JAPANESE MORNING PRESS HIGHLIGHTS 07/12/06

UNCLAS SECTION 01 OF 07 TOKYO 003878

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SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 07/12/06
Part-1
Index:
1) Top headlines


2) Editorials

3) Prime Minister's daily schedule

4) President Bush in interview sees peaceful use of nuclear power as
main item at upcoming G8 summit

5) Foreign Minister Aso seeks support for Japan at UNSC from
Britain, several other countries

6) China using high-level diplomacy to try to persuade North Korea
to halt missile launches

7) China's vice foreign minister in Pyongyang to persuade leadership
to back down on missiles but prospects for success are slim

8) Two days before North Korea missile launch, US sent probe to
Pyongyang about bilateral talks

9) Government snipes back at South Korea for criticism of Japan's
reaction to North Korea launches

10) Official remarks in Japan about need for strike capability sets
off domestic political waves

Contents:
1) TOP HEADLINES

Asahi:
Increasing number of private universities joining hands with middle
and high schools to secure students in advance

Mainichi:
Terrorist attacks at seven locations in Mumbai, India, kill 137;
Islamic militants responsible?

Yomiuri:
Chinese president tries to persuade North Korea in talks with
chairman of the Standing Committee of the Supreme People's Assembly
of North Korea

Nihon Keizai:
Operating profits at overseas bases of listed companies increase 21
PERCENT ; Last year's rise tops domestic growth; Operations in US
and Asia upbeat

Sankei:
China having difficulty persuading North Korea; US assistant
secretary visits China for talks

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Tokyo Shimbun:
China opposes sanctions resolution as excessive; Effort to persuade
Pyongyang has run into snags?

2) EDITORIALS

Asahi:
(1)Preemptive attack argument: Do not respond to missile launches by
North Korea too hastily

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(2)G-8 Summit: Heavy challenge for Putin

Mainichi:
(1)Preemptive attack argument: Cool-headed and thorough debate
needed
(2)Disaster-prevention measures: Be aware of the possibility that a
disaster could happen to us

Yomiuri:
(1)Scrapping hard-to-see interest rates would help prevent consumers
from becoming heavily indebted
(2)Information and Telecommunications White Paper shows that
Internet is now indispensable

Nihon Keizai:
(1)Continue diplomatic effort to adopt resolution on North Korea
sanctions
(2)What is the purpose of the teacher's license renewal system?

Sankei:
(1)Criticism of Japan by South Korea: Seoul is criticizing the wrong
country
(2)Social Insurance Agency: Stem cozy relations with trade unions

Tokyo Shimbun:
(1)Missile launches by North Korea: China's role is big
(2)Preemptive attack argument will mar trust in Japan's defense-only
policy

3) Prime Minister's Official Residence (Kantei)

Prime Minister's schedule, July 11

NIHON KEIZAI (Page 2) (Full)
July 12, 2006

09:32:
Attended an executive meeting at LDP headquarters.
10:03:
Attended a cabinet meeting at Kantei. Later, met Economic and
Financial Policy Minister Yosano.
13:03:
Left Haneda Airport by government plane to visit the Middle East,
including Israel, and to attend the St. Petersburg G-8 Summit.

4) President Bush in interview reveals plans to promote peaceful use
of nuclear power with Russia

YOMIURI (Page 1) (Excerpts)
July 12, 2006

Takashi Sadahiro, Washington

In an interview with representatives from the Yomiuri Shimbun and
other foreign news organizations on July 10, United States President
Bush revealed plans to promote the peaceful use of nuclear power on
a global scale, including a new cooperation accord with Russia. He
also indicated that he would bring up this issue as a major agenda
item during the G-8 summit in St. Petersburg to start on July 15.

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Nuclear cooperation between the US and Russia is now limited to work
to dismantle nuclear warheads. Once a new agreement is reached
between the two countries, Russia will join the international
framework for the peaceful use of nuclear power, and it will
eventually become possible to store and reprocess in Russia the used
nuclear fuel shipped from Japan and other countries.

Citing the development of a next-generation fast-breeder reactor as
a specific challenge for international cooperation, President Bush
said: "The US will cooperate with Japan, Russia, France, and
Britain." The president has proposed the Global Nuclear Energy
Partnership (GNEP) initiative, an international framework to promote
the peaceful use of nuclear weapons while preventing nuclear
proliferation. The president's remark in the interview was to
express his desire to include Russia in the GNEP initiative and to
deem that nation as its partner in pursuing the goal of expanding
the use of nuclear power for civilian applications.

5) Aso asks Britain and other countries for their support for
Japan's stand

TOKYO SHIMBUN (Page 2) (Full)
July 12, 2006

Foreign Minister Taro Aso had a telephone conversation with British
Foreign Secretary Margaret Beckett last night. In the conversation,
Aso asked for Britain's support and cooperation for the Japanese
government's policy course of having an immediate adoption of a UN
Security Council resolution presented by Japan, Britain and other
countries to impose sanctions against North Korea in the event
China's efforts to convince North Korea fails.

In response, Beckett supported Japan's stand, while calling for
reviewing measures depending on the situation.

Aso also had telephone conversations with his counterparts of
Greece, Slovakia, Denmark, and the Republic of the Congo, who are
nonpermanent UN Security Council members, to seek their support for
Japan's position. They are cosponsors of the UN resolution, with the
exception of the Congo.

6) Chinese president urges North Korea to stop missile tests

YOMIURI (Top Play) (Excerpts)
July 12, 2006

Tetsuya Suetsugu, Beijing

Meeting with visiting North Korean Parliamentary Vice President Yang
Hyong Sop in Beijing on July 11, Chinese President Hu Jintao urged
North Korea to stop missile tests and to return to the six-party
talks at an early date. United States Assistant Secretary of State
Christopher Hill also made an unscheduled visit to Beijing to
discuss the North Korean missile situation with Chinese officials.
Over the resolution (drafted by Japan) calling for sanctions against
North Korea at the United Nations Security Council, diplomatic
efforts have reached a crucial point, with an eye on the upcoming
G-8 summit in St. Petersburg to start on July 15.

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On July 10, Japan and the US announced a decision to delay a vote on
the draft UNSC resolution and carefully watch the outcome of a visit
to North Korea by Chinese Vice Foreign Minister Wu Dawei. In a move
to prevent sanctions from being imposed on North Korea, the Chinese
government has been pressed to bring about some specific achievement
this week.

The unprecedented diplomatic effort by President Hu reflects growing
frustration in China. According to the Xinhua News Agency, Hu told
Yang: "A new factor that will complicate the situation on the Korean
Peninsula has appeared," expressing his grave concern about North
Korea's recent missile launches. Adding: "We are against any actions
that will aggravate the situation," Hu aimed to forestall North
Korea's possible missile tests. The Chinese president also said:
"China will make efforts with other countries concerned to bring
progress in the stalled six-party talks," urging North Korea to
return to the negotiating table.

In response, Yang only said: "We will make efforts to protect the
peace and stability of the peninsula and the region." Chinese
Foreign Ministry's Deputy Spokesperson Yang indicated in a regular
press conference on July 11 that China's efforts to resolve the
crisis are facing difficulty, saying: "Everything will not be easily
resolved through just one or two visits and efforts by China."

7) China's efforts to convince North Korea run into difficulties;
Hill hastily visits China for talks

SANKEI (Top play) (Excerpts)
July 12, 2006

Tadashi Ito, Beijing

US Assistant Secretary of State Christopher Hill, US chief delegate
to the six-party talks, hastily arrived on July 11 in Beijing from
Tokyo for talks with China in the wake of the UN Security Council
decision to postpone a vote on a sanctions resolution against North
Korea for its missile launches. Hill's China visit follows talks on
July 10 between Chinese Vice Foreign Minister Wu Dawei and North
Korean officials in Pyongyang. China's efforts to persuade the North
to return swiftly to the six-party talks seem to have failed, with
Pyongyang responding to it negatively and presenting the removal of
US financial sanctions as a condition.

Hill's China visit was decided through a telephone conversation
between Chinese State Councilor Tang Jiaxuan and US Secretary of
State Condoleezza Rice on the night of July 10. Although Hill's
China trip is believed to be for emergency talks, he said late at
night on July 11: "I did not see any Chinese officials today; I will
hold talks with Foreign Minister Li Zhaoxing on the morning of July
12."

Ahead of the Tang-Rice telephone conversation, China called for the
postponement of a vote on the sanctions resolution by the UN
Security Council, citing Wu's North Korea visit. China's request was
approved. Wu is believed to have urged the North to freeze missile
launches and return to the six-party talks to avoid sanctions,
telling Pyongyang that the US has pledged that it would conduct

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bilateral talks with the North at informal six-party talks.

But a Chinese Foreign Ministry press officer in a press conference
on July 11 suggested tremendous difficulty in China's effort to
convince the North, saying: "The issue will not be resolved with a
visit or two. Diplomatic efforts take time and patience. Our efforts
for a resumption of the six-party talks have yet to bear fruit." Wu
largely attributed North Korea's missile launches to America's
financial sanctions. China's efforts to convince North Korea seem to
have bogged down, with Pyongyang demanding a removal of the
financial sanctions.

8) US sounded out North Korea on bilateral talks two days before
missile launches; US hardened stance following launches

SANKEI (Page 1) (Excerpts)
July 12, 2006

On July 3, two days before North Korea launched ballistic missiles,
Washington informed countries concerned that it was willing to
conduct bilateral talks with Pyongyang on the condition North Korea
return to the six-party talks to discuss the nuclear issue, sources
revealed yesterday. It also came to light that the US and North
Korea had secretly held informal talks in New York in mid-June. But
the North went ahead and launched a Taepodong-2 long-range ballistic
missile, prompting the US to harden its stance.

According to government sources, the United States has searched for
ways to contact North Korea behind the scenes since its spy
satellites detected in late May the North's preparations for
launching a Taepodong-2 missile. US and North Korean officials in
charge secretly met in New York in mid-June. But the talks ended in
failure, with the North unilaterally demanding the financial
sanctions be removed.

Once that the United States made contact with North Korea, albeit
informally, speculation was afoot among the concerned countries that
the North would abstain from launching missiles for the time being.
But in late June, the North began actively making preparations for
missile launches. Such countries as the United States and China
undertook coordination for informal six-party talks in July. Timed
with the planned informal talks, the United States conveyed on July
3 its willingness to hold bilateral talks with the North to the
countries concerned, including Japan. Arrangements were made for
China to inform North Korea of America's willingness.

But North Korea launched seven missiles on July 5 in defiance of
America's message. There are various views in the Japanese
government about North Korea's motive behind the missile launches,
such as: (1) China did not convey America's wishes to North Korea;
or (2) the North expected that the missile launches would help
elicit further concessions from the United States.

9) Government perplexed by ROK's verbal attack on Japan in
connection with North Korea missile issue

TOKYO (Page 2) (Full)
July 12, 2006


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The government is perplexed by the Republic of Korea government's
constant showering of criticism on Japan in connection with North
Korea's launching of missiles. The office of the ROK President has
mounted on its home page criticism of Japan imposing its sanctions
on North Korea and for seeking a UN sanctions resolution. The
emerging argument in Japan for possessing a capability to strike
enemy bases has also set off alarms, with a Blue House spokesperson
stating: "We will respond with strong stance to the arrogance and
reckless remarks of Japanese government leaders."

In response, the Japanese government has underscored its
cool-headed response, with Chief Cabinet Secretary Abe saying, "The
Japanese government will not comment on every statement." For that
reason, some in the Japanese government let this statement of regret
slip out: "There is nothing that can be done as long as President
Roh Moo Hyun is in the Blue House."

10) Argument for Japan to possess an enemy-base strike capability
creates stir inside Japan and overseas: Takebe calls for debate on
preparing legislation, while Katayama cites constitutional
restriction on such a capability

NIHON KEIZAI (Page 2) (Full)
July 12, 2006

With the launching on missiles by North Korea, a view has emerged in
the government and ruling camp calling for the Self-Defense Forces
(SDF) to possess a capability to strike enemy bases. This suggestion
has created a stir both in Japan and overseas. Already China and
South Korea, with which Japan's relations already are cool, have
reacted sharply, and even in the United States, concern is starting
to grow.

Members of the ruling and opposition parties yesterday came out with
one statement after the other to the press corps. Liberal Democratic
Party (LDP) Secretary General took a positive stance toward giving
consideration to the idea: "It would be unacceptable for us to do
nothing if we learn that the other country without a doubt will
launch missiles and cause great harm to Japan. We should discuss
setting up legislation (for such a contingency)."

But there are arguments pro and con in the LDP. Upper House
Secretary General Toranosuke Takayama said: "We have to consider

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this cautiously for Japan is restricted by the Constitution to sole
self-defense." Defense Agency Director General Nukaga, who set off
the debate with his remark, advocated: "Although there has been
interpretation in the past that such would legally be permissible,
the fact is that is has never been debated in practical terms." He
took a position of seeing a need for starting discussion on the
issue.'

In the opposition Minshuto (Democratic Party of Japan),as well,
there was no unified view, with some party officials like Secretary
General Yukio Hatoyama indicating a certain level of understanding.
President Ichiro Ozawa revealed his view that minute discussion was
necessary, stating: "The enemy is not just limited to North Korea.
First, we have find out how to determine who the enemy is. We would
have to be ready to fight any country we determine as the enemy."


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