JAPANESE MORNING PRESS HIGHLIGHTS 06/29/06

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E.O. 12958: N/A TAGS: OIIP KMDR KPAO PGOV PINR ECON ELAB JA SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 06/29/06 Index: 1) Top headlines 2) Editorials 3) Prime Minister's daily schedule Bush-Koizumi reunion today: 4) President Bush, Prime Minister Koizumi to meet today at White House 5) Friendship between samurai, cowboy: US paper Prime Minister Koizumi in Canada: 6) Japan, Canada agree to propel economic cooperation 7) Japan, Canadian leaders concerned about North Korean missiles 8) Canadian prime minister vows to stand behind Japan against North Korea Pre-summit foreign ministerial in Moscow: 9) Japan, Russia agree to raise DPRK abduction, missile issues at G-8 summit 10) Japan, France agree to call for Iran to accept overtures WTO Geneva ministerial talks: 11) Focus on compromise between exporters, importers 12) Farm minister urges US to compromise 13) Japan alone can't give up: farm minister Japan-DPRK issues: 14) Abducted son as 'Yokota's husband' meets mother in North Korea 15) Tokyo guarded against Pyongyang's intent to end abduction issue Japan-China ties: 16) DPJ President Ozawa likely to meet with President Hu's potential successor 17) China willing to expand defense exchanges with Japan Domestic politics: 18) LDP looking to hold presidential election on Sept. 20 19) Prime Minister Koizumi poised to visit Yasukuni Shrine Articles: 1) TOP HEADLINES Asahi: Murakami Fund scandal: Investment association exclusively for Fukui established, with Orix serving as coordinator Mainichi: Kim Yong Nam, believed to be husband of abductee Megumi Yokota, reunites with family; No reference made to Megumi Yomiuri: Waseda professor suspected of fabricating data Nihon Keizai: MHLW to ease standards for part-timers to join employee pension system, corporate health insurance system Sankei: TOKYO 00003595 002 OF 009 MLHW to cancel plan to sell national hospital in Chiba to corporation that hires ex-ministry officials Tokyo Shimbun: Kokudo hit with additional taxes upon revelation that Tsutsumi held a majority of shares 2) EDITORIALS Asahi: (1) Bankruptcy of Yubari City: Measures urged to prevent similar cases (2) Ishihara Sangyo must be strictly punished Mainichi: (1) Efforts needed to reduce damage by sharing information with residents (2) Intermediary efforts necessary to bring Israel, Palestinian Authority to negotiating table Yomiuri: (1) Japan should follow Germany's 3% consumption tax hike (2) Shareholders general meetings: Not apologies, but constructive dialogue necessary Nihon Keizai: (1) Overly optimistic estimates of future birthrate unacceptable (2) Sharp increase in appropriations lies behind embezzlement of scientific research funds Sankei: (1) Postal privatization: Don't forget principles of reform (2) Expand use of idle land Tokyo Shimbun: (1) Illegal labor contract law important but needs thorough debate (2) Measures against illegal parking: Consideration should be given to welfare services 3) Prime Minister's Official Residence (Kantei) Prime Minister's schedule, June 28 NIHON KEIZAI (Page 2) (Full) June 29, 2006 June 27 Afternoon Toured Niagara Falls in Toronto, Canada. Evening Left Toronto for Ottawa aboard a government plane. Night Arrived at his hotel and held talks with reporters traveling with the prime minister. June 28 Morning Held a meeting with Canadian Prime Minister Harper at the Canadian Houses of the Parliament and later held a joint press conference. 4) Japan-US summit to take place today YOMIURI (Page 2) (Full) June 29, 2006 TOKYO 00003595 003 OF 009 Takaharu Yoshiyama, Ottawa Prime Minister Junichiro Koizumi and US President George W. Bush will hold a meeting on the morning of June 29 (on the evening of June 29, Japan time) at the White House in Washington. The two leaders will meet for the first time since their summit last year in Kyoto and the upcoming summit will be their 15th. They will sum up that the five years of their efforts to strengthen the Japan-US alliance based on their relationship of trust will become the basis for the improvement of bilateral ties in the 21st century. 5) US newspaper runs feature on samurai-cowboy friendship, with focus on visit to Graceland SANKEI (Page 2) (Full) June 29, 2006 Prime Minister Junichiro Koizumi's plan to visit the legendary singer Elvis Presley's mansion Graceland in Memphis, Tennessee, accompanied by US President George W. Bush on June 30 is drawing much attention in the United States. The Washington Post ran a feature article on June 27 describing the Graceland visit as an appropriate ending to the unusual samurai-cowboy relationship. In a press briefing by a senior US official on June 27, many journalists also raised questions about Koizumi's visit to Graceland. The official introduced an episode that when Koizumi's US visit had been nailed down, President Bush expressed his eagerness to do something for his friend, suggesting that Bush proposed the trip to Graceland, according to the paper. The Washington Post, running a composite CD jacket photograph of a beaming Koizumi standing besides Presley, said that both Koizumi and Bush have strong beliefs and have the stubbornness never to admit any mistakes. The paper also cited Japan's cooperation on missile defense and the SDF mission in Iraq as examples of strengthened Japan-US relations owing to the friendship between Koizumi and Bush. The paper also referred to Washington's tilt toward Tokyo's call for raising the abduction issue at the six-party talks, a framework to discuss the North Korean nuclear issue. The paper also introduced an expert's view that America's visibly pro-Japan stance has estranged its relations with other Asian nations, particularly with South Korea. 6) Japanese, Canadian leaders agree on deepening economic cooperation NIHON KEIZAI (Page 2) (Full) June 29, 2006 Fumiyoshi Kendou Prime Minister Junichiro Koizumi, now visiting Canada, and his counterpart Harper agreed in their meeting in Ottawa on the morning of June 28 that Japan and Canada would deepen economic cooperation. In a joint press conference after the meeting, Harper stated in reference to bilateral economic relations: "We discussed a free trade agreement (FTA) between Japan and Canada." Koizumi said: "There is still room for development in economic relations. The Japanese market is attractive to Canada, and the Canadian market is TOKYO 00003595 004 OF 009 attractive to Japan." Sharing strong concern about North Korea's nuclear and missile development, the two leaders agreed that the two countries would strengthen cooperation and try to resolve the issue at the G-8 (St. Petersburg Summit) in mid-July and on other occasions. 7) Japanese, Canadian leaders express concern about North Korea's nuclear program TOKYO SHIMBUN (Page 2) (Full) June 29, 2006 Yoichi Toyoda, Ottawa Prime Minister Junichiro Koizumi met with Canadian Prime Minister Harper in Ottawa on the morning of June 28, local time. Harper assumed office in February in the first change of government in 12 years with the victory of his Conservative Party in the House of Representatives election this January. After their first meeting, Koizumi and Harper gave a joint press conference. In the summit, Koizumi expressed strong apprehension about North Korea's nuclear and missile development. In response, Harper said: "It is a major threat to international peace, and we will not spare our support for Japanese and other allies' efforts to deal with the North's provocative stance." The two leaders also agreed that Japan and Canada would cooperate to bring about a settlement to the issue of abductions by North Korea. Koizumi sought Canada's support for United Nations reform and Japan's bid for a permanent seat on the UN Security Council, but Harper refrained from revealing Canada's position, just saying: "Canada and Japan have different positions toward UNSC reform." 8) Canadian prime minister expresses support for Japan YOMIURI (Page 2) (Full) June 29, 2006 Takaharu Yoshiyama, Ottawa Prime Minister Junichiro Koizumi met with Canadian Prime Minister Stephen Harper on the morning of June 28, in which Koizumi expressed concern about North Korea's nuclear and ballistic missile programs. Harper then said: "Those are a threat to the peace and stability of the international community. We will give Japan our strong cooperation." Koizumi also asked Canada's understanding and support for Japan's bid for a permanent UN Security Council seat. The two leaders agreed to cooperate on the reconstruction of Afghanistan. They also agreed to strengthen bilateral relations, confirming that Japan and Canada share such basic values as democracy and human rights. 9) Japanese and Russian foreign ministers agree to take up abduction and missile issues at G-8 summit YOMIURI (Page 2) (Full) June 29, 2006 TOKYO 00003595 005 OF 009 Yoshitaka Kuribayashi, Moscow Foreign Minister Taro Aso met on the afternoon of June 28 with Russian Foreign Minister Lavrov at the Russian Foreign Ministry. The two ministers agreed to take up the abductions of Japanese nationals by North Korea and Pyongyang's preparations for launching a Taepodong-2 long-range ballistic missile at the foreign ministerial meeting on June 29 of the G-8 nations and at the G-8 summit on the middle of July to be held in St. Petersburg, Russia. Aso, touching on the Northern Territories, said: "Both Japan and Russia should make efforts to resolve the territorial issue based on such past agreements as the 1956 Japan-Russia Joint Declaration and the 1993 Tokyo Declaration so that a solution acceptable to the two countries can be reached." Aso expressed anew Japan's basic stance of concluding a peace treaty with Russia after resolving the issue of ownership of four Russia-held islands -- the Habomai islets, Shikotan, Kunashiri, and Etorofu. The Russian foreign minister only stated: "Giving consideration to the various accords and documents that you mentioned, Russia will continue negotiations for concluding a peace treaty. " No compromise was reached, however. Regarding the idea of constructing a Pacific pipeline to transport crude oil from eastern Siberia to East Asia, the two officials reached an agreement to speed up discussions in both countries, aiming at construction at early date. 10) Japanese, French foreign ministers agree to urge Iran to accept package of incentives for ending nuclear program NIHON KEIZAI (Page 2) (Full) June 29, 2006 Foreign Minister Taro Aso met with his French counterpart Douste-Blazy at a hotel in Moscow on the afternoon of June 28, local time. On Iran's nuclear problem, the French foreign minister said: "The ball is in Iran's court. Iran should quickly give a reply." Aso replied: "It is important to have Iran sit down at the negotiation table at an early date." The two foreign ministers thus agreed that Japan and France would urge Iran to accept the package of incentives for ending its nuclear program, which was worked out by the permanent members of the UN Security Council plus Germany. 11) WTO ministerial meeting kicks off; Concessions by farm-produce importing and exporting countries to take centerstage of agricultural talks; US remains firm YOMIURI (Page 9) (Full) June 29, 2006 Geneva, Tatsuya Watanabe Talks aimed at reaching a modality agreement on agricultural and non-agricultural (mined and manufactured) products under the new multilateral talks (Doha Round) of the World Trade Organization (WTO) started yesterday. The aim is to create new trade TOKYO 00003595 006 OF 009 liberalization rules. More than 30 countries are taking part in an informal ministerial meeting with the aim of reaching an agreement by this weekend. Whether farm-produce exporters countries, such as the US and Brazil, and farm-produce importers, such as Japan and the EU, can make concessions holds the key to finding a breakthrough in the talks. Major participating countries are already engaging in bargaining. Agriculture Minister Nakagawa met with Crawford Falconer, chairman of the WTO agriculture negotiations group, the same day and conveyed Japan's stance: "Farm-produce exporters, such as the US, should come up with a proposal for a cut in domestic subsidies." He also sought understanding from the chairman for Japan's position, including an increase in the ratio of key trade items that are treated as exceptions to liberalization. Falconer indicated his view that the informal ministerial meeting would also encounter complications. He said: "The US will not change its firm stance. The outlook is unclear." Many countries have growing hopes that the US will make concessions, following US President Bush's statement made during the US-EU summit on the 21st: "The US will do its utmost to reach an agreement." However, United States Trade Representative Susan Schwab during a press conference on the 27th once again urged importing countries to make concessions: "The negotiations will reach a breakthrough if farm-produce importers make a tough decision on tariff cuts and other issues." A Japanese negotiator commented: "There is no change in the firm stance of the US. Whether the talks will make any progress has become even more unclear." The talks this time appear to be a three-sided fight involving farm-produce importers, such as the EU and Japan, developing countries, such as Brazil, and the US. Brazil in May indicated its readiness to cut tariffs on mined and manufactured products. The UE has also hinted at the possibility of agreeing to further reduce tariffs on agricultural products. Moves to search for ways to find a breakthrough are thus underway behind the scenes. 12) Agriculture minister urges US to make concessions during WTO talks ASAHI (Page 11) (Full) June 29, 2006 Geneva, Yasushi Sato Agriculture, Forestry, and Fisheries Minister Shoichi Nakagawa and Economy, Trade, and Industry Minister Toshihiro Nikai, both of whom are now in Geneva to take part in an informal ministerial meeting under the World Trade Organization (WTO),on June 28 separately met with WTO Secretary General Pascal Lamy. Meeting the press after talks with Lamy, Nakagawa stressed his stance that unless the US comes up with fresh concessions during the upcoming agricultural talks, Japan will not agree to substantially cut tariffs on agricultural products, including rice. Nakagawa told Lamy: "Unless countries on the offensive, such as the US, make concessions, Japan will not be able to move, even if it has a new concession plan." Lamy responded, "I want the US to deepen discussions on its domestic subsidies and Japan and the European Union (EU) on market opening." TOKYO 00003595 007 OF 009 Nakagawa also met with Crawford Falconer, who chairs the WTO agricultural negotiations group. Falconer indicated his view that the US would not come up with new proposals on agricultural products. Commenting on new liberalization rules for the agricultural sector, he noted, "It would be difficult for the meeting to cover necessary discussions by this weekend." He thus predicted rocky developments for the ministerial meeting. The informal ministerial talks will start on the 29th. 13) "It is impossible for Japan alone to lower the level of its requests," says Agriculture Minister Nakagawa on WTO MAINICHI (Page 9) (Full) June 29, 2006 Geneva, Katsumi Sawada Agriculture, Forestry, and Fisheries Minister Shoichi Nakagawa, now visiting Geneva to take part in a ministerial meeting of the multilateral trade talks (Doha Round) at the World Trade Organization (WTO),on June 28 noted, "If the US insists that it cannot lower the level of its request, Japan cannot do so, either." He made this comment during a press conference held after his meeting with WTO Secretary General Pascal Lamy. In the agricultural talks, the US is opposing a proposal for cutting its agricultural subsidies. According to AP, United States Trade Representative Schwab on the 27th told reporters, "I have no intention of wrapping up small agreements," thus indicating that the US has no intention of making concessions. 14) South Korean abductee Kim Young Nam has reunion with family ASAHI (Page 1) (Lead paragraph) June 29, 2006 Tadahisa Takatsuki, Seoul South Korean abductee Kim Young Nam, 44, believed to be the husband of Japanese abductee Megumi Yokota, yesterday reunited in Mount Kumgang in North Korea with his mother, Choi Gye Wol, 79, and his sister, Kim Young Ja, 47, both living in South Korea, for the first time in 28 years. Kim Young Nam made his first public appearance. The family reunion involved Kim Hye Gyong, 18, the daughter of Young Nam and Megumi. Young Nam seems to be the man who identified himself as Kim Chol Jun when he met with a Japanese government delegation. Chief Cabinet Secretary Abe told a news conference yesterday: "It is highly likely that the two are the same person." 15) Reunion between South Korean abductee Kim Young Nam and his mother, sister: Japan alarmed by North Korea's move to bring abduction issue to end NIHON KEIZAI (Page 3) (Excerpts) June 29, 2006 Will fresh information about Japanese abductee Megumi Yokota come out? Japan noted that it was a good thing for Kim Young Nam, believed to be the husband of Japanese abductee Megumi Yokota, to meet in North Korea with his family members, including his mother, Choi Gye Wol, but it remains cautious about a possible move by North TOKYO 00003595 008 OF 009 Korea to bring the curtain down on the abduction issue. "It was a good thing for family members to reunite," Chief Cabinet Secretary Shinzo Abe said. But the Japanese government harbors mixed SIPDIS feelings about this family reunion, because North Korea might insist via Kim Young Nam that Megumi has died. Even if information about the death of Megumi comes out, though, Tokyo will continue to push North Korea to reveal the truth. Late at night on June 27, Abe met with Megumi's mother, Sakie, and told her: "North Korea is likely to have Kim or his family say that Megumi is dead." Sakie said to Abe: "I'm ready to face such a situation. I won't be shaken." 16) Coordination underway to set a meeting with President Hu Jintao's likely successor NIHON KEIZAI (Page 2) (Full) June 29, 2006 A meeting between Ichiro Ozawa, president of the Democratic Party of Japan (Minshuto),and Liaoning Province Secretary Li Keqiang, the likely successor to President Hu Jintao, is being arranged for Ozawa's China tour that starts on July 3, sources revealed. If the meeting is fixed, Ozawa intends to shift the date of his return home from July 6 to July 8. 17) China eager about expansion of Japan-China defense exchanges NIHON KEIZAI (Page 2) (Full) June 29, 2006 Yuri Momoi, Beijing Former Defense Agency (JDA) Director-General Shigeru Ishiba and others yesterday met with China's State General Military Commission Vice Chairman Xu Caihou in Beijing. Xu emphasized that the visit to China by Ishiba and other Japanese "will lead to expanding mutual understanding in the defense sectors of the two countries, as well as developing friendly bilateral relations." Xu thus displayed a positive stance toward expanding defense exchanges. 18) LDP to officially announce presidential election on September 8 for a vote on September 20 MAINICHI (Page 2) (Full) June 29, 2006 The Liberal Democratic Party decided yesterday to make an official announcement on September 8 for the presidential election on September 20. The LDP presidential election committee, chaired by Lower House member Hideo Usui, will meet in early July to formally adopt the decision. Prime Minister Junichiro Koizumi has ordered Secretary General Tsutomu Takebe to make arrangements centering on SIPDIS the same period as that of the previous presidential election in ¶2003. 19) Koizumi: It poses no problem no matter how many times I visit Yasukuni Shrine, for it's an issue of individual freedom; Shrine visit on August 15 a real possibility MAINICHI (Page 2) (Excerpts) TOKYO 00003595 009 OF 009 June 29, 2006 Prime Minister Junichiro Koizumi, now visiting Canada, suggested on June 27 (June 28, Japan time) that he would visit Yasukuni Shrine a sixth time before stepping down, saying, "It poses no problem mo matter how many times I go there." His statement has spread speculation in the Liberal Democratic Party that he will visit the controversial shrine on the August 15 end-of-the-war anniversary. Koizumi's statement came when rumor was, and still is, rife that any comment on a Yasukuni visit by Koizumi would force Chief Cabinet Secretary Shinzo Abe to postpone the announcement of his candidacy SIPDIS for the LDP presidency until late August and that it would also affect former Chief Cabinet Secretary Yasuko Fukuda's decision. Maneuvering in the presidential race is likely to intensify in the LDP. Koizumi has repeatedly said he will make an appropriate decision on a shrine visit. But in Canada, he stated: "I think those opposing my shrine visit are subscribing to China's view. Is China's view correct? It poses no problem no matter how many times I go there. It's an issue of individual freedom." He also indicated that he would not "back away" from relations with China, which has been critical of his shrine visits. A senior LDP lawmaker noted: "It has become certain that the prime minister will visit the shrine during his tenure of office." DONOVAN