JAPANESE MORNING PRESS HIGHLIGHTS 08/23/06

UNCLAS SECTION 01 OF 09 TOKYO 004806 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 08/23/06 Index: 1) Top headlines 2) Editorials Prime Minister's daily schedule: On vacation. Political season: 3) Asahi poll: ABE favored by 53% to be next premier; income disparity picked as top campaign issue by 32%, but 47% want him to forego Yasukuni visits 4) Survey of LDP shows ABE has garnered over 70% of votes for next month's LDP presidential election 5) Political contender SHINZO ABE to propose Japan-style NSC if he is elected prime minister 6) ABE to establish study group in government to look into use of right of collective self-defense, his pet project 7) ABE campaign pledged centering on constitutional revision, education reform 8) All five potential candidates for LDP president finally meet in regional bloc campaign rally 9) New Komeito's executive election on 9/30 but already Ota and Kitagawa picked informally as representative and secretary general, respectively 10) Minshuto President Ozawa plays (political) golf with key former LDP postal rebels, with an apparent eye on cooperation in next Upper House election Defense and security issues: 11) JDA seeking 22.7 billion yen earmarked for anti-North Korea-missile measures in next fiscal year's budget 12) JDA's missile defense budget request totals 220 billion yen 13) US senior official expects to see USFJ realignment-related bill submitted to next regular Diet session 14) LDP Secretary General Takebe journeys to Russia to discuss recent fishing boat shooting and capturing incident Iraq assistance: 15) Foreign Minister Aso in meeting with Iraq's national security adviser Rubaie, promises continued reconstruction assistance 16) Interviewed by Mainichi, Iraq's national security adviser sees first stage of pullout of multinational forces next spring Articles: 1) TOP HEADLINES Asahi: Financial Services Agency to inspect Acom again over suspected improper leading practices Mainichi: Iran rejects calls to freeze uranium enrichment Yomiuri: Health ministry to set up a third party organ to look into suspicious medical-related deaths as early as FY2008 Nihon Keizai: Labor ministry mulling unemployment insurance premiums that can change with economy TOKYO 00004806 002 OF 009 Sankei: Mizuho to file suit against TSE for 40.4 billion in compensation for debacle Tokyo Shimbun: Poll: ABE may garner more than 70% of votes in LDP presidential race Akahata: (Not delivered yet) 2) EDITORIALS Asahi: (1) Increase in number of births: Ordinary life is important (2) Shortage of physicians: There are many ways to increase medical doctors Mainichi: (1) Increase in number of births: Steady efforts needed rather than relieved (2) Koizumi displayed political identity but he is like a dangerous Maverick (Yoshinori Nakai, editorial committee member) Yomiuri: (1) LDP presidency: Candidates must spell out policies (2) Return of Yokota airspace: Coordination between military and private-sector necessary Nihon Keizai: In order to heighten the continuity of social security programs, drastic countermeasures for the falling birthrate is needed Sankei: (1) One week after shooting on fishing boat: Japan should not be swayed by Russia's assertion to return only two of the four northern islands (2) Increase in number of births: Let's encourage women to give birth Tokyo Shimbun: (1) Postal management plan: Top priority should be on fair competition (2) Tourist-attracting country: Expansion of exchanges in Asia is a boost for Japan Akahata: (Not delivered yet) 3) Poll: 53% favor ABE as next premier ASAHI (Page 4) (Abridged) August 23, 2006 With Foreign Minister Aso having announced his candidacy for the ruling Liberal Democratic Party's presidential election, there are now three candidates ready to run in the race, including Chief Cabinet Secretary ABE and Finance Minister Tanigaki. Meanwhile, the Asahi Shimbun conducted a telephone-based spot nationwide public opinion survey from the evening of Aug. 21 through Aug. 22. In the survey, 53% of respondents favored ABE as the next prime minister, with 14% preferring Aso and 10% choosing Tanigaki. Prime Minister TOKYO 00004806 003 OF 009 Koizumi visited Yasukuni Shrine on Aug. 15. Respondents were asked if they thought his successor should visit the shrine, with 47% saying "no" and 31% saying "yes." Respondents were asked to pick one from among four given choices-Aso, Abe, Tanigaki, and "others" for the next prime minister. Among LDP and Koizumi cabinet supporters, a total of 70% supported Abe. Asked about Koizumi's Aug. 15 visit to Yasukuni Shrine, affirmative opinions outnumbered negative ones, with 49% saying it was good and 37% saying he should not have visited the shrine. When it comes to the advisability of his successor visiting Yasukuni Shrine, however, negative opinions outnumbered affirmative ones. In a previous survey conducted in July, 60% answered that the next prime minister should not visit Yasukuni Shrine. In the latest survey, the proportion of negative opinions was lower than that of July. However, those opposed to the next prime minister's shrine visits continued to form a majority. Even among those who said Koizumi's shrine visit was good, nearly 20% said they were opposed to the next prime minister doing so. Among those who picked ABE as the next prime minister, affirmative answers (43% ) outnumbered negative ones (37% ). Among those who preferred Aso, negative answers accounted for 49%. Among those who picked Tanigaki, negative opinions accounted for 75%. Abe has kept mum about whether he will visit Yasukuni Shrine. Asked about his stance, affirmative answers accounted for 32%, with negative answers at 54%. Respondents were further asked if they felt something wrong with the fact that Class-A war criminals are enshrined at Yasukuni Shrine. In response to this question, 47% answered "no," with 41% saying "yes." 4) Poll: ABE may garner over 70% of votes in party election TOKYO SHIMBUN (Top play) (Abridged) August 23, 2006 With the ruling Liberal Democratic Party's presidential election slated for Sept. 20, the Tokyo Shimbun yesterday probed into the support trends of 403 LDP Dietmembers. As a result, the survey found that about 290 persons or more than 70% of the LDP lawmakers have now made up their minds to vote for Chief Cabinet Secretary SHINZO Abe. In addition, the Tokyo Shimbun has also found from its recent survey of political monitors on the Internet that more than 70% of the party's 300 votes allotted to its nonparliamentary local bloc members are also expected to be cast for Abe. The LDP's parliamentary and bloc votes total 703, and the surveys shows that Abe will likely garner more than 500 votes, far over a majority or 352 votes. The trends of LDP lawmakers were analyzed on the basis of individual interviews with them and findings from LDP executives. The Tokyo Shimbun conducted similar surveys on July 21 and Aug. 5. When the most recent survey was conducted, Finance Minister Sadakazu Tanigaki and Foreign Minister Taro Aso had respectively secured about 20 LDP lawmakers' recommendations they need to run in the race. However, both Tanigaki and Aso have since been hanging low in support from LDP lawmakers. TOKYO 00004806 004 OF 009 In the meantime, the Tokyo Shimbun chose 500 monitors for Internet polling on Aug. 16-21 and obtained answers from 429 persons or 85.8%. In this Net survey, respondents were asked which political party they support. Among those who answered they support the LDP, 73.2% recommended Abe, with 14.3% preferring Aso and 8.9 choosing Tanigaki. Given that the LDP's local bloc members at large also tend to vote like LDP lawmakers, ABE would garner about 220 votes from his party's local members, adding up to about 510 votes. If no candidates garner more than half of the votes in the first ballot, the top two will run off. However, ABE will likely win the race in the first ballot. 5) ABE to propose Japan-style national security council TOKYO SHIMBUN (Page 1) (Full) August 23, 2006 Chief Cabinet Secretary Abe, appearing in yesterday's joint convention of the ruling Liberal Democratic Party's southern and northern Kanto blocs, stated that if he comes into office as prime minister, he would set up a body, which would be like the National Security Council (NSC) of the US government, in order to consolidate under one body Japan's foreign and security policies. This is aimed at strengthening the independent diplomatic and security functions of the prime minister's office (Kantei). The new security body, according to Abe's plan, will be made up of the prime minister, the chief cabinet secretary, the foreign minister, the defense secretary general, the Self-Defense Forces' Joint Staff Office chief, and certain other members, and it will collect and analyze diplomatic and security information. In addition, it will also have flexible policy planning functions, as well as readiness for emergencies. The Security Council of Japan (SCJ),currently set up in the government, has been criticized as a mere facade, so Abe's advocacy appears to be based on such criticism. "The foundation of Japan's foreign and security policies is based on the Japan-US alliance, so we will need to make it possible for us to talk not only between the Foreign Ministry and the State Department but also between the prime minister's office and the White House," Abe stressed in the convention. With this, ABE clarified that he would like to facilitate direct talks between the prime minister's office and the White House through the newly planned security entity. In addition, ABE also said Japan would also have a security assistant to the prime minister like the national security adviser to the US president. 6) ABE plans to establish an experts panel in government to study collective self-defense cases YOMIURI (Page 1) (Full) August 23, 2006 Ahead of his victory in the upcoming LDP presidential election, TOKYO 00004806 005 OF 009 Chief Cabinet Secretary SHINZO ABE decided yesterday to establish an experts' panel in the government to determine in advance specifically what cases constitute exercising the right of collective self-defense with the aim of facilitating the Self-Defense Forces' overseas missions. According to the government's interpretation of the Constitution, Japan is not allowed to exercise the right of collective self-defense. The Cabinet Legislation Bureau and the New Komeito are reluctant to change the government's interpretation. Given the situation, ABE intends to specific determine cases in which Japan can exercise the individual self-defense right instead of the collective self-defense right, while keeping the government's interpretation intact. Suppose an enemy missile attacked a US vessel during joint action with the Maritime Self-Defense Force and the MSDF vessel 1 kilometer away from the attacked US vessel was also within the missile's range. Under the current interpretation, the MSDF's counterattack in this case on the enemy country constitutes an exercise of the collective self-defense. A person close to ABE thinks that in this case, the MSDF should be allowed to counterattack the enemy by using the individual self-defense right because the MSDF vessel is within the range of the enemy missile. Further, even if a foreign force taking joint action with the SDF on an overseas mission was attacked, the SDF's counterattack is regarded as the use of force, which is prohibited under the Constitution. The panel will study if such a case can constitute the use of weapons, which is permitted for self-defense. 7) In campaign for LDP presidency, ABE to give priority to constitutional revision, educational reform ASAHI (Page 1) (Full) August 23, 2006 Chief Cabinet Secretary ABE has decided to give priority to a constitutional revision and educational reform in his policy platform for the Liberal Democratic Party presidential election in September. He will stress the need to completely rewrite the Constitution, as well as to introduce an education voucher system designed to encourage competition among schools and foster a mind that respect communities. In an effort to strengthen diplomacy led by Kantei, ABE will pledge to set up a Japanese version of the National Security Council in the United States under the prime minister. He will outline these vision policies he will pursue if he becomes prime minister when he announces his candidacy on Sept. 1. Delivering a speech in Yokohama yesterday, ABE regarded a constitutional revision as the next administration's top priority task, saying: "To present the picture of a new Japan, I am determined to launch the process of forming a new constitution. The next leader must demonstrate leadership and place the task of drafting a new constitution on the political schedule." It is a common practice that the Diet proposes revising the Constitution, but ABE believes that the party leader should take the initiative. Based on the view that it will take at least five years or so before the Constitution is rewritten, though, he will not TOKYO 00004806 006 OF 009 present a specific timeframe. Abe has proposed allowing the Self-Defense Force to exercise the right to collective self-defense by changing the government's interpretation of the Constitution, but the campaign platform will not contain this proposal. He intends to put it forth during policy debates. In the speech in Yokohama, ABE also stressed the importance of educational reform, saying: "What we must tackle now is to revitalize education." He will play up eagerness to enact at an early date a bill to amend the Fundamental Law of Education, on which no conclusion was reached in the latest regular Diet session, and to pursue "education that will contribute to fostering a mind that loves the family, the homeland, and the nation." Under the education voucher system, vouchers are distributed to families with children, and parents choose a school for their child. Schools that can attract many students will strengthen their financial strength. The system is aimed to bolster competition among public schools and improve the quality of education. ABE also has in mind plans to set up an expert consultative body and to make public service activities compulsory. 8) LDP presidential candidates take part in convention of the party's southern and northern Kanto chapters ASAHI (Page 4) (Full) August 23, 2006 Chief Cabinet Secretary SHINZO Abe, Foreign Minister Taro Aso, and Finance Minister Sadakazu Tanigaki, who will run in the Sept. 20 Liberal Democratic Party presidential election, got together yesterday for the first time at a convention of members of the LDP's southern and northern Kanto chapters held in Yokohama. The three candidates spoke of their own policies for about 10 minutes individually. There were no clear differences in their social security policy, including the pension programs, in which the public has great interest. All their answers were premised on maintaining the current system. Regarding the pension issue, ABE said: "We must create as early as possible a system to let the public know how much subscribers should pay, how long, and how much they will receive." He stated, "The rumor that the pension system will soon disappear is mistaken." Tanigaki underscored: "Burdens and returns should be made clear. In order to prevent a moral hazard, priority should be given to maintaining the social security system rather than the tax system." 9) New Komeito has internally picked new party line, with formal decision on Sept. 30: Ota to be party representative, Kitagawa will be secretary general SANKEI (Page 1) (Excerpt) August 23, 2006 With New Komeito Representative Takenori Kanzaki (63) resigning in Sept., the party yesterday set its new lineup of executives, with Akihiro Ota (60) slated to be Kanzaki's successor. The final confirmation was reached last weekend at an informal meeting between party officials and the Soka Gakkai, the party's parent support body. Tetsuzo Fuyushiba (70) will also resign as party secretary TOKYO 00004806 007 OF 009 general, with his place to be taken by Kazuo Kitagawa (53), currently national land and transportation minister. The New Komeito has timed its executive reshuffle to match the Liberal Democratic Party's presidential election in September. 10) Minshuto President Ozawa enjoys some social golf with former LDP postal rebels: Is he making an appeal for cooperation in next year's Upper House election? YOMIURI (Page 4) (Except) August 23, 2006 Minshuto (Democratic Party of Japan) yesterday played golf at course in Hakone in Kanagawa Prefecture with a group of former LDP postal rebels, including People's New Party Watanaku, who bolted the Liberal Democratic Party in opposition to legislation to privatize the postal services, former minister of economy, trade and industry Takeo Hiranuma, now an independent, and former LDP General Council Chairman Mitsuo Horiuchi, also an independent. The golf session was called together by Ozawa's close friend, former justice minister Nakai, under the pretext of a friendly gathering of Keio University alumni. It would appear that the real reason for the golfing event was to allow Ozawa to make an appeal to the assembly for cooperation in next summer's Upper House election. It was also a chance for Ozawa to ask Watanuki for cooperation in such elections as the one in Ishikawa district. 11) Defense Agency to request 22.7 billion yen in fiscal 2007 to deal with North Korean ballistic missiles NIHON KEIZAI (Page 2) (Full) August 23, 2006 In the wake of Pyongyang's ballistic missile launches, the Defense Agency decided yesterday to incorporate 22.7 billion yen in its fiscal 2007 budgetary request to deal with North Korean missiles. The request is mostly for purchasing PAC-3 ground-to-air interceptor missiles. The agency will also earmark funds for upgrading the performance of electronic surveillance aircraft. The budgetary request will be made public on August 31. The agency will increase its capability to detect signs of launching ballistic missiles in advance. To that end, it will earmark costs for upgrading the Maritime Self-Defense Force's EP-3 surveillance aircraft and for research and development of infrared sensors that can fit onto drones in the future. The agency plans to deploy PAC-3 missiles by fiscal 2010 at four places, beginning with the Air Self-Defense Force's Iruma base in Saitama Prefecture later this fiscal year. 12) Defense Agency to request 220 billion yen for frontloading MD system SANKEI (Page 5) (Abridged slightly) August 23, 2006 The Defense Agency decided yesterday to request a total of 220 billion yen in fiscal 2007 for an early introduction of a missile defense (MD) system. The agency originally intended to request 196 TOKYO 00004806 008 OF 009 billion yen. But North Korea's missile launches on July 5 prompted the agency to request additional 23 billion yen for purchasing PAC-3 ground-to-air guided missiles and conducing research on an infrared sensor to detect ballistic missiles. The agency will purchase missiles from the United States to increase its number to enhance the MD system. Also included in the budgetary request are 170 billion yen for the introduction of an Aegis vessel carrying sea-based SM-3 interceptor missiles and 25 billion yen for Japan-US joint research on the MD system. The agency plans to deploy in the current fiscal year the PAC-3 as the first case at the Iruma base in Saitama Prefecture, which houses the Air Self-Defense Force's 1st Air Defense Missile Group. The agency has asked the United States to deliver Patriot missiles to Japan on a priority basis for an early introduction of the MD system. The US has basically responded positively to Japan. 13) USFJ realignment legislation to be submitted to regular Diet session next year ASAHI (Page 4) (Full) August 23, 2006 A government official said yesterday that a set of bills related to the realignment of US forces in Japan would be submitted to a regular Diet session next year. The reason is that a bill revising the law to allow the government to use the International Cooperation Bank to finance the relocation of US Marines from Okinawa to Guam will become one of bills related to a budget for next fiscal year, which will be presented at the next regular Diet session. 14) LDP Secretary General Takebe to leave for Moscow tomorrow to protest seizure of Japanese fishermen ASAHI (Page 4) (Full) August 23, 2005 Liberal Democratic Party (LDP) Secretary General Tsutomu Takebe revealed yesterday in an executive meeting that he would leave for Russia on Aug. 24 to lodge a protest with the Russian government on the seizure of the Japanese fishing boat Kisshin-maru, seeking an apology and compensations. He will also ask Moscow to release the crewmembers who have been detained by Russian authorities. Takebe is expected to meet with Agriculture Minister Aleksey Gordeyev on Aug. ¶24. He will then hold talks on Aug. 25 with the director of the Fisheries Agency. 15) Foreign Minister Aso reveals Japan's continued support for Iraq TOKYO SHIMBUN (Page 2) (Full) August 23, 2006 Foreign Minister Taro Aso met with Iraqi National Security Adviser al-Rubaie at the Foreign Ministry yesterday. In reference to his visit to Baghdad on Aug. 3, Aso said: "The visit provided an important opportunity as the first step for the two countries to deepen political dialogue and economic relations." He then confirmed Japan's continued assistance to Iraq. Al-Rubaie expressed his appreciation for the Ground Self-Defense Force troops that withdrew TOKYO 00004806 009 OF 009 from Iraq after completing their humanitarian and reconstruction mission in Samawah, saying: "They were like angels, not soldiers." Later, al-Rubaie met Defense Agency Director General Fukushiro Nukaga and stated: "I am grateful for continued operations by the Air Self-Defense Force." 16) Iraq gov't security adviser Rubaie indicates possibility of coalition forces' withdrawal from Iraq early next year MAINICHI (Page 2) (Full) August 23, 2006 In an exclusive interview with the Mainichi Shimbun in Tokyo yesterday, visiting National Security Adviser al-Rubaie said that Iraqi security forces would be able to independently take over security operations almost across the nation by the end of this year. He also indicated the possibility that the environment would be arranged early next year for the coalition forces to pull out of Iraq, saying: "I hope that the stationing of (the US-led) coalition forces in Iraq will become unnecessary in the near future." As the precondition for withdrawing the coalition forces, al-Rubaie cited the strengthening of Iraqi security forces, remarking: "If the number of Iraqi security troops who completed training increases, it will become possible to phase out coalition troops." At present, Iraqi forces take charge of about 60% of the security operations in the nation, but al-Rubaie hinted at the possibility of Iraqi forces being able to be responsible for national security duties almost 100% by the end of the year. He added that once this situation is brought about, "The coalition forces will begin preparations to pull out of Iraq in stages." Asked about the timing for the withdrawal, al-Rubaie replied, "Disclosing it will only benefit armed insurgents." DONOVAN