JAPANESE MORNING PRESS HIGHLIGHTS 07/24/06

UNCLAS SECTION 01 OF 12 TOKYO 004100

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SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 07/24/06


Index:

1) Top headlines
2) Editorials
Prime Minister's weekend schedule: None

Opinion polls:
3) Koizumi Cabinet support rate slips a point to 46 % in Nikkei
poll, while support for Abe as next prime minister rises to 42 %,
far ahead of Fukuda's 12 %
4) 80 % support sanctions on North Korea, 40 % want even tougher
ones in Nikkei poll
5) 53 % oppose, 28 % support prime minister's visits to Yasukuni
Shrine: Nikkei poll
6) Mainichi poll: 33 % approve Yasukuni visits by premier, a
14-point drop, while 54 % oppose
7) 63 % of public want Class-A war criminals removed from Yasukuni
Shrine

Politics and Yasukuni:
8) Abe now the leading candidate with Fukuda dropping out
9) Yasukuni becoming a major issue in the LDP presidential race,
with Abe cautious, Tanigaki positive about removing war criminals
from shrine
10) With Fukuda taking himself out of LDP race, new candidates
Yosano, Nukaga may throw hats in ring
11) Already over 170 LDP lawmakers support Abe candidacy for party
president

12) Foreign Minister Aso in the Philippines to attend the ASEAN ARF
presses Philippines counterpart to make North Korea a priority issue
at the conference

13) Government ready to approve the proposed UNSC resolution against
Iran

Defense and security issues:
14) Government to tighten up regulations on dual-use materials
exported to North Korea by related companies via third countries
15) Japan to request priority delivery of PAC-3 missiles slated for
early deployment
16) Yamaha to be arraigned on charges of shipping illegal
helicopters to China
17) Government calculates that housing construction and other
related expenses for USFJ realignment-related move to Iwakuni would
cost 150 billion yen
18) JDA Vice Minister Moriya to remain in post in an unusual
four-year assignment

19) US beef imports to be restarted on July 27

Articles:

1) TOP HEADLINES

Asahi:
Rain forces 4,300 people in southern Kyushu to evacuate

Mainichi:
Yasukuni poll: Approval of visits stands at 33 %, down14 points,
opposition at 54 %


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Yomiuri:
Land, Infrastructure, and Transport Ministry's plan to retest
architects draws fierce opposition from architects

Nihon Keizai:
Oji Paper to take over Hokuetsu Paper Mills

Sankei:
Shizuoka, Fukuoka police to file criminal charges against Yamaha
Motor Co. for attempted exports of military-convertible crop-dusting
helicopters to China

Tokyo Shimbun:
Yasukuni developing into campaign issue in LDP presidential race;
Abe cautious about unenshrining Class-A war criminals, Tanigaki
eager for unenshrinement

2) EDITORIALS

Asahi:
(1) Koizumi administration nearing its end after partially
destroying LDP

Mainichi:
(1) Public opinion against prime minister's Yasukuni visits growing
(2) Greater awareness required regarding cybercrimes

Yomiuri:
(1) Ratchet up pressure on North Korea
(2) Questions remain about creation of new system for
government-affiliated financial institutions

Nihon Keizai:
(1) Koizumi reform drive only opened door to small government

Sankei:
(1) Eliminate obstacles to Japan-US missile defense system
(2) Toyota needs to improve operations

Tokyo Shimbun:
(1) Budget cuts begin with clear budget request guidelines
(2) Mindan must seek reconciliation at grassroots level

3) Poll: 42 % support Abe as next premier

NIHON KEIZAI (Page 1) (Abridged)
July 24, 2006

Chief Cabinet Secretary Shinzo Abe garnered 42 % support to become
the next prime minister, the Nihon Keizai Shimbun found from its
public opinion survey conducted July 21-23, up one point from the
last poll taken in June. The poll shows Abe increasing jos lead over
other potential candidates. In the meantime, Yasuo Fukuda, one of
Abe's predecessors in the CCS post, announced on July 21 that he
would not run for the ruling Liberal Democratic Party's presidential
election set for this September. In the survey, Fukuda was down 5.0
points but still stood at 12 % in public support.

The approval rating for the Koizumi cabinet was 46 %, down one
point. The disapproval rating was 44 %, up 3 points and the highest
level since the election in September last year for the House of
Representatives.

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The survey was taken by Nikkei Research Inc. over the telephone on a
random digit dialing (RDD) basis. For the survey, samples were
chosen from among men and women aged 20 and over across the nation.
A total of 1,593 households with one or more voters were sampled,
and answers were obtained from 966 persons (60.6 %).

4) Poll: Over 80 % support sanctions on North Korea

NIHON KEIZAI (Page 2) (Abridged)
July 24, 2006

More than 80 % of the Japanese public support the government's
decision to take sanction measures against North Korea in the wake
of that country's firing of ballistic missiles, the Nihon Keizai
Shimbun found from its latest poll. More than half of them also
answered that the government should intensify its sanctions further.
In addition, about 70 % positively evaluated the government's
diplomatic efforts for the United Nations Security Council's recent
adoption of a resolution condemning North Korea.

Asked about North Korea's firing of missiles, 63 % thought of it as
a serious threat, with 25 % saying they do not think of it as a very
serious threat.

The government decided on nine sanction measures right after North
Korea's July 5 firing of missiles. The measures include prohibiting
North Korean officials from entering Japan, recommending Japanese
nationals to abstain from traveling to North Korea, and barring the
North Korean ferry Mangyongbong. Furthermore, the government is
studying additional sanctions, such as stopping money remittances
from North Korean residents in Japan to their home country and
freezing North Korean assets.

In the survey, respondents were asked about these government
sanction measures. In response to this question, The proportion of
those saying the measures are "appropriate" and those insisting on
the necessity of taking "even stronger sanctions" were on a par at
42 %, with only 3 % regarding the measures as "too severe."

5) Poll: 53 % urge premier not to visit Yasukuni Shrine

NIHON KEIZAI (Page 2) (Full)
July 24, 2006

The late former Imperial Household Grand Steward Tomohiko Tomita
recorded Emperor Showa's statements in his recently discovered
diaries and notebooks, quoting the emperor as being displeased with
the enshrinement of Class-A war criminals at Yasukuni Shrine. In the
latest Nihon Keizai Shimbun poll, respondents were asked about the
prime minister's visits to Yasukuni Shrine. In response to this
question, 53 % said the prime minister should not visit the shrine,
with 28 % saying the premier should visit.

In a previous survey taken in June, respondents were asked about
Prime Minister Junichiro Koizumi's visits to Yasukuni Shrine. In
response, nearly 50 % were supportive of his Yasukuni visits, broken
down into 17 % saying he should visit the shrine on Aug. 15, the day
World War II ended, with 32 % saying he should visit the shrine on a
different day, not on Aug. 15. Negative answers accounted for 37 %.
The results of previous polls and the one taken this time cannot be
simply compared due to different questions and options. In the

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latest poll, however, cautious answers outnumbered positive ones.

6) Poll: Support for next premier's visits to Yasukuni Shrine down
14 points to 33 %, with 54 % opposed

MAINICHI (Top play) (Abridged)
July 24, 2006

The Mainichi Shimbun conducted a telephone-based nationwide public
opinion survey on July 22-23. In the survey, respondents were asked
if they thought the next prime minister should visit Yasukuni
Shrine. In response to this question, 54 % or a majority of the
respondents answered "no," with 33 % saying "yes." As seen from the
figures, negative answers markedly outnumbered positive answers. In
a previous survey taken in January this year, public opinion was
split, with 47 % for and another 47 % against. However, "yes"
dropped 14 percentage points in the latest survey. For one thing,
Japan's relations with China and South Korea have yet to change for
the better. In addition, the decline is probably because of the
discovery of memos that recorded statements by the late Emperor
Showa (Hirohito) voicing his displeasure with the enshrinement of
Class-A war criminals at Yasukuni Shrine.

Chief Cabinet Secretary Shinzo Abe, a likely candidate to become
Prime Minister Koizumi's successor, has supported Koizumi's visits
to Yasukuni Shrine. Meanwhile, Abe has been taking the position that
Yasukuni should not become a diplomatic issue, so he has avoided
clarifying whether he would visit the shrine if he takes office as
prime minister. The survey results could affect Abe's future
stance.

Among those who picked Abe, 48 % opposed the next prime minister
visiting Yasukuni Shrine, with 42 % supporting it. As seen from
these figures, negative answers outnumbered positive ones even among
those who support Abe.

In the survey, respondents were also asked if they would support
Prime Minister Junichiro Koizumi visiting Yasukuni Shrine on Aug.
15, the anniversary of the end of World War II. In response to this
question, "no" accounted for 54 %, with "yes" at 36 %. Among those
who support the Koizumi cabinet, 53 % were negative, with 39 %
positive. Among those who do not support the Koizumi cabinet,
negative answers accounted for 77 %.

7) Poll: 63 % support separating Class-A war criminals from war dead
enshrined at Yasukuni Shrine

MAINICHI (Page 1) (Abridged)
July 24, 2006

Japan's Class-A war criminals in World War II have been enshrined at
Yasukuni Shrine since 1978. In the latest Mainichi Shimbun poll,
however, 63 % supported the idea of separating those Class-A war
criminals from the war dead enshrined at Yasukuni Shrine, with 23 %
opposing the idea.

According to recently discovered records, the late Emperor Showa
(Hirohito) was displeased with the enshrinement of Class-A war
criminals at Yasukuni Shrine. In the political world, an increasing
number of lawmakers presume that the late emperor's statements could
spur arguments calling for the idea of separating Class-A war
criminals from Yasukuni Shrine. In the meantime, there are also

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arguments cautious about making political use of the emperor.
However, the latest poll shows that about two-thirds of the public
support unenshrining the Class-A war criminals from Yasukuni. This
will likely encourage those insisting on separate enshrinement.

Among those who support the ruling Liberal Democratic Party, 62 %
support separate enshrinement. In addition, 61 % of those who
support Prime Minister Koizumi's Yasukuni visit on Aug. 15 and 62 %
of those who support the next prime minister's Yasukuni visits were
also supportive of separate enshrinement. As seen from these
figures, the general public regards separate enshrinement as a
likely means of resolving the Yasukuni issue.

8) Abe's predominance in LDP presidential race now certain with
Fukuda's decision to give up candidacy

ASAHI (Top Play) (Lead paragraph)
July 22, 2006

Former Chief Cabinet Secretary Yasuo Fukuda told former Prime
Minister Yoshiro, chairman of the Liberal Democratic Party's Mori
faction, in Tokyo yesterday afternoon that he would not run in the
September LDP presidential election and that he would support Chief
Cabinet Secretary Shinzo Abe, a faction member, for the post. The
focus in the presidential race has been on whether groups opposed to
Prime Minister Koizumi and his policies and not supporting Abe,
would be able to field a unified candidate to counter Abe, the top
contender. Now that Fukuda, who was regarded as the unified
candidate backed by a the anti-Abe forces, has expressed his support
for Abe, Abe's overwhelming lead over his rivals is definite.

9) Yasukuni as expected welling up as campaign issue in the LDP
presidential election: Clashes over separation of Class-A war
criminals from the shrine, with Abe remaining cautious, Tanigaki
positive

TOKYO (Top Play) (Abridged)
July 24, 2006

Chief Cabinet Secretary Shinzo Abe is filled with caution about
separating off the souls of the Class-A war criminals now enshrined
at Yasukuni Shrine, while Finance Minister Sadakazu Tanigaki has
expressed a positive view about such recourse. Affected by the
release of a memo in which the Showa Emperor was quoted as
displeased about the enshrinement of the war criminals, the Yasukuni
issue has welled up as a major campaign issue in the election for
Liberal Democratic Party (LDP) president in September.

In a speech in Kobe, Abe made this remark about separation of the
souls of the enshrined war criminals: "Even speaking from the
principle of the separation of religion and state, it would seem
that this decision should come from the shrine itself or the
bereaved families." Abe supports the visits to Yasukuni Shrine by
Prime Minister Koizumi. He is critical of those who oppose paying
homage at the shrine based on the argument that Japan in signing the
San Francisco Treaty accepted the judgment of the Tokyo War Crimes
Tribunal, saying: "That's a leap in logic. Such seems to be an
absurd argument in my view."

He asserted that the Class-A war criminals under Japan's domestic
laws were not regarded as criminals, and he pointed out, "It is also
clear that pension money has been paid out to the bereaved families.

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So there has been a big misunderstanding."

On the other hand, Tanigaki, appearing on an NHK television program,
made this remark about the enshrined Class-A war criminals, keeping
in mind relations between Japan and South Korea and China: "There's
no doubt that there is a knife at our throat, so I think we have to
make adjustments."

However, on the method of separating the souls, he would not go any
further than to say: "Since it is a religious corporation's problem,
it is very difficult to tackle."

10) LDP presidential race takes new turn with Fukuda's decision not
to run

TOKYO SHIMBUN (Page 2) (Excerpts)
July 23, 2006

With former Chief Cabinet Secretary Fukuda's decision not to run the
Liberal Democratic Party (LDP) presidential election in September,
the post-Koizumi race has taken a new turn. It is now certain that
Chief Cabinet Secretary Shinzo Abe has become the clear frontrunner,
but supporters of Fukuda are not likely to just look on with folded
arms. Attention is now being focused on whether a seconds strong
candidate to replace Fukuda emerges.

On the night of July 20, a meeting was held to analyze the political
situation with the participation of a former Health, Labor and
Welfare Minister Yuji Tsushima, former Health, Labor and Welfare
Minister Yuya Niwa, former Vice President Taku Yamasaki, former
Foreign Minister Masahiko Komura, former Secretary General Koichi
Kato, and others.

The evening meeting took place prior to Fukuda's announcement the
next day, but discussion already was conducted on the presumption
that Fukuda would not run in the race. The participants shared the
view that "it is not desirable to allow Abe to enjoy an overwhelming
victory." Many suggested the need to look for another candidate to
stand against Abe.

In the LDP, many members take the view that the new prime minister
should be elected through heated debates conducted among many
candidates. This view reflects their dissatisfaction with Prime
Minister Junichiro Koizumi's stance of pushing ahead with policy
measures without listening to views in the party.

Given this situation, there is still the possibility in the LDP of
moves accelerating to back a second candidate to replace Fukuda.

Defense Agency Director General Fukushiro Nukaga might be the most
likely "second Fukuda" candidate. He is well versed in national
security and defense policies with much experience as cabinet
minister. In addition, he is know to have a good personality.

State Minister for Economic, Fiscal and Financial Policy Kaoru
Yosano is also a likely candidate. He is a kind of maverick with few
friends in the political world, but he is expert in many policy
areas. In particular, because he has kept himself aloof from the
Koizumi reform line, he tends to be focused on as a likely candidate
to counter Abe. Some junior members have already placed expectations
on Yosano.


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Of course, it is conceivable that supporters of Fukuda will back
Foreign Minister Taro Aso or Finance Minister Sadakazu Tanigaki,
both of who have begun preparations for running in the presidential
race.

11) Poll of 403 LDP members: More than 170 votes likely to go to
Abe

TOKYO SHIMBUN (Page 1) (Excerpts)
July 22, 2006

A poll carried out by the Tokyo Shimbun yesterday found that more
than 170 out of the 403 Liberal Democratic Party (LDP) members
surveyed are willing to vote for Chief Cabinet Secretary Shinzo Abe
in the LDP presidential election scheduled for Sept. 20. One cannot
run for party president unless more than 20 party members recommend
that person. Aso and Tanigaki are almost certain to secure this
required number of recommenders. Nearly half of those surveyed - 185
members - were categorized as "undecided or others", but they might
vote for Abe, with former Chief Cabinet Secretary Yasuo Fukuda's
decision not to run in the election.

The survey results came out based on direct interviews with LDP
party members by Tokyo Shimbun reporters or information obtained
from party executives. As for those who said they would support a
candidate other than Abe, Aso and Tanigaki, since the candidate
might fail to secure the required number of recommenders, they were
categorized as "undecided or others".

According to the survey, most members of the Mori faction, to which
Abe belongs, are ready to support him. Many of the unaffiliated or
other faction members are also going to vote for Abe.

Among those categorized as "undecided or others," there are many who
were carefully watching Fukuda's moves. They might field another
candidate.

In the Tsushima faction, a majority of members are looking to
Defense Agency Director General Fukushiro Nukaga's to run in the
election. In the Yamasaki faction, the candidacy of former Vice
President Taku Yamasaki is under consideration. Should neither
Nukaga nor Yamasaki run in the election, many of these two faction
members are likely to support Abe.

12) North Korea's missile launches: Foreign Minister Aso stresses
the importance of unity to Philippines

ASAHI (Page 2) (Full)
July 24, 2006

Nanae Kurashige, Manila

Foreign Minister Aso, now visiting the Philippines, yesterday met
with Foreign Minister Romulo and referring to North Korea's recent
missile launches as a serious matter, said to him that at the
upcoming the ASEAN Regional Forum (ARF) ministerial session, "I
think it necessary for all the participants to be united in taking
firm stance toward North Korea."

According to an account from the Japanese side, Romulo nodded in
response to Aso's call. Aso also expressed his perception: "How to
denuclearize the Korean Peninsula is one of the concerns in terms of

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the stability in the region."

Aso also met with President Arroyo and conveyed to her that Japan
intends to send a development expert for the promotion of the peace
process between the Moro Islamic Liberation Front (MILF),which aims
for the independence of Mindanao Island from the Philippines, and
the Philippine government. Aso attended an event commemorating the
50th anniversary of the normalization of diplomatic ties between the
two countries.

13) UN resolution against Iran: Government decides to support it,
attaching importance to consistency with its support of resolution
against North Korea

YOMIURI (Page 4) (Full)
July 22, 2006

The government yesterday decided to support a draft sanctions
resolution against Iran, which Britain and France have introduced to
the United Nations Security Council.

The draft resolution mandates Iran to suspend its uranium enrichment
activities within August and warns that economic sanctions will be
imposed if it fails to comply with it.

Japan has friendly relations with Iran. However, in view of the fact
that Japan played a leading role in the recent adoption of the
sanctions against Pyongyang by working on other countries to support
it, the government has judged that it should take a severe stance
toward Iran over its nuclear development issue, otherwise, it's
consistency will be questioned, as one senior Foreign Ministry
official put it. Tokyo has also placed importance on cooperation
with Europe and the US. In the meantime, by using its amicable
relations with that country, Tokyo intends to continue to urge Iran
to cooperate with the international community and to totally suspend
its uranium enrichment-related activities on a voluntary basis,.

Chief Cabinet Secretary Abe during a press conference on July 21
stressed, "We will closely cooperate with concerned countries so
that the resolution will be adopted at the UNSC unanimously and
swiftly. Commenting on Abe's statement, a government source
remarked, "The government position is to support the resolution, but
he has not categorically clarified it presumably in order to
continue persuading Iran to drop the nuclear program."

14) Japan considers imposing requirements on firms linked to North
Korea as part of efforts to prevent exports of materials convertible
for weapons to North Korea via third countries

YOMIURI (Page 1) (Excerpts)
July 24, 2006

The government is mulling additional sanctions against North Korea
for its missile launches and yesterday started discussions to modify
a government ordinance issued under the Foreign Exchange and Foreign
Trade Control Law so that some domestic firms with business links
with North Korea will be obligated to report destinations for their
exports if they export some 40 items -- such as large trucks,
titanium alloy, and carbon fiber -- that may lead to the development
of missiles and weapons of mass destruction. The aim is to strictly
monitor exports and prevent the exports of missile-related materials
and the like to North Korea via third countries.

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If the government deems it necessary to take additional sanctions
when North Korea shows signs of launching another missile in the
coming months, Japan intends to widen the coverage of export
restrictions, in addition to the suspension of remittances to North
Korea and the freeze on North Korea-related accounts.

All these measures are being considered following the United Nations
Security Council resolution adopted on July 15. The resolution warns
UN members against a possible transfer of missile and weapons of
mass destruction-related materials and technologies to North Korea
and seeks to prevent such a transfer.

The government will examine some 300 domestic firms that have
business deals with North Korea, and in view of such matters as the
export amount, items exported, and the closeness of links with North
Korea, designate some of them as firms associated with the country.

15) JDA asks US for priority delivery of PAC-3 to Japan

SANKEI (Page 2) (Full)
July 24, 2006

Realizing the need to build a missile defense (MD) system earlier
than initially planned in the wake of North Korea's recent missile
launches, the Defense Agency (JDA) has asked the US Department of
Army to make a priority delivery of the Patriot Advanced
Capability-3 (PAC-3) missiles to Japan before their delivery to
other countries, sources revealed yesterday. The department has told
the JDA it will consider the request positively. But moving up the
PAC-3 deployment schedule far ahead of the initial plan makes it
indispensable for Japan to improve or repair launch pads and other
facilities. Japan intends to urge domestic firms in the coming weeks
to accelerate the upgrading of relevant facilities.

According to the JDA's plan, PAC-3 missile systems will be deployed
in the Air Self-Defense Force's (ASDF) Iruma Base, where the ASDF's
1st Air Defense Missile Group Headquarters is located, in Saitama
Prefecture by the end of this fiscal year. This system will also be
deployed in fiscal 2007 at the ASDF's Narashino Base in Chiba
Prefecture, where the 1st Air Defense Missile Group is stationed;
its Takeyama base in Kanagawa Prefecture; and its Kasumigaura base
in Ibaraki Prefecture as part of preparedness to intercept missiles
to defend the metropolitan area. The same system will be deployed in
fiscal 2008 in the ASDF's Hamamatsu Base in Shiga Prefecture and in
fiscal 2009 in its Aibano Base in Shiga Prefecture and its Gifu and
Hakusan Bases in Mie Prefecture.

The JDA had mulled pushing up the initial PAC-3 deployment schedule
since July 5, when North Korea test-fired missiles, including a
Taepodong-2. After examining the production process of missiles and
other matters, the JDA came to the conclusion that it would be
difficult to push up the schedule planned for this fiscal year but
that it would be possible move up next fiscal year's schedule by
about one month.

Taking this into consideration, the JDA judged it indispensable to
have negotiations with the Untied States -- the manufacturer of the
missiles -- at the political level in order for Japan to push up the
PAC-3 deployment systems extensively. The JDA then asked the US
Department of Army whether it would be possible to deliver on a
priority basis PAC-3 missiles planned for other countries to Japan.

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Reportedly, the Department of Army has expressed a willingness to
accept the JDA's request, given North Korea's missile launches.

However, even if the missiles are available ahead of the initial
schedule, the PAC-3 cannot be deployed if Japan fails to accelerate
the upgrading of launch pads for the use of the PAC-3 and radar
devices. The work of upgrading is in the hands of domestic firms.
The key to whether the PAC-3 systems can be deployed earlier than
the initial schedule lies in whether the JDA can get those firms to
pick up the pace.

16) Criminal charges to be filed against Yamaha Motor on suspicion
of intending to illegally export helicopters to China while aware of
possible conversion for military use

SANKEI (Top Play) (Excerpts)
July 24, 2006

It was revealed by a source yesterday that Yamaha Motor in Iwata
City, Shizuoka Prefecture, intended to illegally export an unmanned
helicopter convertible for military use to China. Determining that
the company planned to export the product while fully aware that it
could be converted for military use, the special investigation
squads of the Shizuoka Prefectural Police and the Fukuoka
Prefectural Police will shortly establish a criminal case against
the company and personnel on suspicion of violating the unauthorized
export clause of the Foreign Exchange Law.

According to the investigation, Yamaha Motor tried to export an R
MAX-Type IIG unmanned helicopter-modified L181-type helicopter about
3.6 meters long to BVE, a Chinese aviation company, without
obtaining an export authorization from the Ministry of Economy,
Trade, and Industry. It is believed that the company has exported
more than 10 units since 2001.

17) Japan's Iwakuni relocation costs estimated at 150 billion yen,
including housing construction

NIHON KEIZAI (Page 1) (Excerpts)
July 23, 2006

According to the Japanese government's calculations, the cost of
strengthening the functions of US Iwakuni Air Station in Yamaguchi
Prefecture as part of the realignment of US forces in Japan will
total 150 billion yen. Starting next year, Japan is expected to bear
the cost for improving such facilities as the apron, to accommodate
a carrier-borne unit of jet aircraft from the Atsugi base in
Kanagawa Prefecture. Tokyo will coordinate with Washington to
determine Japan's share of the cost, which is mostly housing
expenses.

Japan and the United States are in accord to relocate 59
carrier-based airplanes to the Iwakuni base by 2014. The relocation
also requires 1,900 US Navy personnel and their 1,700 family members
to move to Iwakuni. An aerial refueling unit will also move to the
Iwakuni base from Futenma Air Station in Ginowan, Okinawa. Japan and
the US will soon begin working-level talks to map out concrete plans
before year's end.

18) Defense Deputy Director-General Moriya to serve in post for
fourth year


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YOMIURI (Page 4) (Abridged)
July 23, 2006

Defense Agency Director-General Fukushiro Nukaga intends to keep
Takemasa Moriya as the agency's deputy director-general when he
makes personnel changes in August.

With this tentative decision, Moriya will serve in the current post
for a fourth year, an exceptional long term as a deputy
director-general or an administrative vice minister at a government
ministry or agency.

Moriya, who took up the post in August 2003, strongly opposed the US
plan to relocate Futenma Air Station to shallow waters off the
Henoko district, a sticking point in US force realignment. But he
also played a major role in convincing the US to accept Japan's
coastline plan behind the scenes. As a result, Moriya was allowed to
accompany Prime Minister Junichiro Koizumi to the United States for
the Japan-US summit in late June.

Nukaga is believed to have decided to keep Moriya with abundant
experience, as he has had a difficult time dealing with local
municipalities that will be affected by the relocations plans. In
addition, a set of bills to upgrade the agency's status to ministry
is expected to face a crucial stage in the upcoming extraordinary
Diet session in the fall.

19) Embargo on US beef to be lifted on July 27; No problems found in
inspections of US meat processing plants

YOMIURI (Page 2) (Full)
July 22, 2006

The Ministry of Agriculture, Forestry, and Fisheries (MAFF) and the
Ministry of Health, Labor, and Welfare (MHLW) on July 27 formally
decided to resume imports of US beef, on which a second ban was
imposed following the discovery of vertebral columns, a specified
risk material, in shipments. The decision was made because a survey
mission dispatched to the US by the two ministries has ended
inspections of 35 meat packers that are authorized to export
products to Japan and found no violations of import conditions that
could have a serious impact on the ongoing efforts to reinstate the
beef trade.

MAFF and the MHLW will compile a report and formally decide to
resume imports, once they obtain approval from the Liberal
Democratic Party (LDP) and others.

The mission inspected US meat-processing plants and ranches over a
period of about a month.

The US Department of Agriculture (USDA) on the 20th announced a plan
to curtail its BSE inspection system. MAFF Minister Nakagawa
yesterday said that the USDA's decision would not directly affect
Japan's decision to resume US beef imports.

However, the US decision on the curtailment of its BSE inspection
system could raise Japanese consumers' distrust in US beef, leading
to criticism of the government decision to restart beef imports.

For this reason, MAFF will continue to ask the US to keep the BSE
inspection system in place or even expand it. It will hold a town

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meeting on the 28th to explain the results of the field inspections
to consumers in Osaka and Tokyo.

SCHIEFFER