DAILY SUMMARY OF JAPANESE PRESS 06/05/06

UNCLAS SECTION 01 OF 11 TOKYO 003072 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: DAILY SUMMARY OF JAPANESE PRESS 06/05/06 INDEX: (1) Diverse views in US on Yasukuni Shrine; US gov't officials, experts concerned about impact on Asia diplomacy (2) 2006 LDP presidential race: Launch of a group of 94 junior and mid-level lawmakers supporting Shinzo Abe (3) Clear differences in referendum bills of ruling camp and Minshuto; Enactment of legislation difficult even when deliberations start (4) Tanigaki to attend G-8 Finance Ministers Meeting scheduled to start on June 9 to discuss measures against skyrocketing oil prices and other matters (5) Interview with Jerry Paul, NNSA principle deputy administrator: GNEP as stepping stone for international framework (6) The challenges of a resources-poor country - energy security (Part 2): Saudi Arabia hopes to enhance friendship with Japan, leveraged by petrochemical joint venture (7) Many local governments eye independent measures to control suburban openings of medium-sized stores even less than 10,000 square meters in floor space ARTICLES: (1) Diverse views in US on Yasukuni Shrine; US gov't officials, experts concerned about impact on Asia diplomacy ASAHI (Page 3) (Full) June 4, 2006 WASHINGTON-How is the United States looking at Prime Minister Koizumi's visits to Yasukuni Shrine? With his US visit scheduled for later this month, there are various arguments cropping up from among US government officials and experts on Japan-US relations. They differ on his practice of paying homage at the shrine. Some are calling for him to stop his pilgrimage to the shrine. However, there are also deep-seated arguments standing behind him. President Bush and his administration remain silent about Koizumi's shrine visits out of consideration for Japan as an ally of the United States. However, the Bush administration is concerned about a potential impact on its Asia diplomacy. Japan's prime minister should promise to stop visits to Yasukuni Shrine, a senior US lawmaker said in a latter to US House of 
Representatives Speaker Hastert. US House of Representatives International Relations Committee Chairman Hyde, 82, sent the letter to the speaker in late April. In that letter, the congressman conditionally welcomed Koizumi if he would address the US Congress when he visits the United States. This, however, had repercussions. In the United States, there were two responses. One has been a view representing those who regard Hyde's opinion as peculiar to his generation. Hyde is a veteran who fought Japan in the Pacific theater of World War II. One Japan expert noted that Hyde's assertion came from his war experience and was not common to the American public. TOKYO 00003072 002 OF 011 The other response represents those who think the problem it is not so simple, according to a source in the US Congress. For now, the source noted, the Yasukuni issue is a matter of little interest in the United States. However, there is still a chance of Japan's past sparking controversy between Japan and the United States should it be mishandled. One senior official at the Department of State stated that once the American people deepen their understanding of the Yasukuni issue, they would be displeased. In his mid-May speech, Michael Green, National Security Council (NSC) senior director for Asian affairs at the White House until late last year, explained public opinion in the United States by classifying four groups from right to left. The "far right" group, clearly anti-Chinese, supports Koizumi's Yasukuni homage. "The more Japan irritates China, the more pleased this group is," Green says. The so-called neoconservatives are in this group. The "right-of-center" group is represented by the Bush administration, which weighs the Japan-US alliance and thinks it better not to intervene in the issue. Moderates in the Republican Party belong to this group. The "left-of-center" group includes the right wing of the Democratic Party. This group is pro-Japanese and has expectations for Japan's role, so it insists that the United States should intervene in the issue to call for the prime minister to stop visiting the shrine. The "far left" group includes the Democratic Party's left wing and the New York Times, which has noted in an editorial that the United States and Asia would be isolated if the Yasukuni issue is left unattended. Based on Green's analysis, different standpoints in the United States over the Yasukuni issue and China can be illustrated below. Hyde is a Republican conservative. However, his war experience makes him take a stance of intervening in the issue. Former Deputy Assistant Secretary of Defense Campbell urges the Bush administration to intervene in the issue, asserting that Koizumi's Yasukuni homage is not in Japan's interests. Meanwhile, former Deputy Secretary of State Armitage, a Republican moderate, takes the position that Japan's prime minister should continue to visit Yasukuni Shrine as long as China complains about it. However, few think it all right to leave the issue to fester. That is because they think the deterioration of Japan-China relations can never be of benefit to the United States. "If Japan loses its moral superiority in Asia, the United States' position would also weaken," says Paul Giarra, a former senior director for Japan at the Department of Defense. "If China keeps quiet," Armitage also says, "there will be room for the prime minister make a decision." Bush administration remains silent but paying close attention TOKYO 00003072 003 OF 011 What made the US administration remain silent about Koizumi's Yasukuni visits was the Japan-US summit that was held in Kyoto in November last year. Bush asked Koizumi about his view of Japan-China relations. Koizumi spouted his opinion about his Yasukuni visits. Bush then thought to himself that Koizumi would not take his word, according to a US government source. If the United States tells Japan's prime minister to stop visiting Yasukuni Shrine, that would mean tuning in to China. The Bush administration does not want the United States and China to face off with Japan. Japan's public opinion is now split over the Yasukuni issue, so the United States' intervention in this issue could incur anti-US sensitivity in Japan. "We understand this is an important issue, so we're paying attention to this issue," a high-ranking official of the US government said. "But," this official added, "the United States is not in a position to do something about it." The Japan-US summit is slated for late June. However, Bush is not expected to touch on the Yasukuni issue there. (2) 2006 LDP presidential race: Launch of a group of 94 junior and mid-level lawmakers supporting Shinzo Abe ASAHI (Page 4) (Abridged slightly) June 3, 2006 Lawmakers from the Liberal Democratic Party (LDP) held an inaugural meeting on June 2 of a parliamentary group supporting Chief Cabinet Secretary Shinzo Abe's policy of helping those who fail gain a second chance. A total of 94 Diet members joined yesterday's session at party headquarters. Many in the LDP see the meeting as the establishment of "an Abe faction" by young and mid-level members, who are expected to back Abe in the LDP presidential election in September. Being aware that former Chief Cabinet Secretary Yasuo Fukuda is moving up quite fast behind him in recent opinion polls, Abe aims to win in factional competition with Fukuda. His sudden action has confused LDP members and bureaucrats. "I greet you on behalf of the government," said Abe in a speech at the meeting. Stressing his position as a representative of the government, Abe stated in a low-key way: "The government would appreciate it if you conduct active discussion on policy matters and support this policy direction." When asked about the meeting in a press conference later in the say, he said, "It's not a political move." Many people do not take Abe's explanation at face value. The parliamentary group is a carefully worked out "organization" for the presidential race by Abe and his aides. Yoshihide Suga, senior vice minister for internal affairs and communications, who is a leader of the group and a members of the Niwa-Koga faction, began to take action soon after the Golden Week holidays in early May when attention was fixed on Fukuda's visit to Washington. They had a scenario of inviting Abe as lecturer to the group on May 30 when he released an interim report of the government's "Council on Promotion of a Second Challenge," which Abe chairs. Under the scenario, they collected the names 20 members, the TOKYO 00003072 004 OF 011 number required for running in the presidential race, in just two weeks. Abe as a cabinet member is unable to move freely outside the government, but he can take official action as chief cabinet secretary in a parliamentary group that promotes government SIPDIS policy. The 94 members are from various factions of the LDP. The group has succeeded in making a certain impact on the party. After the meeting, Suga proudly told reporters his support for Abe, "Now is not time to make a decision on matters by a tally of numbers." House of Councillors member Ichita Yamamoto said: "Many members from various factions have their hopes on Chief Cabinet Secretary Abe." Koizumi also told reporters later in the day, "The membership of 94 is larger than I expected." In an attempt to gain public support, Abe will increase the number of his appearances on TV programs starting June 3. After the end of the ongoing Diet session, he intends to hold dialogues with the public across the country to let them know of his "second challenge" policy, leading to the formal announcement after the July G-8 summit of his candidacy for the LDP leadership race. However, many LDP members think that it is too early to take action since three more months are left until September's presidential race. There remains the issue whether the Mori faction will field a single candidate. A lawmaker with close ties to Abe explained his move: "He has no other choice but to take action before (Mr. Fukuda starts his campaign) to overcome those veteran lawmakers who favor Mr. Fukuda." New Diet members to take loyal test Abe is determined to continue the Koizumi reform drive and to narrow the income gap in society, which is regarded as "negative legacy" of the reforms. In consideration of a consistency with the Koizumi reform program, he has emphasized improvement in the safety net, as well as an equal opportunity for offering second chances. The other aim is to build a personal network with senior bureaucrats by drafting support measures that affect all agencies. Although Abe is well versed in health, labor and welfare affairs, he has served only in the chief cabinet secretary post. Some lawmakers point out his lack of experience SIPDIS in serving in cabinet posts. The bureaucracy is reluctant to support Abe. Many senior officials were disturbed by the chief cabinet secretary's idea of drafting policies with bureau directors going over the heads of cabinet ministers and vice ministers. Abe therefore was unable to include concrete measures in the set of his campaign pledges. Abe is looking forward to proposals by the parliamentary group in order to flesh out his campaign pledges, but the lawmakers who attended the meeting are interested only in politics. House of Representatives member Yuzo Yamamoto, who heads the group, stressed, "We did not get together for preparing for the LDP presidential race." When asked by reporters about whether he supported Abe, Lower House member Jun Matsumoto, a Kono faction member, who has close ties with Foreign Minister Taro Aso, replied, "This is a pure study group to discuss imminent TOKYO 00003072 005 OF 011 important issues." But his is a minority view. The group is composed of junior and mid-level Lower House members, who are now serving in their seventh-term or less and Upper House members serving in their second-term or less, with a generational change in mind. The number of Lower House members serving in their first and second-term alone totals 50. A new lawmaker said: "If I did not join the group, they would think that I dislike Mr. Abe. This is just a loyalty test." At a press conference on June 2, Minshuto (Democratic Party of Japan) Secretary General Yukio Hatoyama commented: "It seems that the Abe faction has been established." However, it is uncertain how far the group will expand. (3) Clear differences in referendum bills of ruling camp and Minshuto; Enactment of legislation difficult even when deliberations start ASAHI (Page 4) (Abridged slightly) June 2, 2006 The ruling coalition of the Liberal Democratic Party (LDP) and its junior partner, New Komeito, and the largest opposition party, Minshuto (Democratic Party of Japan) have submitted two separate national referendum bills that would set procedures for amending the Constitution. The Diet launched yesterday deliberations on the bills in the House of Representatives plenary session, in which explanations of the purpose of the bills followed by a question-and-answer session were conducted. This was the first time for the Diet to deliberate constitutional reform legislation since the present Constitution was put into effect. Yesterday's session highlighted clear gaps in views on procedures for holding a national referendum and the hurdles to amending the Constitution that lie between the ruling camp and Minshuto. Diverging views will likely remain a main issue when the two camps negotiate changes in the draft legislation. The ruling camp-sponsored bill stipulates that a referendum would be conducted only for constitutional reform. LDP lawmaker Okiharu Yasuoka, chief director of the Lower House Special Committee on the Constitution, stated: "Under the direct democratic system, there are three referendums beside a constitutional one: a review of Supreme Court judges, and a referendum for the Local Autonomy Law." The Minshuto-sponsored bill, meanwhile, widens the objectives of referendum to significant issues in the national political agen. Minshuto Constitutional Commission Chairman Yukio Edano stressed: " It is not violation of the Constitution that the Diet conducts on its own will national referendum and carefully exercises its authority. Under the ruling camp's bill, the minimum age for granting voting rights should be 20, which is the same as the voting age. The Minshuto-proposed bill, however, calls for lowering the minimum age to 18 in principle. The legislation also stated that the minimum age should be lowered to 16 if the Diet approves. Edano asserted: "It is necessary to give young generations as many opportunities to take part in voting as possible." TOKYO 00003072 006 OF 011 The two bills show clear differences in "campaigns" questioning whether to approve or disapprove national referendum. The ruling bloc's bill bans those who involve in voting affairs and certain public servants, including prosecutors and police officers, from carrying out the campaigns until the voting day. It also prohibits educators from taking advantage of their statuses for their campaigns. Minshuto's legislation allows anyone but those involved in election matters to campaign. Yasuhiro Sonoda of Minshuto stated: "If banned, we are concerned that professors would not reveal their views on constitutional reform in their lectures." The ruling coalition's bill prescribes vote-buying conducts as a crime. Tetsuo Saito of the New Komeito said, "Penalties would be applied only to heinous activities beyond the permissible scope of the common sense." Minshuto's bill does not set a bribery penalty. Katsumasa Suzuki stated: "It is desirable for workfellows to talk about the Constitution at Japanese pubs. If the boss pays for the drinks, there is the possibility that the boss would be punished. It is difficult to differentiate a campaign from an exchange of views." Regarding how to fill in the ballot, the ruling camp's legislation states that an O would mean approval, an X would means disapproval; and a blank vote cast would still be valid. A majority would be decided base on the total valid votes. Yasuoka explained the reason for that: "Public opinion would be judged based on the result of a referendum." Minshuto's bill stipulates that an O would be regarded as approval and the others would be regarded as disapproval. A majority would be decided based on the total cast votes. This means that the largest opposition party's bill would make constitutional reform more difficult than that of the ruling coalition. Akira Kawai of the Japanese Communist Party and Kiyomi Tsujimoto of the Social Democratic Party argued: "The two bills would lead to amending Article 9." They urged the bills be scrapped. The government and the ruling camp are carrying out coordination knowing that the current Diet session will not likely be extended. Therefore, the two bills will likely be carried over to an extraordinary session in the fall. Changes in them will also likely be negotiated in the next session. (4) Tanigaki to attend G-8 Finance Ministers Meeting scheduled to start on June 9 to discuss measures against skyrocketing oil prices and other matters SANKEI (Page 3) (Abridged slightly) June 5, 2006 Meetings of the financial ministers of the Group of Eight industrial nations are scheduled to take place on June 9-10 in St. Petersburg, Russia. The meetings are likely to focus on energy security, such as ways to stabilize crude oil prices and the stable supply of energy to developing countries on the back of the Iranian nuclear issue. TOKYO 00003072 007 OF 011 In the run-up to the G-8 Summit, Russia, a major oil producer comparable to Saudi Arabia, will chair the G-8 finance ministers meeting to come up with measures against surging oil prices, a destabilizing factor for the global economy. Speculative moves divorced from supply and demand have been pointed out in the oil futures market, where prices have shot past 70 dollars a barrel. In order to come up with measures, the G-8 financial ministers are expected to ask oil producers for highly accurate data on oil reserves and development plans. They will also discuss technical assistance in wind and solar power generation to reduce oil and natural gas consumption. Japan will actively announce its views as an advanced energy-saving country. The G-8 will also consider using such international organs as the International Monetary Fund and the World Bank to extend financial aid to developing countries in serious need of stable supply of oil under escalating oil prices. Interview with Finance Minister Sadakazu Tanigaki Shogo Otsuka of the Sankei Shimbun: What is the role of Russia, which is going to chair the G-8 Summit for the first time? Finance Minister Tanigaki: Russia is a major oil and natural gas producer. For the global economy, it is extremely important for Russia to fulfill its responsibilities in the world, including Asia and the Far East. Japan is eager to cooperate with Russia to make the upcoming Summit a success. Otsuka: What can Japan do to help increase the efficient use of energy as an advanced energy-saving country? Tanigaki: Having successfully overcome oil crises, Japan's energy efficiency is the highest in the world. Japan has much to offer to other countries. I will actively promote Japan's technology, know how, and human resources. Otsuka: What must be done to deal with speculative moves in the oil market divorced from supply and demand? Tanigaki: To improve the situation, we must confirm the need to create a system to circulate appropriate information so as not to allow skewed information to cripple moves in the market. Otsuka: Can we expect plausible efforts? Tanigaki: High growth in countries like China and India is pushing up demand for energy. At the same time, oil supply involves difficult geopolitical factors. It will require tremendous efforts, and it is not realistic to expect a cure-all. We must build a system for investment in every process from the exploration to development to production to refinement of oil, while pursuing energy saving. (5) Interview with Jerry Paul, NNSA principle deputy administrator: GNEP as stepping stone for international framework Tohoku Shimbun (Full) May 22, 2006 TOKYO 00003072 008 OF 011 The US Bush administration came up with an advanced energy initiative this February called "Global Nuclear Energy Partnership (GNEP)." Under this initiative, the US and other countries will develop technologies to recycle spent nuclear fuel that cannot be used to develop nuclear weapons and provide fuel services to developing countries. Tohoku Shimbun interviews Jerry Paul, principle deputy administrator of the National Nuclear Security Administration, on the Partnership concept. What is the aim of GNEP? "The initiative is designed to expand the peaceful use of nuclear power while reducing the threat of nuclear proliferation. Global electricity demand over the next 30 to 50 years is expected to grow two to three times above the current level. In order to meet the growing demand without destroying the environment, there will be no other means but nuclear power." -- International Atomic Energy Agency (IAEA) Director General ElBaradei has also advocated a multinational management concept for spent nuclear fuel. "We have advocated establishing a framework in which each country will voluntarily participate. GNEP is a concept worked out from a long-term perspective, and I believe that the concept will be turned into an international framework through repeated debates. I do not know how effectively this mechanism will work to solve Iran's and North Korean nuclear development problems, but we have already obtained support from Britain, France, Russia, and other countries. IAEA is expected to play a key role in enhancing energy security." -- The Japanese and US governments have agreed to conduct joint research, such as the joint designing of recycling facilities. "The US has kept nuclear-fuel recycling on the backburner for more than 30 years. Japan has produced advanced research results in this area. We expect Japan to develop technologies related to the development of new nuclear fuel and fast reactors, as well as nuclear safeguards. In the area of safe management, too, Japan's atomic power industry is at a high level, and we are paying attention to it." -- Some observers see such cooperation as a violation of the Japan-US Atomic Energy Cooperation Agreement, which bans the transfer of important nuclear recycling-related technologies. "As a result of a detailed study of whether there would be legal problems, we have concluded that the current agreement is satisfactory for the two countries to promote envisioned cooperative research and development. We believe there will be no need to revise the accord." (6) The challenges of a resources-poor country - energy security (Part 2): Saudi Arabia hopes to enhance friendship with Japan, leveraged by petrochemical joint venture SANKEI (Page 1) (Full) June 2, 2006 Saudi Arabia's Prince Sultan visited Japan this past April. A dinner party for the prince was held at the Prime Minister's Official Residence. The participants in the party included TOKYO 00003072 009 OF 011 incumbent cabinet members, such as Foreign Minister Taro Aso and Minister of Economy, Trade and Industry (METI) Toshihiro Nikai, and two former prime ministers, Ryutaro Hashimoto and Yoshiro Mori. Saudi Arabia is the largest oil-producing country in the world and is the largest oil supplier for Japan. In fact, Japan imports some 30% of oil from that country. Prime Minister Junichiro Koizumi was elated when he addressed the party: "Two former prime ministers and four incumbent cabinet members have unusually joined this dinner party tonight." The party went on in a friendly atmosphere. Prince Sultan, as if to respond to this hospitality, offered a plan to establish a fund as a token of friendship. He then said, "I'd like to donate 500,000 dollars for exchanges between the two countries," adding, "This is my idea as well as King Abdallah's." Japan is closely linked to Saudi Arabia in terms of oil. But after Japan lost its rights to extract oil from that country's Khafji oil field in February 2000, "the relationship between the two countries grew somewhat cold to each other," an oil industry source said. The dinner party, however, was a sign that bilateral relations were returning again to a honeymoon period. The Khafji oil field was the first such project developed under the Rising Sun flag. Khafji became Japan's largest oil supplier, compared to other oil fields developed by Japan. The amount of oil it supplied to Japan since 1961 totaled 2.8 billion barrels. The concessions over Khafji were in the hands of Arabian Oil Company (AOC). Then AOC President Keiichi Konaga, formerly Administrative Vice Minister of International Trade and Industry (MITI which was the predecessor of the current Ministry of the Economy, Trade and Industry),engaged in negotiations with Saudi Arabia on an extension of Japan's rights in the Khafji oil field. Konaga now serves as advisor to AOC Holdings. Looking back on those days, he confessed: "I felt like I was bucking a strong wind when I pushed ahead with negotiations." When full-fledged negotiations to extend Japan's interests in the Khafji oil field started, crude-oil prices were flagging at around 10 dollars per barrel. Because oil was then in oversupply, many market observers had a bullish outlook that oil imports would always be easily available by cash transactions. Final negotiations held in Saudi Arabia were joined by then MITI Minister Takashi Fukaya, but both sides failed to agree to terms because Saudi Arabia, then aiming at departing from its oil- dependency, called on Japan to invest a huge amount of money in that country, for instance, 200 billion dollars or more for the construction of a railway. Konaga now said: "If our company and the government had worked in much closer cooperation to promote negotiations, there could have been a more significant impact of negotiations on Saudi Arabia." Saudi Arabia wanted to lure Japanese investment in addition to the sale of its oil to Japan, but Japan placed the securing of oil before investment. This gap led to Japan's losing its rights in the Khafji oil field and afterwards made it reluctant to invest in that country. Close relations between the two countries began deteriorating accordingly. What has again brought the two countries closer was a joint venture between Japan's Sumitomo Chemical and Saudi Arabia's state-run Saudi Aramco. This project is intended for refining oil TOKYO 00003072 010 OF 011 and producing petrochemical products at the existing oil refinery at Rabigh, an area on the coast facing the Red Sea. The project, if completed, will become one of the largest integrated refining and petrochemical plant. A total investment is likely to come to one trillion yen. Sweeping aside other petrochemical manufacturers from other countries, Sumitomo Chemical was chosen by Aramco as a business partner. For Sumitomo Chemical, a major matter of concern was country risk. The company, after getting a risk analysis from an overseas research firm, decided to go ahead with the project. Sumitomo Chemical Executive Officer Takatoshi Suzuki, who takes care of the project, expressed hope openly: "Availability of materials at low prices, among other things, is very attractive indeed." The groundbreaking ceremony was held in the project site in March, bringing together top leaders of major Japanese firms concerned, such as Sumitomo Chemical President Hiromasa Yonekura, Itochu Corporation President Eizo Kobayashi, Marubeni Corporation President Nobuo Katsumata, and Mitsubishi Heavy Industries President Kazuo Tsukuda. President Yonekura emphasized the significance of the joint venture in a speech given at the ceremony, noting that it would "contribute to sustainable economic growth in Saudi Arabia. "This project that helps Japan to deepen its ties with Saudi Arabia will be of great significance for the part of Japan, as well," he added. In terms of energy strategy, it is essential for a resourceless country, Japan, to keep a good relationship with the largest oil supplier Saudi Arabia. But King Abdallah, who assumed the throne late last year, chose China and India for his first official overseas tour this January. This choice came, perhaps out of his desire to build relations with rising countries that are likely to become large oil consumers. Whether the project this time will succeed is likely to determine whether Japan and Saudi Arabia can build a friendly relationship in concrete terms by overcoming past discord over the Khafji oil field. (7) Many local governments eye independent measures to control suburban openings of medium-sized stores even less than 10,000 square meters in floor space NIHON KEIZAI (Page 1) (Excerpts) Evening, June 3, 2006 A growing number of local governments are preparing to restrict store openings in ways stricter than provisions found in the three amended downtown district revitalization laws aimed at large stores that took effect in late May. A Nihon Keizai Shimbun survey found that 10 prefectures and three ordinance-designated major cities were considering tightening regulations. The three laws restrict the openings of large stores over 10,000 square meters in total floor space in suburban areas. But some local governments are trying to control the openings of even mid-sized stores. The Hyogo prefectural government is preparing a set of guidelines by August that would allow operators to open stores over 6,000 square meters in total floor space only in areas close to major railway stations in 14 cities in the southern part of the TOKYO 00003072 011 OF 011 prefecture, such as Amagasaki and Himeji. The prefectural government intends to impose controls on industrial sites, thinking that even mid-sized stores at suburban locations facing main roads could seriously affect shopping streets in the center of town. The Fukushima prefectural government plans to implement an ordinance in October making it mandatory to submit plans in advance to open stores over 6,000 square meters in floor space. Fukuoka intends to come up with ways by next March to restrict areas allowed to open large stores and to urge municipalities to produce city plans to control the openings of stores between 3,000 and 10,000 square meters in floor space as well. The existence of suburban commercial areas facing main roads and light industrial zones exempted from the three district revitalization laws is a source of concern for local governments. The move for local governments to come up with independent regulations is likely to spread across Japan. SCHIEFFER