JAPANESE MORNING PRESS HIGHLIGHTS 05/25/06

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E.O. 12958: N/A TAGS: OIIP KMDR KPAO PGOV PINR ECON ELAB JA SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 05/25/06 Index: 1) Top headlines 2) Editorials 3) Prime Minister's daily schedule Ambassador's diplomacy: 4) Sakie Yokota thanks Ambassador Schieffer for opportunity to meet President Bush 5) Ambassador Schieffer nixes US interference in Yasukuni issue Political agenda: 6) Yamasaki faction favors removal of Class-A war criminals from Yasukuni Shrine 7) Chairman of Bereaved Family Association Koga of the LDP rejects idea of turning Yasukuni Shrine into a state-run facility 8) In Diet deliberations on amendments to Basic Education Law, government's replies cautious about issue of inculcating patriotism in kids 9) LDP putting off hike in consumption tax with future election in mind 10) Minshuto (Democratic Party of Japan) lines up new set of four issues to pursue ruling camp in Diet 11) LDP's Kyuma: Diet extension of a week or so will only be needed 12) Chief Cabinet Secretary ABE will announce his candidacy for LDP president in July after the G-8 summit 13) Politicians squandering taxpayers' money with lavish meals at posh restaurants: Asahi investigation 14) Friendly mood seems to be slowly returning to Japan-China relations with meeting of foreign ministers after a year's hiatus Defense issues: 15) Cabinet decision on USFJ realignment process put off until after the Pacific Islands Summit 16) Commander US forces Japan asks that the entirety of USFJ realignment be looked at in assessing whether the cost is high or not 17) Japan to call for a new forum to discuss commercial whaling outside the IWC 18) New Keidanren chief stresses need for Japan to develop own technologies Articles: 1) TOP HEADLINES Asahi: In FY2002, 2003, 50 million yen used for wining and dining in funds for lawmakers' state affairs Mainichi: Pension fund federation to oppose renewal of audit contract with ChuoAoyama ; Yomiuri: National Examination Center scored tests despite erroneous entries for 23 years TOKYO 00002875 002 OF 010 Nihon Keizai: LDP likely to forgo inclusion of consumption tax hike in fiscal 2007 tax reform proposal Sankei: Abe to announce candidacy for LDP presidential race after G-8 Tokyo Shimbun: Japan Post books 1.9 trillion yen in profit in business year ending in March 2006 2) EDITORIALS Asahi: (1) Japan-China foreign ministerial: Importance of bilateral ties underscored through one year of diplomatic vacuum (2) Deliberations on Basic Law on Education: Minshuto plan also contains problems Mainichi: (1) Is it impossible to restore relations with neighbors under Koizumi administration? (2) Banks' earnings reports: Priority must be given to customers' benefits Yomiuri: (1) Dialogue necessary to resolve pending issues with China, South Korea (2) Social Insurance Agency must correct lax system Nihon Keizai: (1) Mitarai should lead Keidanren based on principles (2) Hoping for improved relations with China, South Korea Sankei: (1) Foreign ministerials with China, South Korea: Recognizing differences is important (2) Social Insurance Agency must rectify bad practices Tokyo Shimbun: (1) Japan-China foreign ministerial a turning point for improving bilateral ties (2) New Keidanren Chairman Mitarai expected to demonstrate bold, clear-cut posture 3) Prime Minister's Official Residence (Kantei) Prime Minister's schedule, May 24 NIHON KEIZAI (Page 2) (Full) May 25, 2006 08:07 Met Deputy Chief Cabinet Secretary Nagase at Kantei. 09:00 Attended a meeting of the Lower House Special Committee on the Basic Education Law. 14:14 Met with Malaysian Prime Minister Abdullah at Kantei. TOKYO 00002875 003 OF 010 15:02 Met with Indonesian Vice President Kalla. 15:53 Attended the 5th regular general meeting of Nippon Keidanren (Japan Business Federation)) at Keidanren Hall in Otemachi, Tokyo. 16:07 Attended a tea ceremony at the Imperial Palace, along with the Emperor, the Empress, and visitors from Singapore and Thailand. 17:34 Met at Kantei with members of Japan-ROK and ROK-Japan businessmen conferences, including the ROK-Japan Businessmen Conference chairman. Later, met Secretary General Takebe. 18:37 Attended a Central Institute of Politics seminar 2006 at LDP headquarters. 18:53 Arrived at residence. 4) Sakie Yokota to US ambassador to Japan: "I'd like to thank you for arranging a meeting with the US president" YOMIURI (Page 37) (Full) May 25, 2006 Sakie Yokota, mother of abductee Megumi Yokota, yesterday called on US Ambassador to Japan Thomas Schieffer, who played a key role behind the scenes in arranging a meeting between Sakie and US President Bush in April, and expressed her gratitude to the ambassador. Attending a lecture meeting in Tokyo where the ambassador delivered a speech, Sakie said to Shieffer: "I can't thank you enough for our having had an opportunity to convey our sorrows to President Bush." Schieffer told Yokota, "As a longtime friend of President Bush, I was sure the president would be moved by Mrs. Yokota's story," indicating a rising interest in the abduction issue in the US government. It is said that the meeting between President Bush and Sakie was realized largely because of Schieffer's advice to the president. Schieffer and Bush have been close friends since before Bush went into politics. Schieffer has been actively addressing the abduction issue. For instance, this March he was the first US government official to inspect the scene of Megumi's abduction in Niigata City. 5) US will not meddle in shrine visit issue, US ambassador to Japan says SANKEI (Page 3) (Full) May 25, 2006 US Ambassador to Japan Schieffer, attending a meeting yesterday of the Japan-US Forum of the International Friendship Exchange Council, emphasized that his country's conventional stance of not interfering in the issue of Prime Minister Junichiro Koizumi's TOKYO 00002875 004 OF 010 visits to Yasukuni Shrine had not changed. "Whether or not to visit the shrine is a matter for Japan will decide and not a matter for the United States and others to say do as I tell you," he stated. Schieffer noted: "East Asia has seen the emergence of the unprecedented phenomenon of two major powers (Japan and China) standing side by side. Even without the Yasukuni issue, apprehensions and tensions could rise." He then stressed the importance of the Japan-US alliance contributing to bringing stability to the region. The Ambassador added: "While Japan-US relations are in remarkably good shape, US-China relations have also improved. It's incorrect to say that improving diplomatic ties with a certain country comes about at the expense of relations with another country." 6) Koga calls for separate enshrinement at Yamasaki faction meeting, possibly with cooperation with Yamasaki in mind YOMIURI (Page 4) (Full) May 25, 2006 The Yamasaki faction of the Liberal Democratic Party held a policy study meeting yesterday by inviting former Secretary General Makoto Koga, who is also head of the Niwa-Koga faction. Explaining his policy proposal for unenshrining Class-A war criminals from Yasukuni Shrine, Koga said: "In order to allow people to pay homage at Yasukuni Shrine comfortably, we cannot avoid the question of separate enshrinement." Some Yamasaki faction members, including Lower House member Katsuei Hirasawa, said, "In reality, it is difficult to unenshrine them." But Koga sought their understanding, saying: "I believe the advancement of this idea will help spread the concept among the people." Former LDP Vice President and Yamasaki faction head Taku Yamasaki and Koga intend to put high priority on Asia diplomacy with the LDP presidential election in September in mind. Some observers regard the move as part of cooperation between Yamasaki and Koga for the presidential race. 7) Bereaved Families Association Chairman Koga opposes state support of Yasukuni Shrine ASAHI (Page 4) (Full) May 25, 2006 Bereaved Families Association Chairman Makoto Koga, a former secretary general of the Liberal Democratic Party, attended a SIPDIS meeting yesterday of a policy study group of the Yamasaki faction of the same party. He there expressed his view opposing thinking in the party of placing Yasukuni Shrine under "state protection," under which it would lose its credentials as a religious institution. He said: "As a member of a bereaved family that lost loved ones in battle, I cannot approve of such thinking. It would remain as Yasukuni Shrine." 8) Education reform bill: Government carefully answers to question about patriotism, "Assessing children's minds is not purpose of revision" TOKYO 00002875 005 OF 010 MAINICHI (Page 2) (Excerpts) May 25, 2006 The House of Representatives Special Committee on the Basic Education Law started yesterday deliberations on bills revising the education law, centering on the description of "patriotism," as well as effects on schools. Opposition parties expressed concern that teaching students to take an attitude of loving the nation and homeland, which is included in the government- sponsored bill, might infringe on the freedom of thought. Kenji Kosaka, minister of education, culture, sports, science and technology, responded cautiously, "Assessing whether students have patriotism is not the purpose of revising the law." 9) LDP likely to forgo inclusion of consumption tax-hike plan in fiscal 2007 tax reform proposal, out of concern about impact on Upper House election next year NIHON KEIZAI (Top Play (Excerpts) May 25, 2006 The Liberal Democratic Party's Tax System Research Commission, chaired by Hakuo Yanagisawa, is likely to stop short of stipulating a hike of the consumption tax rate in its fiscal 2007 tax reform proposal. In the ruling party, many have voiced concern about the negative effect of a tax hike on the House of Councillors election slated for July of next year. In addition, some members have also suggested that the best timing for the tax should be worked out for the first time after the panel paves the way for revenue and spending reforms. The possibility is now strong that the tax-hike decision will be made in the summer of next year or after. The LDP tax panel noted in its tax reform proposal for fiscal 2006 released late last year: "The nation's tax system, including the consumption tax, will be boldly reformed in fiscal 2007." In line with debates on revenue and spending reform in the government and the ruling camp, the panel has engaged in discussing how to promote the sweeping reform of the tax system. However, Fumiaki Ibuki, chairman of a subcommittee of the LDP panel, told reporters yesterday: "(Fiscal 2007) takes on meaning if we show a timetable for implementing reform plans." He thus referred to the possibility that the commission will only discuss a timetable for future reform plans without stepping into the margin of tax hike in debates on a fiscal 2007 tax reform proposal due out late this year. 10) Minshuto to turn up the heat on ruling coalition with new set of four issues SANKEI (Page 5) (Excerpts) May 25, 2006 For the main opposition party, Minshuto (Democratic Party of Japan) the issue of illegal handling of national pension premiums payments by a social security office has now become a new weapon to attack the government and ruling coalition. At a Lower House Health, Labor, and Welfare Committee session yesterday, Minshuto posed questions about this issue alone. At the second half of the current Diet session, the party intends to attack the government TOKYO 00002875 006 OF 010 and ruling camp with a set of four issues: making "conspiracy a crime; education reform, national referendum for constitutional reform, and illegal pension payments. At the committee session yesterday, Kazunori Yamanoi pursued Social Insurance Agency Director General Seiji Murase's responsibility, arguing, "Don't you think the target of (rate of pension premium payments) was impossible?" Murase responded, "I don't think I ordered my staff to ignore statutes." However, Jiro Kawasaki, the minister of health, labor and welfare, has admitted that the wrongdoing was practiced with the consent of the social insurance office. He then said that a new Social Insurance Agency, which will be established after the present agency is abolished, would not hire malicious officials. The Health, Labor and Welfare Ministry intends to put an end to the scandal by coming up with measures to prevent a recurrence such as personnel changes across the nation before the establishment of the new organization. It is true that this scandal has become a good tool to attack the government and ruling camp. 11) Kyuma: "Diet session will be extended for about a week" YOMIURI (Page 4) (Full) May 25, 2006 Liberal Democratic Party General Council Chairman Fumio Kyuma delivered a speech in Fukuoka yesterday in which he said regarding the ongoing Diet session: "Considering the prime minister's diplomatic schedule (US visit),the session may not be extended substantially." Kyuma thus predicted that the Diet session would be extended for a week at most. 12) ABE to announce candidacy for LDP presidential race probably in July YOMIURI (Page 1) (Excerpts) May 25, 2006 Chief Cabinet Secretary SHINZO ABE indicated yesterday in a speech that he would announce his candidacy for the September Liberal Democratic Party (LDP) presidential election after the Group of Eight summit that takes place in St. Petersburg, Russia, in mid-July. He stated: "I will continue to fulfill my duty as chief cabinet secretary, and then decide what I should do next. The Diet is now in session and the G8 summit will be held. I will have to think about when to announce (my candidacy) sometime in the future." Asked how he felt about his high rating in opinion polls as a possible candidate to succeed Prime Minister Junichiro Koizumi, Abe said, "I feel honored and I would like to achieve results that meet everyone's expectations." Citing constitutional revision as a future political task, he said, "I have no doubt that that will become a major challenge for the next cabinet." Abe has already told his aides he intends to run in the LDP TOKYO 00002875 007 OF 010 leadership race. After a series of political events -- the drafting in June of " big-boned reform policy guidelines" for economic and fiscal policy and structural reform, Prime Minister Koizumi's visit to the United States, and the G8 summit -- he intends to announce his candidacy, pledging that he will continue the Koizumi reforms. 13) Lawmakers held meetings at restaurants, drawing 50 million yen from national administration research expenses; Lower House data for fiscal 2002 and 2003 unveiled for first time; Chief secretariat returned part of money he spent SIPDIS ASAHI (Top Play) (Excerpts) May 25, 2006 National administration research expenses are funded by tax revenues for use by lawmakers when they conduct research on national politics. Data obtained by the Asahi Shimbun through access to official files found that the Lower House disbursed a total of approximately 100 million yen to lawmakers in fiscal 2002 and 2003 to be used for their meetings and about half that mount was used for wining and dining at posh traditional Japanese- style restaurants or snack bars. The current Information Disclosure Law does not cover the Diet, because it limits information subject to disclosure to such held by administrative organizations. The Asahi Shimbun asked the Board of Audit to disclose expenditure-related documents received from the Lower House. This is the first time that the overall use of expenses for national administration research was unveiled. In an interview with the Asahi Shimbun, Yoshihiro Komasaki, chief of the Secretariat of the Lower House, said, "We are fully aware that it is absolutely impossible to obtain an understanding of this." He revealed that he last weekend voluntarily returned 940,000 yen disbursed from national administration research expenses, which he made settlement himself after taking office in November 2003 and used for wining and dining outside the Lower House. According to the Finance Ministry, as national politics research expenses the Lower House paid out 2.87477 billion yen in fiscal 2002 and 2.67854 billion yen in fiscal 2003. The data the Asahi Shimbun obtained unveiled that of those amounts, the Lower House disbursed 45.1 million yen in fiscal 2002 and 49.87 million yen in fiscal 2003 for wining and dining. The above money was used for meals provided during committee meetings as well, but 23.17 million yen and 30.69 million yen were used in fiscal 2002 and fiscal 2003 respectively for meetings, which involved wining and dining. Meetings that involved wining and dining took place 71 times at hotels, 23 times at Japanese restaurants, including high-class traditional Japanese-style restaurants, and 20 times at snack bars. Hefty bills included one for 210,000 yen for wining and dining for three persons with 65,000 yen for each at a Japanese restaurant at Shinbashi, Tokyo. This "meeting" was held in October 2002 on the pretext of the speaker's meeting with the vice speaker and the former Die Steering Committee chairman. TOKYO 00002875 008 OF 010 In March 2003, the Lower House paid a total of 450,000 yen for wining and dining, which cost 55,000 yen per person, to a Japanese restaurant at Akasaka. The "meeting" was held on the pretext of a meeting between the speaker and the vice speaker. A total of 960,000 yen was paid for wining and dining during meetings held at snack bars to exchange information with Diet policy committee members of various political parties. Expensive meals, such as top-grade sushi or finest broiled eel on rice (unaju),were often served at various committee meetings. A Lower House source said that the speaker or the chairmen of various committees have the discretion on what types of meals should be served at meetings. Officials in charge take orders from lawmakers attending such meetings, places such orders with restaurants and sends bills to the account division for settlement. 14) Friendly mood played up in Japan-China foreign ministerial meeting, but no prospect in sight for resumption of summit meetings YOMIURI (Page 2) (Excerpts) May 25, 2006 Tetsu Okazaki, Doha; Hiroyuki Sugiyama, Beijing Japan and China held a foreign ministerial meeting yesterday for the first time in a year. "A friendly atmosphere never seen in the past several years prevailed at the meeting," a Foreign Ministry source noted. Both countries agreed to improve relations by expanding dialogues and to avoid any more clashes. But on the issue of Prime Minister Koizumi's visits to Yasukuni Shrine, all the two foreign ministers did in the meeting was to exchange statements of their respective principles, leaving open when to resume summit meetings. A friendly mood was displayed but it lacked a solid base. Talks held in a third country "We are neighbors, so it's not necessary for us to meet in a place far away from our countries...." Foreign Minister Aso made this remark to his Chinese counterpart Li Zhaoxing and drew laughs from both sides. Li told Aso, "Japan and China can enjoy more benefits if we two countries get along well, but both of us will be injured if both have a quarrel." The two foreign ministers confirmed that Japan and China would expand dialogues, such as on security and defense. After the meeting, Aso emphasized to the reporters: "A trend of improvement in Japan's ties with China is forming." China, however, conveyed this position to Japan in the process of arranging the meeting: "It's still difficult for the foreign ministers to visit each other, but it's possible to have a foreign ministerial in a third country." Thus, a foreign ministerial would not have been realized if it had not occurred in a third country. Yesterday, Aso explained to the reporters why China responded to the foreign ministerial meeting this time: "Our country's investments in China are starting to show negative growth, and this could have a great impact on (China's) economic growth. TOKYO 00002875 009 OF 010 China therefore thinks it is wise to (improve relations) with Japan. That country's sense of value is whether there is money to be made or not." 15) Government postpones cabinet approval of US force realignment; bills' enactment difficult ASAHI (Page 2) (Excerpts) May 25, 2006 The government has decided to postpone giving cabinet approval to the government's plan to implement US force realignment until after the 4th Pacific Islands Summit that will begin in Okinawa on May 26. The postponement is ascribable to Okinawa's strong resistance to the Defense Agency-drafted implementation plan. "The Pacific Islands Summit, which Prime Minister Junichiro Koizumi will also attend, may end up exposing the confrontation between the government and Okinawa," a Cabinet Office official said. This would make it extremely difficult for US force realignment bills regarding Japan's share in relocating Okinawa- based US Marines to Guam and other matters to clear the Diet unless the session is extended substantially. Koizumi has already told Defense Agency Director General Fukushiro Nukaga, "We don't have to give cabinet approval before leaving for Okinawa." Regarding a timeline for a cabinet decision in a press conference yesterday, Chief Cabinet Secretary SHINZO Abe said, "Nothing has been decided." Asked about if Koizumi would hold talks with the Okinawa governor on the sidelines of the Islands Summit, ABE also said, "A meeting is not scheduled, as far as I know." Calculating the Diet timetable backwards, the Defense Agency until now has intended to seek cabinet approval of the US force realignment-related bills before the Islands Summit. The agency has also been seeking Okinawa's understanding, presenting it with the draft plan for a cabinet decision. The draft plan defines the relocation site for Futenma Air Station as "waters connecting Cape Henoko, Oura Bay, and Henoko Bay," instead of specifying the construction of two runways in a V shape. The description reflects the government's consideration to Okinawa, which is reluctant to specify a "V shape." The government has decided to compile a construction plan by October, it has also decided to allow a consultative panel involving Okinawa and Nago officials to study the matter. But Okinawa, which is calling for a temporary heliport at Cape Henoko, reacted strongly to such a plan. On May 22, Vice Governor Hirotaka Makino conveyed Okinawa's views again to Deputy Chief Cabinet Secretary Masahiro Futahashi. 16) USFJ Commander Wright: Look at the entire picture in considering the burden of US force realignment in Japan ASAHI (Page 4) (Full) May 25, 2006 Commander of US Forces Japan Lt. Gen. Bruce Wright in a press conference in Tokyo yesterday stressed that in assessing Japan's share of the total cost of US force realignment in Japan which is estimated as 3 trillion yen, "You should look at the entire TOKYO 00002875 010 OF 010 picture of the burden on both countries before boiling it down to one number." He pointed out: "You should not just pay attention to such burdens as the construction costs in Guam, but also turn your eyes to the total burden placed on both governments in maintaining the US-Japan alliance, including personnel costs and training expenditures (for protecting Japan)." 17) Government to propose establishing new framework outside IWC with aim of resuming commercial whaling MAINICHI (Page 3) (Full) May 25, 2006 The government yesterday decided to set up outside the International Whaling Commission (IWC) a new framework consisting of countries that support the resumption of commercial whaling. It will release the plan at the annual plenary session of the IWC to be held St. Christopher & Nevis in the Caribbean Sea starting on June 16. The aim is to have the outcome of discussions on the proposal reflected in the IWC's stance. A senior Fisheries Agency official said, "We want to break the rigid situation in the IWC." The new framework will aim to complete the revised management system (RMS),which outlines procedures for catching whales without decreasing such number. Commercial whaling has been under temporary suspension since 1986. Discussions on the RMS have been continuing since the 1990s, but no breakthrough has been found due to oppositions from anti-whaling countries, such as Australia. Under such circumstances, the government has judged that little progress can be hoped for even if discussions under the IWC continue. The RMS can be initiated by a three-fourths majority or more. The government plans to hold a meeting of concerned countries to discuss specific ways to hold a meeting of such a group during the plenary session of the IWC. Some on the domestic front had taken the view from way back that Japan should opt out of the IWC or another international organization is necessary. Chances are that anti-whaling countries might toughen their opposition to Japan's move, arguing that it could lead to the establishment of a new organization. 18) Mitarai, successor to Keidanren Chairman Okuda, aims at making Japan a science-oriented nation TOKYO SHIMBUN (Page 1) (Excerpt) May 25, 2006 The Japan Business Federation (Nippon Keidanren) formally appointed Canon Inc. Chairman Fujio Mitarai, 70, as its new chairman to replace Hiroshi Okuda, 73, at a general meeting in Tokyo yesterday. He is the first chairman of the business lobby from the precision equipment industry. In an inaugural press conference, Mitarai said: "In order to make Japan an attractive, hopeful country for the people inside and outside Japan, I will make utmost efforts." He reiterated his determination to continue the reform line pushed ahead by Okuda. SCHIEFFER