JAPANESE MORNING PRESS HIGHLIGHTS 05/17/06

UNCLAS SECTION 01 OF 11 TOKYO 002699

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SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 05/17/06

Index:

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

Yasukuni Shrine issue:
4) Senior US congressman in letter calls on Prime Minister
Koizumi to stop visiting Yasukuni Shrine
5) Yasukuni issue starting to have a negative impact on US-
Japan relations with leak of senior US congressman's letter of
admonition to Koizumi
6) Chief Cabinet Secretary Abe points out that there are many
other US congressmen who do not criticize paying homage at
Yasukuni
7) Foreign Minister Aso in speech notes that government cannot
tell religious institution like Yasukuni Shrine what to do with
its enshrined souls
8) Aso suggests that Yasukuni be secularized and Class-A war
criminals enshrined there be removed

9) Warm welcome in Seoul for the Yokotas by family of husband
of their daughter Megumi, both abducted by North Korean agents

10) Rival organizations, Mindan and Chosen Soren, linked to
South and North Korea, respectively, to enter into top-level
reconciliation talks first softening in 60 years

Defense issues:
11) MSDF emergency training plan also leaked out into the
Internet by faulty program
12) In Mainichi poll, 72% said that Japan's share of USFJ
realignment is "too high"
13) Special measures law would provide subsidies to communities
affected by USFJ realignment, but linked to their accepting the
changes
14) Cabinet Office official visiting Okinawa to look into
development measures

15) May figures show the economy is in its second longest
expansion in postwar Japan, surpassing the bubble years in the
1980s

Beef issue:
16) Government resolved to restart US beef imports before the US-
Japan summit in June
17) US, Japan beef experts start dialogue in Tokyo today

Articles:

1) TOP HEADLINES

Asahi:
Shigeru Yokota, father of abductee Megumi, meets with family
members of her husband; Solidarity for settling abduction issue

Mainichi: Tokyo Shimbun:
Mindan, Chongyron to reconcile after 60 years of confrontation;
Top level talks to be held today

Yomiuri:
New earthquake resistance calculation method; 45% of local

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municipalities unable to adopt, Yomiuri survey of 276 local
governments finds; 60% have taken measures, including increase of
officials in charge

Nihon Keizai:
LDP considering raising patients' share in nursing-care insurance
to 20% ; Portion of unemployment allowance contributed by state
likely to be abolished

Sankei:
Government decides to settle US beef import resumption issue
before bilateral summit

2) EDITORIALS

Asahi:
(1) Families of abductees: We hope to see sympathy for them
spread
(2) Accident at pedestrians' bridge at Akashi City: Public
prosecutors should sympathize with victims

Mainichi:
(1) Revision to Basic Education Law: We cannot sense need and
urgency to do so
(2) Recognition of A-bomb victims; Adopt humane recognition
method

Yomiuri:
(1) Corporate financial report for term ending in March;
Companies should achieve black figure for fifth year in row with
aggressive management
(2) Libraries: Use it as information center in regional
districts

Nihon Keizai:
(1) Private companies are selling assets. The government should
follow suit.
(2) Long way to go to become investment-oriented country

Sankei:
(1) Anti-terrorism measures; Effective legal system urged
(2) We want to see in Putin administration dignity as G-8 member
in Russia

Tokyo Shimbun:
(1) Basic Education Law: Deepen discussion steadily
(2) Recognition of A-bomb victims: Immediate revision of
recognition guidelines urged

3) Prime Minister's Official Residence (Kantei)

Prime Minister's schedule, May 16

NIHON KEIZAI (Page 2) (Full)
May 17, 2006

09:01
Attended a cabinet meeting in the Diet building.

09:23
Met Deputy Chief Cabinet Secretary Nagase at Kantei.


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10:15
Met Egyptian Foreign Minister Aboul Gheit.

11:03
Attended the farewell service for former Lower House member Raizo
Matsuno.

12:03
Arrived at Kantei.

13:16
Attended a Lower House plenary session.

15:32
Met at Kantei with soccer coach Zico and Tsuneyasu Miyamoto and
other players picked for the 2006 World Cup.

16:29
Attended a party for new executives of the Japan Medical
Association at the Imperial Hotel.

17:00
Met the French Polynesian head at Kantei. Later attended a
meeting of ministers responsible for the monthly economic report.

18:13
Met METI Minister Nikai.

19:38
Returned to his official residence.

4) US House chairman sent letter to House speaker expressing
"concern" over Koizumi's Yasukuni visits

YOMIURI (Page 2) (Full)
May 17, 2006

Fumi Igarashi, Washington

With Prime Minister Junichiro Koizumi scheduled to visit the
United States in late June, US House of Representatives
International Relations Committee Chairman Henry Hyde has sent a
letter to House Speaker Dennis Hastert expressing his concern
over Koizumi's visits to Yasukuni Shrine, a US Congressional
source revealed on May 15.

The source did not disclose the letter in question in detail
since it was a personal letter. However, according to the source,
the letter, mailed in late April, basically welcomed the Japanese
government's efforts to pave the way for Koizumi's speech before
the US Congress, while expressing concern over Koizumi's paying a
visit after returning to Japan to Yasukuni Shrine, which along
with the war dead also honors Class-A war criminals, including
wartime prime minister Hideki Tojo. Hyde has not received a reply
from Hastert.

Hyde, 82, is also a World War II veteran. He sent a letter last
fall to Ambassador to the US Ryozo Kato expressing his regret
over visits to Yasukuni Shrine by Koizumi and others connected
with the Japanese government.

5) Hyde's criticism of Koizumi's Yasukuni visits may affect Japan-

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US relations, LDP presidential race

YOMIURI (Page 4) (Abridged slightly)
May 17, 2006

The government is taking US House International Relations
Committee Chairman Henry Hyde's criticism of Prime Minister
Koizumi's Yasukuni visits calmly, regarding it as his personal
view. But the matter may have an impact on the Liberal Democratic
Party's presidential election in September with one LDP lawmaker
saying apprehensively, "It might escalate into an issue that
casts a dark cloud on Japan-US relations."

Koizumi told reporters at his official residence yesterday: "The
Japanese public is split on the issue. America is a country of
freedom, so I'm not surprised if the American public is also
split." Chief Cabinet Secretary Shinzo Abe also noted in a press
conference: "I don't think many American lawmakers are critical
of the matter (like Mr. Hyde),as they are aware of the
importance freedom of religion."

Hyde served in World War II. A Foreign Ministry source took this
view: "Mr. Hyde mistakenly regards the prime minister's visits to
Yasukuni Shrine as acts to prettify the war. His view does not
represent the thinking of the entire US Congress." But some are
sensing a subtle change in the US mood regarding the Yasukuni
issue. A person connected with the government voiced this view
yesterday: "The souring of relations between Japan and China, two
major powers in Asia, does not serve American interests. A view
attributing strained bilateral relations to the Yasukuni issue is
gradually spreading in the US."

LDP lawmakers critical of Yasukuni visits hold different views.
Former Defense Agency Director General Seishiro Edo said, "The
matter must be regarded as an international issue." Former
Secretary General Koichi Kato noted yesterday: "The matter will

SIPDIS
have a tremendous impact on the LDP presidential race. The
Koizumi cabinet has been counting on the US, but that country has
now sent a warning signal to Japan."

Of the post-Koizumi contenders, Abe is supportive of Yasukuni
visits. A person close to Abe said alarmingly, "Anti-Abe forces
are trying to drive Mr. Abe to a tight corner by taking advantage
of US concern over the Yasukuni issue." Given the chilly
relations with China and South Korea, the view is spreading that
heated debate will take place on Asia policy and historical views
in the LDP presidential race. Potential successors to Koizumi may
be forced to pay close attention to reactions in the US.

6) Chief Cabinet Secretary Abe: "Most US Congress members are not
critical of shrine visits"

ASAHI (Page 4) (Full)
May 17, 2006

Meeting the press yesterday morning, Chief Cabinet Secretary Abe
touched on the letter sent by US House Committee on International
Relations Chairman Hyde in which he said that if Prime Minister
(Koizumi) plans to address the US Congress during his visit to
the United States set for the end of June, he needs to pledge
that he will not visit Yasukuni Shrine, and made this comment:
"Isn't it that most Congress members, in terms of freedom of

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religion, are not making such a criticism of shrine visits?" "To
begin with, there is no plan for (the prime minister) to address
US Congress, nor has Japan indicated it wants to have such an
opportunity," Abe added.

7) Foreign Minister Aso: "It's impossible" to demand Yasukuni
Shine should separately enshrine Class-A war criminals

ASAHI (Page 4) (Full)
May 17, 2006

Foreign Minister Aso delivered a speech in Tokyo yesterday in
which he referred to Prime Minister Koizumi's visits to Yasukuni
Shrine and again indicated that it would be impossible for the
government to ask the shrine to separately enshrine Class-A war
criminals, saying: "Whoever will become prime minister, the
government cannot ask the religious corporation Yasukuni Shrine
to 'separately enshrine (Class-A war criminals),' because doing
so is state interference in religious affairs. As long as
Yasukuni Shrine asserts that separate enshrinement is impossible,
the government cannot do anything. I think the problem rather
lies in that such a matter is put in the hands of a religious
corporation."

8) Foreign Minister Aso sees possibility of turning Yasukuni
Shrine into a non-religious institution in order to solve the
problem of separating Class-A war criminals enshrined there

MAINICHI (Page 1) (Abridged)
May 17, 2006

Foreign Minister Taro Aso in a speech in Tokyo yesterday on the
Yasukuni Shrine issue pointed out: "The problem seems to be the
entrusting to one religious institution the important task of
honoring the nation's war dead." He seems to be suggesting he is
thinking of considering the possibility of legally turning the
shrine into a non-religious institution and then considering a
way to separate the Class-A war criminals enshrined there. He
stressed: "No matter who the prime minister may be, for him to
tell Yasukuni Shrine to separate those enshrined there would be
seen as the state using its power to interfere in religious
affairs." He reiterated his thinking that under the
Constitution's principle of the separation of state and religion,
it would be improper for the government to work on the shrine to
remove the Class-A war criminals enshrined there. At the same
time, he stated: "My feeling is to allow respect to be quietly
paid to the war dead and their relatives. It is the task given to
politicians to find a way to create such conditions."

9) Abductee Megumi Yokota's father, Shigeru, meets with family
members of the man thought to be her husband; Abductees' parents
will join hands to resolve the abduction issue

ASAHI (Top play) (Excerpts)
May 17, 2006

Seoul, Ryuichi Kitano

Abductee Megumi Yokota's father, Shigeru, 73, and her brother,
Tetsuya, 37, met in Seoul yesterday afternoon with Choi Gye Wol,
78, mother, and Kim Young Ja, 47, sister, of South Korean
abductee Kim Young Nam, who is believed to be Megumi's husband.

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Both families met for the first time. Sparked by this meeting,
both countries' abductee support groups - Japan's Association of
the Families of Victims Kidnapped by North Korea and South
Korea's Association of the Families of Victims Kidnapped by North
Korea - aim to work together to make the abduction issue
understood more widely in both nations and urge both governments
to take a tough response, including economic sanctions on North
Korea. The Japanese government, as well, expects this meeting to
arouse international public opinion. However, the South Korean
government has distanced itself from the abduction issue partly
because it has emphasized North-South dialogue. It remains to be
seen whether the meeting this time will help draw more
international attention to the abduction issue by the time of the
Group of Eight industrialized nations summit in Russia slated for
July.

10) Korean groups Mindan, Chongryun to reconcile to end 60 years
of animosity; Heads will meet today; May take concerted action on
Yasukuni issue

TOKYO SHIMBUN (Top play) (Full)
May 17, 2006

The top leaders of the pro-Seoul Korean Residents Union in Japan
(Mindan) and the pro-Pyongyang General Association of Korean
Residents in Japan (Chongryun),aiming for reconciliation, will
meet this morning at Chongryun headquarters in Chiyoda Ward,
Tokyo, to end more than half a century of antagonism and will
release a joint statement. The move reflects a reconciliatory
mood sparked by the inter-Korean summit in June 2000. The two
organizations are expected to fall in line in dealing with such
issues as Prime Minister Junichiro Koizumi's visits to Yasukuni
Shrine. Their moves are likely to affect Japanese policies in the
months ahead.

Mindan and Chongryun have nearly 60 years of antagonism. The
Joint Declaration released by South Korea and North Korea stated
reunification of two Koreas upon their own will. Following it,
the two countries began moving toward reconciliation. South
Korean President Roh Moo Hyun also has been promoting the
Sunshine Policy.

But Mindan and Chongryun, partly because of the deep-seated
animosity between them, have never held a top-level meeting, even
though there have been exchanges at the local level.

The environment surrounding the two groups, however, changed with
the election this past February of Ha Byung Ok - who emphasizes
"reconciliation and harmony between South and North Korean
residents in Japan" - as head of Mindan's central headquarters.
Mindan has urged Chongryun to move toward reconciliation and
declared that along with Chongryun, it will participate in the
"Japan committee to implement the 6/11 North-South Joint
Declaration," although Mindan has refused in the past to take
part in the committee.

Mindan's representative group led by its head Ha will visit
Chongryun's headquarters today. Chongryun Chairman So Man Sul and
other leaders will meet them and hold discussions with them,
focusing on reconciliation and cooperation and uniting for a
common purpose.

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The two groups intend to establish a point of contact office to
deal with various problems facing Korean residents in Japan, such
as education and pensions, in both organizations instead of
establishing a standing consultative body, and promote
discussions via such an office.

11) MSDF emergency maneuver plans also leaked

ASAHI (Page 1) (Abridged)
May 17, 2006

The Maritime Self-Defense Force recently discovered that its in-
house files had leaked on the Internet, and the MSDF has also
confirmed that a number of documents, including plans for
training maneuvers, have been leaked. Those leaked electronic
documents total 3,000 or so. The operations plan was created in
anticipation of an emergency on the Korean Peninsula. However, it
is the first time such a highly confidential MSDF operational
plan has gone public. Some of those leaked documents were in the
areas of communications and secret codes. The MSDF consulted with
the US Navy on their common codes and has now changed all of its
codes for names and some of its frequencies for radio
communications.

The MSDF maneuver was conducted for 10 days in November 2003 with
the participation of some 80 vessels, 170 airplanes, and 26,000
personnel.

There were three documents detailing scenarios for nearby
contingencies and national defense mobilization. The three
documents list case-by-case operations to be conducted by the
MSDF Sasebo District Fleet-which covers Kyushu and Okinawa-along
with the Self-Defense Fleet, one of the MSDF's mainstay fleet
services, and with the US Navy. All those three documents were
classified but have now been declassified since their disclosure.

The MSDF maneuver scenarios were intended to deal with two of
Japan's neighbors in the event of contingencies. One scenario was
that one of the two countries was ready to launch ballistic
missiles at Japan. The other scenario was that the other country
claimed territorial rights to an archipelago of islets near
Japan's southwestern islands.

The MSDF Sasebo District Fleet conducts warning and surveillance
activities, ship inspections, Japanese evacuation, and demining
activities in waters ranging from the Tsushima Straits to the sea
west of Kyushu.

If and when Japan is facing an emergency, the MSDF Self-Defense
Fleet will be used to escort a carrier group and other US Navy
services heading for a strategic zone. In the next stage, the
MSDF will sealift Ground Self-Defense Force troops for their
landing on the islets. The US Navy will conduct operations
centering on the Korean Peninsula. Meanwhile, the US Navy will
also carry out maritime intercept operations, or MIO for short,
according to the declassified files.

Among other leaked materials, there were also many files
regarding radio communications and secret codes for emergency
use, such as a classified document illustrating frequencies and
communicable ranges for a mobile radio communication unit to be

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dispatched to a coastal area of Kyushu in the event of
emergencies.

12) Poll: 72% see Japan's cost sharing for USFJ realignment as
"too high"

MAINICHI (Page 2) (Full)
May 17, 2006

In a telephone-based nationwide public opinion survey conducted
by the Mainichi Shimbun on May 13-14, respondents were asked
about the US government's estimate of Japan's cost sharing to the
extent of approximately 3 trillion yen for the realignment of US
forces in Japan. In response to this question, 72% said, "It is
necessary to share the burden but the amount is too high." Those
who said Japan would have to share the cost for its national
security accounted for 8%, while another 12% were negative,
saying, "there is no need to share the burden." As seen from
these figures, the poll shows that the general public is negative
about expending such a huge amount of money as Japan's cost
sharing, even though there is an understanding about Japan
needing to provide "an appropriate share" for base realignment
plans, such as those alleviating Okinawa's base-hosting burden.

The Japanese and US governments have now finalized a report on
the US military's realignment in Japan, incorporating an
agreement to redeploy 8,000 US Marines from Okinawa to Guam. In
the survey, respondents were asked how they evaluated this
agreement. In response, affirmative views totaled more than 60%,
broken down into 13% saying "yes" and 51% saying "yes to a
certain extent." Meanwhile, 9% did not evaluate it all, while 17%
said they did not evaluate it very much.

The Self-Defense Forces and US Forces Japan are going to enhance
their interoperability through the US military's realignment. As
a step, the SDF will locate command functions at US military
bases in Japan. In the survey, respondents were asked if they
would support this consolidation. Public opinion, however, was
split, with "yes" accounting for 45% and "no" reaching 43%. Among
those who support the ruling Liberal Democratic Party, "yes"
accounted for 59%, with "no" at 29%. Among those who support the
leading opposition Democratic Party of Japan (Minshuto),however,
negative opinions topped affirmative ones, with 54% saying "no"
and 39% saying "yes." Negative answers outnumbered affirmative
ones among Japanese in their 20s and 30s. As seen from such
figures, the poll shows that younger generations are negative
about military integration between the two countries.

13) Government's draft bill to promote US force realignment
proposes subsidies for base-hosting local communities

MAINICHI (Page 2) (Full)
May 17, 2006

The government is now drafting a special bill to promote the
planned realignment of US forces in Japan. The draft bill,
unveiled yesterday, includes measures to set up a realignment
subsidy program for base-hosting communities, including Nago
City, Okinawa Prefecture, to which the US Marine Corps' Futenma
Air Station will be relocated. The bill also proposes enabling
the Japan Bank for International Cooperation (JBIC) to offer
loans to cover the cost of relocating US Marines to Guam by

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expanding its service.

The government intends to set a 10-year term limit for the bill.
Under the bill, with the subsidy program for local governments
housing power plants as a reference, subsidies would be paid
according to the state of progress in construction work. Should
the relocation process be delayed due to an opposition movement
or other reasons, the payment would be frozen.

Reflecting on the fact that the plan to relocate the Futenma Air
Station to off Henoko district (Nago City) was not realized
despite its generous financial aid for Okinawa Prefecture
following an agreement reached at the Japan-US Special Action
Committee on Okinawa (SACO) in 1996, the government plans to
ready a local-promotion system that contains both "carrots" and
"sticks."

A decision has already been made to disband the JBIC as part of
the government's ODA reform, but the government plans to
establish a loan system intended only for the Guam relocation
project.

14) Government to send Cabinet Office officials to Okinawa to
study economic stimulus measures

ASAHI (Page 4) (Full)
May 17, 2006

In order to study Okinawa's economic stimulus measures in
connection with US force realignment, the government will send
Cabinet Office officials in charge to Okinawa today to exchange
views with senior prefectural officials. In his talks with Prime
Minister Junichiro Koizumi on May 11, Gov. Keiichi Inamine asked
for the government's assistance for the use of US bases being
returned and the employment of Japanese base workers.

15) Government remains upbeat on economy in report for May

TOKYO SHIMBUN (Page 1) (Excerpts)
May 17, 2006

State Minister in Charge of Economic and Fiscal Policy Kaoru
Yosano submitted in a ministerial meeting yesterday a monthly
economic report for May noting that the economy "is recovering."
The government maintained its upbeat assessment of the economy
for the third consecutive month on solid individual and corporate
spending, as well as rising exports. The government's
confirmation of recovery in May stretches the period of the
current recovery, which started in February 2002, to 52 months,
surpassing the second-longest economic boom in the postwar period
called "bubble economy" (51 months starting in December 1986).

Should the economy continue to recover through November, it will
exceed the so-called Izanagi boom (57 months from November 1965).
In a press conference yesterday, Yosano confidently said: "I
think the current recovery will easily surpass it."

But there are also signs of change, such as slowing capital
investment, which has served as an engine to pull along the
economy. Yosano commented on this: "Since the economy has
steadily improved, a phase of some kind of adjustment is
unavoidable. It is necessary to carefully watch moves of oil

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prices and exchange rates."

16) Government decides to settle US beef import resumption issue
before bilateral summit

SANKEI (Top Play) (Excerpts)
May 17, 2006

The second ban on US beef imports continues, following the
inclusion of specified risk materials (SRM),a material banned in
Japan as a mad cow disease risk, in US beef shipments. In order
to settle this issue, the government yesterday decided to resume
imports before the bilateral summit, slated for late June. The
judgment is that if it decides to reinstate the beef trade after
the summit, it could be interpreted that the judgment was made
under pressure from the US and that if it puts the issue on the
backburner, it could develop into a major dispute between the two
countries.

Japanese and US government experts are expected to meet in Tokyo
today and tomorrow to discuss the resumption of US beef imports
by Japan. The US has already completed the re-inspection of beef
processing plants that are authorized to export products to Japan
and submitted the outline of the report to Japan. Discussions by
experts will likely focus on the outline of the report.

The Japanese side wants to discuss with the US side on the
situation of the reinsertions of US meat processing plants and
conditions for restarting beef imports. A Foreign Ministry source
noted, "If the US provides clear explanations, bilateral talks
will move toward the next step."

The US has indicated its readiness to allow Japanese inspectors
to accompany US inspectors, when they spot-check meat packers
after imports resumed. The Japanese side is considering the
possibility of reinforcing quarantine procedures.

Japan intends to pursue bilateral discussions and reach a final
decision, after determining the efficacy of such measures
designed to prevent a recurrence.

17) Japanese, US experts to meet today over US beef imports

NIHON KEIZAI (Page 5) (Slightly abridged)
May 17, 2006

In a move to lift Japan's ban on US beef imports, the Japanese
and US governments will start a two-day working-level expert
meeting in Tokyo today. If no problem is found in the results of
the re-inspections conducted by the US government of meat-
processing facilities with licenses to ship beef to Japan, both
sides will discuss specific conditions for Japan to resume
imports.

Japan intends to present the US with measures that will be
convincing to Japanese consumers, such as inspections of
slaughterhouses in the US before resuming imports, snap
inspections after restarting imports, and enhancement of the
nation's quarantine system. The US is also "willing to accept any
requests," as said by a senior Agriculture Department official.
Both sides now expect that there will be major progress on
resumption conditions.

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Once agreement is reached on conditions, the government will
explain to consumers the agreed contents. If it finds no defects
in the US systems, Japan will officially decide to lift its ban
on US beef imports. Many observers anticipate the final decision
would come in mid-June, just before Prime Minister Junichiro
Koizumi leaves for the US. Participating in the meeting will be
Acting Under Secretary of Agriculture Lambert and others from the
US side and responsible division chiefs of the Foreign Ministry,
the Health, Labor and Welfare Ministry, and the Agriculture,
Forestry and Fisheries Ministry from the Japanese side.

DONOVAN