JAPANESE MORNING PRESS HIGHLIGHTS 06/26/06

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E.O. 12958: N/A TAGS: OIIP KMDR KPAO PGOV PINR ECON ELAB JA SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 06/26/06 Index: 1) Top headlines 2) Editorials Prime Minister's weekend, daily schedules: None US-Japan ties: 3) Prime Minister Koizumi to meet President Bush on June 29, play up bilateral alliance 4) Japan remains mum about US-India nuclear accord Defense & security topics: 5) Japan begins troop pullout from Iraq 6) USFJ plans PAC-3 deployment to Okinawa this year 7) Tokyo agrees with US to outlay 1.0-1.2 billion dollars for missile defense shield 8) Antimissile test successful off Hawaii 9) US nuclear submarines make more visits in Japan US beef: 10) US sanctions bill over beef "nonsense": farm minister 11) MOFA minister negative about all-out embargo on US beef even after another single erroneous RSM shipment to Japan Opinion polls: 12) 60% won't eat US beef, 70% opposed to import resumption: Yomiuri-NTT online poll 13) Yomiuri poll shows only 16% want next prime minister to take over Prime Minister Koizumi's structural reforms, down 10 points Ex-CCS Fukuda in Jakarta: 14) Ex-CCS Fukuda in Jakarta announces his own Asia policy, seeks to improve ties with China, ROK 15) Fukuda asks Indonesian president to work on North Korea's Kim Jong Il over missile threat Foreign affairs: 16) Taepodong missile launch a violation of Pyongyang declaration: CCS Abe 17) DPJ President Ozawa to visit China next month, meet with President Hu 18) Japan to advocate small arms nonproliferation at United Nations Articles: 1) TOP HEADLINES Asahi: Poll of 100 major companies: 97 firms say ongoing economic expansion is "likely to be longest," upbeat about the economy due to recovery in consumption Mainichi: Minshuto (DPJ) head Ozawa intends to urge DPJ lawmaker Matsui to resign over involvement in Murakami Fund, will pressure BOJ Gov. Fukui to resign Yomiuri: Governing coalition plan to cut annual spending by 11.5-14.5 trillion yen, allocate 170 billion yen for social welfare benefits TOKYO 00003523 002 OF 010 Nihon Keizai: Economy expanding at steady pace, helped by domestic demand; Virtuous cycle of investment and consumption, but the outlook for US economy, falling stock prices remain as matters of concern Sankei: Liver transplant involving foreigner: Pakistani donor under suspicion of attempting to sell his organ; Incident forces Kyoto University to adopt more strict ethical rules Tokyo Shimbun: Delay in discovery of solitary deaths of those aged from 40 to 64; 50% of those discovered more than 8 days after their deaths in 23 wards in Tokyo in 2004 2) EDITORIALS Asahi: (1) Misuse of research funds damages the public trust (2) UN Human Rights Council: Need to depart from "conflicts of culture" Mainichi: (1) Cut in government expenditures: Proponents should fulfill their responsibility (2) Misuse of research funds: Preventive measures more important than promoting whistle-blowing Yomiuri: (1) Manufacturing White Paper: Shortened season is a headache (2) UN Human Rights Council: Abduction issue will be a test of its ability Nihon Keizai: Strategic change of president will put companies on way to growth Sankei: (1) Family murder: Boy's thinking must be illuminated (2) Anti-cancer measures: National strategic viewpoint necessary Tokyo Shimbun: (1) General shareholders' meetings: Stockholders need to voice their views (2) Biomass energy: Energy conservation via plants 3) Koizumi, Bush to meet on June 29, highlight unity of Japan, US in first joint statement in five years NIHON KEIZAI (Page 2) (Full) June 25, 2006 Prime Minister Junichiro Koizumi will set out on a trip to wind up his diplomatic schedule. He will leave Japan on June 27 for Canada and the United States. In July, he is scheduled to attend the St. Petersburg Summit. In their meeting on June 29, Prime Minister Koizumi and US President Bush will issue a joint statement underscoring that Japan and the US, with the common values of freedom and democracy, will cooperate in every area, based on the alliance in a global context. Koizumi intends to play up the unity of Japan and the US in the summit. The upcoming trip to the US will be the first official visit for a TOKYO 00003523 003 OF 010 Japanese prime minister since Prime Minister Keizo Obuchi went in ¶1999. Given their personal relationship of trust, President Bush has arranged to treat Koizumi like a state guest in the final days of his office as prime minister. In addition to various welcome events in Washington, Koizumi will visit the home of singer Elvis Presley in Tennessee with Bush. The prime minister's birthday is the same as Presley's. The two leaders will issue their first joint statement since their first summit in June 2001, immediately after Koizumi assumed office. The statement will stress that Japan and the US will join hands in dealing with various tasks facing the international community, including terrorism and natural disasters, following the dispatch of Self-Defense Force troops to Iraq and the agreement the two countries reached on plans for US force realignment in Japan. It has been reported that North Korea could be ready to test-fire a long-range ballistic missile. Tokyo and Washington are making arrangements for the two leaders to call on Pyongyang not to carry out the test-firing, expressing concerns that a missile launch would bring about a serious situation. Prime Minister Koizumi is expected to ask President Bush that Japan and the US work on other major countries to cooperate in persuading the North to completely abandon its nuclear arms program and resolving the issue of Japanese nationals abducted by North Korean agents. There are issues on which the two sides do not agree, though. Over Iran's uranium enrichment activities, the US has unofficially asked Japan to consider invoking financial sanctions against that nation, but the Japanese government has supported a project to develop a new oil field in Iran, given that Japan imports 13.8% of its oil from that country. Based on the view that the summit is not a proper time for Japan to be pressed to reveal its attitude, the Foreign Ministry hopes that both sides will agree on a plan to urge Iran to swiftly accept a package of rewards for ending its nuclear program. In the event that President Bush strongly urges Japan to consider sanctions, however, Japan will find it difficult to make a judgment on a matter of foreign policy that will have to be undertaken by the next prime minister. The agreement on nuclear energy reached between the US and India is also bothersome for Japan. India has yet to join the Nuclear Non-Proliferation Treaty but is a nuclear weapons state. Under the agreement, the US would provide India with nuclear technology for civilian applications. Some countries concerned are worried that the agreement might gut the NPT. Japan may have no choice but to express a qualified consent. 4) Japan not to announce endorsement of US-India nuclear agreement during upcoming Japan-US summit ASAHI (Page 2) (Full) June 24, 2006 If during the upcoming Japan-US summit, the United States urges Japan to declare its endorsement of the nuclear agreement recently reached between the US and India, Japan will not give a clear-cut endorsement but refer it as a subject "to which it will give positive consideration." This policy direction is being coordinated TOKYO 00003523 004 OF 010 in the government. Lying behind this move is the fact there are no prospects in sight for the US Congress to ratify the agreement, or for the International Atomic Energy Agency (IAEA) to decide on safeguard measures by the time of the Japan-US summit. This policy direction, though, implies that Japan will endorse the agreement in the months ahead if the conditions are met. If the US-India nuclear agreement crops up as a subject during the Japan-US summit, the prime minister will point out that India shares the common value of democracy and is an important country for both Japan and the US. The prime minister will not oppose the agreement, given (1) the need to cope with India's growing energy demand owing to its rapid economic growth and (2) the possibility that the agreement will lead to bringing India to the nuclear non-proliferation system. The prime minister, however, will not endorse the agreement. The reasons are, for instance, (1) the US Congress has yet to come up with a conclusion; and (2) no specific safeguard measures have been decided at the IAEA, so the possibility is not ruled out that civilian technology will be converted for military use. 5) GSDF troops start pulling out from Iraq, transferring vehicles from Iraq to Kuwait NIHON KEIZAI (Page 2) (Full) June 26, 2006 Kazuki Kagatani, Bahrain The Ground Self-Defense Force (GSDF) troops stationed in Iraq's southern city of Samawah yesterday started withdrawing from Iraq. The transfer of vehicles from the GSDF camp to a place outside Iraq has now begun. This transfer has been entrusted to a private company. The company's large trailers carrying 17 vehicles, such as light armored vehicles, large and medium-sized trucks, and other trucks, crossed the border and entered Kuwait yesterday morning (evening of the same day, Japan time). Because of a succession of terrorist incidents on the way from Samawah to Kuwait, the overland transportation by a dozen large trailers was carried out while being surrounded by armed private security guards, and the Japanese flag was removed from the cargo. The transportation this time was limited to military-related goods and materials. Upon the completion of the transportation of those goods and materials, GSDF troops will move out from Samawah as early as late July and will head for Kuwait aboard C-130s. Vehicles that were transported this time will be kept at civilian warehouses. In order to help the withdrawal process, an assistance unit that will be dispatched shortly to Kuwait will start the procedures for marine transportation. 6) USFJ to deploy PAC-3 to Okinawa within the year YOMIURI (Page 1) (Abridged) June 26, 2006 The United States told Japan in an intergovernmental consultative meeting of working-level officials from the two countries in Hawaii on June 17 that the US military plans to deploy Patriot Advanced Capability-3 (PAC-3) surface-to-air guided missiles to Okinawa TOKYO 00003523 005 OF 010 Prefecture within the year, officials revealed. PAC-3 missiles will be deployed to the US Air Force's Kadena Base, which is located across the town of Kadena and some other municipalities in Okinawa, or otherwise to the Kadena Ammunition Depot, a US military facility located in the city of Okinawa and other municipalities in the island prefecture, according to the officials. The planned deployment of PAC-3 missiles to Okinawa is in anticipation of North Korean and other foreign ballistic missiles, and US Forces Japan will deploy PAC-3s for the first time. The US Army is expected to station 500-600 additional troops in Okinawa. The US military is expected to deploy about four PAC-3 launchers in Okinawa. The Japanese government will basically agree on the PAC-3 deployment to Okinawa. 7) Japan, US exchange notes on Japan's payment of 1-1.2 billion dollars for joint development of next-generation missile defense over nine years NIHON KEIZAI (Page 2) (Full) June 24, 2006 Foreign Minister Taro Aso and US Ambassador to Japan Thomas Schieffer yesterday exchanged notes on joint development of the next-generation Aegis-based standard missile (SM3),on which Japan and the United States had engaged in joint technological development in pursing missile defense. The notes they exchanged state that Japan will pay 1-1.2 billion dollars over the next nine years. The joint development will start this fiscal year. As the condition that this joint development should be excluded from the three principles banning weapons exports, the two countries also exchanged the notes urging the US to keep the missile under strict control. 8) US, Japan successfully conduct missile intercept test; Cautious views prevalent about using the system against Taepodong SANKEI (Abridged slightly) June 24, 2006 Takashi Arimoto, Washington The United States has successfully conducted a sea-based ballistic missile intercept test off Hawaii, a US Defense Department Missile Defense Agency official announced on June 22. Although the official denied any connection between the test and North Korea's preparations to launch a Taepodong-2 ballistic missile, the first ballistic intercept testing involving Japan's Maritime Self-Defense Force was obviously aimed at demonstrating US deterrence against ballistic missiles. But cautious views are also heard in the US government about using this system, which is still in the process of development, against North Korea's Taepodong-2 missiles. The event marked the seventh successful intercept in the eight flight tests of the sea-based Aegis Ballistic Missile Defense System. A mock enemy missile was successfully intercepted by a Standard Missile-3 (SM-3) interceptor missile fired by the USS Shiloh, scheduled to be deployed at Yokosuka Base in Kanagawa Prefecture. The MSDF's Aegis vessel Kirishima, equipped with high-performance radar, also successfully tracked the enemy missile. Japanese and US Aegis vessels are equipped with an intelligence-sharing system. Missile Defense Agency Director Henry Obering released a statement TOKYO 00003523 006 OF 010 underlining the significance of the joint US-Japan missile intercept testing, saying, "We have succeeded in testing extremely difficult technology." Japan and the US have been cooperating in gathering intelligence on North's Korea's preparations for launching a Taepodong-2 missile. The US military has also shifted the ground-based ballistic missiles deployed in Alaska and other places from test mode to combat mode. Secretary of Defense Donald Rumsfeld told a press conference on June SIPDIS 22 regarding conditions for using the missile defense system: "The president will make a decision depending on whether or not a launch is a threat to US territory." The system has not been used in an actual combat. The prevalent view in the US government is that being at the stages of R&D and testing, the operational capability of the system is limited. On June 22, the Washington Post carried an article by Former Defense Secretary William Perry, who expressed his concern that a failure to SIPDIS intercept an enemy missile would undermine the value of the missile defense system. He also urged the Bush administration to make it clear that the US would resort to a preemptive strike if North Korea advanced its preparations for a Taepodong-2 missile launch. 9) Nuclear submarines' port calls on the rise, possibly with North Korea in mind ASAHI (Page 38) (Abridged) June 26, 2006 Port calls by the US Navy's nuclear-powered submarines at Sasebo Base in Nagasaki Prefecture and White Beach in Okinawa Prefecture have increased to the level of Yokosuka Base in Nakagawa Prefecture, the largest of the three ports. The number of port calls at Sasebo in the 2000-2005 period increased six-fold from the level of the 1980s and that of White Beach a little less than five-fold. The US Navy has strengthened its patrols in the East China Sea and the Sea of Japan by bearing in mind China's military buildup and North Korea's development of ballistic missiles. The US Navy is believed to have increased its submarines' port calls at Sasebo and White Beach as hub ports. Local governments usually notify the Foreign Ministry about any port calls by US nuclear-powered submarines. Yokosuka City, Sasebo City, and the Okinawa prefectural governments have been tabulating such calls. According to their records, US nuclear submarines made an average 28 port calls a year during the 1980s, 48 calls during the 1990s, and 49 calls in the 2000, showing an increase in the post-Cold War era. Of them, Sasebo accounted for three during the 1980s, 10 in the 1990s, and 18 in the 2000s. White Beach's number also increased from 3 to 11 to 14. Meanwhile, Yokosuka marked 22 in the 1980s, and 27 in the 1990s, but dropped to 28 in the 2000s. Port calls at Yokosuka accounted for 80% of the total in the 1980s, 60% in the 1990s, and less than 40% in the 2000s, reducing the gap with Sasebo and White Beach. All nuclear-powered submarines that visited Japanese ports in the TOKYO 00003523 007 OF 010 1980s were attack-type subs on missions to track former Soviet Union submarines in deep waters in the Pacific Ocean, according to US Navy sources. From the late 1990s, the US Navy strengthened its surveillance of the Chinese military. The focus of their activities, including intelligence gathering and patrolling, has now shifted to the Sea of Japan, the East China Sea, and South China Sea. According to the US Defense Department's Quadrennial Defense Review released in February, the US Navy plans to increase the ratio of nuclear-powered submarines in the Pacific from 40% to 60%. For this reason, US nuclear submarines are likely to visit Japanese ports more often. 10) "US sanctions bill is meaningless," says agriculture minister TOKYO SHIMBUN (Page 3) (Full) June 24, 2006 Commenting on the move in the US Senate to pass a bill calling for punitive tariffs on Japanese imports in the event that Tokyo fails to resume US beef imports at an early date, Agriculture, Forestry, and Fisheries Minister Shoichi Nakagawa during a speech given at the Japan Correspondents Club criticized it, noting, "It is nonsense to submit a punitive bill that sets a timeline at this time." 11) Foreign minister negative toward imposing blanket embargo on US beef imports, even if SRM are found in resumed shipment TOKYO SHIMBUN (Page 2) (Full) June 26, 2006 Commenting on the response to a possible inclusion of specified risk materials (SRM) in a US beef shipment to Japan, Foreign Minister Taro Aso during an NHK TV talk show on June 26 indicated his perception that a blanket embargo should not be imposed on such an event. Noting that "the decision will depend on the situation," Aso noted: "An embargo should be imposed only on the meatpacker that has shipped products in violation of the agreement. It would not be fair to other meatpackers to impose a blanket ban." Regarding Prime Minister Koizumi's visits to Yasukuni Shrine, Aso reiterated his position that it is necessary to enshrine Class-A war criminals separately from other war dead, reviewing the status of Yasukuni Shrine as a religious institution. 12) Poll: 60% say they will not eat US beef; 70% oppose resumption of US beef imports YOMIURI (Page 2) (Full) June 26, 2006 The Yomiuri Shimbun learned yesterday through an online survey that 60% of respondents said that they did not want to eat US beef, imports of which will be resumed as early as late July. The Yomiuri conducted the poll yesterday along with NTT Resonant Communication. A total of 71% responded that they opposed the resumption of US beef imports or opposed it to a certain extent. Some 60% of this group cited doubts about the safety of US beef. Asked whether they would eat US beef after resuming beef imports, 61% replied that they would not or they would try not to. Some 96% said it should be a requirement to label the country of origin. TOKYO 00003523 008 OF 010 The survey was conducted on June 19-20 when the governments of Japan and the United Stated agreed to Japan's resumption of US beef imports. A total of 1,059 (450 men and 609 women) consumer monitors between the ages of 14 to 84 responded to the survey. 13) Poll: 16% say next prime minister should continue Koizumi reform drive; 78% concern about widening social gap YOMIURI (Page 2) (Excerpts) June 24, 2006 The Yomiuri Shimbun conducted a nationwide poll on June 17-18. Just 16% said that the next prime minister should continue Prime Minister Junichiro Koizumi's reform drive, a 10-point drop from the February survey, while 56%, up 7 points, responded that the Koizumi reform programs should be continued after revisions. A total of 23%, up 5 points from the previous survey, said that the Koizumi reform drive should not be maintained. Regarding supporters of the Koizumi government, only 25%, a drop of 14 points from the previous survey, said that the next prime minister should continue the Koizumi reform drive. The main reason seems to be that people think that the Koizumi reform drive has widened social gaps, including an income gap, in the wake of arrests of Takafumi Horie, former president of Livedoor Co., and Yoshiaki Murakami, former representative of the Murakami Fund. A total of 78% said that they were seriously concerned about the widening income gap, with 21% not expressing concern. Asked whether they thought Japanese people would be able to overcome the social gap if they made efforts, 65%, a 7-point increase from the survey conducted in March, responded that they did not think they would be able to overcome the gaps. Regarding those who responded that they did not think the Koizumi reform drive should not maintained, 70% said they did not think they would be able to overcome the gaps. Among those who said that the Koizumi reforms should be continued, 56% responded that they did not think they would be able to overcome the social gaps. 14) LDP's Fukuda stresses: Strained Japan-China and Japan-South Korea relations must be repaired YOMIURI (Page 2) (Full) June 24, 2006 Hiroaki Matsunaga, Jakarta Yasuko Fukuda, a member of the ruling Liberal Democratic Party (LDP) and a former chief cabinet secretary, revealed his own Asia policy in a speech at a seminar hosted by the Indonesia-Japan Friendship Association on the afternoon of June 23 (evening of the same day, Japan time). Fukuda seeks the economic integration of East Asian countries. In his speech, Fukuda advocated promotion of an Economic Partnership Agreement and other efforts. He then underscored that Japan, China, and South Korea would require wisdom and determination to break the impasse. Many observers see that although Fukuda has yet to announce his candidacy for September's LDP presidential election, the revelation TOKYO 00003523 009 OF 010 of his own comprehensive foreign policy is an expression of his determination to run in the race. Fukuda delivered the speech as chairman of the Japan-Indonesia Friendship Association. He stressed that it's time to respond to the demands of the times, characterizing the Fukuda Doctrine advocated by his father, Prime Minister Takeo Fukuda, as having completed its historical duty. Specifically, Fukuda said that since economic unification has been pushed forward in East Asia, political will and determination are needed to move ahead with it, and a system will be necessary. He then sought for the acceleration of talks on an EPA. Fukuda also stressed: "Some have noted that the cool relations between Japan and China and between Japan and South Korea would prevent regional unification. The three countries' political wisdom and determination are required to break the deadlock." In his speech, Fukuda called on Koizumi to stop visiting Yasukuni Shrine. He stated that the common Asian senses of values like consideration would become the key to resolving issues surrounding resources and the environment. He expressed his hopes that China would share with other countries democracy, respect for human rights, and the rule of law. 15) Fukuda calls on Indonesian president to work on General Secretary Kim regarding missile issue SIPDIS Former Chief Cabinet Secretary Yasuo Fukuda on June 23 met with Indonesian President Yudhoyono at the President's Office in Jakarta and exchanged views on such issues as the situation in North Korea. With Yudhoyono's upcoming visit to Pyongyang to meet with General Secretary Kim in mind, Fukuda made this request: "I would like you SIPDIS to tell General Secretary Kim to cooperate for a settlement of such issues as his nation's nuclear development and abductions of Japanese nationals so that the Tokyo-Pyongyang Declaration can be implemented." Regarding North Korea's move to test-fire a Taepodong-2 long-range ballistic missile, too, Fukuda asked Yudhoyono, "I would like you to tell him that any action that poses a threat to the international community will never be understood." Referring to the economic relationship between Indonesia and Japan, Yudhoyono underscored, "I hope for private investment by Japan." He indicated his desire to sign an economic partnership agreement (EPA) with Japan before the end of the year. 16) Abe: Taepodong-2 launch would be a violation of Pyongyang Declaration ASAHI (Page 2) (Full) June 24, 2006 The organ paper of the pro-Pyongyang General Association of Korean Residents in Japan (Chongryon) has reported in connection with a Taepodong-2 test launch that North Korea could launch a satellite at any time. Regarding such reports, Chief Cabinet Secretary Shinzo Abe told a press conference on June 23: TOKYO 00003523 010 OF 010 "If the North launched a ballistic missile that would directly affect the security of Japan, that would be a violation of the Japan-North Korea Pyongyang Declaration, no matter what the North calls it. That would conflict with the joint statement released after the six-party talks last September. A launch would have serious consequences for the peace and stability of Northeast Asia." 17) Minshuto head Ozawa to visit China next month; Plans to meet with Chinese President Hu TOKYO SHIMBUN (Page 2) (Full) June 24, 2006 It was decided yesterday that Ichiro Ozawa, president of the main opposition party Minshuto (Democratic Party of Japan),will visit China in July and meet with Chinese President Hu Jintao. Chinese Ambassador to Japan Wang Yi called on Ozawa at party headquarters and made a formal request of him for a visit to China, saying, "I would like you to visit China next month." Ozawa then accepted the offer, replying, "I really want to visit your country." Some of Ozawa's aides were concerned that if he visited Beijing before the September Liberal Democratic Party (LDP) presidential election, China, which has opposed Prime Minister Junichiro Koizumi's visits to Yasukuni Shrine, might take advantage of his visit. DPJ Secretary General Yukio Hatoyama, however, stressed: "We would like to make the Ozawa visit an opportunity to improve relations with China," given that summits between Koizumi and Hu have been suspended. Ozawa has made up his mind to visit China in July in a bid to pave the way for reconstructing bilateral relations. Ozawa will make an overseas trip for the first time since he assumed the presidency of the largest opposition party. He intends to play up his capability of assuming the political reins. He is expected to visit China before mid-July. Since Ozawa has expressed his view on the Yasukuni Shrine issue, which will become a major topic of discussion in his meeting with the Chinese president, that the war dead and Class-A war criminals should not enshrined the same place, there is no obstacle to his meeting with Hu. 18) Government to propose setting guidelines for nonproliferation of small arms NIHON KEIZAI (Page 2) (Full) June 26, 2006 The government will propose establishing international guidelines for the prevention of the illegal distribution of guns and other weapons at the UN Small Arms Action Plan Implementation Review Conference, which is to meet in New York starting on June 26. In view of the fact that the proliferation of small arms due to illicit trade in such weapons has led to the prolongation of armed conflicts and terrorist activities, the government determined that it is necessary to strengthen monitoring of such trade worldwide. It will also underscore the importance of ties with nongovernmental organizations and assistance for efforts to reintegrate disarmed soldiers into society. DONOVAN