JAPANESE MORNING PRESS HIGHLIGHTS 06//06

UNCLAS SECTION 01 OF 12 TOKYO 003632 SIPDIS SIPDIS DEPT FOR E, P, EB, EAP/J, EAP/P, EAP/PD, PA; WHITE HOUSE/NSC/NEC; JUSTICE FOR STU CHEMTOB IN ANTI-TRUST DIVISION; TREASURY/OASIA/IMI/JAPAN; DEPT PASS USTR/PUBLIC AFFAIRS OFFICE; SECDEF FOR JCS-J-5/JAPAN, DASD/ISA/EAPR/JAPAN; DEPT PASS ELECTRONICALLY TO USDA FAS/ITP FOR SCHROETER; PACOM HONOLULU FOR PUBLIC DIPLOMACY ADVISOR; CINCPAC FLT/PA/ COMNAVFORJAPAN/PA. E.O. 12958: N/A TAGS: OIIP KMDR KPAO PGOV PINR ECON ELAB JA SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 06//06 Index: 1) Top headlines 2) Editorials 3) Prime Minister's daily schedule Bush-Koizumi summit: 4) President Bush, Prime Minister Koizumi meet, declare alliance in 21st century 5) US, Japan to pressure North Korea in event of missile launch 6) US-Japan relationship maturest ever 7) Bilateral alliance to go global 8) "Prime Minister Koizumi is my friend": President Bush 9) Prime Minister Koizumi himself lifts ban, orders US beef at D.C. steakhouse 10) Gist of Bush-Koizumi press remarks 11) Joint statement underscores results in security area 12) Joint document pursues common values North Korea problem: 13) 'Yokota's husband' says wife killed herself, accuses Japan 14) Yokota's parents infuriated 15) "They can't speak out": CCS Abe WTO & FTA run-up: 16) Focus on US concessions, Japan to tag with France, Canada 17) US tough for farm market liberalization, rejects Japan-EU counterproposal 18) Japan to enter into FTA talks with ASEAN in Jakarta Defense & security issues: 19) US, Japan agree to set up panel on USFJ realignment 20) Okinawa Gov. Inamine says to step down 21) Okinawa Gov. Inamine to retire; Ruling, coalition blocs screening candidates with focus on Futenma relocation 22) GSDF robot aircraft crashes in Iraq 23) MSDF destroyer heading home from RIMPAC drill off Hawaii Articles: 1) TOP HEADLINES Asahi: Kim in interview backs Pyongyang's claim Megumi committed suicide, criticizes Japan's response to remains presented by North Mainichi, Yomiuri, Nihon Keizai, Sankei, & Tokyo Shimbun Japan, US declare "alliance for 21st century" in global context, confirm cooperation to apply pressure on North Korea over nuclear, missile, abduction issues 2) EDITORIALS Asahi: (1) Kim's interview stage-managed by Pyongyang (2) In quake-resistance data scam, all parties irresponsible Mainichi: (1) Kim speaks for Pyongyang 
(2) Companies urged to pursue transparent management to prevent hostile takeovers TOKYO 00003632 002 OF 012 SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 06//06 Yomiuri: (1) Kim's remarks follow Pyongyang's script (2) Cigarette prices still too low in Japan Nihon Keizai: (1) Difficulties lie ahead for Hankyu-Hanshin merger (2) Taiwan President Chen Shui-bian urged to tighten official discipline Sankei: (1) Kim makes remarks in line with Pyongyang's script (2) Thorough reform necessary of telecommunications and broadcasting Tokyo Shimbun: (1) North Korea again plays trick with abduction issue (2) Public servants found guilty of distributing political flyers: Freedom could be undermined 3) Prime Minister's Official Residence (Kantei) Prime Minister's schedule, June 28 & 29 NIHON KEIZAI (Page 2) (Full) June 30, 2006 June 28 Noon Attended a luncheon hosted by Prime Minister Harper at the Federal Parliament Building in Ottawa.Received a courtesy call from the representative of the Canadian Managers' Association. Evening Left Ottawa aboard a government plane. Arrived at Andrews Airport in a suburb of Washington, DC Attended a welcome ceremony and arrived at the Blair House. Stayed there. June 29 Morning Attended a welcome ceremony at the White House. Held talks with President Bush. 4) Japan-US summit talks: Koizumi, Bush adopt Japan-US alliance for the 21st century, vowing cooperation to block Taepodong-2 launch MAINICHI (Top play) (Abridged) June 30, 2006 Munehiro Hirata, Washington Prime Minister Junichiro Koizumi held talks with US President George ¶W. Bush on the morning of June 29 (late June 29, Japan time). The talks with Bush that day would be the last for Koizumi, who is scheduled to step down from the post in the fall. Summing up the bilateral cooperative relations of the past five years based on the honeymoon-like personal relationship, the two leaders also released the "US-Japan alliance of the 21st century" to declare continued cooperation in a global context. In a joint press conference that followed, Koizumi highlighted Japan's stance of putting high priority on the US. The meeting on June 29 marked the 13th summit meeting for Koizumi and Bush, who last met in November 2005 in Kyoto. To the outgoing TOKYO 00003632 003 OF 012 SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 06//06 Japanese prime minister, who made the first official visit to the US since Prime Minister Keizo Obuchi in 1999, the US government gave special treatment, including a banquet at the White House. Such treatment is usually given only to state guests. In the talks, Koizumi and Bush reached an agreement to cooperate closely to prevent North Korea from launching a Taepodong-2 long-range ballistic missile and to apply pressure in various ways in the event it launches a missile. Bush said: "Referring the matter to the United Nations (Security Council) could be one of them." Bush also expressed his gratitude for contributions made by Ground Self-Defense Force troops, who have begun preparations for leaving southern Iraqi city of Samawah. Koizumi indicated that the Air Self-Defense Force will continue its airlift mission even after the ground troops leave Iraq. The joint statement on the Japan-US alliance highlighted the two countries' determination to promote universal values, such as freedom, human rights, and democracy. The statement also noted that cooperation in such areas as missile defense and emergency legislation has progressed under the Koizumi administration and that the Japan-US alliance has been strengthened in a global context through SDF missions in the Indian Ocean and Iraq. The joint declaration also highlighted the two countries' determination to call on China to become a responsible international player, noting, "Firm Japan-US cooperation will help utilize China's vitality for the maintenance of peace and stability of Northeast Asia." At the same time, the declaration defined freedom, human rights, democracy, and the rule of law as common values. Under UN Security Council reform, the joint statement also specified greater bilateral cooperation for realizing Japan's bid for a permanent UNSC seat. The US has expressed its support for Japan's UNSC bid, but it has yet to present any concrete steps in response to Japan's request. 5) Japan, US will apply pressure on North Korea if Taepodong-2 launched; Japanese, US leaders declare "alliance for new century" YOMIURI (Top Play) (Lead para.) June 30, 2006 Prime Minister Junichiro Koizumi and US President George W. Bush held a meeting for about one and a half hours on the morning of June 29 (midnight of June 29, Japan time) at the White House. At a joint press conference after the meeting, the two leaders revealed that Japan and the United States would urge North Korea to exercise self-restraint over its plan to launch a Taepodong-2 long-rang ballistic missile and that the two countries would apply pressure on Pyongyang if it test-launched. The two leaders released a joint statement on a new bilateral alliance in which they declared that the governments of Japan and the United States would deepen cooperation in such areas as politics, the economy, and security. 6) Joint Japan-US statement hails most mature bilateral alliance ASAHI (Page 1) (Excerpts) June 30, 2006 Hiroshi Ito, Washington TOKYO 00003632 004 OF 012 SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 06//06 Prime Minister Junichiro Koizumi held a meeting with US President George W. Bush for about two hours at the White House in Washington. The two leaders released a joint statement on an "alliance for a new century." They agreed to strengthen the Japan-US alliance "in a global context" based on common values and interests. In the meeting, they spent a lot of time on the North Korea issue, including the abductions of Japanese nationals. They shared the view that Japan and the United States should send "clear messages" to North Korean leader Kim Jong Il in order to resolved the abduction issue and the North's nuclear and missile programs. They reaffirmed the need for strengthening cooperation on those issues. The joint statement proclaimed the Japan-US relationship as the most mature bilateral relationship ever. It also called freedom, human rights, democracy, a market economy, and the rule of law universal values and said that victory in the war on terror, promotion of the market economy, the protection of human rights, and improvement in energy security are common interests. 7) Joint Japan-US statement declares global Japan-US alliance for new century NIHON KEIZAI (Top Play) June 30, 2006 Fumiyoshi Inudo, Washington Prime Minister Junichiro Koizumi met with US President George W. Bush at the White House on the morning of June 29 for about 90 minutes. The two leaders agreed to strengthen cooperation to prevent North Korea from launching a ballistic missile, as well as to resolve the abductions of Japanese nationals by the North and deal with Iran's nuclear programs. They released a joint statement on a "bilateral alliance for a new century," which declared that Japan and the United Stated would cooperate not only on bilateral security but also on global matters. 8) President Bush: Prime Minister Koizumi is friend of mine; Koizumi gets red carpet treatment at welcoming ceremony NIHON KEIZAI (Page 2) (Full) June 30, 2006 At a welcoming ceremony on June 29, US President George W. Bush offered the maximum consideration to Prime Minister Junichiro Koizumi, saying "Welcome back to America, my friend!" Since heavy rain that had continued for five days ended on the day when Koizumi arrived in Washington, the ceremony was conducted under a blue sky. Koizumi then stated in the ceremony: "Even the weather welcomes me. President Bush is the only world leader whom I can trust." Bush concluded his speech, by saying, "The real highlight is a trip to Graceland, the home of the King (of rock Elvis Presley)." In the welcoming ceremony for Chinese President Hu Jintao in April, Bush only just stated specific pending bilateral issues. There were no exchanges of warm words between them. The president and his wife will present Koizumi with a jukebox TOKYO 00003632 005 OF 012 SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 06//06 recording the songs of Elvis. During a joint press conference, Bush even made a joke, using the title of a song of Presley saying, "Don't be cruel to the prime minister!" 9) Prime minister himself 'lifts ban' on US beef; Orders prime rib at US restaurant ASAHI (Page 4) (Full) June 30, 2006 Prime Minister Koizumi, now visiting the US, yesterday evening had US beef along with his secretary and other officials traveling with him at a posh steak house, a regular haunt for congressional staffers and government officials. The BSE issue has neared a settlement, and one of the agenda items at the upcoming summit with President Bush is the resumption of US beef by Japan. Thus, the prime minister himself lifted the ban on US beef prior to the summit. He ordered prime rib, one of the popular dishes on the menu at the restaurant. Steaks weighing 24 ounces (approximately 680 grams) are usually served there. However, the prime minister reportedly ordered a boneless steak weighing half the regular size (12 ounces or about 340 grams). 10) Main points from a joint press conference held on June 29 by Prime Minister Junichiro Koizumi and President George W. Bush NIHON KEIZAI (Page 2) (Full) June 30, 2006 Japan-US relations President Bush: I have built a free and friendly relationship with the prime minister. The prime minister strongly believes in universal values and has taken actions based on them. The United States and Japan will be able to work more closely in the 21st century. Japan has also extended cooperation on the realignment of US forces in Japan with courage. I am grateful for it opening the Japanese market to US beef. Prime Minister Koizumi: Thanks to the friendship with President Bush over the last five years, I was able to exchange views with him frankly. We confirmed the policy direction that the Japan-US alliance will tackle various issues from a global context. Regarding US force realignment, we also affirmed that the two countries will work closely to reduce the burden on base-hosting communities and maintain deterrence. We also confirmed that the two countries hold common views on various other issues, such as Iran and North Korea. Cooperation on antiterrorism Bush: The Japanese troops did a splendid job in Iraq. The cooperation of Japan's Self-Defense Forces has helped reduce our work in Iraq. The prime minister has promised Japan's continued transport and maritime cooperation. Koizumi: Japan has been assisting Iraq's nation-building efforts in a way different from the United States. Although the troops will withdraw from Samawah, Japan will continue cooperating with the United States, the United Nations, and other countries as a member of the coalition. TOKYO 00003632 006 OF 012 SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 06//06 North Korea Koizumi: We also discussed the North Korean issue. We agreed to (urge) the North to become a responsible member of the six-party talks. We also confirmed that we will urge Pyongyang not to launch a Taepodong missile, practicing self-restraint. We also discussed applying pressure in the event the North fires a missile. Bush: We discussed the need to send a clear message to the North Korean leader. We will not tolerate a missile launch. The North Korean leader owes us an explanation of his intentions. The six-party talks must maintain their unity. Referring the issue to the United Nations (Security Council) and establishing a missile defense system could be effective means. Iran Koizumi: Possible nuclear proliferation by Iran is a great concern for Japan as well. Japan will cooperate with other countries. 11) Japan-US joint document highlights achievements in security area; Wrangling over document between MOFA, JDA YOMIURI (Page 4) (Excerpts) June 30, 2006 Takaharu Yoshiyama, Washington "The Japan-US alliance for the new century," a joint document issued on June 29 by Prime Minister Koizumi and US President Bush, highlighted the significance of the Japan-US joint strategic goals set in February of last year and the plans agreed on this May for US force realignment in Japan. It also played up the achievements both sides have made in the security area. The joint document hails an alliance that has deepened through cooperation over missile defense (MD) and legislation for contingencies. It also stipulates that deep cooperation between Japan and the US will contribute to maintaining stability in Northeast Asia by utilizing Chinese vitality and that the bilateral alliance is "based on universal values and common interests," indirectly underlining that Japan and the US are different from China in terms of their political systems. Under Prime Minister Koizumi and President Bush, significant progress has been made in the security area over the past five years. The Defense Agency (JDA) initially aimed to draw up "a new declaration" to replace the 1996 Japan-US Security Joint Declaration, which worked to prompt the review of the Japan-US defense cooperation guidelines. The aim was to pave the way to forming "a new defense cooperation guideline" to replace the current guidelines worked out in 1997. The JDA deems the current guidelines insufficient in terms of describing Japan-US cooperation on MD and Japan's participation in multilateral international cooperation activities. However, the Ministry of Foreign Affairs (MOFA) was negative about "a new framework" and "a new joint security declaration," insisting that implementing the agreed US realignment plans is the first TOKYO 00003632 007 OF 012 SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 06//06 priority. The US government also took the view that priority should be given to drawing up a joint operation plan in times of emergency in Japan and a mutual cooperation plan assuming regional contingencies, rather than working out guidelines that feature abstract arguments. 12) Joint document: Japan, US to pursue common values ASAHI (Page 4) (Excerpts) June 30, 2006 "The Japan-US alliance for the new century," a joint document issued by the Japanese and United States leaders, is to complete the reform of the alliance that the two countries have addressed through the realignment of US forces in Japan. The document is designed to alter the Cold War alliance focusing on responses to threats into a new one to play a wider role based on common values and interests. The document specifies common interests, as well as values. In the document, the two countries advocate a new cooperation framework that reflects the agreed common strategic goals. Changes in the strategic environment surrounding Japan and the US are behind their proposal for a new framework. In the Cold War era, the focus was on how to deal with threats from the Soviet Union. Since 9/11, however, it has become vital to prevent the world and the region from being destabilized. It is also necessary to tackle reconstruction from natural disasters and energy problems. As it stands, the challenges facing Japan and the US have diversified. The joint declaration notes: "Asia is in the process of changing into a region based on universal values." Based on this perception, the document reiterated that the Japan-US alliance is based on the common values of freedom and democracy. It then set the goal of "jointly designing and helping the historic reform of Asia." But it is not easy to realize this goal. The Bush administration launched the Iraq war on the principle of spreading democracy around the world. In reaction, criticism is erupting from the Middle East and Europe. There is criticism even within the US. It is uncertain if Asia is actually in a reform process. Will the Japan-US alliance help Asia's reform? Will a rapidly growing China go along with what Japan and the US expect of it? There are many tasks facing the Japan-US alliance. 13) ROK abductee Kim Young Nam insists, "Megumi is dead," saying he was adrift and rescued, rejecting the claim he was abducted; Criticizes Japan over "ashes" ASAHI (Top play) (Excerpts) June 30, 2006 Tadahisa Takatsuki, Seoul South Korean abductee Kim Young Nam, 44, believed to be the husband of Japanese abductee Megumi Yokota, yesterday had a news conference in Mt. Kumgang, a North Korean resort he was visiting for a reunion with his mother and sister. According to South Korean media that attended the news conference, Kim reiterated North Korea's past assertions, including that Megumi killed herself in 1994. He also rejected the claim that he had been abducted to North Korea, TOKYO 00003632 008 OF 012 SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 06//06 arguing, "I was rescued by a North Korean boat while adrift at sea." In addition, he criticized Japan for its claim that the ashes North Korea had handed to Japan as those of Megumi were someone else's, calling it a lie. The family reunion came as part of the family reunion project for separated families. Some abductees had taken part in this project in the past, but no participants have admitted to the abductions by North Korea. This interview by Kim Young Nam is seen as North Korea's attempt to demonstrate to South Korea the importance of cooperation between the Korean peoples as well as to check Japan's call for an early settlement of the abduction issue. 14) South Korean abductee Kim Young Nam's news conference: Megumi Yokota's parents "boiling with rage," "expected his remarks" ASAHI (Page 39) (Excerpts) June 30, 2006 "Unfortunately, Megumi died in 1994. This is all I can say," South Korean abductee Kim Young Nam, 44, believed to be the husband of Japanese abductee Megumi Yokota, said during his news conference held in North Korea. Megumi's father, Shigeru, 73, watched this news conference on TV in Tokyo, biting his lip. Megumi's mother, Sakie, 70, breathed deeply. "This is what we expected," they said, but they revealed their anger toward Young Nam, who mentioned the word "death" with an attitude of unconcern. "He leaves us with the impression that he came there (for a news conference) after being trained hard. All he said was what we had expected." "There's no new information in his remarks. We hope the government will continue negotiations (with North Korea) on the premise that Megumi is alive." During a press conference, Shigeru and Sakie remained calm, noting, "All the remarks are the same as what North Korea has insisted in the past." Referring to Young Nam's remarks concerning the ashes that "(Japan's) conclusion that the ashes are someone else's is an insult to me and Megumi," they said: "He insisted that we should accept someone else's ashes. This, too, is the same as that country has done before." In the middle of the conference, Shigeru and Sakie revealed their parental and grandparental love for their daughter and granddaughter. Referring to Megumi's illness, Sakie reiterated: "I've always thought how hard it was for her to have a baby and take care of a child without any knowledge and experience. She might have suffered depression;" and, "She would have felt lonely but she had to live. She led a happy life until she was 13. I thought it would be only natural for her to have a happy life." When they were asked about Young Nam, they said in a trembling voice: "She'd have been forced to marry him because she happened to be there. If she'd been in Japan, she'd have had a happy marriage and children." 15) Chief Cabinet Secretary Abe: "Nobody is free to state his views in North Korea" ASAHI (Page 3) (Full) June 30, 2006 TOKYO 00003632 009 OF 012 SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 06//06 When asked by reporters at the Prime Minister's Official Residence yesterday about South Korean abductee Kim Young Nam's news conference, Chief Cabinet Secretary Abe said: "As repatriated Japanese abductees have pointed out, nobody is free to state his views in North Korea. Some in (Japanese government) organizations point out there are some contradictions (in Mr. Kim's remarks)." Abe also stated: "I hope we can close in on the truth by asking the North Koreans about the contradictions. We'll continue negotiations on the premise that all the abductees are alive." The Japanese government will continue its efforts to (1) bring all surviving abductees back to Japan; and (2) have North Korea hand the abductors over to Japan. After watching the news conference, Deputy Chief Cabinet Secretary Seiji Suzuki told reporters: "That is completely unbelievable. We continue our efforts to resolve the abduction issue." 16) WTO six-nation talks; Whether the US will make concessions is of primary concern; Japan to confirm cooperation with France and Canada MAINICHI (Page 9) (Full) June 30, 2006 Geneva, Yotaro Fujiyoshi and Katsumi Sawada An informal ministerial meeting of six major economies (G-6) yesterday kicked off at the multilateral trade talks (Doha Round) at the World Trade Organization (WTO). The course of the meeting will likely determine the fate of a formal ministerial meeting to be held today with the participation of approximately 40 nations. The focus was on whether the US could make concessions on domestic subsidies for agriculture. The dominant view is that if the talks fail to make progress this time, it will be impossible for the round to be completed this year. A sense of alarm is growing. The participants at the meeting were Japan, the US, the EU, Brazil, India, and Australia. Meeting the press prior to the G-6, EU Trade Commissioner Mandelson categorically said, "We are ready to make concessions if conditions, such as a cut in domestic subsidies by the US, are met." A senior US official called on the EU and Brazil to cut tariffs but refrained from referring to domestic subsidies. This has generated the view that since the US administration has a weak base at present, it would be difficult for it to substantially cut subsidies, as a senior British official put it. A senior Japanese official pointed out that with the Japanese and British administrations soon to be replaced and Brazil having a presidential election close at hand, it is difficult for them to make a political decision, because representatives to the meeting are feeling pressure from their parliaments, or votes from agricultural organizations are weighing on their minds. The key point for Japan is the number of key trade items treated as exceptions to liberalization, including rice, and the handling of such items. The Japanese representatives will meet with their French and Canadian counterparts on the 29th and reaffirm their relationship of strategic cooperation. WTO Secretary General Lamy is pressing the participating countries to boil down issues and make political decisions. The cliff-hanger negotiations will likely continue. TOKYO 00003632 010 OF 012 SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 06//06 17) WTO talks; US increasingly becoming firm, rejecting Japanese and EU concession proposals for tariffs of farm produce NIHON KEIZAI (Page 5) (Slightly abridged) June 30, 2006 Geneva, Takeshi Kawanami The US is seeking substantial liberalization of the agricultural market at the multilateral trade talks (Doha Round) at the World Trade Organizations (WTO). Its hard-line stance is now becoming even clearer. Japan and the EU on June 29 indicated a decision to raise the rate of cuts in tariffs, based on the precondition that the US makes concessions. However, a US senior official rejected the proposal, noting, "Proposals made by countries other than the US are insufficient." Reaching an agreement on trade liberalization rules at the ongoing meeting has thus become even more difficult. The G-10 consisting of farm-produce importers, such as Japan and Switzerland, yesterday held a ministerial meeting. They reaffirmed a policy of making concessions to some extent over the rate of cuts in tariffs, provided that the US lowers the level of its requests. EU Trade Commissioner Mandelson stated, "We are ready to make a compromise on the liberalization of the agriculture market, if the US makes concessions on cuts in its domestic subsidies." However, a senior US official expressed dissatisfaction: "Japan imposes a tariff of more than 750% on rice. Even if it lowers that tariff in accordance with a proposal made by countries other than US, a triple-digit tariff will still remain." The US representative underscored that the Japanese, EU, and Brazilian proposal for cutting the rate of tariffs on agricultural products up to 45% -75% is insufficient. The US is calling for a cut up to 90%. It has ruled out the possibility of making substantial concessions, with that official noting, "The proposal made by those countries and the organization will not lead to true market liberalization." The US is calling for the introduction of a tariff cap system designed to hold tariffs on all agricultural products to 75% or less. The G-10 member countries yesterday unanimously opposed the introduction of such a system, as they have many high-tariff trade items. 18) Government holds FTA talks with ASEAN in Jakarta NIHON KEIZAI (Page 5) (Full) June 30, 2006 The Japanese government and the Association of South-East Asian Nations (ASEAN) on June 29 held the fourth round of free trade agreement talks in Jakarta. The Japanese side called on 10 ASEAN member nations to scrap tariffs on more than 90% of trade items. It proposed holding talks on individual trade items, such as autos and household appliances. However, ASEAN side called for FTA negotiations based on a package formula, as it employed in talks with China and South Korea. A Japanese government official noted, "The two sides are still at odds over how to proceed with negotiations." The next meeting will be held in Jakarta as early as late July. Both sides will aim at reaching a final agreement next spring, after holding a meeting of TOKYO 00003632 011 OF 012 SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 06//06 economic ministers this summer. 19) Japan, US agree to set up a US force realignment council MAINICHI (Page 3) (Full) June 30, 2006 The Japanese and US governments yesterday agreed to establish a US force realignment council, a consultative panel to deal with the realignment of US forces in Japan. The purpose of the panel is to map out plans for individual implementation plans, such as the transfer of the 1st Army Command to Camp Zama in Kanagawa Prefecture and the transfer of a carrier-based air unit to the MCAS Iwakuni, and also to confirm the progress of the plans. Joining the panel from the Japanese side will be the director of the Japan-US Security Treaty Bureau of the Foreign Ministry and the director of the Defense Policy Bureau of the Defense Agency. Participants from the US will include the chief of the US Embassy Security Desk and the director of the Policy Planning Office in the US Forces Japan Headquarters. 20) Inamine's decision to resign pushes ruling and opposition blocks toward fierce maneuvering to determine his successor with Futenma's fate at stake TOKYO SHIMBUN (Page 2) (Excerpts) June 30, 2006 Okinawa Governor Keiichi Inamine announced before the prefectural assembly yesterday that he will resign from the post without running in the gubernatorial race in November. US force realignment will be the largest campaign issue for selecting Inamine's successor. Fierce bargaining is likely to occur soon in the political world in Tokyo as well. The political world in Tokyo takes a strong interest in the Okinawa gubernatorial race, because the outcome will inevitably affect the plan to relocate Futenma Air Station to Camp Schwab, a key factor in US force realignment. The relocation plan will be affected by the response of the governor, who has the authority to issue permission to use public waters. 21) Okinawa governor announces he will not seek third term SANKEI (Page 4) (Full) June 30, 2006 Okinawa Governor Keiichi Inamine announced yesterday that he would not seek a third term in the gubernatorial election on November 19. Following this, the ruling and opposition parties will start work to select candidates. In the gubernatorial election campaign, the US force realignment issue will be the top issue, and the outcome of the election is likely to affect the future of realignment. 22) GSDF drone crashes in Iraq ASAHI (Page 38) (Full) June 30, 2006 A Ground Self-Defense Force unmanned aircraft vehicle (UAV) on an intelligence-gathering and scouting mission in the southern Iraqi TOKYO 00003632 012 OF 012 SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 06//06 city of Samawah crashed at a point several kilometers north of the GSDF's Samawah camp at around 4 a.m. on June 29 local time, Defense Agency officials said yesterday. The crash is presumably attributable to the vehicle's own trouble, not to an attack from the ground, the officials said. This is the second UAV crash, following the first one that took place on May 22. 23) MSDF destroyer heading home ASAHI (Page 38) (Full) June 30, 2006 The Maritime Self-Defense Force's Yokosuka-based Aegis-equipped destroyer Kirishima has been abruptly ordered home from the US-led Rim-of-the-Pacific joint maneuvers (RIMPAC 2006) currently going on with the fleet participation of Japanese and other foreign naval vessels in waters off Hawaii, MSDF sources said yesterday. The MSDF destroyer is believed to be on stage in waters near Japan to keep watch on North Korea because North Korea remains ready to launch a Taepodong-2 long-range ballistic missile. DONOVAN