DAILY SUMMARY OF JAPANESE PRESS 05/30/06

UNCLAS SECTION 01 OF 09 TOKYO 002964

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SUBJECT: DAILY SUMMARY OF JAPANESE PRESS 05/30/06


INDEX:

(1) FNN poll on Koizumi cabinet, political parties, post-Koizumi
race, Yasukuni homage, education law, constitutional revision

(2) Poll: 72% want Abe, Fukuda to run in post-Koizumi race

(3) What underlies relations between Abe and Fukuda as rivals for
LDP presidency (Part 4) - Diplomacy toward US, China: Playing up
personal connections with current and former ambassadors

(4) Hurdles still in store for Japan's early troop pullout from
Iraq

(5) Taro Kono issues manifesto for 2006 LDP presidential election
that calls for consumption tax revenues to cover basic pensions,
establishment of Ministry of Foreign Affairs and Trade

(6) METI new energy strategy presents numerical targets in five
sections, including cut in degree of dependence on oil to 40%

ARTICLES:

(1) FNN poll on Koizumi cabinet, political parties, post-Koizumi
race, Yasukuni homage, education law, constitutional revision

SANKEI (Page 5) (Full)
May 30, 2006

Questions & Answers
(Figures shown in percentage, rounded off.)

Q: Do you support the Koizumi cabinet?

Yes 42.6 (48.8)
No 40.7 (35.5)
Don't know (D/K) + Can't say which (CSW) 16.8 (15.8)

Q: Which political party do you support?

Liberal Democratic Party (LDP) 35.8 (42.1)
Democratic Party of Japan (DPJ or Minshuto) 21.9 (17.4)
New Komeito (NK) 3.6 (3.5)
Japanese Communist Party (JCP) 2.9 (2.9)
Social Democratic Party (SDP or Shaminto) 1.5 (1.9)
People's New Party (PNP or Kokumin Shinto) 0.1 (0.2)
New Party Nippon (NPN or Shinto Nippon) 0.1 (0.1)
New Party Daichi (NPD or Shinto Daichi) 0.1 (0)
Other answers (O/A) 0.6 (1.1)
None 31.6 (27.7)
D/K + Can't say (CS) 2.1 (3.2)

Q: Who do you think is most appropriate for post-Koizumi
leadership?

Taro Aso 4.0 (5.6)
Shinzo Abe 41.7 (47.0)
Sadakazu Tanigaki 1.6 (3.3)
Yasuo Fukuda 23.2 (18.3)
Taro Kono 1.4 (---)
Taku Yamasaki 0.8 (1.2)
O/A 15.5 (---)
D/K + inappropriate 12.0 (13.9)

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Q: Who do you think is most appropriate for prime minister among
Abe and Fukuda, reportedly likely post-Koizumi candidates, and
DPJ President Ichiro Ozawa?

Abe 40.8 (48.7)
Fukuda 20.8 (19.4)
Ozawa 21.7 (14.1)
D/K + inappropriate 16.8 (18.0)

Q: Do you think the outcome of the post-Koizumi race is up to
each LDP faction's move?

Yes 50.1
No 32.7
D/K+CSW 17.3

Q: Abe and Fukuda belong to the Mori faction in the LDP. Would
you like both Abe and Fukuda to run in the LDP presidential
election?

Yes 72.0
No 13.8
D/K+CSW 14.3

Q: What do you think will be the primary point at issue in the
post-Koizumi race?

Foreign policy, national security 21.0
Economic disparities 16.3
Economic policy 13.2
Administrative, fiscal reforms 7.7
Pension, other social security systems 23.7
Education, low birthrate 8.6
O/A 5.4
D/K+CS 4.2

Q: Do you think the next prime minister should pay homage at
Yasukuni Shrine?

Yes 29.5 (38.0)
No 50.6 (43.6)
D/K+CSW 20.0 (18.5)

Q: Do you think Prime Minister Junichiro Koizumi should pay
homage at Yasukuni Shrine on Aug. 15 this year?

Yes 32.1
No 51.7
D/K+CSW 16.2

Q: Do you think DPJ President Ozawa has changed?

Yes 34.8
No 43.8
D/K+CSW 21.5

Q: Do you think the Diet should pass a government-introduced bill
at its current session to amend the Fundamentals of Education
Law?

Yes 32.2
No 45.5

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D/K+CSW 22.4

Q: A government-introduced bill to amend the Organized Crime
Punishment Law incorporates charges for conspiracy. Do you
support this legislation?

Yes 44.2
No 35.5
D/K+CSW 20.4

Q: Do you think the Diet should pass national referendum
legislation at the current session for amendments to the
Constitution of Japan?

Yes 37.1 (38.1)
No 39.8 (36.5)
D/K+CSW 23.2 (25.5)

(Note) Parentheses denote the results of the last survey
conducted in April.

Polling methodology: The survey was conducted by Fuji News
Network (FNN) on May 27-28 over the telephone on a computer-aided
random digit dialing (RDD) basis. For the survey, a total of
2,000 persons were sampled from among males and females, aged 20
and over, across the nation.

(2) Poll: 72% want Abe, Fukuda to run in post-Koizumi race

SANKEI (Page 2) (Abridged)
May 30, 2006

An overwhelming majority or 72% of the Japanese public would like
both Chief Cabinet Secretary Shinzo Abe, 51, and one of his
predecessors in the CCS post, Yasuo Fukuda, 69, to run in the
ruling Liberal Democratic Party's presidential election set for
September this year to pick Prime Minister Junichiro Koizumi's
successor, according to findings from a public opinion survey
conducted by Fuji News Network (FNN) on May 27-28. Abe stood at
41.7% support, with Fukuda at 23.2%. Meanwhile, Foreign Minister
Taro Aso, 65, Finance Minister Sadakazu Tanigaki, 61, and all
other post-Koizumi candidates had low public support. The post-
Koizumi race is likely to be a one-on-one contest between Abe and
Fukuda.

In the survey, respondents were asked to select the person who
they thought would be appropriate for prime minister after
Koizumi. Abe was down 5.3 percentage points from the last survey
conducted in April but remained at the top. Fukuda was up 4.9
points, narrowing his margin with Abe to 18.5 points. Among other
post-Koizumi candidates, Aso marked 4%, with Tanigaki standing at
1.6%, Senior Vice Justice Minister Taro Kono, 43, at 1.4%, and
former LDP Vice President Taku Yamasaki, 69, at 0.8%.

Respondents were also asked if they thought the next prime
minister should pay homage at Yasukuni Shrine. In response to
this question, 50.6% answered "no," with 29.5% saying "yes."
Respondents were further asked if they thought Koizumi should pay
homage at Yasukuni Shrine on Aug. 15 this year. In response, "no"
accounted for 51.7%, with "yes" reaching 32.1%.

The approval rating for the Koizumi cabinet was 42.6%, down from
the 48.8% rating in the last survey. The disapproval rating was

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40.7%, The margin between the approval and disapproval ratings
has narrowed to 1.9 points. In the breakdown of public support
for political parties, the LDP fell 6.3 points to 35.8%.
Meanwhile, Ichiro Ozawa, 64, is at the helm of the leading
opposition Democratic Party of Japan (Minshuto),and his party
rose 4.5 points to 21.9% in public support.

(3) What underlies relations between Abe and Fukuda as rivals for
LDP presidency (Part 4) - Diplomacy toward US, China: Playing up
personal connections with current and former ambassadors

MAINICHI (Page 2) (Full)
May 29, 2006

On April 18, Chief Cabinet Secretary Shinzo Abe telephoned US
Ambassador to Japan Thomas Schieffer. This phone call was
intended for Abe to make a push to realize a meeting between
abductee Megumi Yokota's mother Sakie and US President George W.
Bush when Sakie visited the United States. Abe also told his
longtime American friend, Deputy National Security Advisor Jack
Crouch: "The meeting, if realized, could be taken as a symbolic
event in Japan-US cooperation on the abduction issue." An
official at the Japanese Embassy in the United States gave this
testimony: "Mr. Schieffer's direct call to the president in
response to Mr. Abe's request was pivotal in realizing that
meeting."

Abe's response to the abduction issue has boosted his public
support as a candidate to succeed Prime Minister Koizumi.
Schieffer has shown an interest in the abduction issue and
recently visited an abduction site in Niigata Prefecture. The
ambassador has apparently been an important channel for Abe to
make contact with the Bush administration.

Meanwhile, former Chief Cabinet Secretary Yasuo Fukuda in a
speech delivered on May 27 criticized Koizumi's repeated visits
to Yasukuni Shrine: "It's unwise to have a quarrel (in the area
of foreign affairs)." The implication is that how to rebuild the
currently icy relations with China will be an issue in the LDP
presidential election.

Fukuda's China connections are symbolized by his ties with
Chinese Ambassador to Japan Wang Yi. Last October, a China-Japan
friendship concert was given at the Tokyo International Forum.
Participants in the concert included Japanese singers who are
popular in China, such as Risa Natsukawa and Noriko Sakai. Some
5,000 persons attended, most of whom were Chinese living in
Japan. In the audience were Chinese Ambassador Wang Yi and his
wife and Fukuda and his wife. A Chinese daily for Chinese
residents living in Japan gave big play to the photo of Fukuda
and his wife. Wang and former Chinese Ambassador to Japan Wu
Dawei put high confidence in Fukuda. Veteran Diet members
critical of Koizumi's visits to Yasukuni Shrine are looking
forward to Fukuda's announcement that he will run in the
presidential race.

Diplomacy has rarely been a campaign issue in past LDP
presidential elections. But the upcoming election seems somewhat
different. How to advance Asia diplomacy will likely be made an
issue for the first time in the 34 years since the so-called
"Kaku-Fuku (former Prime Ministers Kakuei Tanaka and Takeo
Fukuda) war" in 1972, when Tanaka and Fukuda locked horns over
the question of whether to normalize diplomatic ties with China.

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However, it is not safe to simply conclude that Abe stresses
strong ties with the US while Fukuda puts emphasis on relations
with China. There is also a competition between them over their
personal connections.

Evidence of this was seen in Fukuda's visit this month (May) to
the US. During his stay in the US, Fukuda, who does not presently
hold a cabinet post, was able to meet with key US administration
officials, including Vice President Dick Cheney and Secretary of
State Condoleezza Rice. These meetings were realized under the
auspices of former US Ambassador to Japan Howard Baker, with whom
Fukuda enjoys a relationship of trust he built while he was in
office as chief cabinet secretary. Baker invited Fukuda to his
residence. Fukuda boarded Baker's private jet to visit his
residence in Tennessee. Looking back on past events, a senior
Foreign Ministry official commented: "When Japan's foreign policy
was in chaos during the days of Foreign Minister Makiko Tanaka,
Fukuda served as de facto foreign minister. At the time, things
were decided between Mr. Fukuda and Mr. Baker." The Bush
administration's red-carpet treatment toward Fukuda during his
recent visit to the US helped alter Fukuda's image of tilting
toward China.

On the other hand, Abe, portrayed as a hard-liner toward China,
has also kept channels of contact with Beijing. On Feb. 10, Abe
met with Chinese Vice Foreign Minister Dai Bingguo. Their meeting
lasted for more than one hour. On Feb. 13, Abe met with Jing
Dunquan, chairman of the China-Japan Friendship Association. Abe
frankly told Jing: "Having talks is important for improvement in
relations. Meetings can help understand the other side well and
dispel misconceptions." China, in protest against Koizumi's
visits to Yasukuni Shrine, has refused to hold a summit between
President Hu Jintao and Koizumi. On the other hand, China has
kept in contact with the so-called post-Koizumi candidates. For
instance, a senior Chinese government official met with Abe to
"candidly exchange in-depth views," according to Vice Minister
Dai.

(4) Hurdles still in store for Japan's early troop pullout from
Iraq

TOKYO SHIMBUN (Page 2) (Full)
May 29, 2006

The government is accelerating international coordination to
withdraw Ground Self-Defense Force troops currently deployed in
the southern Iraqi city of Samawah. In the wake of Iraq's recent
establishment of a permanent government, there are now high hopes
within the Japanese government for setting about the GSDF's
pullout as early as June. However, the Iraqi government's new
cabinet has yet to be fully filled. Iraq cannot be expected to
recover public security from its ongoing turmoil. There are still
many hurdles to clear before the GSDF's pullout.

Iraqi Prime Minister Maliki, who heads the newly established
government, has indicated that the multinational force can
transfer its security powers to Iraq's police forces as early as
June in the province of Al-Muthanna, which includes Samawah. This
is why the Japanese government is expecting to recall the GSDF
troops at an early date.

The government plans to recall the Samawah-based detachment of
GSDF troops early this fall. If the multinational force's

TOKYO 00002964 006 OF 009


security powers are actually transferred to Iraq, the GSDF will
move up its pullout schedule and will begin its pullout as early
as late June. The GSDF can also expect to move all its Samawah-
based troops to Kuwait in July. Britain and Australia also have
troops in Samawah, so Japan is now coordinating with these two
countries to withdraw in concert.

The government wants to begin the GSDF pullout in June. This
timetable, however, is "only based on an optimistic view" that
everything goes well, according to one government official. The
present situation in Iraq still does not satisfy government-set
conditions for the GSDF to pull out.

Japan has made it a general principle to decide on when to
withdraw the GSDF troops in light of the political process in
Iraq, the progress of reconstruction, the security situation in
Iraq, and trends involving other countries' troops. The political
process is about to meet one of the Japanese government's
preconditions for the GSDF's withdrawal. However, the Iraqi
cabinet has yet to appoint some key ministers, including the
interior minister, who is in charge of public security.

Samawah is said to be comparatively safe. In mid-May, however,
local police came under attack. Maliki's statement is apparently
considerate of Iraqis who do not want the multinational force to
stay on.

In the meantime, what is most likely to affect the timing for
Japan's troop pullout is the United States, which wants Japan to
keep its troops deployed in Iraq.

"Japan will continue its assistance with Iraq's nation-rebuilding
efforts after the GSDF's withdrawal from Samawah," Prime Minister
Junichiro Koizumi has reiterated. This is a message addressed not
only to the Iraqi government but also to the US government.

Japan has already announced its commitment to loans worth
approximately 80 billion yen for Iraq. The Air Self-Defense Force
will continue its airlift missions. From now on, the ASDF will
extend its transport flights to the capital city of Baghdad and
also to that country's northern district city of Arbil, where the
United Nations will set up an office for Iraq assistance. In
addition, Japan is also coordinating with the United Nations and
the United States to conduct airlift support for them.

However, there is still no favorable answer from the US
government in spite of the Japanese government's arrangement for
the GSDF's pullout.

Koizumi will visit the United States in late June. On that
occasion, Koizumi will exchange views with President Bush about
Iraq. However, one Japanese government source explained that Bush
would treat Koizumi as a state guest to thank him for Japan's
dispatch of troops to Iraq. "So," the source added, "it would be
hard for the prime minister to say Japan will pull its troops
out." It still seems difficult for Japan to recall its troops.

(5) Taro Kono issues manifesto for 2006 LDP presidential election
that calls for consumption tax revenues to cover basic pensions,
establishment of Ministry of Foreign Affairs and Trade

TOKYO SHIMBUN (Page 2) (Full)
May 28, 2006

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Taro Kono, senior vice minister of justice, finalized on May 27 a
manifesto (a set of campaign pledges) for running in the Liberal
Democratic Party (LDP) presidential election slated for
September. The main features of the manifesto include pension
system reform, the transfer of compulsory education authority to
municipalities, and the establishment of a Foreign Affairs and
Trade Ministry. He will formally issue the manifesto in early
June.

Although Kono has yet to obtain support from 20 lawmakers, the
number required if he is to run in the election, his manifesto
will likely activate policy debate in the LDP.

As part of "fundamental pension reform," the manifesto advocates
covering the basic portion of the system by consumption-tax
revenue resources, abolishing the system of paying national
pension premiums, and covering the proportional compensation
portion by a scheme of accumulating enough money to pay out the
benefits.

In the foreign policy area, a Ministry of Foreign and Trade
Affairs would be established by merging the Ministry of Foreign
Affairs and the Ministry of Economy, Trade and Industry.
Ambassadors to the United States, China, Britain, the European
Union, Russia, South Korea, India the United Nations should be
political appointees. The manifesto urges the establishment of an
intelligence system, and it also calls for recognizing the
Palestinians as a state.

The manifesto underscores the need for decentralization of
education. It calls on the Education Ministry to transfer its
compulsory education authority to municipalities, taking charge
of implementing national achievement tests, as well as compulsory
education expenses for remote areas and islands. The manifesto
stipulates that the status and treatment of teachers and the
right to decide education programs would be given to the members
of municipalities' education boards.

Regarding political reform, the manifesto writes that in order to
strengthen cabinet leadership the ruling camp's pre-screening of
bills should be abolished. It also advocates that "establishment
law" of ministries and agencies would be scrapped, and the
cabinet would be in charge of employment, assignments, transfers
and assessment of national public servants.

Main points of Kono manifesto

LDP reform

Factions to will not be allowed to involve themselves in
appointments of government and party posts.
Diet members ejected from the party cannot rejoin it.

Education

Transfer the compulsory education authority to local
municipalities. The Education Ministry would be in charge of
national achievement exams and compulsory education for remote
areas and islands. The education board members of municipalities
would decide on the status and treatment of teachers and
education programs.
Eighty percent of the revenues from homeland and residential

TOKYO 00002964 008 OF 009


taxes would go to local governments, which are the permanent
addresses of residents, and 20% of the tax revenues would go to
local government for compulsory education.
Improve and expand the scholarship system. Enable
individuals to be self-sufficient after graduating from college.
Lower the adult age to 18.

Substantial pension reform

Cover the basic pension potion by consumption tax revenue.
Compensate those 65 or older whose income level is lower than a
an a
certain level. Abolish the government pension plan, the system to
pay premium payments, and the Social Insurance Agency. Funds for
the proportional benefits part would be collected from those who
are up to 65 years old. A certain percentage of annual income
would be collected as pension resources.

Medical services

Make it obligatory that cancer victims be registered.
Substantially hike the tobacco tax rate in order to use the money
for medical expenditures.

Foreign policy

Reorganize the Ministry of Foreign Affairs and the Ministry
of Economy, Trade and Industry to establish a Foreign Affairs and
Trade Ministry. Ambassadors to the US, China, Britain, the EU,
Russia, South Korea, India and the UN would be political
appointees.
Rebuild Japan-US relations that are growing weaker. Revise
the Japan-U.S. Status of Forces Agreement (SOFA).
Aim to bring in one million group tourists from China.
Set up an intelligence organization.
ion.
Reduce the ODA budget as much as possible and focus only on
specific projects.
Recognize the Palestinians as a state and make a commitment
to the Middle East peace process.

Political reform

Abolish the ruling camp's prescreening of bills.
Remove the ministries' establishment law and lay down
cabinet authority.
The cabinet would employ, assign, and transfer national
public servants.
Abolish the seniority-based appointments of management posts
and introduce a political appointee system for certain-level
posts and above.

Activation of Diet debate

Set rules for bills unnecessary to submit, deliberations and
voting.

Decentralization

Transfer financial resources to local governments.

Environment


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Utilize bio-energy.

(6) METI new energy strategy presents numerical targets in five
sections, including cut in degree of dependence on oil to 40%

YOMIURI (Page 2) (Full)
Evening, May 29, 2006

The Ministry of Economy, Trade, and Industry (METI) yesterday
esterday
morning submitted its new state energy strategy, a set of
guidelines for new energy policy, to the Study Committee for
National Resources and Energy, an advisory panel to the METI
minister. METI in the new strategy reiterates the need to
reinforce its energy security efforts given the intensifying
global competition for securing resources and presents numerical
targets in five sections, with 2030 set as the target year.

The five targets are: (1) reducing the degree of dependence on
oil - the ratio of oil consumption to all energy consumed in
Japan - from the present 50% to 40%; (2) improve the nation's
entire energy efficiency by 30% as part of energy-saving efforts;
(3) cut the degree of dependence on oil in the transport area,
including autos, from the current 98% to 80%; (4) increase the
ratio of nuclear power generation to total power generation from
the current 29% to at least 30% to 40%; and (5) raise the ratio
of independently developed oil to imports from the current 15% to
40%. METI plans to review the government's basic energy plan and
put the new strategy into practice this fall or later.

As measures to promote the use of new energy resources, the
strategy also calls for raising the maximum rate of the allowable
volume of bioethanol fuel mixed with gasoline from the present 3%
to 10% in 2020. It also includes Japan's commitment to promoting
energy-saving policies in Asia as a whole.

Given sharp increases in demand for energy in China and India,
the balance between supply and demand has become strained in
recent years. The US and European countries have reviewed their
mid- to long-term energy plans, for instance, by diversifying
energy suppliers. Japan has also been urged to come up with a new
strategy to secure stable oil supplies, as the nation is wholly
dependent on imports.

SCHIEFFER