JAPANESE MORNING PRESS HIGHLIGHTS 05/22/06

UNCLAS SECTION 01 OF 11 TOKYO 002790

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 05/22/06

INDEX:

1) Top headlines
2) Editorials
Prime Minister's weekend schedule: Omitted today

Opinion polls:
3) Annual national conscientious poll: anxiety over economy has
largely dissipated, but 31% of public see foreign relations
headed in wrong direction
4) Jiji poll: Half of the Japanese public comfortable with word
"patriotism" put into amended Basic Education Law

Iraq assistance:
5) GSDF withdrawal from Iraq to start possibly in July
6) Questionable whether all of the GSDF troops will be out of
Iraq when Prime Minister Koizumi steps down in September
7) Koizumi promises to continue assistance to Iraq after the
GSDF are pulled out
8) Full-scale ODA planned for Iraq after GSDF leave

Defense and security issues:
9) Prime Minister Koizumi confident that US-Japan security
arrangements will deter North Korea from launching Taepodong 2
missile
10) New interceptor missile to be deployed to Okinawa as
deterrent against North Korean aggression
11) Revision of defense procurement plan or Chukibo would slash
front-line equipment in order to pay for some of the USFJ
realignment costs
12) US, Japan agree to partially free up Yokota air control
space to civilian aircraft

13) US, Japanese governments coordinating Koizumi-Bush summit
meeting in US on June 29

14) Sakie Yokota: Would that Koizumi had worked half as hard as
President Bush on behave of her daughter and other North Korean
abductees

15) Budget crunch: government, ruling camp favor continued cuts
in ODA, defense spending in budgets over the next five fiscal
years

Beef issue:
16) Prime Minister Koizumi: We will go along with judgments of
experts in deciding to reopen Japanese market to US beef
17) Minshuto's Hatoyama denounces decision to resume US beef
imports: Priority given President Bush over protecting food
safety of Japanese people
18) Fate of 2,000 tons of US beef stopped at border by Japanese
customs is in the air
19) Japan logs a 27th BSE infected cow, this time in Hokkaido

Articles:

1) TOP HEADLINES

Asahi:
Slow progress in professional education project for visiting
nurses as part of steps to promote home medical care


TOKYO 00002790 002 OF 011


Mainichi:
Japan to purchase emission credits for 100 million tons of
greenhouse gases shortly, fearing a possible surge in emission
trading prices

Yomiuri:
Toyota to operate 10 new factories abroad by 2010, aims to
produce 10 million units yearly

Nihon Keizai:
KDDI to join hands with Sony to develop a "Walkman-brand" cell
phone

Sankei:
Government, ruling coalition to cut government share of
unemployment allowance, as the number of recipients is on
decrease with economic recovery

Tokyo Shimbun:
LDP mulls excluding grown-up NEETs from dependent deduction, aims
to encourage them to work by increasing their parents' burden

2) EDITORIALS

Asahi:
(1) Yokota airspace: Its return is the first step toward safety
(2) Local tax allocation system reform: Establishing "common
tax" will be one solution with promotion of decentralization

Mainichi:
(1) Resumption of US beef imports: Export conditions must be
observed without recurrence of sloppiness
(2) Establishment of permanent government in Iraq: This should
be linked to a step toward pullout of foreign troops

Yomiuri:
(1) Reorganization of NTT: Lack of awareness of international
competition
(2) Sri Lanka: Japan, India need to work together to prevent
ceasefire from crumbling

Nihon Keizai:
(1) Iraqi people still face tests for stability
(2) Japanese firms trying to outdo each other regarding dividends

Sankei:
(1) Road-use revenues should be used to constrain tax increases
(2) Trade talks: WTO and EPA are both useful

Tokyo Shimbun:
(1) Measures for job-hopping part-timers: They should have more
opportunities to work at private firms instead of working as
public servants
(2) Completion of Three Gorges Dam: What problems it will cause
in the future?

3) Poll: 17% see economy as improving, 31% see foreign relations
as worsening

ASAHI (Page 1) (Full)
May 21, 2006


TOKYO 00002790 003 OF 011


An increasing number of people are actually feeling that the
economy has recovered, but much of the public also is feeling a
growing disparity among the different regions of the country,
according to findings from a poll released by the Cabinet Office
yesterday.

The public opinion survey was conducted across the nation from
January through March on a face-to-face interview basis. A total
of 10,000 persons were chosen from among those aged 20 and over,
and valid answers were obtained from 5,071 persons. In the
survey, respondents were asked to pick one or more from among 24
areas where they thought Japan was changing for the better and
where Japan was changing for the worse.

The proportion of those who picked Japan's economy as changing
for the better sharply increased from 5.3% in last year's survey
to 16.9% in this year's survey. The proportion of those who
picked Japan's economy as changing for the worse decreased from
38.5% in last year's survey to 20.5% in this year's survey.

In the survey, respondents were also asked to pick one or more
from among the same areas where they thought Japan was changing
for the worse. In response to this question, 38.3% picked public
security as worsening, topping all other areas. Even so, the
figure shows a substantial decrease from 47.9% in last year's
survey and went down for the first time since 1998. Those who
picked Japan's foreign relations as changing for the worse
accounted for 31.3%, up from 23.5% in last year's survey. The
proportion of those who picked local disparities also increased
from 9.7% to 15.0%.

4) Poll: Over 50% support gov't draft amendment to education law
on patriotism

TOKYO SHIMBUN (Page 2) (Abridged)
May 22, 2006

According to findings from a poll released by Jiji Press
yesterday on the issue of amending the Basic Education Law, more
than 50% of the Japanese public answered "yes" when asked if they
were in favor of the government's draft bill that incorporates
the idea of patriotism. Broken down into political party
supporters, 57.9% of those supporting the leading opposition
Democratic Party of Japan (Minshuto) also answered "yes." In the
survey, respondents were also asked if they were in favor of
amending the law itself, and negative answers to this question
accounted for a little less than 20% of all respondents. This
will likely affect the Diet in its debate on the advisability of
revising the law.

The survey was conducted across the nation on May 11-14 after the
government presented an amendment bill to the Diet incorporating
the wording "love our country and its land." A total of 2,000
persons were chosen for face-to-face polling from among those
aged 20 and over. The retrieval rate was 66.6%.

5) GSDF withdrawal may begin in July

NIHON KEIZAI (Page 1) (Full)
May 21, 2006

In the wake of the inauguration of Iraq's new government, Tokyo

TOKYO 00002790 004 OF 011


will begin seriously studying ways to pull out Ground Self-
Defense Force troops from Samawah. Prime Minister Junichiro
Koizumi plans to tell US President George W. Bush of Japan's
basic policy of withdrawing GSDF troops and continuing to provide
support for Iraq in their summit meeting in late June. The
government will swiftly undertake coordination with Britain and
Australia to begin pulling GSDF troops out of Samawah as early as
July in tandem with their troops.

A government source indicated on May 20 that a GSDF pullout would
not occur until after the Koizumi-Bush talks, adding:
"Coordination with concerned countries will be necessary. In view
of the rotational period, it would be desirable to begin pulling
out troops in July or later."

6) Completion of GSDF withdrawal before Koizumi's departure from
office uncertain

ASAHI (Page 2) (Excerpts)
May 21, 2006

Following the establishment of a unity government in Iraq, the
government will begin coordination in earnest to pull out Ground
Self-Defense Force troops from Samawah. The government has
concluded that of the four requirements for a pullout, two
conditions - progress in recovery and progress in the political
process - have now been met. But because the remaining two
conditions - transfer of security authority and the trend of the
US-led multinational force -- have not been met, the GSDF may not
able to withdraw from Iraq while Prime Minister Koizumi is in his
office, his goal.

According to the government, Iraq's council on national security
of concerned ministers including the interior and defense
ministers will discuss the transfer of security authority with
the United States and Britain. They will examine the security
situation, progress in fostering Iraqi security authorities, and
other factors of each area.

The transfer of security authority in southern Iraq, including
Samawah, is expected to take at least one more month. GSDF
pullout would not occur until then. There is concern in the
government that as long as Prime Minister Nouri al-Malaki serves
concurrently as security minister, the Iraqi government has no
leeway to discuss the transfer of security authority.

Under such circumstance, the 10th GSDF contingency will complete
replacing the 9th contingency in late May. The government will
search for ways to pull out Japanese troops before the 10th
contingency's tour of mission ends in August. With a withdrawal
likely to take a couple of months, it remains to be seen if the
GSDF can completely leave Iraq before Prime Minister Koizumi's
term of office ends in September.

7) Japan to help rebuild Iraq even after SDF pullout: Koizumi

YOMIURI (Page 2) (Full)
May 22, 2006

Prime Minister Junichiro Koizumi said on May 21 that Japan would
continue to help rebuild Iraq, even after it pulls out its Self-
Defense Forcers troops from the war-battered country, but he gave

TOKYO 00002790 005 OF 011


no specific time frame for the withdrawal. During a visit to
Kanazawa City, Ishikawa Prefecture, Koizumi told reporters:

"Japan will continue humanitarian support and reconstruction
assistance. I think there will be other things to do to help Iraq
even after the SDF are withdrawn from Samawah. The government
will decide comprehensively (as to when pull out the SDF
personnel)."

Koizumi welcomed the launch of Iraq's new government, saying:

"A government in the Middle East that is stable and never gives
in to terrorism will benefit the international community as a
whole. I think the country needs more time, but I would like to
see the country's enthusiasm to build their country on their own.
The international community will by all means support the
country."

8) Government to start GSDF withdrawal from Samawah possibly next
month, offer ODA

MAINICHI (Page 2) (Full)
May 21, 2006

Following the inauguration of the new Iraqi government on May 20,
the Japanese government will soon start coordination with the new
Iraqi government and the US to pull Self-Defense Force troops out
of Samawah in the southern part of Iraq, possibly next month.
Under the Japanese government's scenario, the government would
decide to withdraw troops before the Japan-US summit set for late
June and complete the withdrawal by the end of July, together
with British and Australian troops, who have been in charge of
maintaining security in Samawah.

Foreign Minister Taro Aso issued a statement welcoming the
decision: "The political process set under a UN Security Council
resolution has been completed." The Japanese government sees that
security authority will be transferred first in southern Iraq.
Even so, the actual situation is that the plan for withdrawing
troops sometime between March and May envisioned by Japan,
Britain, and Australia has been put off because of the delayed
launch of the new government and the deteriorating security
situation in Iraq. There is a possibility of increasing
instability in Iraq that could eventually delay the withdrawal
further.

Should the SDF withdrawal process move ahead in line with the
government's scenario, the government would expand the areas
subject to airlift activities by the Air Self-Defense Force
between Kuwait and southern Iraq to cover Baghdad. By also adding
United Nations staff members and materials to the airlift
operations, the government aims to underscore its continued
assistance for Iraq. The government has also decided to conclude
a contract with the Iraqi government soon to offer 76.5 billion
yen worth of yen loans for projects to repair thermal power
plants and construct port facilities as part of its official
development assistance (ODA)

9) Prime Minister: "Security alliance will deter" Taepodong
launch

TOKYO SHIMBUN (Page 2) (Full)

TOKYO 00002790 006 OF 011


May 20, 2006

When asked late yesterday about the signs that North Korea is
making preparations to launch a Taepodong long-range missile,
Prime Minister Koizumi said: "Japan is endeavoring to secure
safety while maintaining deterrence under the Japan-US Security
Treaty. I think North Korea is well aware of this point." Koizumi
thus indicated that North Korea is not in a situation where it
will decide to launch a missile.

When asked if he would notify the people if the likelihood of a
missile launch were to increase, Koizumi pointed out, "I don't
think we are in such a situation," adding, "I think the
government's job is to take every possible measure to secure
safety."

10) US military to deploy PAC-3 in Okinawa in current fiscal year
against North Korea

NIHON KEIZAI (Page 1) (Full)
May 21, 2006

The governments of Japan and the United States decided May 20 to
deploy the US military's Patriot Advanced Capability-3 (PAC-3)
ground-to-air missiles at Kadena Air Base in Okinawa based on
their final agreement on the realignment of US forces in Japan.
The aim is to boost US deterrence against North Korean and
Chinese missiles. Japan and the US will aim at operation of the
system in the current fiscal year.

The PAC-3-centered missile defense system is designed to detect
an enemy missile and intercept it before it lands. A sea-based
Aegis vessel will first fire a Standard Missile-3 (SM-3) at an
enemy missile flying outside the earth's atmosphere. In the event
the MS-3 misses the target, a ground-based PAC-3 will intercept
it in the terminal phase.

The PAC-3 has greater capability than the current PAC-2, which is
designed chiefly to intercept aircraft. Japan has decided to
deploy the PAC-3 at Air Self-Defense Force bases. The ASDF plans
to deploy the PAC-3 at its Iruma base in Saitama, Hamamatsu base
in Shizuoka, and others bases along with the US Kadena base.

There have been signs that a missile-testing facility in
northeastern North Korea has been preparing to launch what seems
to be a Taepodong-2 long-range ballistic missile. Japan and the
United States intend to swiftly deploy the PAC-3 in Japan against
such an unexpected event.

11) Gov't to cut spending on front line equipment to raise funds
for US force realignment

YOMIURI (Page 1) (Abridged)
May 20, 2006

The government has decided to review its current midterm defense
buildup plan (Chukibo) for five fiscal years from 2005 through
2009, totaling 24.24 trillion yen, and cut back on the budget for
front line equipment in order to secure resources related to
Japan's cost sharing for the realignment of US forces in Japan,
officials said yesterday. The government is now coordinating to
review the plan for the period of five fiscal years from 2007 or

TOKYO 00002790 007 OF 011


two fiscal years from 2008. The government will refer to a review
of the plan in a cabinet decision to be made soon in order to
implement a final report on the US military's realignment.

The United States has agreed to redeploy Marine Corps troops from
Okinawa to Guam in the process of realigning US forces in Japan.
The US government estimates this Marine relocation at 10.27
billion dollars, equivalent to 1.14 trillion yen in the fiscal
2006 budget. Japan, in its cost sharing for the relocation of
Marine troops to Guam, is to pay 6.09 billion dollars or 676
billion yen, including 2.8 billion dollars or 310.8 billion yen
to be outlaid from the state coffers and 1.5 billion dollars or
166.5 billion yen to be invested.

Meanwhile, the Defense Agency estimates the cost of realignment
of US military bases in Japan at approximately 1.5-2.0 trillion
yen, including economic stimulus measures for base-hosting
localities. One official of the agency presumes Japan's share of
costs for the US military's realignment in Japan will total over
2.0 trillion yen. In this case, Japan will have to outlay more
than 200 billion yen on average each fiscal year so as to
complete the force realignment in 10 years or so.

The Defense Agency wants to set up a separate budget slot for the
government as a whole to make up for these realignment costs as
in the case of costs related to the Special Action Committee on
Facilities and Areas in Okinawa (SACO). However, the Finance
Ministry insists that the Defense Agency should handle the force
realignment within the framework of its own budget slot.

However, the Defense Agency has shown understanding on reviewing
the midterm defense buildup plan and reducing its budget to a
certain extent for front equipment.

The current midterm defense buildup plan requires the government
to review itself in 2007 as needed for the remaining period of
two fiscal years. The Defense Agency says it still cannot grasp
the total amount for Japan's cost sharing at this point. For this
reason, the agency insists that the plan should be reviewed in
fiscal 2007 as stipulated in the plan. However, the Finance
Ministry has asked the Defense Agency to review the defense
buildup plan one year earlier than scheduled.

The Defense Agency thinks that the current defense buildup plan's
spending cuts would be limited because many of the government's
planned large-scale projects are scheduled for fiscal 2010 or
later, including the project of building an alternative facility
at more than 300 billion yen for the relocation of the US Marine
Corps' Futenma Air Station in the city of Ginowan, Okinawa
Prefecture.

12) Japan, US agree to open a portion of Yokota RAPCON to
commercial flights, now 190 flights per day; Flight time likely
to be shortened by 1 minute

NIHON KEIZAI (Page 39) (Excerpts)
May 20, 2006

The Japanese and US governments agreed at a meeting yesterday of
the commercial flights subcommittee under the Japan-US Joint
Committee to open possibly as early as this autumn a portion of
the airspace now controlled by the US military in Japan, commonly

TOKYO 00002790 008 OF 011


called "Yokota radar approach control" (Yokota RAPCON),to
commercial flights. This move came as a stopgap measure ahead of
the implementation of the agreement already reached between the
two governments to return a part of the Yokota airspace by
September 2008 as the numbers of landings and takeoffs by
airliners at Haneda Airport will increase, following the
completion of its expansion project.

According to the Ministry of Land, Infrastructure, and Transport
and also other government offices concerned, Yokota RAPCON covers
airspace above Tokyo and eight prefectures, and its highest
altitude is about 7,000 meters. Commercial flights from Haneda
Airport are forced to pass over it to avoid the airspace, and
commercial flights heading for Haneda and Narita airports are
forced to take a detour to avoid the airspace.

The United States has now allowed commercial airplanes to fly in
the upper airspace covering 600 meters ranging from around Eda in
Yokohama City to around Sagami Bay, if there are no military
necessities. This move will affect the flight routes of 190
flights per day departing from Haneda Airport to head for the
Hokuriku, Chugoku, Shikoku, and northern Kyushu regions. With
this partial opening of the Yokota airspace, each flight can
shorten its flight time by one minute or so.

13) Coordination underway for Japan-US summit on June 29; Chance
to publicize good bilateral ties to audiences at home and abroad

SANKEI (Page 2) (Excerpts)
May 21, 2006

The governments of Japan and the United States are now
coordinating to set up a summit meeting between Prime Minister
Junichiro Koizumi and President George W. Bush on June 29 in
Washington. Koizumi intends to underscore the "alliance in the
world" theme in this, his last visit to Washington as a Japanese
prime minister prior to stepping down in September.

With the long-standing issue of realigning the US forces in Japan
now resolved, as well as the possible resumption of US beef
imports before the prime minister's visit to Washington, the
summit will become an opportunity for the two leaders to show
audiences at home and abroad the good state of bilateral ties.
The leaders will exchange views on such issues as when Japan will
withdraw its Self-Defense Forces from Iraq, the East Asia
situation, including China and North Korea, Iran's nuclear
development, and reform of the United Nations.

Koizumi will attend a dinner party hosted by the president and
his wife. The two governments are now looking into a plan for
Koizumi to visit the residence of his favorite singer, Elvis
Presley, in Memphis, Tennessee.

14) Sakie Yokota, mother of Megumi Yokota who was abducted by
North Korea, says, "I want the prime minister to take even half
of the action that US president took"

YOMIURI (Page 4) (Full)
May 20, 2006

At a meeting on May 19 of a group of nonpartisan Diet members
working on abductions by North Korea, Sakie Yokota, the mother of

TOKYO 00002790 009 OF 011


Megumi Yokota, one of those Japanese abducted by North Korea,
made a specific request of Prime Minister Junichiro Koizumi:

"Even if he only does half of what US President Bush did, I would
like Prime Minister Koizumi to clearly speak to the public about
his eagerness to resolve the abduction issue. I want him to take
visible action."

She then expressed her displeasure with him, stating, "I wanted
to meet him, but he has yet to give me that chance."

In response to her remarks, Koizumi told reporters on the night,
"I have been deeply impressed by the activities taken by Mr. and
Mrs. Yokota. The government will make its utmost efforts to help
them."

15) Government mulling continued cuts in ODA, defense spending
for another five years starting in next fiscal year's budget

NIHON KEIZAI (Page 1) (Full)
May 22, 2006

The government and the ruling camp have started looking into the
possibility of cutting official development assistance (ODA) and
defense-related expenditures from the general-account budget for
five years starting in the next fiscal year's budget. ODA and
defense expenditures have been subject to cuts since fiscal 2002.
The government and the ruling parties intend to maintain this as
a basic policy even after Prime Minister Koizumi steps down in
September. Since concerned government agencies and ruling party
members will likely oppose such a policy, talks to coordinate
views of concerned government agencies will likely encounter
complications.

The Liberal Democratic Party (LDP) Spending Reform Project Team,
chaired by Policy Research Council Chairman Hidenao Nakagawa,
will launch full-fledged talks on the handling of ODA and defense
expenditures at by-selective committees, headed by former
Minister of Education, Culture, Sports, Science, and Technology
Takeo Kawamura, starting this week. The Council on Economic and
Fiscal Policy will also simultaneously discuss the same issue
with the aim of having the continuation of the downward trend
reflected in the 2006 basic policy guidelines on economic and
fiscal management and structural reforms to be compiled in June.

The current fiscal year's ODA budget has been slashed for the
seventh year in a row to 759.7 billion yen, down 3.4% from the
previous year in general account terms. The dominant view in the
government and the ruling bloc is that the efficiency of ODA-
financed projects should be enhanced through intensive
appropriation of funds to strategic areas, such as environment-
related areas or the use of nonprofit organizations. Talks will
likely focus on a 3% cut for the next fiscal year.

The prime minister has pledged to the international community an
increase in ODA to a total of 10 billion dollars over the next
five years in terms of the number of projects. As such, the
government plans to tap fiscal investment and loan funds to
finance such ODA projects so that an increase of ODA
appropriations from the general-account budget can be avoided.

The fiscal 2006 defense-related budget will likely be cut for the

TOKYO 00002790 010 OF 011


fourth consecutive year to 4.8139 trillion yen, down 0.9%, even
if appropriations for SACO (Japan-US Special Action Committee on
Okinawa)-related spending are included. In view of the prospect
that the total share of Japan in the cost of USFJ realignment,
which is estimated to reach 3 trillion yen over the next six
years, will be added to the defense budget, the prevailing view
in the government and the ruling camp is that it would be
unavoidable to continue to cut defense-related expenditures,
except for appropriations for USFJ realignment.

16) Prime minister: "The government will follow experts'
decision," with eye on upcoming Japan-US summit

SANKEI (Page 3) (Excerpts)
May 20, 2006

Speaking before reporters last night, Prime Minister Junichiro
Koizumi stated about a resumption of US beef imports: "We want to
follow the experts' decision. Once both sides agree to import
conditions, Japan will resume imports." Many observers see that
the government's agreement on May 19 reflects its desire to
resolve the issue before the Japan-US summit scheduled for late
June, though government officials deny this. The agreement is in
a sense a "political settlement."

In the Japan-US talks held before Japan resumed imports last
December, they devoted considerable time to assessing the safety
of US beef. This time, the focus of discussions was on import
conditions, including auditing and snap inspections at meat-
processing facilities in the US.

On the US side, President Bush has indicated expectations for an
early resumption of imports, and in the Congress dissatisfaction
is also growing. Some government officials are overheard
murmuring that if the import ban drags on, the problem of food
safety might develop into a trade dispute between Japan and the
US.

Under such a situation, Prime Minister Koizumi will leave for the
US in late June. He has envisioned that during their meeting, he
and President Bush will reconfirm the Japan-US alliance in a
global context and underscore the importance of Japan-US ties.
The prime minister, who has built personal relations of trust
with Bush, apparently has a desire to see the thorny beef issue
resolved and bilateral pending issues minimized before meeting
Bush.

17) Minshuto's Hatoyama criticizes government for agreeing to
resume US beef imports: Priority given to US president over the
food safety of the Japanese people

TOKYO (Page 2) (Full)
May 21, 2006

Secretary General Yukio Hatoyama of Minshuto (Democratic Party of

SIPDIS
Japan) gave speeches on May 20 in Nakazugawa City and other parts
of Gifu Prefecture. In them, he referred to the Japanese
government's decision to resume imports of US beef in mid-June,
linking it to Prime Minister Koizumi's planned visit to the
United States in late June. He sharply criticized the government
for its response, saying: "When it came to choosing between the
relationship with President Bush and the safety and peace of mind

TOKYO 00002790 011 OF 011


(of the Japanese people),he chose the President and abandoned
the people."

Hatoyama stated: "In the previous decision (last November),as
well, the (decision in effect) to resume beef imports came just
before the President came to Japan. It's the same again, with the
Prime Minister all flustered just before his trip to Japan,
thinking that there is little time left in order to make the
decision (of beef) on time. I've never heard of a more stupid
thing than this!"

18) Fate of 2,000 tons of stored US beef still up in the air

YOMIURI (Page 2) (Full)
May 21, 2006

The government's ban on US beef imports in January has left about
2,000 tons of the meat stored in freezers or refrigerators across
the nation since it cannot clear customs. The government imposed
a second ban after a specified material risk that could transmit
BSE was found in a US beef shipment to Japan.

In a meeting of experts from the Japanese and US governments on
May 19, both sides reached broad agreement to resume imports in
July at the earliest. But they have not yet decided on how to
deal with the stored beef. A document released after the meeting
just noted: "No problem was found with the stored beef as a
result of an examination of records."

The government expects to set a policy to handle the stored beef
before it officially decides to resume imports in mid-June. Even
if the beef were to clear customs and be placed on the market,
however, it is uncertain whether wholesalers would purchase it.
The trading firms involved have been in a great quandary.

19) Dairy cow in Hokkaido identified as 27th domestic case of BSE

TOKYO SHIMBUN (Page 3) (Full)
May 20, 2006

The Ministry of Agriculture, Forestry, and Fisheries yesterday
announced that a dairy cow that had tested positive in the first
BSE test finally checked out positive in the second test. This is
the 27th domestic case of BSE.

The cow's meat and internal organs have been incinerated. They
had not been placed on the market.

The cow is a female Holstein aged five years and eight months. It
had been bred in Toyosu Town and died on May 16. The first test
conducted by the Hokkaido Tokachi Livestock Hygiene Service
Center tentatively turned out positive. The final test at the
Animal Hygiene Service Center in Ibaraki Prefecture also turned
out positive.

The cow was born in August 2000 before the use of meat and bone
meals was banned in 2001.

SCHIEFFER