) Japan-ROK talks on EEZ demarcation have been postponed

11) Foreign Ministry explains that it reported suicide of envoy
in Shanghai as "stress related" in order to reclaim body from
Chinese government

Defense issues:
12) JDA chief denies Japan supplied data on which Deputy Defense
Under Secretary Lawless estimated Japan's share of USFJ
realignment at 3 trillion yen
13) Government to pass special measures law for USFJ realignment
with separate packages for Nago, Iwakuni economic development
14) 60 DFAA officials to be punished for roles in bid-rigging
scandal

BSE issue:
15) Government plans to reach agreement on restarting US beef
imports prior to Koizumi-Bush summit in late June

16) Government finds deep suspicions remain about US beef at
town meeting with consumers in Tokyo on resumption of imports

17) Ozawa to clash with Koizumi in scheduled Diet debate on May
17

Articles:

1) TOP HEADLINES

Asahi:
Has the taste of Niigata's Koshihikari brand rice changed?; New
variety since last year for the firsts time in 50 years; Same
brand name used both for old and new varieties

Mainichi:
Those on probation to be obliged to have home interview;
Probation to be cancelled, if they reject

TOKYO 00002630 002 OF 012



Yomiuri:
Japanese Consulate in Shanghai explain and sign a report noting
that the dead official committed suicide due to heavy burden of
duties, which was submitted in order to receive the dead body of
the official; Report provides Chinese side with grounds for
denying it has threatened this official

Nihon Keizai:
Average summer bonus to reach 800,000 yen; Increase for four
consecutive years; Steel, machinery industries as driving force

Sankei:
USFJ realignment: Special economic promotion framework for Nago,
Iwakuni; Employment to be maintained after return of facilities
as well

Tokyo Shimbun:
Sixty Defense Facilities Administration Agency officials to be
disciplined; Former Construction Department chief orders to
destroy evidence of bid-rigging; Most senior officials admit
involvement in bid-rigging in internal investigation

2) EDITORIALS

Asahi:
(1) Medical accidents: Learn lessons from mishaps
(2) Exchange with Chinese high school students: Welcome to Japan

Mainichi:
(1) Strange Diet session: Lack of enthusiasm over legislation
(2) Thoughts on social divide: Vested interests of each
industrial sector now being questioned

Yomiuri:
(1) Group litigation system should be used to prevent consumers
from being victimized
(2) Mountain climbing by the middle-aged persons; Tragedies of
alpine accidents should not be repeated

Nihon Keizai:
(1) Retailers should use resourcefulness instead of depending on
regulatory control

Sankei:
(1) Shigeru Yokota, father of abductee, to visit South Korea;
Roh Administration should take confrontational stance against the
North
(2) Upbeat corporate financial settlements: Good opportunity for
aggressive industrial restructuring

Tokyo Shimbun:
(1) Measures to prevent AIDS: Intensive approach needed
(2) Iran's nuclear development issue: Wise choice to gain
substance

3) OPINION

Poll: Abe stands at 33%, Fukuda at 21% in post-Koizumi race;
Cabinet support inches up

NIHON KEIZAI (Page 1) (Abridged)

TOKYO 00002630 003 OF 012


May 15, 2006

The Nihon Keizai Shimbun conducted a public opinion survey on May
12-14 to probe into the public choice of an appropriate person
for the next prime minister. In this popularity rating, Chief
Cabinet Secretary Shinzo Abe ranked at the top with 33%, and
Yasuo Fukuda surged to 21%. The ruling Liberal Democratic Party
is scheduled to elect its new president in September. In its run-
up, all eyes are on Abe and Fukuda within the LDP. Meanwhile, the
Abe-vs.-Fukuda showdown is now being reflected in the general
public's awareness as well.

In the survey, the rate of public support for the Koizumi cabinet
was 49%, up 1percentage point from the last survey. The
disapproval rating was 39%, down 1 point. The Koizumi cabinet's
support rate dropped somewhat early this year. However, the
Koizumi cabinet, now in office for five years, still sustains
considerably high popularity.

In the breakdown of public support for political parties, the
ruling Liberal Democratic Party stood at 44%, leveling off from
the last time. The leading opposition Democratic Party of Japan
(DPJ or Minshuto) was at 24%, up 5percentage points.

The survey was taken by Nikkei Research Inc. over the telephone
on a random digit dialing (RDD) basis. For the survey, samples
were chosen from among males and females, aged 20 and over,
across the nation. A total of 1,499 households with one or more
voters were sampled, and answers were obtained from 867 persons
(57.8%).

4) Poll: 65% give high marks to Koizumi cabinet's performance

NIHON KEIZAI (Page 2) (Full)
May 15, 2006

In the latest poll, respondents were asked about the Koizumi
cabinet's performance over the past five years since it came into
office. In response to this question, more than 60% gave
affirmative answers, broken down into 20% who "appreciate it" and
45% who "appreciate it to a certain degree." Negative answers
were broken down into 16% who "do not appreciate it to a certain
degree" and 8% who "do not appreciate it."

The Koizumi cabinet's structural reforms are now under way. In
the meantime, the nation's economy is getting back on a recovery
track. These factors appear to have been reflected in the general
public's positive evaluation of the Koizumi cabinet's
performance. Affirmative answers accounted for 84% among those in
support of the ruling Liberal Democratic Party and 50% even among
those in support of the leading opposition Democratic Party of
Japan (Minshuto).

However, public opinion was split over the nation's social
divide, with 22% saying individual efforts should be rewarded and
20% insisting that the gap should not widen further. Meanwhile,
43% pointed to the necessity of considering how to narrow down
the social divide, topping all other answers.

5) Poll: DPJ rebounds to 24% in public support with Ozawa effects

NIHON KEIZAI (Page 2) (Full)

TOKYO 00002630 004 OF 012


May 15, 2006

In the latest poll, the rate of public support for the leading
opposition Democratic Party of Japan (DPJ or Minshuto) has
rebounded to 24%. This can be taken as reflecting the public's
positive view of the party's new leadership under Ichiro Ozawa.
In the survey, respondents were asked to pick a person who they
thought would be appropriate for the next prime minister. In
response to this question, Ozawa, though he is an opposition
leader, ranked third, following Shinzo Abe and Yasuo Fukuda.

The DPJ's approval rating topped 30% right after the House of
Councillors election in the summer of 2004. Later, however, the
party lost much public support, with its popularity rate
plummeting to 19% in a previous survey conducted in March when
the party was in turmoil due to its fake email fiasco. In the
latest survey, however, the party's public support has recovered
somewhat due to the Ozawa effect.

Even so, when asked if the DPJ is competent enough to take
office, "yes" answers accounted for only 25%, while "no" reached
59%.

Even among DPJ supporters, "yes" accounted for 46%, with "no" at
47%.

6) Poll: Abe marks 38%, Fukuda at 20% in post-Koizumi race

MAINICHI (Page 1) (Abridged)
May 15, 2006

The Mainichi Shimbun conducted a telephone-based public opinion
survey across the nation on May 13-14. In the survey, respondents
were asked to pick one from among six lawmakers in the ruling
Liberal Democratic Party as the most appropriate person for the
next prime minister. In response to this question, Chief Cabinet
Secretary Shinzo Abe topped all others at 38%, followed by one of

SIPDIS
his predecessors, Yasuo Fukuda, at 20%, respectively up
2percentage points from a previous survey taken in April. The
post-Koizumi race is now being narrowed down to the two.

In the survey, respondents were further asked what they would
like the next prime minister to pursue first. Among those who
sought to improve Japan's relations with China and South Korea,
Fukuda was 6 points higher than Abe. This shows that Fukuda is
favored by those opposing Prime Minister Junichiro Koizumi.

Among others, Foreign Minister Taro Aso stood at 3%, leveling
from the last time, with Finance Minister Sadakazu Tanigaki at
3%, up 2 points. Meanwhile, Senior Vice Justice Minister Taro
Kono, who has announced his intention to run in the race, was at
2%.
Among LDP supporters, Abe stood at 54%, overwhelming all others.
Fukuda was at 16%. Among those in support of the Koizumi cabinet
as well, Abe overwhelmed all others at 48%, with Fukuda at 15%.
Among those not in support of the Koizumi cabinet, Abe was at
27%, with Fukuda rising to 30%.

Respondents were also asked what they would like the next prime
minister to pursue. In response to this question, 29% picked
economic recovery, topping all other answers. However, the
proportion of those who want the next prime minister to improve

TOKYO 00002630 005 OF 012


Japan's relations with China and South Korea also rose 3 points
from the last survey to 14% in the latest survey.

The rate of public support for the Koizumi cabinet was 50%, up 2
points from the last survey, and rebounded to the 50% level for
the first time in about four months since it last marked 52% in
January this year. The nonsupport rate for the Koizumi cabinet
was 36%, flat from the last time.

7) Poll: DPJ rebounds to 20% in public support

MAINICHI (Page 1) (Abridged)
May 15, 2006

The leading Democratic Party of Japan (DPJ or Minshuto) stood at
20% in public support, showing a rise of 8percentage points from
the last survey conducted in April before Ichiro Ozawa became the
party's new president. The DPJ's support rate is now back to the
same level as the 20% rating in this February's survey before its
fake email fiasco. In the survey, respondents were also asked if
they had expectations for the DPJ under Ozawa's leadership. In
response to this question, "yes" answers accounted for 53%, with
"no" at 41%. As seen from these figures, the proportion of
affirmative answers was 12 points higher than that of negative
answers. This shows that the party's new leadership under Ozawa
has led to its recovery of public trust. Among other parties, the
ruling Liberal Democratic Party stood at 31%, down 2 points from
the last time; the New Komeito party, a coalition partner of the
LDP, was at 6%, up 3 points; and the Japan Communist Party at 2%,
down 1 point. The proportion of those who have no party to
support was 35%, down 8 points, and was almost flat from 36% in
this February's survey. This can be taken as indicating that
unaffiliated voters who used to be in support of the DPJ came
back to support the DPJ.

8) US congressman in his letter to House speaker letter urges
Japanese prime minister to "assure he would not visit Yasukuni"
in connection with prime minister's desire to deliver speech
before US Congress

ASAHI (Page 1) (Excerpts)
Eve. May 13, 2006

Yoshiyuki Komurata, Kei Ukai, Washington

US House Committee on International Relations Henry Hyde, 82,
sent a letter to House of Representatives Speaker Dennis Hastert
urging that Prime Minister Junichiro Koizumi, who is planned to
travel to the United States in late June, "needs to declare on
his own initiative that he will not visit Yasukuni Shrine" if he
intends to make a speech before the US Congress -- an event that
the Japanese government is trying to bring about during the prime
minister's visit, a source revealed yesterday. The letter
essentially warned the prime minister against visiting the shrine
around the anniversary of the end of World War II in August.

According to a US congressional source, the letter, which was
sent to Japan in late April, basically welcomed a speech by the
prime minister before the Congress as a representative of one of
the strong allies backing the US in military operations in Iraq
and Afghanistan. At the same time, the senior congressman
expressed concern about a possible fallout from the prime

TOKYO 00002630 006 OF 012


minister's visit to Yasukuni Shrine if it occurs several weeks
after his address at the Congress, pointing out that if the prime
minister pays his respect to Class A war criminals, including
former Prime Minister Hideki Tojo, who decided to launch an
attack on Pearl Harbor and is now enshrined at Yasukuni, his
behavior would dishonor the Congress, where President Franklin
Roosevelt made a speech right after the Pearl Harbor attack.

Additionally, the letter noted that the generation that remembers
the attack on Pearl Harbor, would feel concern about a negative
impact from the prime minister's speech if followed by his shrine
visit, and even may feel insulted. The letter reportedly urged
Japan "to take some steps to convince the Congress and ensure
that after a speech, the prime minister will not visit the
shrine."

Japan, which wants to underscore the good Japan-US relationship,
is looking for ways for the prime minister to deliver a speech at
a joint session of the House and the Senate during his US visit.

9) Baker entertains Fukuda warmly at private residence

SANKEI (Page 2) (Full)
May 15, 2006

Hiroyuki Kano, Washington

Former Chief Cabinet Secretary Yasuo Fukuda, now visiting the US,
stayed at the private residence of former Ambassador to Japan
Baker in Tennessee May 11-13, local time. Baker warmly
entertained Fukuda, welcoming and sending him off by his private
jet plane. Baker, who worked to set up meetings between Fukuda
and US prominent figures, including Vice President Cheney,
exchanged views with the pro-China Fukuda on "improvement in
Japan-China relations," according to informed sources.

Meeting for more than 100 times with Fukuda when he was serving
as ambassador to Japan, Baker engaged in coordinating views on
such difficult issues as the dispatch of Self-Defense Force
troops to Iraq. In a speech just before stepping down in January
of last year, the ambassador played up his close ties with
Fukuda, saying: "He is my counterpart and good friend." During
the US tour, Fukuda fully made use of Baker's network of personal
connections, in a sense.

Fukuda also met members of the Congress, including Senate Foreign
Relations Committee Chairman Lugar, as well as officials of think
tanks. During such meetings, Fukuda "stressed the importance of
strengthening relations between Japan and China," said an
informed source.

Baker used to always say: "It is necessary for Japan and China to
try to find out ways to cooperate with each other." In part
because Asia diplomacy will be a major controversial issue in the
Liberal Democratic Party presidential race in September, the US'
hospitality toward Fukuda might reflect its expectations for
improvement in the current strained Japan-China ties.

10) Japan, South Korea to give up talks on EEZ demarcation this
month

NIHON KEIZAI (Page 2) (Full)

TOKYO 00002630 007 OF 012


May 15, 2006

Talks on demarcating an exclusive economic zone (EEZ) planned for
this month by the Japanese and South Korean governments are now
likely to slip to June. If a Japan-South Korea foreign
ministerial is held on the sideline of the Asia Cooperation
Dialogue (ACD) to start on May 23 in Qatar, Foreign Minister Taro
Aso will call on his counterpart Ban Ki-moon to resume the talks
in June.

The major reason for the delay is the unified local elections in
South Korea on May 31. The outcome of the elections will greatly
affect the South Korean presidential race later next year. Seoul
apparently has taken the view that "an indication of a
conciliatory stance in EEZ negotiations with Japan will have a
major effect on the election campaigning," according to a source
connected with Japan-South Korea relations.

11) Consulate said "Official committed suicide because of work
stress" in death certificate it signed and handed to Shanghai
police; China uses this as evidence that denies blackmailing
official

YOMIURI (Top play) (Excerpts)
May 15, 2006

A 46-year-old official at the Japanese Consulate General in
Shanghai committed suicide in May 2004, leaving behind a suicide
note in which he said he had been pressed by a Chinese
intelligence agent to divulge classified diplomatic information.
In connection with this incident, this newspaper learned
yesterday that the Consulate General had signed a death
certificate to explain that the suicide resulted from "heavy work
pressure" without revealing the official's suicide note to
Chinese police. The Chinese side has used this document as
evidence to deny the Chinese government's involvement in the
suicide incident, saying, "The Chinese government had nothing to
do with the incident." This document has caused both sides to
fail to reach a settlement of the suicide incident. Consulate
officials, thinking that retrieving the diplomat's corpse was the
first priority matter, signed the document, but the Foreign
Ministry's behavior of this sort is again being called into
question.

According to a report filed by a fact-finding team the Foreign
Ministry sent to Shanghai to investigate the suicide, if foreign
nationals die in China, a death certificate issued by Chinese
authorities is required before cremation can take place or a body
can be retrieved. In the suicide case this time, after consulate
officials had taken the diplomat's body to a hospital, Shanghai
police officers examined the body and produced the document.

According to a concerned source, consulate officials already
grasped the details of the suicide note revealing, for instance,
that the diplomat had been persistently pressed by a Chinese
intelligence agent to provide classified information. But they
judged, "If the truth had been conveyed to the Chinese side,
Chinese intelligence authorities, fearing a possible leakage of
the truth, might have refused to hand over the body to his
relatives." The Consulate General eventually explained that the
cause of the suicide had been "work pressure" and its official
signed the document in which such a cause was written.

TOKYO 00002630 008 OF 012



12) Nukaga rejects Lawless statement

NIHON KEIZAI (Page 2) (Full)
May 15, 2006

Touching on US Deputy Defense Under Secretary Richard Lawless'
estimate of Japan's share for US force realignment at 3 trillion
yen, Defense Agency Director General Fukushiro Nukaga, appearing
on a TV Asahi program yesterday, brushed aside Lawless'
explanation that he had obtained basic information from a
Japanese partner. Nukaga said: "I don't think he presented the
figure based on Japan's estimate. We are going to present our own
figure by tallying up specifics."

13) US force realignment: Contents of special measures
legislation revealed; Separate economic stimulus measures for
Nago, Iwakuni, continued employment after return of bases

SANKEI (Top play) (Excerpts)
May 15, 2006

The contents of a special measures bill to promote US force
realignment was revealed yesterday. The legislation has three
main elements: (1) local economic promotional measures; (2) job
measures for base workers and measure to promote the use of US
base land being returned; and (3) a special exception for the
Japan Bank for International Cooperation (JBIC) to become
involved. The legislation is also designed to designate "special
areas" and establish separate economic packages, with Okinawa's
Nago City and Yamaguchi's Iwakuni City in mind. The legislation
also specifies keeping base workers employed by means of
personnel transfers as US bases in Okinawa are returned.

The special measures bill for smooth implementation of US force
realignment will be a time-limited legislation valid for ten
years. The legislation also calls for the establishment of a US
force realignment council in the Cabinet Office composed of
relevant cabinet ministers and chaired by the prime minister.

Local economic development will be in two stages. The government
will designate bases mentioned in the US force realignment final
report as "realignment-related special facilities" and provide
subsidies to municipalities hosting those facilities for having
to bear greater burdens. The government will also adopt a system
to designate jet-accommodating bases as "special defense
facilities" and apply the existing law for improving the living
environment for communities near existing defense facilities by
expanding the scope of government subsidies that cover industrial
promotion and the like.

The government will additionally designate municipalities that
will shoulder greater burdens as realignment-related special
areas, such as Okinawa's Nago, the relocation site for Futenma
Air Station, and Yamaguchi's Iwakuni, which will host carrier-
based aircraft now based at the Atsugi base. For those
municipalities, the government will provide handsome economic
packages, including social welfare services, by modeling the
program on the system used to provide subsidies to municipalities
that accepted nuclear power plants.

Coordination for designating the municipalities will under the

TOKYO 00002630 009 OF 012


prime minister and the realignment-related council to be
established in the Cabinet Office. To ensure the efficacy of the
realignment plan, decisions will be made based on the progress of
the plan, such as local governments' announcement of acceptance
of bases.

To avoid returned US facilities causing fiscal burdens on local
governments, the central government will adopt certain measures,
such as transferring or leasing returned land to municipalities
free or at low rates.

Main points in US force realignment facilitation special measures
legislation


1. The legislation is valid for only ten years.

2. Establish a realignment-related council in the Cabinet
Office chaired by the prime minister.

3. Designate realignment-related special defense facilities to
provide subsidies with municipalities in the vicinity.

4. Map out promotional plans for areas that will bear greater
burdens as a result of US force realignment.

5. Continue employing as many base workers as possibly by means
of personnel transfers even after bases are returned.

6. Transfer or lease returned land to municipalities and other
entities for free or at low rates.

7. Specify investment in and loans to Guam as a special case
under the operations of the Japan Bank for International
Cooperation.

14) DFAA to punish 60 officials; Most senior officials admitted
to rigged-bidding, according to an in-house investigation; Former
construction chief instructed destruction of evidence

TOKYO SHIMBUN (Top play) (Lead paragraph)
May 15, 2006

An in-house investigation by the Defense Facilities
Administration Agency's (DFAA) investigative committee revealed
that ahead of a raid by a task force of the Tokyo District Public
Prosecutors Office on the DFAA as part of investigations into the
bureaucrat-initiated bid-rigging scandals involving the agency,
former DFAA Construction Department director general had
instructed via his staff to destruct evidence of the big-rigging
list to determine successful tenderers. As this move came after
Defense Agency (JDA) Director-General Fukushiro Nukaga had
instructed all the staff to cooperate on the investigations,
Nukaga's leadership capabilities as well as the supervisory
responsibility of DFAA Director-General Iwao Kitahara are likely
to be called into question. When asked by the investigative team
about bid-rigging cases, most senior officials at the
Construction Department said, "They were aware of them." The DFAA
intends to punish some 60 its officials at the assistant division
director level or above by suspending them from office or cutting
their salaries.

15) Resumption of US beef imports; Government intends to reach
agreement before bilateral summit; US ends re-inspection of beef
processing plants

YOMIURI (Page 9) (Full)
May 13, 2006


TOKYO 00002630 010 OF 012


A second ban continues on US beef imports, following the
inclusion of vertebral columns in US beef shipment after the
lifting of the first ban. In resolving this issue, the government
on May 12 decided to aim at reaching an agreement to resume beef
trade before the Japan-US summit meeting, slated for late June.
This was revealed by several government sources. Both Tokyo and
Washington intend to avoid making a political decision on the
resumption of US beef imports by Japan. They will work out
conditions for resuming imports that can obtain the understanding
of Japanese consumers during an experts meeting to be held within
a week.

The US has completed reinspections of 37 meat-processing plants
that are authorized to export products to Japan. It will submit a
report to Japan and then hold the experts meeting to discuss a
timetable for resuming imports and the conditions for such. The
Japanese side intends to ask for certain details, such as
conditions for resuming imports and a method of determining
safety, during the experts meeting.

The US has indicated its readiness to approve inspections of meat
packers by Japanese inspectors prior to the resumption of
imports, as well as their accompanying US inspectors when they
carry out surprise inspections after the beef trade is
reinstated. The US also plans to explain the circumstances in
which vertebral columns, banned for safety concerns, were
included in its shipments to Hong Kong and Taiwan. There are now
few grounds left for Japan to continue to reject US beef imports,
according to a government source. The Japanese side is now having
the Prime Minister's official residence (Kantei) and relevant
government agencies look into the possibility of reinforcing
quarantine officials.

The government wants to come up with a decision to resume US beef
imports before the US-Japan summit, because such a decision after
the meeting could incur criticism, such as that Japan decided to
import US beef under pressure from the US. It intends to hold
town meetings with consumers to discuss conditions for resuming
the beef set at the experts meeting and the lift the ban, if it
can in principle obtain the understanding of consumers. It will
resume imports after the determining of the safety of US
facilities by Japanese inspections.

However, some government officials are still wary of such a
process with one official noting: "If the government rushes to
decide to resume US beef imports and a problem occurs afterwards,
it will be held responsible for what happened and consumers will
never buy US beef again."

16) Town meeting with consumers in Tokyo; Voices of concern over
safety of US beef still pronounced; Tokyo, Washington to hold
experts meeting possibly in middle of this week

NIHON KEIZAI (Page 3) (Full)
May 15, 2006

The government yesterday held a town meeting with citizens in
Tokyo to discuss agricultural policy reform and international
agricultural talks. Many participants voiced their wariness over
safety and peace of mind concerning food, including safety of US
beef, whose imports are currently under suspension, and the drop
in the rate of Japan's food self-sufficiency.

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Approximately 400 people, including company employees and
students, took part in the town meeting. Agriculture, Forestry
and Fisheries Minister Shoichi Nakagawa represented the central
government. A number of participants, showing high interest in US
beef, called on the government to deal with the import resumption
issue in a cautious manner. Their views included such statements
as: "Safety is not respected in the international society"; and,
"Do consumers have to ensure the safety of beef on their own
responsibility?"

Nakagawa replied that the government would thoroughly manage risk
control, noting, "The objective of this town meeting is not only
the resumption of US beef imports but also to allow consumers to
eat beef with peace of mind." Commenting on Japan-US talks on the
resumption of US beef imports, Nakagawa during a press conference
held after the meeting said, "A team of US experts is expected to
visit Japan shortly." He indicated that a meeting of Japanese and
US government experts would take place soon. That meeting will
likely be held for a couple of days starting in the middle of
this week.

17) Koizumi, Ozawa to engage in first head-on Diet battle on May
17

SANKEI (Page 2) (Excerpts)
May 15, 2006

Prime Minister Junichiro Koizumi and Minshuto (Democratic Party
of Japan) President Ichiro Ozawa will engage in a head-on battle
for the first time in the party heads debate in the Diet on May

17. One month has passed since Ozawa assumed the post of party
president, bearing on his shoulder the party members'
expectations that he can rejuvenate Minshuto. If Ozawa gains the
edge in the debate by demonstrating his own policy stance over
that of Koizumi, who is still enjoying high support rates even
after five years in office, it could have an impact on Diet
strategy in the final phase of the current session and on the
outcome of the Liberal Democratic Party's presidential race.

"Phony politics have been carried out over the last five years":
said Ozawa during a speech in Nagata blasting Koizumi's political
style, giving a preview of the 45-minute head-to-head battle with
the prime minister that will soon talks place. He stressed that
the House of Councillors election next year would be "a decisive
battle."

For Ozawa, "the upcoming party head battle comes at the best
time," said a senior Minshuto member. In the by-election in
Chiba's 7th District for the House of Representatives held just
after Ozawa assumed office, the Minshuto-backed candidate
defeated the LDP candidate after a hard-fought game, and public
support rates for Minshuto are also rising. Expectations of Ozawa
are growing in the party, Secretary General Yukio Hatoyama
saying: "He will ask and answer questions that make the public
think that the two leaders are on different levels."

Ozawa is poised to grill Koizumi over specific issues. Included
the government's bill to amend the Fundamental Law of Education.
Minshuto drafted its own counterproposal on May 12. Out of
consideration to the New Komeito, which is cautious about
"patriotism," the government used only this expression: "a mind

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that loves the nation and homeland." But Minshuto's draft
specified, "(Aimed education) is to foster a mind that loves
Japan." It also included "fostering religious sensitivity." The
current law includes the wording "without obeying improper
commands," a provision that has been viewed as the basis for
allowing the Japan Teachers' Union to control the field of
education. Minshuto's draft deleted this part.

A senior Minshuto member was overheard saying: "Conservative
members in the LDP might be willing in their hearts to support
the Minshuto draft." A senior member of the party's Diet Affairs
Committee eagerly said prior to the party head debate: "We would
like to play up our policy stance that is different from the
prime minister's negative stance toward educational issues."

In addition, the opposition party is considering taking up such
issues as Japan's share of the US force realignment cost and
income disparity.

SCHIEFFER