JAPANESE MORNING PRESS HIGHLIGHTS 05/19/06

UNCLAS SECTION 01 OF 11 TOKYO 002751

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SIPDIS

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SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 05/19/06

Index:

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

Beef issue:
4) Decision to reopen Japanese market to US beef could come
next month
5) US-Japan experts talks on BSE issue continue into third day,
focusing on conditions for resumption of US beef imports
6) After consumers are briefed, US beef could start flowing
into Japan this summer

Foreign policy issues:
7) UN Ambassador Bolton concerned about Japan's oil investment
in Iran, seeks rollback
8) Visiting UN Secretary General Annan expresses concern that
Yasukuni Shrine issue was increasing tensions in the Asia region
9) LDP's Koga presents plan that would separate Class-A war
criminals from war dead enshrined at Yasukuni Shrine
10) Japan-China talks on gas development issue fail to reach any
conclusion
11) Speaking at Tokyo forum, Sri Lanka's foreign minister
optimistic about peaceful progress in his country

Okinawa issues:
12) UN Human Rights Commission special rapporteur accuses Japan
of discrimination against Okinawan residents
13) Foreign Minister Aso rebuts UN rapporteur's charge of
Okinawa discrimination
14) US, Japan agree to partial return of auxiliary airfield at
Yomitan
15) Okinawa special economic zone to be allowed to produce
ethanol

Political prospects:
16) Jiji poll sees rising popularity rate for Minshuto
(Democratic Party of Japan),with Cabinet support rate up a notch
to44.5%
17) Radio station poll: 65% of the public loves Ichiro Ozawa;
35% hates him
18) Conspiracy crime bill to pass today over the objections end
even boycott of Minshuto

19) Government panel released "global strategy" for labor market
that would cut by 20% number of job-hoppers, increase foreign
labor

Articles:

1) TOP HEADLINES

Asahi, Mainichi, Yomiuri, Sankei & Tokyo Shimbun:
Missing elementary school boy in Akita found dead on riverbank

Nihon Keizai:
Seven & I Holdings to develop common terminal device used for its
e-money as well as other companies' digital cash; Negotiations
underway with JR East Japan on its Suica e-cash system

2) EDITORIALS

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Asahi:
(1) Mindan and Chongryon: How best to use this reconciliation?
(2) Public opening of Kitora mural painting: What the White
Tiger tells us

Mainichi:
(1) Shigeru Yokota's ROK visit: Spread of sympathy and
solidarity to South Korea
(2) Hiroshi Fuse's viewpoint on US restored relations with
Libya: It's too early to have an optimistic view of Libya as a
model country that abandoned nuclear ambitions

Yomiuri:
(1) Medical reform: Prefectural governments ready to play a
leading part?
(2) UN Secretary-General Annan's visit: Stagnation on UN reform
would only lead to dysfunction

Nihon Keizai:
(1) International broadcasts need to be expanded in a way to be
convincing to the nation
(2) False quake-resistance reports: More criminal acts likely, in
addition to fraud

Sankei:
(1) Arrest of Huser President Ojima: Ministry of Land,
Infrastructure, and Transport should come up with safety measures
(2) Annan and UN: Full efforts needed for reform of UN
Secretariat

SIPDIS

Tokyo Shimbun:
(1) Medical reform bills sent to Upper House: Do not repeat
tepid debate
(2) False quake-resistance reports: Safety of housing should be
restored

3) Prime Minister's Official Residence (Kantei)

Prime Minister's schedule, May 18

NIHON KEIZAI (Page 2) (Full)
May 19, 2006

10:37
Met Deputy Chief Cabinet Secretary Suzuki at Kantei.

13:40
Met Brazilian Ambassador to Indonesia Fujita in the presence of
Justice Minister Sugiura.

14:10
Attended an Upper House Administrative Reform Special Committee
meeting.

18:32
Attended an Economic and Fiscal Policy Council meeting at Kantei.

19:55
Returned to his residence.

4) Decision next month on resuming US beef imports

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NIHON KEIZAI (Page 1) (Excerpt)
May 19, 2006

The Japanese and US government held experts talks on May 18 on
the issue of resuming imports of US beef. As a result of the
talks, the Japanese government's doubts have just about been
removed by the US government's report of its re-inspections of
targeted meatpacking facilities. The outlook is for a formal
decision on resumption of US beef imports, possibly in mid-June.

At the meeting, the US delegation reported on all the 35 plants
that it had re-inspected. Japan repeatedly asked if there were
any problems in the meat processing and method of inspection, but
no problem could be ascertained similar to the case of the
shipment of meat with vertical columns that causes a halt in
imports in January. There will be a restart of discussions on
Friday morning, the 19th, but if there are no problems, a basic
agreement will be reached on the safety of US facilities.

5) US beef imports; Bilateral talks in final stretch today with
final decision likely next month; Import conditions to be
discussed again today

ASAHI (Page 3) (Full)
May 19, 2006

The governments of Japan and the US yesterday held an experts
meeting at the Foreign Ministry to discuss the resumption of US
beef imports by Japan. Participants exchanged views to work out
specific conditions for lifting the embargo. The two parties
agreed to extend the session until today, because there still
remained some unfinished issues, though they generally shared the
same view that the US safety control system has almost been
readied. Tokyo will continue to coordinate views with the aim of
formally deciding to resume beef trade before the end of June,
when a bilateral summit is scheduled to take place.

The second beef import ban was imposed following the discovery of
specified risk materials (SRM) in a US beef shipment in January.
The main agenda item of the ongoing talks, which had kicked off
on a two days' schedule, is how a recurrence can be prevented.
Washington carried out the reinspections of 35 meat processing
plants authorized to export products to Japan regarding the
situation of how export manuals had been put in place and the
details of employee training and conveyed the results to the
Japanese side.

The two parties also exchanged views on such additional measures
as Japanese government officials inspecting US meat packers prior
to the resumption of imports and being present at the scene of
spot checks by US inspectors after the resumption of beef trade.

Japanese government officials, such as those of the Ministry of
Health, Labor, and Welfare, which is in charge of securing food
hygiene, take the view that it is necessary to check more details
about the US safety control system.

If the two countries can reach a final agreement on conditions
for importing US beef, the Japanese government will hold town
meetings throughout the nation to exchange views with consumers.
It will seek their understanding, by presenting draft conditions

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for restarting beef trade. The sessions will likely take about
three weeks, including the period of notification on the outline
of such sessions. Once the government judges that it has obtained
broad-based understanding from the public, it will formally
decide to resume imports.

Following that decision, it will dispatch experts to the US for
prior inspections. It will likely take a month to inspect all 35
US facilities. After completing these procedures, US beef will
reach Japanese consumers in July, if all goes smoothly.

6) US beef imports: Government to explain details of talks with
US to consumers to pave way for resumption of beef trade in
summer

NIHON KEIZAI (Page 5) (Full)
May 19, 2006

Japanese and US beef experts discussed for two days the
resumption of US beef imports by Japan. Yesterday evening they
generally completed discussing agenda items. Though they will
also meet today, because some details still have to be worked
out, prospects have now become strong that beef trade will be
reinstated in the summer.

If Tokyo and Washington reach a consensus on the resumption of US
beef imports, the Japanese government will take procedures to
hold town meetings with consumers to exchange views with them,
which will take about two weeks. The government will explain the
specifics of the experts meeting to consumers during these
sessions. Once it obtains understanding, it will then formally
decide on conditions for lifting the embargo.

Agriculture, Forestry, and Fisheries Minister Shoichi Nakagawa
yesterday told reporters in Tokyo: "We called on the US side to
investigate into the reasons for the inclusion of SRM in its beef
shipment and take thorough measures to prevent a recurrence. We
are now working to determine whether to resume the beef trade."
Prime Minister Junichiro Koizumi also stated last evening, "Beef
imports will be restarted, if conditions are met."

7) US ambassador to UN express concern about Japan's investment
in Iran

ASAHI (Page 7) (Full)
May 19, 2006

Ikeda, New York

In an interview with the Asahi Shimbun at the US mission to the
United Nations in New York on May 18, US Ambassador to the UN
Bolton revealed that the US government has repeatedly expressed
to the Japanese government its concern that Japan's development
of the Azadegan oil field would only "benefit Iran." Washington
is mulling economic sanctions against Iran, based on a UN
Security Council, but it is also considering sanctions to be
imposed by a "coalition of the willing." Bolton's remarks
supposedly are intended to urge Japan to fall in step with the
US.

Ambassador Bolton stated:


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"Iran is apparently trying to place India, China, Japan and other
great oil consumers under its thumb on the strength of its oil
and natural gas. Japanese policymakers should work out
measures to diversify energy-resource suppliers, without relying
overly on a single nation."

Bolton also expressed his strong apprehension about Japan's
promotion of oil field development, saying:

I wonder if it is proper to invest in a country that has said it
would eliminate Israel and is preparing to possess nuclear
weapons. Japan must consider this point."

On the reform of the UNSC, Bolton said: "We will have to continue
utmost efforts to reform other areas, such as the Secretariat, at
least for several more months," indicating that an early UNSC
reform would be difficult.

To a question about a successor to UN Secretary General Kofi
Annan, whose term of office expires at the end of this year,
Bolton replied: "The sole condition is someone from a country
other than the permanent member nations." "I do not mean to say
that Japan should give up its bid for a UNSC permanent seat," he
said, adding;

"The role Japan has played at the UN is great. Joining the UNSC
as a permanent member is an important challenge for Japan, but
there are obstacles to the challenge, from a realistic point of
view. Since China has declared that it will continue to use its
right to refuse Japan's bid for a permanent seat, it might be
worth for Japan to consider (assuming the post of chief of
secretariat)."

SIPDIS

8) UN Secretary-General Annan: "Tensions in the region are
increasing" due to prime minister's visits to Yasukuni Shrine

ASAHI (Page 4) (Full)
May 19, 2006

By Ryo Kudochi

Meeting the press yesterday in Tokyo, United Nations Secretary-
General Annan mentioned the chilly relations between Japan and
China and between Japan and South Korea and urged the leaders of
the three nations to take action to improve their relations,
saying: "The situation will not be resolved if no action is
taken." Referring to Prime Minister Koizumi's visits to Yasukuni
Shrine, Annan stated: "Haven't such visits, in a sense, added
fuel to tensions in the region?"

Speaking of Japan-China relations, Annan commented, "Improving
their ties would benefit both sides. For that, I think the
leaders of the two countries need to be both tolerant and bold."

When asked about Japan's relations with South Korea, which he
visited prior to his Japan tour, Annan said: "The leaders of the
two countries are well aware of the importance of friendship.
Both sides are well aware what has irritated the other side and
what has made the other side harbor concerns. Both sides should
help each other."

9) LDP lawmaker Koga suggests discussion of separate enshrinement

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of Class-A war criminals, aims to make Yasukuni a major issue in
LDP presidential campaign

ASAHI (Page 4) (Excerpts)
May 19, 2006

By Kengo Sakajiri

Former Liberal Democratic Party (LDP) Secretary General Makoto
Koga, chair of the Japan War-Bereaved Association, announced a
set of policy proposals yesterday, having in mind the LDP
presidential election set for September, and referring to Class-A
war criminals enshrined at Yasukuni Shrine, Koga indicated that
"separating a portion of the spirits of the war dead from the
shrine will be a matter to be discussed." On the Yasukuni issue,
Prime Minister Koizumi, Chief Cabinet Secretary Abe, and some
other politicians are insisting that it should not be made a
major issue in the presidential campaign. But Koga, by floating a
proposal for separate enshrinement of Class-A war criminals,
apparently aims to make history a major campaign issue in the
upcoming presidential election to choose a successor to Koizumi.

Koga came up with a set of policy proposals at a policy study
meeting of the LDP's Niwa-Koga faction led by Koga and lawmaker
Yuya Niwa. The faction agreed to use Koga's proposals as a basis
for policy proposals the faction will work out in the weeks
ahead.

In his proposals, Koga described the prime minister's shrine
visits as "something that has soured relations with China and
raised the sense of impasse now felt from Japanese diplomacy."
"Separating a portion of the spirits of those who died for other
reasons but were enshrined will be one idea to be considered so
that many more people, including foreigners, will be able to
visit the shrine to offer condolences to the spirits of the war
dead," he added.

Chief Cabinet Secretary Abe told a news conference yesterday: "I
think it is a matter members of the Japan War-Bereaved
Association will discuss cool-headedly." Asked if the issue
should be made a campaign issue in the presidential race, Abe
said: "If that happened, it would turn into a more intricately
political and diplomatic issue. We should not do so." Prime
Minister Koizumi, as well, told reporters about separate
enshrinement: "The government is not in a position to be involved
in the matter."

Yasukuni Shrine has asserted that because of religious reasons
separate enshrinement is impossible. An official of the Japan War-
Bereaved Association said puzzledly: "There is no need to
separate certain spirits from others. I can't understand Koga's
true intentions."

But in the LDP, momentum is rising to somehow settle the question
of enshrinement of Class-A war criminals in order to rebuild
relations with China as Koizumi is to step down.

10) Japan, China fail to close gap in talks on gas field
development

YOMIURI (Page 1) (Full)
May 19, 2006

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The Japanese and Chinese governments held their 5th bureau
director-level talks on the development of natural gas fields in
the East China Sea in Tokyo yesterday. Both sides detailed their
earlier joint-development proposals but failed to close the gap
over where the joint work should take place. The two countries,
though, agreed to continue talks on joint development to resolve
the dispute. Next round will be held in China in June.

Both sides shared the need for measures to prevent a vessel
collisions in nearby waters and to smoothly handle the situation
in the event that an unexpected accident takes place. They then
confirmed a commitment to construct communication and information
systems.

In the talks, Japan stressed its position of not allowing China
to continue developing gas fields in the oceanic area close to
waters that Japan claims, renewing its call for China to stop
development in the Shirakaba gas field (Chunxiao in Chinese) near
the median line and to present data of geologic research results.
The median line is claimed by Japan thQQ%NSKQQ some point of compromise with the
Liberation Tigers of Tamil Eelam (LTTE)."

Since this April, military attacks supposedly by LTTE, an
antigovernment group, have been intensifying. The foreign
minister stated: "Their uncompromising stance is the same as
before, but their posture toward peace remains unchanged."

12) Gov't to present rebuttal in writing to UN on "discrimination
against Okinawa" remark: Aso

RYUKYU SHIMPO (Page 3) (Full)
Eve., May 18, 2006

TOKYO-Doudou Diene, a special rapporteur appointed by the United
Nations Human Rights Commission, delivered a speech on May 16 in

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the city of Naha, Okinawa Prefecture, and noted that the
concentration of US military bases on the small island prefecture
speaks of discrimination. In response, Foreign Minister Taro Aso
rebutted Diene in a meeting of the House of Councillors Foreign
and Defense Affairs Committee this morning. "It's based on
geopolitical needs, not based on any discriminatory intention,"
Aso stated before the committee. Diene has indicated that he
would present a fact-finding report to the UN Human Rights
Commission. "Japan would like to present a letter of rebuttal
before the commission meets," Aso said.

Aso was replying to a question asked by Masahide Ota, a member of
the Social Democratic Party (SDP or Shaminto). "It's true that
Okinawa is home to 75% of all US military facilities in Japan,"
Aso admitted. "However," Aso went on, "it's based on geopolitical
needs or de facto requests, and it's clear that it's not based on
any discriminatory intent." He also stated, "It's a personal view
(representing Diene's own),not the United Nations' view. It's
not legally binding, either."

13) Base concentration on Okinawa not discrimination; Foreign
minister rebuts Diene

OKINAWA TIMES (Page 1) (Full)
Eve., May 18, 2006

TOKYO-Foreign Minister Taro Aso appearing before the House of
Councillors Foreign and Defense Affairs Committee in its meeting
today rebutted a United Nations special rapporteur's viewpoint
that the concentration of US military bases on Okinawa is
discriminatory against the residents of that prefecture. UN
Special Rapporteur Doudou Diene made the claim after having
visited Okinawa. Aso said. "It is clear that (the US bases being
on Okinawa) is not based on any discriminatory intention," Diene
has indicated that he would report his Okinawa visit to the UN
Human Rights Commission in September. Aso stated that he would
officially rebut Diene's viewpoint in written form. "I'd like to
present a rebuttal in writing to the United Nations before the
commission meets," Aso stated.

Okinawa is home to 75% of all US military facilities in Japan.
"This is based on geopolitical reasons and de facto requests
(from the United States)," Aso stated. With this, he explained
that the US military presence on Okinawa is not any kind of
discrimination.

"Mr. Diene visited Okinawa on the sidelines of a private visit to
Japan," Aso stated. Asked about Diene's "discrimination" remark,
Aso stressed that this was not an official United Nations
statement. "I think it's his personal view, and not the United
Nations' view, so it's not legally binding," Aso said.

Aso was replying to a question asked by Masahide Ota, a member of
the Social Democratic Party (SDP or Shaminto).

Diene visited Okinawa on May 15-16 to view US military facilities
in Okinawa Prefecture, including Camp Schwab, where the US Marine
Corps' Futenma Air Station will be relocated.

14) Japan, US agree on partial return of Yomitan airfield

MAINICHI (Page 2) (Full)

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May 19, 2006

The Japanese and US governments held a meeting of their joint
committee at a US military facility in Tokyo yesterday. In the
meeting, the two governments agreed on the return of Yomitan
airfield, a US military facility located in the village of
Yomitanson, Okinawa Prefecture. The airfield covers a total area
of about 191 hectares, and the United States will return about
140 hectares on the airfield's east side by the end of July this
year.

The Japan-US Special Action Committee on Facilities and Areas in
Okinawa (SACO) released its final report in 1996, incorporating
an agreement to return the airfield by the end of fiscal 2000.
However, the airfield has yet to be returned due to the US
military's delay in the planned relocation of the Sobe telecom
facility, contiguous to the airfield, to Camp Hansen.

The remaining 51-hectare portion is expected to be returned along
with the Sobe site's reversion.

15) Special ethanol zone floated as Okinawa stimulus measure;
Government to encourage use of sugarcane

ASAHI (Page 3) (Full)
May 19, 2006

As part of Okinawa stimulus measures following USFJ realignment,
the government has begun looking into the possibility of an
ethanol zone to promote the development and production of alcohol
(bio-ethanol) made from sugarcane indigenous to Okinawa. It will
call on Okinawa to apply for approval for the plan. In line with
the project, the government is considering easing regulations on
the sale of ethanol-gasoline fuel and instituting preferential
tax measures.

Minister of Economy, Trade, and Industry Nikai on May 16 informed
Prime Minister Koizumi of the plan to develop bio-ethanol mainly
in Okinawa as a new energy source. The prime minister then
ordered him to specifically look into the plan.

16) Poll: DPJ rebounds to 10.0%; Cabinet inches up to 44.5%

TOKYO SHIMBUN (Page 2) (Abridged)
May 19, 2006

The approval rating for the Koizumi cabinet in May was 44.5%, up
0.6 percentage point from last month, according to a Jiji Press
poll released yesterday. The disapproval rating has also risen
1.6 points to 36.0%. Meanwhile, it has been a month since Ichiro
Ozawa became the new president of the leading opposition
Democratic Party of Japan (DPJ or Minshuto). The DPJ stood at
10.0% in public support, up 0.9 point, and the party's support
rate rebounded to double digits for the first time in seven
months. The survey was conducted May 11-14 on a face-to-face
basis with a total of 2,000 samples aged 20 and over. The
retrieval rate was 66.6%.

In the breakdown of public support for political parties, the DPJ
went up for the third month in a row. The ruling Liberal
Democratic Party was at 25.9%, down 1.1 points. The LDP's support
rate went down for the first time in three months.

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17) Radio program conducts poll on Ozawa: 65% like him, 35%
dislike him

SANKEI (Page 5) (Abridged slightly)
May 19, 2006

Nippon Broadcasting System's morning radio program hosted by
Takuro Morinaga and Kakihana Tadashi conducted an opinion survey
of its listeners yesterday on Minshuto (Democratic Party of
Japan) President Ichiro Ozawa. The survey showed that 64.9% of
the respondents said they liked Ozawa, while 35.1% said they
disliked him.

Following the May 17 Koizumi-Ozawa Diet debate, the program
conducted the survey between 5:00 and 7:00 a.m. yesterday. The
program received a total of 114 e-mails and faxes, with 74 saying
they like Ozawa and 40 indicating they dislike him. Those who
said they like him cited such reasons as that "His combination of
fastballs and curveballs the Diet debate was good," or "He is not
a bad guy like people say," or "Of all past Minshuto heads, he
has the strongest aura." Reasons for disliking him included, "He
has carried bad impression since he was LDP secretary general,"
and "At that age, he cannot change."

18) Ruling bloc-dominated Lower House committee to approve
conspiracy charge bill today; Minshuto determined to resist it

ASAHI (Page 1) (Excerpts)
May 19, 2006

The Lower House Committee on Judicial Affairs met yesterday to
discuss a bill allowing law-enforcement authorities to file
conspiracy charges against those who are regarded to have
discussed a crime. In the session, the committee's chair Nobuteru
Ishihara decided to hold a committee meeting on the afternoon of
May 19 by virtue of his office. The committee intends to approve
the bill today, the ruling coalition saying, "We have discussed
the bill thoroughly." The ruling coalition's plan is to continue
revision talks with Minshuto (Democratic Party of Japan) until
noon, and if the talks fail, it intends to take up the ruling
bloc's revision plan of late April to submit a newly revised bill
independently. If the ruling bloc's rams the bill through the
Lower House, Minshuto intends to boycott Diet deliberations on
May 19 and beyond altogether.

Minshuto characterizes the bill as a major hurdle in the current
Diet session during its remaining days. Following the forcible
adoption May 17 of medical reform-related bills including higher
medical fees for the aged by the Lower House Health, Labor and
Welfare Committee, Minshuto boycott yesterday all Lower House
committee meetings to discuss the timetable. But the largest
opposition party took the strategy of not boycotting the plenary
session and presenting engagements opposing the bill.

19) Council on Economic and Fiscal Policy sets targets for 2010,
including reducing part-time workers by 20% and increasing Haneda
Airports' carrying capacity by 40%

NIHON KEIZAI (Page 5) (Full)
May 19, 2006


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The government's Council on Economic and Fiscal Policy compiled
yesterday global strategy aimed at increasing Japan's
international competitiveness. The strategy set numerical targets
in four areas -- human resources, industries, local areas, and
international contributions -- such as reducing young part-time
workers by 20% and increasing Haneda Airport's carrying capacity
by 40% by 2010. The report also calls for active acceptance of
highly skilled foreign workers, such as researchers.

After consulting with the ruling coalition, the government plans
to reflect the strategy in the 2006 "big-boned" economic and
fiscal management policy guidelines" to be produced in June. The
strategy lists a number of challenges required for Japan to
demonstrate international leadership in the backdrop of rising
China and India, saying they will help the country maintain the
competitive edge.

The report also mentions specific ways to improve the environment
to accept more foreign workers, such as extending the duration of
stay from the current three years to five years and expanding the
scope of family members' stay in Japan, now limited to children
and spouses, to include parents. Additionally, the strategy calls
for the flexible acceptance of foreign caretakers for the aged.

Major challenges shown by the global strategy

AreaItems that need to meet targets by 2010

Numerical targets
Human resources
Young free-time workers
Decrease the number by 20% from 2.13 million recorded in 2004.

700 points or over in TOEIC
Double the number of 140,000 recorded in 2004.
Industries
Investment in Japan to GDP
Increase the level to about 5%.

Exports of agricultural, forestry, and fishery products and foods
(2009)
Double the volume to 600 billion yen.
Local areas
Number of foreign visitors
Increase the number to 10 million from 2005's 6.73 million.

Railroad access to Narita Airport from central Tokyo
Reduce the time by 20 minutes to 30 minutes.
International contributions
Oil dependence (by 2030)
Reduce dependence to 40%.

Number of people learning Japanese language abroad
Increase the number to 3 million from 2.36 in 2003.

SCHIEFFER