JAPANESE MORNING PRESS HIGHLIGHTS 06/13/06

UNCLAS SECTION 01 OF 10 TOKYO 003237

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SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 06/13/06


Index:
1) Top headlines

2) Editorials

3) Prime Minister's daily schedule

4) Prime Minister Koizumi instructs JDA chief Nukaga to expedite
talks with Okinawa on Futenma relocation by quickly setting up
consultative body

5) Secretary Rice, Foreign Minister Aso confer by telephone on
Iran issue

6) Koizumi willing to have summit meeting with Chinese leader
but without conditions

7) Chief Cabinet Secretary Abe orders tightening of current
regulations to curb indirect trade with North Korea

8) LDP's Taku Yamasaki may travel to North Korea late this month

9) North Korea human rights bill to pass the Lower House today
over objections of Japanese Communist Party, Social Democratic
Party

10) No progress in Japan-ROK EEZ negotiations, the hang-up still
being Takeshima Island

11) Government considering ODA to help Dominican Republic
emigrants from Japan

12) Report shows reasons for lack of progress in implementing
aid projects in Tsunami-ravaged countries

13) Koizumi meets old nemesis Naoto Kan of Minshuto for a last
clash in the Diet, this time on Yasukuni Shrine issue

14) Views of Abe, Aso, Tanigaki, and Yosano on Yasukuni Shrine
issue elicited in Diet debate

15) Minshuto Secretary General Hatoyama tries to woo Koichi Kato
to leave the LDP

16) Key to restarting US beef imports lies in regaining consumer
conference as last of government's public hearings closes

17) Government fiscal and economic policy council still hung up
over how to fill an expected 17 trillion yen in revenue
shortfalls

Contents:
1) TOP HEADLINES
Asahi, Mainichi, Yomiuri, Sankei and Tokyo Shimbun:
World Cup: Japan loses 1-3 to Australia

Nihon Keizai:
LDP considers extending foreigners' work visas to 5 years

2) EDITORIALS
Asahi:
(1)President Bush, don't forget to sack one more person

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(2)Let's reaffirm importance of mathematics

Mainichi:
(1)Prime Minister Koizumi should make his swan song at the Diet
(2)Shortage of doctors would collapse community health care
system

Yomiuri:
(1)How to overcome adverse effects of deregulation
(2)Local governments' roles to protect "beautiful towns"

Nihon Keizai:
(1)Little concern about Minshuto (Democratic Party of Japan) that
aims at regime change
(2)All those involved in elevator accident are irresponsible

Sankei:
(1)Carrying over of important bills: Does Prime Minister Koizumi
put top priority on national interests?
(2)Effective measures for new economic growth

Tokyo Shimbun:
(1)Reform of revenue and expenditures: Drastic cut in
expenditures necessary
(2)Immigration regulation revision: Careful considerations should
be given to human rights

3) Prime Minister's Official Residence (Kantei)
Prime Minister's schedule, June 12

NIHON KEIZAI (Page 2) (Full)
June 13, 2006

10:16Met with Deputy Chief Cabinet Secretary Nagase at the Prime
Minister's Official Residence (Kantei).
12:05Liaison Council meeting between the government and the
ruling camp.
13:00Meeting of the Lower House Committee on Audit and Oversight
of Administration.
15:03Arrived at Kantei.
16:00Met with Finance Minister Tanigaki and Budget Bureau
Director General Fujii.
17:02LDP executive meeting in the Diet building
17:40Met with Defense Agency Director General Nukaga at Kantei.
Deputy Chief Cabinet Secretary Futahashi was present.
19:00Met with New Komeito Head Kanzaki and Upper House LDP Caucus
Chairman Aoki. Chief Cabinet Secretary Abe joined.

4) Koizumi orders local talks over USFJ realignment

ASAHI (Page 4) (Full)
June 13, 2006

Prime Minister Koizumi met Defense Agency Director General Nukaga
at his office yesterday and told the defense chief to consult
well with local communities on the planned relocation of the US
Marine Corps' Futenma Air Station in the city of Ginowan, Okinawa
Prefecture, to the cape of Henoko in the northern coastal city of
Nago in the island prefecture. Japan and the United States have
reached an agreement to relocate Futenma airfield in the process
of realigning the US military presence in Japan. Koizumi has also
told Nukaga to obtain a local consensus for Futenma relocation.

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Koizumi was replying to Nukaga's report of petitions from the
mayors of 12 municipalities in the northern part of Okinawa
Prefecture. Nukaga, prior to his meeting with Koizumi, met with
Nago Mayor Yoshikazu Shimabukuro and other local mayors. In that
meeting Nukaga was asked to set up a consultative body with
Okinawa Prefecture and its base-hosting localities at an early
date. This consultative body was incorporated in a cabinet
decision made in May. Abe also met with Shimabukuro and others
yesterday. In the meeting, the mayors asked Abe to continue an
economic stimulus package for Okinawa's northern localities. The
package was based on a cabinet decision of 1999, but the
government has repealed it in its cabinet decision made this
time. "The government will set up a consultative body with
Okinawa Prefecture and local public entities to consult well on
local development," Abe also promised to consider the request.

The government has decided to launch the consultative body in
order to hold talks with Okinawa Prefecture and its
municipalities about an alternative construction plan, safety and
environmental protection, and local development.

However, Okinawa Governor Keiichi Inamine has indicated that the
Okinawa prefectural government would not participate in the
consultative body as long as it is premised on the government's
policy of implementing its plan. "We won't participate in that
consultative body if that is to talk about the government's plan
only," Inamine has said. The government therefore cannot expect
when to set it up.

5) Aso briefs Rice on talks with Iran

ASAHI (Page 4) (Full)
June 13, 2006

Foreign Minister Aso called US Secretary of State Rice yesterday
evening to talk about Iran's nuclear program. Aso told Rice that
Japan has worked on Iran to accept a package of incentives
proposed by six countries including the United States and
European countries. Aso also told her that Japan would consult
closely with the United States. Rice said the United States would
like to strengthen cooperation, with Prime Minister Koizumi
scheduled to visit the United States late this month.

Aso held telephone talks with Iranian Foreign Minister Mottaki on
June 6 and met with Iranian Vice Foreign Minister Araqchi in
Japan on June 9. Mottaki has explained that Iran would seriously
consider the proposal. Aso appears to have told Rice about such a
response from Iran and the two talked about how to deal with
Iran.

6) Prime Minister Koizumi: Japan-China summit should be realized
with no conditions

SANKEI (Page 5) (Full)
June 13, 2006

Asked by reporters last night about Chinese President Hu Jintao's
remark that he would like to visit Japan if the circumstances are
improved, Prime Minister Junichiro Koizumi replied:

"Japan is always open. We are ready anytime even conditions are
not met. If we have different views on a single issue, Japan will

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hold talks anytime because China is important for us."

He urged the Chinese side to respond to his offer to resume the
summit program.

When asked about a possible meeting with the Chinese leader
during his tenure as prime minister, Koizumi responded: "Japan
will not ask for any conditions. That depends on the Chinese
side."

7) Gov't to step up watch for indirect trade with North Korea

NIHON KEIZAI (Page 2) (Full)
June 13, 2006

Chief Cabinet Secretary Shinzo Abe instructed government
ministries and agencies yesterday to look into facts about
indirect trade between Japan and North Korea via third countries
and step up Japan's oversight of such trade in order to
strengthen Japan's pressure on North Korea. The amount of trade
between Japan and North Korea has decreased. However, the
government presumes that there has been an increase in the amount
of illegal trade via third countries, such as Thailand. The
government is aiming to tighten its economic control through
strict law enforcement.

According to the Finance Ministry, the total amount of trade
between Japan and North Korea reached 21.4 billion yen in 2005,
broken down into imports amounting to 14.5 billion yen and
exports amounting to 6.9 billion yen. The total amount of trade
between the two countries dropped to below half the level in

2002. It further decreased to 6.1 billion yen in the January-
April quarter of this year. This is believed to reflect the
government's enhanced measures, such as controlling exports
against military diversion and conducting stricter vessel safety
checkups.

The government surmises that illegal trade between Japan and
North Korea is probably via Thailand and China, which have shown
an increase in the amount of their trade with North Korea. The
Ministry of Economy, Trade and Industry will watch out for
illegal trade in a stricter way.

In 2003, a Tokyo-based trading house was found to have attempted
to illegally export military convertible equipment to North Korea
via Thailand. Japan's enhanced oversight of trade is also aimed
for North Korea's concessions on bilateral issues, such as the
problem of Japanese abductees. However, it could incur North
Korea's backlash.

8) LDP's Yamasaki mulling a visit to North Korea in late June

SANKEI (Page 5) (Full)
June 13, 2006

It was learned yesterday that Taku Yamasaki, former vice
president of the Liberal Democratic Party (LDP),was looking into
the possibility of visiting North Korea late this month.
According to several informed sources, former Defense Agency
chief Gen Nakatani, a member of the Tanigaki faction in the LDP,
and House of Representatives members Kisaburo Tokai and Masaaki
Taira, members of the Yamasaki faction, will likely accompany

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Yamasaki. They are expected to visit the North for about three
days from June 20, following their planned visit to South Korea.
The group is expected to visit Kaesong and other places in North
Korea. Coordination is now underway. Yamasaki's office, however,
said, "(A visit to North Korea) has yet to be decided."

9) North Korean human rights bill to pass through Lower House
today, despite opposition of JCP, SDP

TOKYO SHIMBUN (Page 2) (Full)
June 13, 2006

The Lower House Special Committee on the Abduction Issue, chaired
by Katsuei Hirasawa, adopted a plan yesterday afternoon to submit
to the Diet a North Korean human rights bill urging the
government to impose economic sanctions on North Korea in
connection with the abduction issue, with a majority vote of the
Liberal Democratic Party, Minshuto (Democratic Party of Japan),
and the New Komeito. The Japanese Communist Party and the Social
Democratic Party opposed the step. The bill is now likely to
clear the Lower House today and then sent to the Upper House to
be enacted in the ongoing Diet session.

Draft bills mapped out separately by the ruling coalition and
Minshuto have been integrated into the single bill.

10) No progress on Japan-ROK EEZ demarcation talks; Japan
insists on putting aside Takeshima issue

YOMIURI (Page 2) (Full)
June 13, 2006

The Japanese and South Korean governments yesterday held
negotiations aimed at demarcating their exclusive economic zones
(EEZs) at Japan's Ministry of Foreign Affairs (MOFA). But the
talks failed to narrow the gap as both sides insisted that
Takeshima/Dokdo should be used as a base point of their
respective EEZs. The talks will continue today.

So far EEZ talks have been held four times during a period from
1996 through 2000, and they have been suspended until recently,
but they have now been resumed after an interval of six years.
Participating in the talks from Japan were Ichiro Komatsu,
director-general of MOFA's International Legal Affairs Bureau,
and other officials from the Fisheries Agency and the Japan Coast
Guard. Participants from South Korea included Park Hee Kwon,
director-general of the Treaties Bureau of South Korea's Ministry
of Foreign Affairs and Trade and other officials from the
Ministry of Maritime & Fisheries.

The talks yesterday lasted for six hours. Japanese negotiators
cited the agreement reached in 1996 between then Prime Minister
Hashimoto and then President Kim Yong Sam to promote EEZ talks by
separating the sovereignty issue involving Takeshima/Dokdo islets
and urged their South Korean counterparts to separate the
Takeshima issue from EEZ negotiations, saying: "We are ready to
make our maximum effort for substantial progress. We hope the
South Korean negotiators will engage in the negotiations in a
similar manner."

In addition, Japan expressed concern about South Korea's planned
marine survey in July within Japan's EEZ waters near Takeshima

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and proposed establishing a prior notification system for both
sides to inform the other side of their respective marine surveys
if they are carried out in the waters where the border of their
EEZs has not yet been determined.

In response to these assertions, South Korean negotiators did not
deny the existence itself of the top-level agreement. But turning
around from their previous position of drawing a border between
Ullungdo and Okinoshima islets with Ullungdo as a base point,
they strongly insisted on using Takeshima as the base point. They
did not come up with a clear response to Japan's proposal on a
prior notification system.

11) Government to extend assistance to Japanese emigrants to
Dominica, with ODA to local association in mind

SANKEI (Page 2) (Excerpts)
June 13, 2006

The government as of yesterday began discussions at Prime
Minister Junichiro Koizumi's order to study additional assistance
measures for Japanese emigrants to the Dominican Republic. This
move has come, reflecting the Tokyo District Court's recent
recognition of the government's responsibility for compensation
in the suit over the government's campaign for emigration to the
Dominican Republic. Aid plans now being considered include
financial assistance to local Japanese associations through the
Grass-roots Aid under official development assistance (ODA).

In the past the government has disbursed 10 million yen as grant
aid cooperation for the construction of a community center for
emigrants. As for aid this time, the government intends to listen
first to emigrants' requests and decide on additional assistance
measures. The government intends to implement considerate,
detailed measures, such as an offer of Japanese language
education through volunteers from the Japan International
Cooperation Agency.

12) Delay in selection of companies for emergency aid to Tsunami-
hit region called into question in a Foreign Ministry-chosen
third party's assessment

YOMIURI (Page 1) (Full)
June 13, 2006

Consultants who have been entrusted by the Ministry of Foreign
Affairs (MOFA) to make an interim assessment of the Japan
International Cooperation System's (JICS) way of rebidding for
the road repair work planned as part of an emergency aid project
for Indonesia hit by the Indian Ocean Tsunami had pointed out
that "local residents have become increasingly irritated at the
lack of progress in the repair work because of the delay in
selecting construction companies," according to information
obtained by the Yomiuri Shimbun. It was also found that the
Indonesian government, when questioned by those consultants,
expressed doubts on the lack of transparency of the JICS's way of
selecting construction companies by bidding, as well as its
capability to select such firms. MOFA's responsibility for
recommending the JICS to Indonesia is likely to be called into
question.

As emergency aid to the regions stricken by the Indian Ocean

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Tsunami, Japan from its official development assistance (ODA)

SIPDIS
budget has offered 14.6 billion yen in grant aid to Indonesia, 8
billion yen to Sri Lanka, and 2 billion yen to Moldova. Last
December, one year after the occurrence of the disaster, MOFA
entrusted 10 consultants from a third-party organization to
assess Japan's relief efforts so that Japan can make good use of
such an assessment for future relief efforts and worked out an
interim assessment report.

The report takes issue with the repair work, noting that the
causes of the delay lie in the bidding process, for instance,
rebidding. In extending emergency aid, it is important to
'implement aid without delay.' Local communities have been
irritated at the delay in the repair work." Indonesia's Ministry
of Public Works told the consultants when it was interviewed by
them as part of their survey for an interim assessment: "JICS has
a lack of experience in selecting firms relating to construction
works."

The JICS rebutted: "The criticism that we lack experience is not
correct because we have selected construction companies for other
reconstruction assistance to other countries, such as Iraq." MOFA
made this comment: "We take advice from a third party sincerely
and use it for our future action."

13) Kan-Koizumi debate ends with Yasukuni issue

ASAHI (Page 4) (Full)
June 13, 2006

In yesterday's meeting of the Lower House Committee on Audit and
Oversight of Administration, Minshuto (Democratic Party of Japan)
Acting President Naoto Kan took the floor as a questioner for the
last time to Prime Minister Junichiro Koizumi, who is to step
down from the post in September. The two, who have exchanged
verbal jabs numerous times at the Diet, again sparred over the
Yasukuni Shrine issue and other matters yesterday. In response to
Kan's pursuit, Koizumi rebutted, "I still don't understand why he
has to criticize me."

Kan and Koizumi have had over 20 one-on-one debates, including
party-head debates. In January 2003, Koizumi referred to his
failure to keep an LDP presidential campaign pledge as "not a big
deal," causing a stir.

Yesterday, Kan challenged Kan, saying: "It was the Prime Minister
Koizumi himself that made Yasukuni into a campaign issue for the
2001 general election, as you said, 'I will visit the shrine on
August 15.'"

In response, Koizumi reiterated his stock argument:

"I have never made it a campaign issue. The media did. Paying
homage at the shrine is a matter of the heart."

After the debate, Kan note about Koizumi:

"It was regrettable that he repeatedly obscured contentious
points. He once said that breaking a promise was not a big deal.
I think that's how he really feels."

14) Kan raises questions on Yasukuni: Abe - Matter must not be

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turned into a political issue; Aso - State must deal with it
properly; Tanigaki - Strategic ambiguity necessary; Yosano -
Shrine must make decision voluntarily

MAINICHI (Page 2) (Full)
June 13, 2006

In yesterday's meeting of the Lower House Committee on Audit and
Oversight of Administration, Chief Cabinet Secretary Shinzo Abe,
Foreign Minister Taro Aso, Finance Minister Sadakazu Tanigaki,
and Economic and Fiscal Policy Minister Kaoru Yosano answered
questions from Minshuto (Democratic Party of Japan) Acting
President Naoto Kan regarding visits to Yasukuni Shrine. Abe,
Aso, and Tanigaki are post-Koizumi contenders.

Touching on Abe's speech in the United States in May of last year
in which he said, "Anyone succeeding Prime Minister Koizumi
should visit Yasukuni Shrine," Kan asked Abe, "Has your view
changed?" In response, Abe said:

"I want to keep expressing my gratitude and respect for those who
died fighting for their country in offering my sincerest prayers
to them. China has now turned the matter into a diplomatic issue.
It should not be made into a diplomatic or political issue."

Abe stopped short of indicating whether he would visit the shrine
if he became prime minister.

Aso said:

"The war dead are now enshrined at a facility controlled by one
religious organization, and whenever a problem arises, some say
that politics should stay away from the matter concerning the
religious organization. The state should deal with the matter
properly."

Aso against suggested his view that the government should
consider removing Class-A war criminals from Yasukuni Shrine with
the option of turning the shrine in to a non-religious
organization in mind.

Tanigaki commented:

"The government should not say, 'We will do such and such because
of views overseas.' Instead, Japan must make a decision
independently. I call it strategic ambiguity."

Yosano expressed hope for Yasukuni's voluntary decision to remove
Class-A war criminals, saying: "I would like to the shrine make a
decision voluntarily."

15) Minshuto Secretary General Hatoyama urges Koichi Kato to
leave LDP

NIHON KEIZAI (Page 2) (Full)
June 13, 2006

Yukio Hatoyama, secretary general of the main opposition party
Minshuto (Democratic Party of Japan, met yesterday with Koichi
Kato, former secretary general of the Liberal Democratic Party
(LDP),and the Social Democratic Party's House of Representatives
member Kiyomi Tsujimoto. Hatoyama was quoted as urging Kato to

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bolt the LDP, but Kato did not respond positively.

16) Resumption of US beef imports; Eradicating consumer distrust
holds the key; Town meetings with government ends tomorrow

YOMIURI (Page 10) (Slightly abridged)
June 13, 2006

A series of town meetings for the government to exchange views
with consumers on conditions for resuming US beef imports will
end tomorrow with one in Tokyo as the last one of ten sessions
held throughout the nation. While the predominant view heard from
consumers included skepticism about the US inspection system and
anxieties about the safety of US beef, beef retailers called for
easing import guidelines. The government is expected to decide to
resume beef trade before the end of June. Dissolving consumer
distrust will likely hold the key in restoring their trust in US
beef.

During the first town meeting held in Sendai on July 1, some
participants voiced their skepticism about the US inspection
system, noting, "We heard that about 70% of beef processing
plants have problems." At the Naha meeting held on the 2nd,
consumers voiced their deep-rooted distrust of US beef, saying,
"Even if we are given explanations, we cannot trust them, as
there is no track record to endorse them."

Regarding conditions for resuming US beef imports, too, including
prior inspections of US beef processing plants by the Japanese
side, a number of consumers called for a strict approach with a
participant in the Niigata meeting saying, "Japan should
tenaciously call for a safety system that includes blanket cattle
testing" and a participant in the Sapporo meeting suggesting,
"Japanese inspectors should be stationed on a permanent basis."

17) Council on Unified Reform of Fiscal and Economic Systems
rejects 17 trillion yen request to reform fiscal revenues and
expenditures; Upper House members oppose proposal with election
close at hand next summer

MAINICHI (Page 5) (Excerpts)
June 13, 2006

The government and the ruling camp have started the work of
setting the amount of a targeted spending cut for each spending
item, such as social security and local finances, by holding the
second round of a working-level meeting of the Council on Unified
Reform of Fiscal and Economic Systems (CURFES) yesterday. During
the meeting, the representative of the government presented a
plan to set the amount of funding needed to shift the balance
between revenues and expenditures in the fiscal revenues and
expenditures of the central and local governments, excluding
borrowings and repayments, in fiscal 2011. The proposal was
turned down, meeting strong opposition from Liberal Democratic
Party (LDP) members of the Upper House. LDP Policy Research
Council Chairman Hidenao Nakagawa plans to finalize the ruling
parties' spending cut plan before the end of June, but he will
likely be pressed to take a fresh approach to the discussion on
the issue.

During the meeting State Minister for Economic and Fiscal Policy
Hajime Yosano, who represented the government's side, presented

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the necessary amount of funding, but Upper House LDP Policy
Deliberations Council Chairman Masatoshi Wakabayashi expressed
his strong dissatisfaction with the proposal, noting, "We need to
further vet such matters as an economic growth rate. I would like
to take the proposal off for consideration."


Nakagawa, who is taking the initiative in the move to cut
expenditures, and Yosano have worked out the necessary amount. As
Deputy Chief Cabinet Secretary Nagase put it, it is impossible to
pursue discussions on the issue without some base. The amount
was, therefore, adopted as the starting point for discussion, but
it has only highlighted the gap in views of in the LDP. The
meeting ended before entering discussions on specifics, as it
failed to show a menu for spending cuts.

SCHIEFFER