JAPANESE MORNING PRESS HIGHLIGHTS 08/31/06

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E.O. 12958: N/A TAGS: OIIP KMDR KPAO PGOV PINR ECON ELAB JA SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 08/31/06 Index: 1) Top headlines 2) Editorials 3) Prime Minister's daily schedule 4) Prime Minister Koizumi's Central Asia tour aims at avoiding international scramble for energy resources through diplomacy Fisheries dispute with Russia: 5) Russia releases two members of Japanese fishing crew, while Japan focusing on how to prevent recurrence of more incidents in waters near northern isles 6) Senior Vice Foreign Minister Kaneda to Moscow to plead for early release of captain of captured fishing boat 7) Vice Foreign Minister Yachi to Seoul next week to try to head off more trouble with ROK over surveys in disputed waters near Takeshima (Dokdo) isles 8) LDP subcommittee drafts permanent bill for overseas SDF dispatch that gives government discretionary authority to send troops without UN resolution Political campaign: 9) ABE to come out with policy platform tomorrow, centered on constitutional revision, educational reform 10) ABE makes political rounds, meets Nakasone 11) Tanigaki's presidential campaign platform includes revising Constitution to allow use of collective self-defense, clarification of fiscal resources 12) Rightist who torched Koichi Kato's home and office admitted he was set off by Kato's Yasukuni remarks 13) Private sector members of government fiscal and economic council all being changed 14) Budget ceilings set, with sparks flying over ODA outlays, tax transfers to local governments 15) Kyoto Protocol: CO2 emissions reduction set at 5.9 billion tons for 2008-2012 Articles: 1) TOP HEADLINES Asahi: Reports from Samawah (Part 1): Gratitude and discontent Mainichi, Yomiuri, and Tokyo Shimbun: Tokyo named Japan's candidate for 2016 Summer Olympics, beating Fukuoka 33-22 Nihon Keizai: Honda, Nissan to purchase 80% of parts locally in China to reduce costs Sankei: Abe to propose national college school year to begin in September TOKYO 00004978 002 OF 010 and compulsory voluntary activities after high school graduation Akahata: Japanese Communist Party to call for continued nursing care, equipment, and reduced insurance premiums 2) EDITORIALS Asahi: (1) Tokyo named Japan's candidate for 2016 Summer Olympics (2) Oji gives up bid for Hokuetsu Mainichi: (1) Oji's M&A bid for Hokuetsu commendable (2) Tokyo needs vision for hosting 2016 Olympics Yomiuri: (1) M&A era does not end with Oji's failed bid for Hokuetsu (2) Bilateral talks needed to protect fishermen Nihon Keizai: (1) Realizing a Tokyo Olympics (2) Hefty research funds a hot bed of corruption Sankei: (1) Tokyo needs international appeal to host 2016 Summer Olympic Games (2) Oji's failed TOB significant Tokyo Shimbun: (1) Tokyo needs 21st century plan for 2016 Olympics (2) Paloma water heater deaths: Sharing information essential Akahata: Collective self-defense may open door to Japan-US military intervention 3) Prime Minister's Official Residence (Kantei) Prime Minister's schedule, August 30 NIHON KEIZAI (Page 2) (Full) August 31, 2006 Aug. 29 Stayed at Intercontinental Hotel in Tashkent, Uzbekistan. Morning, Aug. 30 Offered flowers at the national memorial. Appreciated special exhibition at national museum. Toured Navoi Opera Theater. Offered flowers at memorials for Japanese dead in Uzbekistan and Japanese prisoners held by the Soviets. Visited Japanese garden. Returned to the hotel. Afternoon Left Tashkent on government plane. Evening Arrived at Samarkand Airport.Toured Registan park in Samarkand. Night President Hotel. Left Samarkand on government plane. TOKYO 00004978 003 OF 010 4) Prime Minister Koizumi's trip to Central Asia aimed at rectifying Japan's inferior position in competition for energy resources TOKYO SHIMBUN (Page 2) (Slightly abridged) August 31, 2006 Junichiro Koizumi is visiting Central Asia for the first time as a Japanese prime minister. Central Asia, having an abundance of natural resources, has close relations with China and Russia. Can Japan gain the advantage in the intensifying competition for natural resources by driving a wedge between Central Asia and the China, Russia combination? In his meeting with President Nursultan Nazarbayev, Koizumi stressed his intention to push ahead with cooperation with Kazakhstan in the resources area. He stated: "Japanese corporations have increased their interest in your country, especially in the energy area." The five Central Asian countries became independent in 1991, following the collapse of the Soviet Union. The total land area of the five countries is about 4 million square kilometers or 10 times the size of Japan. A total of 58 million people live in those countries. Petroleum, natural gas, uranium ore, and gold lie underground, in areas centering on coast of the Caspian Sea. Amid the global competition for energy resources heating up due to the rapid economic growth of China and India, "World eyes are now focusing on Central Asia," said Koizumi. Russia, China and four Central Asian countries, excluding Turkmenistan, have established the Shanghai Cooperation Organization (SCO). Russia and China have been trying to gain full influence in this region. The United States and Europe are strongly concerned about the possibility of the SCO becoming "anti-US and pro-China and Russia" in flavor. Japan, lagging behind China and Russia, held a foreign ministerial of Central Asia and Japan in August 2004. The second foreign ministerial, held in June 2006, came up with an action plan, including development of energy resources and cooperation on anti-terrorism and anti-drug measures. Koizumi made a trip to Central Asia in order to make clear Japan's stance of committing Central Asia more actively. In fact, Koizumi and the Kazak president have agreed to strengthen cooperation on uranium mining and joint development. Kazakhstan has the second-largest uranium ore reserve in the world. Koizumi and Uzbek President Islam Karimov also reached an agreement that the two countries will move forwards with exchanges of views on uranium ore development. Kazakhstan and Uzbekistan are trying to raise their own international value by comparing the advantage of going with Japan or sticking with Russia and China. China and Russia will not remain silent now that Japan has made its move. 5) Two fishermen released; Government to maintain safe fishing agreement and advance talks to prevent recurrence NIHON KEIZAI (Page 2) (Full) August 31, 2006 TOKYO 00004978 004 OF 010 Russia freed yesterday two crewmembers of the Kisshin Maru No. 31, which has been seized for allegedly poaching in Russian-claimed waters near the Northern territories, averting a fierce conflict with Japan. The boat's captain, Noboru Sakashita, still remains in Russian custody. Japan will continue to call for a return of Sakashita and the boat and move ahead with talks between the coast guards of the two countries in order to prevent future recurrences. The government also intends to maintain the bilateral safe fishing operations agreement covering waters near the disputed four northern islands off Hokkaido. Foreign Minister Taro Aso simply told reporters at his ministry yesterday: "Now that the two crewmembers were released safely, we will have to consider measures after learning of the circumstances from them." Foreign Ministry Press Secretary Mitsuo Sakaba categorically said: "We will maintain the fisheries pact. We will make no changes to it. We would like to discuss things fairly squarely, including ways to crack down on poaching, so that fishermen can conduct operations safely." The safe fishing operations agreement stipulates the types of fish and the quantity of catches for Japanese fishermen by shelving governmental jurisdiction over waters 12 nautical miles around the four islands over which both Japan and Russia have claimed sovereignty. Russia has attributed the seizure of the Kisshin Maru to alleged poaching of crabs. Japanese fishermen are deeply discontented with the agreement. Given the stalled talks with Russia on the Northern territories, the government has concluded that it would be difficult to build a framework that can replace the current pact. The government will aim for full compliance with the agreement, while making efforts to establish a liaison system with Russian authorities. 6) Senior Foreign Vice Minister Kaneda urges Russia to release captain early NIHON KEIZAI (Page 2) (Full) August 31, 2006 Mitsuru Sakai, Moscow Senior Vice Foreign Minister Katsutoshi Kaneda, now visiting Russia, held talks with Russian Foreign Minister Sergey Lavrov on Aug. 30. In the talks, Kaneda reiterated Japan's call for an early release of captain Noboru Sakashita of the Kisshin Maru No. 31 and the handover of the boat. Russia has protested to Japan, claiming that 39 Japanese fishing boats had poached for fish in Russian waters. Lavrov rejected Japan's assertion that there was no poaching, saying, "There has been some misconceptions about the facts." 7) Vice foreign minister to visit South Korea next week to obtain understanding for Japan's survey in waters around Takeshima/Dokdo ASAHI (Page 4) (Full) August 31, 2006 The Foreign Ministry has started coordination with South Korea on a plan for Administrative Vice Minister Shotaro Yachi and Foreign Affairs and Trade Vice Minister Yu Myong-huan to meet in South Korea TOKYO 00004978 005 OF 010 next week. Yachi intends to explain the Japanese plan to survey radioactive contamination in waters around the Takeshima/Dokdo islets, whose sovereignty Japan and South Korea have claimed. This is part of efforts to prevent South Korea from resorting to tough measures, such as seizure of Japanese research ships. Yachi also plans to urge his counterpart to build a framework for a prior notification system for maritime research operations. Tokyo informed Seoul of its plan to undertake a radiation survey in mid-July. But Foreign Affairs and Trade Minister Ban Ki-moon replied: "If Japan plans to conduct oceanographic activities in our exclusive economic zone (EEZ),our government's approval will be necessary." Some Japanese government officials anticipate that if Japan implements the survey plan, South Korea might take a tougher stance." To prevent such a situation, the Foreign Ministry judged it necessary to approach Yu, who has direct access to the South Korean Presidential Office. When Japan and South Korea locked horns over a Japanese maritime survey in waters near the Takeshima/Dokdo islets this April, Yachi visited South Korea and met with Yu. The dispute was resolved through their talks. Keeping this experience in mind, the Foreign Ministry decided to send Yachi in a bid to prevent South Korea from taking hard measures toward Japanese survey vessels. In July, South Korea conducted a survey of the sea current in waters near the Takeshima/Dokdo islets despite Japan's call to halt it. Focusing on this, a Foreign Ministry source said: "The public will not be convinced if only South Korea undertakes surveys." 8) LDP prepares new legislation for Japan to send SDF troops overseas at gov't discretion without UN resolution YOMIURI (Page 2) (Abridged) August 31, 2006 The ruling Liberal Democratic Party yesterday held a meeting of its national defense division's subcommittee on defense policy. The subcommittee, with former Defense Agency Director General Shigeru Ishiba presiding, worked out a draft bill to establish an international peace cooperation law as a permanent law regarding Japan's overseas dispatch of Self-Defense Forces personnel. The LDP-drafted bill allows the government to send SDF troops overseas at its own discretion even without a United Nations resolution or an international organization's request. In addition, the draft bill also eases the government's guidelines for SDF personnel's use of weapons and expands the scope of SDF activities to cover security maintenance missions. The LDP wants to have the new legislative measure discussed in the government and ruling parties under the next prime minister. In concrete terms, the LDP's draft bill tasks the SDF with security maintenance activities, escort missions, and maritime interdictions, in addition to humanitarian reconstruction assistance. The bill authorizes the government to station SDF personnel overseas and have them patrol in their activities to maintain public security. In addition, the bill also allows the SDF to prevent armed insurgents' killing and subversive activities and detain offenders in its custody. The bill also substantially eases the rules of engagement (ROE) for TOKYO 00004978 006 OF 010 SDF personnel. SDF personnel are currently allowed to use weapons for limited purposes, such as legitimate self-defense and emergency evacuation for other SDF members acting together or for those under their control. The bill allows SDF personnel to use weapons for the 'rush security' of other SDF members and civilians in their activity areas. Main points from the LDP defense policy subcommittee's international peace cooperation bill -- The government may send SDF troops overseas at its discretion without a UN resolution or an international organization's request. -- The scope of SDF activities for international peace cooperation is expanded to security maintenance activities, escort missions, and maritime intercept operations. -- SDF personnel are currently allowed to use weapons in self-defense or for other limited purposes, but the government will ease its weapons use guidelines to allow SDF personnel to use weapons for the rush security of civilians as well. -- The government is required to ask for the Diet's prior approval for SDF activities overseas. 9) ABE to announce policy platform for LDP presidency tomorrow, focusing on constitutional, educational reforms SANKEI (Page 2) (Excerpts) August 31, 2006 In a luncheon meeting held yesterday by Mori faction members living in Tokyo, Chief Cabinet Secretary SHINZO ABE revealed his intention to run in the Liberal Democratic Party (LDP) presidential election. Abe said: "I would like to respond to many people's expectations and declare my candidacy on Sept. 1. Although I have yet to acquire enough knowledge and abilities, I am determined to make utmost efforts to create a wonderful Japan fit for the 21st century." In a press conference tomorrow evening in Hiroshima, which he will visit for the LDP Chugoku Block Convention, ABE will officially announce his candidacy and reveal his policy platform focusing on constitutional revision and educational reform. Former Prime Minister Yoshiro Mori reiterated his support for ABE in the luncheon as the chairman of the Mori faction, to which ABE belongs. Mori said: "I would like to help (Mr. Abe) achieve the dream his father (the late former Foreign Minister Shintaro Abe) was unable to realize. The Seiwa policy group (Mori faction) will play a central role to have him achieve successful results." Former Chief Cabinet Secretary Yasuo Fukuda, deputy head of the Mori faction, did not attend the meeting. Fukuda had announced in July he would not run for the LDP presidency. 10) Does ABE already feel like he's prime minister? Nakasone tells him, "Do your best for constitutional reform," ABE replies, "I'll do my best" TOKYO 00004978 007 OF 010 TOKYO SHIMBUN (Page 2) (Full) August 31, 2006 Chief Cabinet Secretary SHINZO ABE called yesterday on former presidents of the Liberal Democratic Party (LDP) -- Yasuhiro Nakasone, Toshiki Kaifu, Yohei Kono, and Yoshiro Mori -- respectively and told them that he would run in the LDP leadership race in September. Nakasone gave words of encouragement to him, saying: "I want you to make utmost efforts (to amend) the Constitution and the Basic Education Law, not shrinking back. I will give your my support." ABE replied, "I'll keep that in mind and do my best." Since ABE is the frontrunner in the presidential race, the four former LDP presidents treated him as if he were LDP president. Kaifu said, "When you become prime minister, you will face many difficulties." 11) Tanigaki shows political vision; Collective defense premised on constitutional revision; Ways and means needed for policy debate ASAHI (Page 4) (Abridged) August 31, 2006 With the ruling Liberal Democratic Party's upcoming presidential election slated for September, Finance Minister Tanigaki, meeting the press yesterday, announced his political plan to take the reins of government. The plan, titled Kizuna or "bonds", advocates improving Japan's Asia diplomacy as shown in his announcement in July of his candidacy for LDP presidency. The plan also proposes revitalizing localities, raising the consumption tax, and turning the government finances around. In addition, it also incorporates constitutional revision, educational reform, and employment measures for the aged. Chief Cabinet Secretary ABE will come out with his manifesto tomorrow. Tanigaki made public his policy vision before that, aiming to lead the policy debate. Meanwhile, both ABE and Foreign Minister Aso are also laying emphasis on their respective advocacies of revitalizing local communities. Tanigaki, in his press remarks, underscored the necessity of discussing what to do about ways and means when talking about policy measures for local revitalization. Tanigaki has set forth his idea of raising the consumption tax to 10% in order to make up for the increasing amount of spending on social security for the nation's local population. He recounts that raising the consumption tax will also serve to raise funds for local tax revenues. With this, Tanigaki challenged ABE and Aso to a policy debate, urging them to show how to secure funding resources for their respective policy proposals. Both ABE and Aso assert that the Constitution should be reinterpreted so that Japan can exercise the right of collective self-defense. Tanigaki, who is also in favor of allowing Japan to participate in collective defense, insisted on the necessity of amending the Constitution instead of reinterpreting its provisions. "If we could change anything by reinterpreting a portion (of the Constitution),the Constitution will lose its ultimate state integrated function," Tanigaki said. With this, he criticized ABE and Aso. 12) Right-wing group boss, suspect of setting fire to Koichi Kato's TOKYO 00004978 008 OF 010 house, says, "Could not accept his remarks on Yasukuni Shrine" MAINICHI (Page 1) (Excerpts) August 31, 2006 It has been learned that Masahiro Horigome, 65, a boss of a right-wing group who was arrested on suspicion of setting fire to the house of the mother of House of Representative member Koichi Kato, 67, former Liberal Democratic Party secretary general, confessed to investigators that he had reacted angrily to Kato's remarks on Yasukuni Shrine. Investigators will pursue the arson case against Horigome as linked to Kato's criticism of Prime Minister Koizumi's visits to Yasukuni,. 13) CEFP to replace private-sector members; Mitarai to succeed Okuda SANKEI (Page 1) (Full) August 31, 2006 The government yesterday decided to replace all four private-sector members of the Council of Economic and Fiscal Policy (CEFP) who have supported Junichiro Koizumi's structural reform drive. Though their terms will not expire until next January, the government intends to reshuffle the membership, coinciding with the inauguration of a new administration. The panel with a new lineup will take part in the management of economic and fiscal policy by the post-Koizumi administration. Fujio Mitarai, chairman of Canon and the Japanese Business Federation (Nippon Keidanren),will replace Hiroshi Okuda, executive advisor to Toyota Motors and one of the four private-sector members. The four have all agreed to step down. The present lineup of economic ministers in the cabinet will likely be extensively changed under the new administration. A new lineup of private-sector members will support the new administration, based on the stance of continuing the present economic and fiscal policies. Two will be picked from business circles and the other two from academia. The Prime Minister's Official Residence (Kantei) will undertake coordination on the selection of all four private-sector members. Out of regret that central government agency-led policy management gave priority to ministry interests, the CEPF was established under the Cabinet Office as a collegial body in which the prime minister would be able to display his leadership. The members of the panel consist of the prime minister as chairman, the chief cabinet secretary, the state minister for economic and fiscal policy, the SIPDIS finance minister, the minister of internal affairs and communications and the minister of economy, trade and industry, the governor of the Bank of Japan and private-sector members. Private-sector members' term of office is two years. However, Okuda, Jiro Ushio, chairman of Ushio Inc., Masaaki Honma, professor at an Osaka University graduate school and Hiroshi Yoshikawa, professor at a Tokyo University graduate school are all original members and now serving in their third term. Unlike members of ordinary advisory organs, CEFP members have a TOKYO 00004978 009 OF 010 strong nature of being political appointees who support the administration. In particular, the present four members have a strong Koizumi flavor, as they have taken the lead in major Koizumi structural reforms, including postal privatization, through the submission of private-sector member-drafted papers to the CEFP, as a government source noted. For this reason, the government has appeared to have judged that a new lineup of private-sector members should be in charge of the management of economic and fiscal policies. 14) General-account budget requests; Tax grants to local governments, ODA sparking controversy; Government agencies unhappy with spending cut targets set under basic policy guidelines ASAHI (Page 9) (Excerpts) August 31, 2006 General-account budget requests for the fiscal 2007 budget, due on Aug. 31, have generally been submitted. The Finance Ministry takes a severe spending cut policy in order to reconstruct national finances, but other government agencies are calling for a boost in their budgets as usual. There are many areas that will likely become a major bone of contention, including constraint on the distribution of tax revenues to local governments and the margin of a cut in official development assistance (ODA) by the government. The intention of the next prime mister will likely hold the key to a final decision on budget allocations. During a meeting of the Liberal Democratic Party's (LDP) diplomatic affairs division, Foreign Minister Aso took an adamant view to win the ODA budget: "The only way to maintain an international environment desirable for Japan is to inject due resources." The Ministry of Foreign Affairs (MOFA) has requested 530.5 billion yen, up 12.1% over the fiscal 2006 initial budget (general account portion). The Finance Ministry has set a 3% cut from the fiscal 2006 initial budget in the ceiling of general-account budget requests. MOFA is, however, strongly opposing the guidelines, noting, "If the ODA budget is trimmed, we will not be able to meet our international commitment to boosting ODA projects by 10 billion dollars in five years." Basic policy guidelines on economic and fiscal management and structural reforms for the fiscal 2007 national budget, the last ones drafted under Prime Minister Koiuzmi, set a target of reducing expenditures up to 14.3 trillion as of fiscal 2011. The guidelines also set sectoral reduction targets, such as a 1-3% cut in public projects per year and a 2-4% cut in the ODA budget per year. Concerned government agencies are unhappy with these reduction targets. The Finance Ministry has set strict spending cut frameworks for each budget area in line with the basic policy guidelines. However, Prime Minister Koizumi, who has shown his authority over spending cuts, will step down before the compilation of the budget. To what extent the next prime minister will adopt an austere policy toward spending cuts is not clear yet. Government agencies appear to intend to make a rollback, taking advantage of the change over of prime minister. The Ministry of Internal Affairs and Communications (MIC) demanded 15.2 trillion yen for tax grants to local governments, a leap of 4.6% over the fiscal 2006 initial budget. The Finance Ministry TOKYO 00004978 010 OF 010 intended to include a numerical target of leaving the amount at around 14.6%, a level equivalent to that of fiscal 2006, for five years. However, it retrieved the plan, meeting fierce opposition from MIC and senior LDP Upper House members. Regarding public works, the Ministry of Land, Infrastructure and Transport demanded an increase of 18.3%. The Ministry of Agriculture, Forestry and Fisheries also called for a 17.9 boost. Their requests are in the end expected to be trimmed to a level 3% lower than that of the fiscal 2006 initial budget in the budget request assessment process. However, with unified local elections and the Upper House elections close at hand next year, ruling parties and local governments are bound to strengthen their call for an increase in tax grants to local governments and public works. 15) Government sets Japan's allowable quota of CO2 emissions between 2008 and 2012 at 5.9 billion tons ASAHI (Page 3) (Full) August 31, 2006 The government yesterday set about 5.9 billion tons as Japan's allowable quota of CO2 emissions in the first commitment period (FY2008 - FY2012). Although this is about 28 million tons more than that in the present estimate, no brakes have been applied to the upward trend of CO2 emissions. It is still difficult for Japan to attain its goal set by the Kyoto Protocol. The Parties to the United Nations Framework Convention on Climate Change have been required to set their quotas by Sept. 1. The government submitted its estimate to the head office of the convention in Bonn, Germany, yesterday. The Kyoto Protocol requires Japan to trim its greenhouse gas emissions from 1990 levels by an average 6%. The Environment Ministry calculated the amount of CO2 emitted in FY1990 at about 1.261 billion tons. By reducing this by 6%, the ministry worked out a figure of 1.185 billion yen. Multiplying this by five years, the allowable quota of 5.9 billion tons was worked out. DONOVAN