DAILY SUMMARY OF JAPANESE PRESS 06/13/06

UNCLAS SECTION 01 OF 08 TOKYO 003250

SIPDIS

SIPDIS

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SUBJECT: DAILY SUMMARY OF JAPANESE PRESS 06/13/06


INDEX:

(1) US Ambassador to Japan: Completion of alternative facilities
a prerequisite for relocating US forces in Japan

(2) US Ambassador Schieffer calls for understanding toward US
force realignment in speech in Kumamoto

(3) Barriers standing in airlines' way to Yokota base

(4) Tug-of-war between Abe, Fukuda to intensify after regular
Diet session ends this weekend; Focus on Fukuda's decision and
manifestos

(5) Fiscal recapitalization; Opposition parties against further
spending cut

(6) Editorial: Japan's national interests really considered first
in delaying critical legislation?

ARTICLES:

(1) US Ambassador to Japan: Completion of alternative facilities
a prerequisite for relocating US forces in Japan

ASAHI Kumamoto edition (Full)
June 9, 2006

US Ambassador to Japan Thomas Schieffer delivered a speech in
Osaka on June 8 at the invitation of the Asahi Shimbun. Touching
on the question of realigning US forces in Japan, the ambassador
reiterated the US view that the completion of alternative
facilities based on Japan's cooperation is a precondition for
relocating Okinawa-based US Marines to Guam, Futenma Air Station,
and other installations, stating: "US Marines will leave Okinawa
only after new facilities are constructed in Guam."

The ambassador also said: "(In terms of security),it is too
dangerous to move them when things are not ready." He thus
expressed his hope for an early start of construction work for
alternative facilities, as was agreed upon by the Japanese and US
governments.

The ambassador also underlined Japan's requests regarding
bilateral talks on the cost of relocating US Marines, stating:

"There have been many articles saying that the United States is
conspiring to make Japan foot the bill. (But in America's view),
Okinawa residents asked us to cut the number of troops but not to
reduce (military) capabilities, so we simply decided to comply
with their requests."

He also sought the understanding of the Japanese people, saying:
"Please don't forget that the United States will also pay a large
amount of the cost."

(2) US Ambassador Schieffer calls for understanding toward US
force realignment in speech in Kumamoto

KUMAMOTO NICHI-NICHI SIMBUN (Full)
June 9, 2006

US Ambassador to Japan Thomas Schieffer visited Kumamoto

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Prefecture on June 8 and delivered a speech titled "An outlook on
US-Japan relations" at the Kumamoto City International Center in
Hanabata-cho. The ambassador highlighted the need for
deregulation in Japan and other matters, while seeking
understanding regarding the realignment of US forces in Japan.
The event, held by the Japan-America Society of Kumamoto
(President: Mitsuya Nagano),brought together some 180 people.

Referring to the society's 45th anniversary this year, Schieffer
pointed to good relations between Japan and the United States,
saying: "Society has changed drastically over the past 45 years.
The United States and Japan have fostered good partnership by
overcoming the hatred aroused by the war."

The ambassador also referred to the recent bilateral agreement on
US force realignment as the most important decision since the
revision of the US-Japan Security Treaty, stressing that the
presence of US forces in Japan has been deterrence against
attacks (on Japan) from other countries. He also indicated that
Okinawa's base-hosting burden would be reduced, while the
integration of Japan's Self-Defense Forces and US forces in Japan
would pick up speed.

The ambassador also underlined the need for additional economic
deregulation, saying: "Fair corporate competition must not be
inhibited. The survival of companies is decided by the market."

Ahead of delivering the speech, Schieffer had a pleasant talk
with Governor Yoshiko Shiotani at the prefectural government
office.

(3) Barriers standing in airlines' way to Yokota base

ASAHI (Page 1) (Full)
Eve., June 10, 2006

Tokyo is now locking on the US Air Force's Yokota base; located
in the western district of the metropolis, having targeted the
facility for joint use with commercial airlines. Tokyo Governor
Shintaro Ishihara made it a public pledge in his gubernatorial
election campaign to have the airbase ultimately returned. "We
will start regular domestic flights in a year," Ishihara vowed.
Meanwhile, airline companies have asked in writing the Tokyo
metropolitan and Japanese governments for commercial use of the
airbase. However, some of the local communities hosting the
airbase are crying out against such joint military-civilian use,
citing such reasons as noise pollution. Prospects still seem poor
for a civilian Yokota airport.

"We will have airlines start their domestic regular flights at
least in a year, so I hope you will use their services."

Ishihara made this remark on May 24 at a meeting of governors
from prefectures in the Kanto region. In the meeting, which was
held in Tokyo, Ishihara was full of confidence. Then, on June 6,
when Tokyo's metropolitan assembly opened its regular session,
Ishihara in his policy speech again referred to the feasibility
of Yokota airbase for actual joint use.

Yokota base reversion was Ishihara's campaign pledge when he was
first ran for Tokyo's governorship in 1999. The central
government has remained silent about this issue. In May, however,
Japan and the United States finalized a report on the planned

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realignment of US forces in Japan, incorporating their
intergovernmental agreement to study specific conditions and ways
for the possible dual use of US military bases and complete their
studies within 12 months after their start. "US forces would
allow some commercial access (to Yokota)," said an official of
the Ministry of Land, Infrastructure and Transport (MLIT)."

On May 31, a study group, including Ishihara's brain trust,
released a report of its study of airports in Tokyo's
metropolitan area. The report provides an estimate of passenger
needs for having a civilian airport at Yokota, specifying a total
of 40 flights on seven air routes to and from Shinchitose, Itami,
Komatsu, Hiroshima, Fukuoka, Kagoshima, and Naha airports. The
report also estimates user needs in the three nearby prefectures
of Saitama, Kanagawa, and Yamanashi. It predicts 5.6 million
passengers for 2022. Yokota airport is expected to create 8,850
jobs with a tax revenue of 17 billion yen.

Based on this estimate, the Tokyo metropolitan government will
negotiate with the United States and other counterparts.

According to the metropolitan government's estimate, the city of
Hachioji in Tokyo-one hour and 25 minutes' train ride to Haneda
Airport-is 25 minutes to Yokota, and the city of Kawagoe in
Saitama Prefecture is one hour and five minutes' train ride, or
20 minutes shorter, to Yokota.

On May 25, Japan Airlines (JAL) and All Nippon Airways (ANA),as
if they had waited for Ishihara to come out with that remark,
submitted their petitions for the first time to the metropolitan
government for flight extensions to Yokota. "There are needs to a
certain extent in the Tokyo metropolitan area's western districts
that are far from Haneda," an ANA official said. This official
added, "It's possible to expect profits if we meet potential
needs for flight services."

Even so, it seems difficult to use the Yokota airbase in a year.

According to the final accord, civilian aircrafts must not affect
US military operations as a precondition for their joint use of
the Yokota airbase. "In the case of 40 flights a day, there will
be six flights to and from the base," a senior MILT official
said. This official also said, "I don't think US forces will give
way that far."

In 2004, the Tokyo metropolitan government worked out a Yokota
dual use plan with MLIT, the Foreign Ministry, and the Defense
Agency. The Japanese government has transmitted the plan to the
US government. According to this plan, Japanese air carriers are
to serve about 17 flights per day to and from Yokota. The
foregoing MLIT official said, "The airport starts with a small
number of flight services in the beginning, but it can serve many
more flights later on."

Another problem is what to do about the terminal building for
passengers. The metropolitan government has plans to lease a US
military facility at the airbase or build a simple building on an
unused land plot. "If we do so," one airline official said, "it's
possible to run flights without taking much time."

However, it is inconceivable that US forces will allow passengers
to enter the airbase's highly confidential areas. The US Air
Force's Misawa base in Aomori Prefecture is the only base for

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joint use with commercial airlines. The runway is on the premises
of the base, but the terminal building for passengers is off
base. To build a passenger terminal near the Yokota airbase,
there is a need to buy a land lot. "It will take two or three
years," one MLIT official said. This official added, "The
governor said 'in a year,' but that's probably because he had
next year's gubernatorial election in mind."

The most important thing is a local consent.

The Yokota airbase stretches over five cities, including
Tachikawa, and a town. None of these municipalities is in favor
of commercial airlines' joint use of the airbase, with the
exception of Musashimurayama City expecting infrastructure
construction and local economic revitalization. Mizuho Town and
Akishima City are opposed to the airbase dual use plan, citing
noise pollution and other reasons.

Commercial jetliners are less noisier than military jets.
However, noise levels will go up with their flights. "It's our
job to forge a local consent, but it is the government's job to
take noise countermeasures, including compensation," one
metropolitan government official said.

The Defense Facilities Administration Agency is in charge of
measures to deal with military aircraft noise at Yokota and in
its environs. However, one MLIT official deems it possible to
deal with aircraft noise even if the base environment becomes
somewhat noisier. "The problem," this official went on with his
rebuttal, " is how the metropolitan government will obtain local
understanding."

(4) Tug-of-war between Abe, Fukuda to intensify after regular
Diet session ends this weekend; Focus on Fukuda's decision and
manifestos

TOKYO SHIMBUN (Page 2) (Abridged)
June 12, 2006

Attention in the capitol district of Nagatacho is now focused on
the presidential election of the Liberal Democratic Party in
September. Coordination is underway centering on a vote on
September 20. This means the election could be only 100 days
away. The post-Koizumi race would heat up once the ongoing Diet
session ends on June 18.

Competition between two Mori faction members

Foreign Minister Taro Aso, Finance Minister Sadakazu Tanigaki,
former Chief Cabinet Secretary Yasuo Fukuda, and Chief Cabinet
Secretary Shinzo Abe were originally regarded as front-runners in

SIPDIS
the LDP presidential race.

With time, Abe and Fukuda of the Mori faction stood out of the
crowd. Former Prime Minister Yoshiro Mori, who heads the faction,
then mentioned the option of fielding a single candidate. Prime
Minister Junichiro Koizumi immediately objected to it. As a
result, Abe and Fukuda stole the show, leaving Aso and Tanigaki
far behind.

Rivalry between Abe and Fukuda is evident.

On May 24, Abe voiced his readiness to run in the race. In the

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following week, the Association of Kuronin (persons who have gone
through a lot),chaired by Fukuda, held a meeting of some 30
lawmakers aged 50 or older.

A parliamentary group supporting a second chance also held its
inaugural meeting on June 2 by bringing together 94 junior and
mid-level members supportive of Abe.

Aso and Tanigaki factions

Other factions were not watching Abe and Fukuda quietly.

On March 15, the Niwa-Koga faction, the Tanigaki faction, and the
former Kono faction launched an Asia strategic study group. The
three factions have their roots in the former Miyazawa faction,
or Kochikai. The move stirred a conjecture that it was for
launching a grand Kochikai for the presidential race. With
Tanigaki and Aso included in those factions, the grand Kochikai
initiative is likely to keep attracting attention.

The Shimazu faction's basic strategy is to back a winner, but
some junior and mid-level members are preparing to field their
own candidate, with Defense Agency Director-General Fukushiro
Nukaga in mind.

The faction headed by Taku Yamasaki is continuing study sessions
with other factions possibly in an effort to find its partners.

Once the ongoing Diet session ends, prospective candidates would
throw their hats in the ring at the right timing. Abe intends to
announce his candidacy after the July 15-17 St. Petersburg
Summit.

At the center of attention is Fukuda, who remains mum on his
candidacy. Many observers say that he will not announce his
decision until the last moment. If he decided not to run in the
race, those critical of Abe would scramble for fielding an "anti-
Abe candidate" in place of Fukuda.

Policy debates

After formally announcing their candidacies, presidential
candidates would compile manifestos, or campaign pledges, in
tandem with searching for official supporters. All manifestos
would be out by late August.

After late August, candidates would conduct policy debates at
bloc conventions and a variety of roundtable discussions. The
contents of their manifestos could determine the outcome of the
presidential race.

(5) Fiscal recapitalization; Opposition parties against further
spending cut

NIHON KEIZAI (Page 2) (Almost full)
June 13, 2006

The government and the ruling camp yesterday reaffirmed a policy
of cutting government expenditures further with approximately 17
trillion yen as a starting figure to secure funding needed for
recapitalizing public finances. They plan to cut expenditures
worth 15.5 trillion yen through cuts in personnel costs for local
government employees and social security expenditures. However,

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many ruling party members are opposing the idea of cutting
expenditures any further. With simultaneous local elections and
an Upper House election set for next spring and summer
respectively, efforts to draft a specific plan will likely
encounter objections.

"They are talking about an utterly unacceptable figure unknown to
us. I want the government to reflect seriously."

Liberal Democratic Party (LDP) Policy Research Council Chairman
Hidenao Nakagawa during a meeting of the LDP Fiscal Reform Study
Council expressed his displeasure about the leak of the Finance
Ministry's estimated shortfall of 15.5 trillion yen needed to
shift the primary balance into the black in fiscal 2010.

"Decision is to be made by politics"

The 15.5 trillion yen -- below the 17 trillion yen needed to
shift the primary balance into the black -- is a figure aimed to
serve as a settlement. This target estimated by the Finance
Ministry has apparently upset Nakagawa, who is self-confident
that it is politics that makes a decision. With pressure against
spending cuts mounting in the ruling camp, meticulous behind-the-
scene maneuvering will be indispensable for reaching a settlement
on this figure.

Thought the government refrained from proposing 15.5 trillion yen
in spending cuts during a meeting of the Council on Unified
Reform of Fiscal and Economic Systems (URFES) held on June 11, a
number of participants voiced objections to the idea.

New Komeito Policy Research Council Chairman Yoshihisa Inoue
called on the government to show a detailed basis the
calculations used in working out the amount needed to shift the
primary balance into the black. The New Komeito, which places
importance on next year's simultaneous local elections and Upper
House election, is concerned that a substantial constraint on
social security expenses will work against the party, for it has
advocated welfare-oriented policy measures.

Major battle ahead next summer

LDP Upper House Caucus Chairman Mikio Aoki yesterday held a
meeting with first-term Lower House lawmakers who are close to
Chief Cabinet Secretary Shinzo Abe at LDP headquarters and
inflamed a sense of alarm about the Upper House election. He
noted: "Next year's Upper House election will be a major battle.
The Democratic Party of Japan (DPJ = Minshuto) will try to take
office and fight without regard to policy issues."

Upper House members who are up for reelection next year were
elected in 2001, boosted by amazingly high popularity ratings for
Prime Minister Junichiro Koizumi, who just came into office that
year. Seeing that the party will have an uphill battle, the LDP
executive in the Upper House is now trying to gain organized
votes. As such, major cuts in public works could dampen its
strategy.

The LDP leadership is also likely to propose a settlement with
the LDP Upper House members with a so-called elastic clause
designed to correct the pace of the process of cutting
expenditures according to economic conditions. However, such a
strategy, if it comes out at an early stage, could dampen

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enthusiasm for fiscal reconstruction.

How to steer the fiscal recapitalization process is one of the
most important agenda items for the successor to Koizumi.

The prime minister yesterday evening met reporters and stressed:
"How to make up for (the balance between revenues and
expenditures) by cutting expenditures and increasing revenues is
an issue whoever becomes prime minister or whichever party takes
the reins of government."

(6) Editorial: Japan's national interests really considered first
in delaying critical legislation?

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

The Diet will now wind up its current session in six days. Prime
Minister Junichiro Koizumi has said he would not extend the
current Diet session, and many important legislative measures
will be carried over to the next Diet session.

These critical legislative measures include a bill to amend the
Fundamentals of Education Law, a bill to establish a national
referendum law for amendments to the Constitution of Japan, and a
bill to upgrade the Defense Agency to the status of a ministry.
These bills are all concerned with the foundation of Japan.

Prime Minister Koizumi, whose term as president of the ruling
Liberal Democratic Party will expire in late September, said he
would not extend the Diet session because there would be many
other things to do. He instructed the LDP yesterday to do its
best to legislate the vital bills at an extraordinary session of
the Diet.

However, we wonder if the prime minister has fully endeavored to
legislate the bills at the current Diet session. The prime
minister himself presented the bills to the Diet. The premier
should not task his successor with the heavy burden and should
settle them.

The ruling and opposition blocs are compromising with each other
on some bills that are now before the Diet. This tells that there
is still room for the prime minister to display his leadership.

One of these bills is intended to establish an anticancer law,
which requires the government to push ahead with anticancer
measures. Another legislation is a North Korean human rights
bill, which urges the government to impose economic sanctions on
North Korea. These two bills, retouched by the LDP and the
leading opposition Democratic Party of Japan (DPJ or Minshuto),
are expected to clear the House of Representatives today.

In addition, there are many other legislative measures the ruling
and opposition parties should work together to legislate in the
national interests of Japan. These legislative measures include
three bills presented by the LDP and the DPJ for Japan's sea-
related rights and interests.

The LDP-presented bill is to create a sea architecture safety
zoning law, which designates a safety zone with a radius of 500
meters around undersea resources prospecting rigs and penalize
illegal intrusions into the zone. One of the two DPJ-presented

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bills is to enact a law intended to promote Japan's development
of undersea resources. This DPJ-proposed legislation requires the
government to develop undersea resources on its responsibility.
The other DPJ-proposed legislation is for Japan to exercise its
rights to probe natural resources and conduct marine research
activities. This legislation bans foreign nationals from probing
natural resources within Japan's exclusive economic zone (EEZ)
waters. All these bills are for Japan to establish its first
legal endorsement allowing Japan to protect its sea-related
rights and interests. However, the Diet has yet to hold even a
hearing of the two parties' explanations about the purports of
these proposed legislations.

For one thing, the LDP is taking its pro-Chinese lawmakers into
consideration. For another, the DPJ is laying emphasis on its
difference from the LDP. The administrative and legislative
bodies' negligence mars Japan's national interests.

In his January policy speech before the Diet, Prime Minister
Koizumi cited an old saying: "One who is highly spirited must be
prepared to die for his lofty will." We want him to settle as
many difficult problems as possible.

SCHIEFFER