JAPANESE MORNING PRESS HIGHLIGHTS 09/05/06

UNCLAS SECTION 01 OF 10 TOKYO 005033

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SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 09/05/06


Index:

1) Top headlines
2) Editorials
3) Prime Minister's daily schedule

Visit of Assistant Secretary Hill:
4) Assistant Secretary Hill arrives in Japan to discuss six-party
talks with North Korea
5) Assistant Secretary Hills meets with MOFA Asia-Pacific Bureau
Director General Sasae
6) Hill, Sasae in Tokyo talks urge North Korea to constrain itself
on nuclear program

Asian affairs:
7) Abe, as prime minister, may have summit meetings with ROK,
Chinese leaders at APEC conference in November
8) No progress in first day of Japan, South Korea talks on EEZ issue

9) Japanese Communist Party leader Shii visiting South Korea a
first for JCP official
10) JDA chief, Canadian defense minister agree on need to resolve
North Korea issue

Defense issues:
11) Miyazaki City accepts US aircraft training relocation to local
base
12) Raising JDA status to ministry will be a priority for "Abe
Cabinet" in fall Diet session
13) Abe decides to revise LDP draft Constitution to allow collective
self-defense

Political agenda:
14) Faced with opposition party resistance, Prime Minister Koizumi
not insisting that Sept. 22 be the opening date of the extra Diet
session
15) Abe when elected will give top priority in this fall's Diet to
passage of education reform bill
16) Abe willing to let some postal rebels back into the LDP
17) LDP's Machimura appearing in TV backs Abe on Yasukuni Shrine
visits
18) Former LDP rebel Hiranuma may link to Ozawa's Minshuto to fight
in the next general election
19) Former LDP rebel Kamei may cooperate with Minshuto in next
general election
20) Ozawa visits US as part of grass-roots exchange

Articles:

1) TOP HEADLINES

Asahi, Sankei & Tokyo Shimbun:
Supporters of Fukushima governor arrested on suspicions of managing
rigged bidding

Mainichi & Yomiuri:
Supreme Court rejects the paternity of a child born from frozen
sperm

Nihon Keizai:
Nippon Steel Corp. to expand business relationship with South
Korea's POSCO

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Akahata:
Ministry of Health, Labor and Welfare issues notice to resolve the
disguised contract practice to each prefectural labor bureau and
plans to impose administrative penalty

2) EDITORIALS

Asahi:
(1) Livedoor trial: Did Horie lead the scheme or was he merely a
billboard?
(2) Mentally disordered persons: True treatment toward them
necessary instead of early discharge from hospital

Mainichi:
(1) First trial of Livedoor's ex-president Horie: Problems the
market has faced should also be resolved
(2) Kickback money scandal in Gifu Prefecture: Why has former Gov.
Kajiwara not mentioned anything?

Yomiuri:
(1) Livedoor trial: What will Horie tell in face off with
prosecutors?
(2) Frozen sperm: Supreme Court's judgment points out the need for
legislation for reproductive medical technology

Nihon Keizai:
(1) Japan should strategically engage in IMF reform
(2) Livedoor trial: We expect for intensive trial

Sankei:
(1) First trial of Livedoor's ex-president Horie: Can he win by
simply insisting he is totally not guilty?
(2) Permanently closed railroad crossing should be resolved

Tokyo Shimbun:
(1) LDP presidential election: We want to listen to visions about
how to develop Japan
(2) Truant junior high school students: Close communications with
elementary school teachers are necessary

Akahata:
Budget request: It's strange to cut in social welfare budget but
spend much money for US forces

3) Prime Minister's Official Residence (Kantei)

Prime Minister's schedule, September 4

NIHON KEIZAI (Page 2) (Full)
September 5, 2006

10:58
Met with LDP Secretary General Takebe at the Prime Minister's
Official Residence (Kantei).

11:42
Met with the wife of Japanese Business Federation Vice Chairman
Miki.

12:00
Met with General Insurance Association of Japan Chairman Ishihara.

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14:45
Met with Vice Minister Uchida of the Cabinet Office and Decoration
Bureau Director General Katsuno.

15:00
Met with Foreign Ministry Foreign Policy Bureau Kono.

16:35
Met with Sawai, chief of the Central Urban Area Revitalization
Headquarters. Assistant Makino and Assistant Deputy Chief Cabinet
Secretary Saka were present.

SIPDIS

17:00
Met with Japan Post Corp. President Ikuta.

17:56
Attended a seminar "Think Tank 2005, Japan" at the LDP
Headquarters.

18:38
Had a haircut at a barber at Capital Tokyu Hotel.

21:03
Arrived at the official residence.

4) US Assistant Secretary of State Hill arrives in Japan to exchange
views with Japanese leaders on six-party talks

MAINICHI (Page 2) (Full)
September 5, 2006

Asian and Oceanian Affairs Bureau Director General Kenichiro Sasae
of the Ministry of Foreign Affairs late yesterday met with US
Assistant Secretary of State Hill in Tokyo. The two leaders agreed
to strongly work on North Korea to implement the United Nations
Security Council resolution seeking a freeze on missile launches.
They also confirmed that they would work together to prevent North
Korea from nuclear testing and discussed additional sanction
measures against North Korea.

Hill, who will also visit China and South Korea starting tomorrow,
told the press: "I have no fresh proposals. I don't have any
intention to propose any rewards for North Korea if it returns to
the (six-party) talks."

5) Hill, Sasae discuss how to get North Korea return to six-party
talks

ASAHI (Page 4) (Full)
September 5, 2006

Assistant Secretary of State Christopher Hill, chief delegate to the
six-party talks on the North Korean nuclear issue, held talks with
Foreign Ministry Asian and Pacific Affairs Bureau Director-General
Kenichiro Sasae, Japan's chief delegate, on Sept. 4 in Tokyo. The
two discussed ways to prompt the North return to the six-party talks
and the need to dissuade Pyongyang from taking provocative acts,
such as launching another set of missiles. Touching on chances of
the North conducting a nuclear test, Hill said ahead of his talks
with Sasae: "North Korea must practice caution before resorting to a
provocative act."

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6) Japanese, US officials urge North Korea to refrain from
conducting nuclear test

SANKEI (Page 5) (Full)
September 5, 2006

Kenichi Sasae, director general of the Asian and Oceanian Affairs
Bureau of the Foreign Ministry, and Assistant Secretary of State for
East Asia and Pacific Affairs Christopher Hill, chief delegates from
Japan and the US to the six-party talks on North Korea's nuclear
issues, on the evening of Sept. 4 met in Tokyo. The two agreed to
work on Pyongyang to refrain from conducting a nuclear test -- there
is information that that nation is preparing such a test, noting
that the international community cannot accept an underground
nuclear test by North Korea. Sasae and Hill also reassured their
continued cooperation for an early and unconditional return of
Pyongyang to the six-party talks and a settlement of the issue of
Japanese nationals abducted by North Korean agents.

After the meeting, Sasae told reporters, "Japan and the US will work
on Pyongyang in concert not to launch missiles again and refrain
from conducting a nuclear test, while cooperating with other
participants of the six-party talks."

7) 2006 LDP presidential election: Abe looking for ways to repair
relations with China, ROK; summit meetings likely to occur in
November

MAINICHI (Page 2) (Excerpts)
September 5, 2006

Naoyuki Inukai

Chief Cabinet Secretary Shinzo Abe in his policy platform for the
upcoming Liberal Democratic Party (LDP) presidential election has
mentioned the need to strengthen ties with China and South Korea. If
he is elected as president, he would likely meet with the top
leaders of China and South Korea on the sidelines of the
Asia-Pacific Economic Cooperation (APEC) summit meeting in Vietnam
slated for November. An aide to Abe is looking for ways for Abe to
visit China and South Korea by the end of the year, but Abe has not
denied the possibility of visiting Yasukuni Shrine even after
assuming the post of prime minister. So whether reciprocal visits
will be resumed remains to be seen.

"Relations between Japan and China and between Japan and South Korea
are extremely important. I think it is necessary for both sides to
make efforts in order to resume summit talks." Abe made this remark
during a press conference on Sept. 1, when he formally declared his
candidacy for the LDP presidential race and indicated his enthusiasm
to improve relations with those two countries. On the question of
whether he would visit Yasukuni Shrine, Abe has stated, "I will not
mention whether I will visit it or not." Abe is apparently trying to
handle the Yasukuni issue and summit talks with those two countries
as two separate matters so that he can rebuild relations with them.

Meanwhile, China has since the start of this year made clear its
stance of moving to improve relations with Japan once Prime Minister
Junichiro Koizumi steps down. Even in its statement of protest
against Koizumi's visit to Yasukuni Shrine on Aug. 15, China
emphasized the need to bring the currently strained Japan-China

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relations back on a normal track. Expectations for Japan and China
to improve their bilateral ties after Abe establishes his
administration are thus growing.

Recently, however, it was revealed that Abe had secretly visited
Yasukuni Shrine this past April. He has not openly admitted making
this visit, so China has not openly criticized such a visit by Abe,
perhaps out of consideration for him. But South Korea has insisted
Abe should declare he would not visit the shrine, citing is as a
condition for that country to accept a summit meeting with Japan. A
difference in attitude toward Japan between China and South Korea is
thus emerging.

8) Japan, South Korea make no headway in first day of EEZ talks

NIHON KEIZAI (Page 2) (Full)
September 5, 2006

Seoul, Hiroshi Minegishi

Japan and South Korea began yesterday the 6th round of negotiations
on the boundary of exclusive economic zones (EEZ). Since both sides
did not change their claims over the ownership of the Takeshima/
Dokdo islets, the discussion went nowhere yesterday. The talks will
be continued today, as well.

9) JCP Chairman Shii during his planned visit to South Korea to
demonstrate that his party is open

SANKEI (Page 5) (Full)
September 5, 2006

Japanese Communist Party Executive Committee Chairperson Kazuo Shii
will make a six-day trip to South Korea starting today in order to
take part in the 4th International Conference of Asian Political
Parties to be held in Seoul. This will be the first visit to that
nation by a JCP leader. In order to expand the party strength, he
also intends to demonstrate that the JCP is an open party, by
bolstering the impression among domestic and foreign audiences that
his party is attaching importance to Asia.

Shii is expected to meet with pro-government Uri Party Chairman Kim,
Grand National Party Floor Leader Kim, senior officials of the
ruling and opposition parties and government officials. They will
exchange views on the North Korean issue and the situation in East
Asia.

Shii also plans to visit Pakistan for the first time in the middle
of this month and meet with Prime Minister Aziz and officials of the
government, ruling and opposition parties. Since then Tetsuzo Fuwa
(chairperson at the time) visited Southeast Asian nations, including
Malaysia, in 1999, the JCP has been eager to develop relations with
Islamic nations.

The Central Committee chairperson has been exclusively responsible
for party diplomacy, but some JCP members have credited Shii for
having contributed to expanding exchanges with Pakistan. The JCP
wants Shii to be place his policy imprint on party diplomacy through
talks with key officials, including Aziz.

10) Nukaga, Canadian defense minister agree on need to resolve North
Korean missile issue

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YOMIURI (Page 4) (Full)
September 5, 2006

Defense Agency Director-General Fukushiro Nukaga held talks with
visiting Canadian Defense Minister Gordon O'Connor at the Defense
Ministry on Sept. 4 and reached an agreement to urge China to
improve the transparency of its military capabilities. Touching on
the ballistic missiles launched on July 5 by North Korea, Nukaga
said: "North Korean missiles are a direct threat to Japan. We need
to press the North to dismantle its nuclear and missile ambitions
(through the six-party talks)." In response, O'Connor said, "We
condemn the North's missile launch as it threatens peace." The two
leaders thus agreed to continue to work on North Korea through the
six-party talks and other venues.

11) Miyazaki City to conditionally accept plan for US fighter
training

YOMIURI (Page 2) (Full)
September 5, 2006

Miyazaki City, which is adjacent to the Air Self-Defense Force's
Nyuutabaru Base (Shintomi-cho, Miyazaki Prefecture),indicated
yesterday that it would conditionally accept a plan for the transfer
there of US fighter training. The plan is part of the ongoing
realignment of US forces in Japan. Shintomi-cho, which hosts the
base, as well as its neighbors - Seito City, Takanabe-cho, and
Kijou-cho - have also indicated a willingness to accept the
training. All five municipalities were initially opposed to the
plan.

12) Abe unveils a plan to enact bills to make conspiracy a crime a
crime and to upgrade Defense Agency to ministry status in next
extraordinary Diet session

YOMIURI (Page 2) (Excerpts)
September 4, 2006

Chief Cabinet Secretary Shinzo Abe in an LDP Tohoku bloc convention
held in Morioka City on Sept. 3 announced a plan to enact three
bills -- one is to amend the Basic Education Law, another is to
amend the Organized Crime Punishment Law to make it a criminal
offense to conspire to commit a crime even if it is never carried
out, and the last is to upgrade the Defense Agency to ministry
status -- in the next extraordinary Diet session in the fall. They
have all been carried over from the previous ordinary Diet session.

Abe said: "It is important to amend the Basic Education Law (in the
upcoming extraordinary Diet session). There are also (bills) to
upgrade the Defense Agency to ministry status and amend the criminal
law (Organized Crime Punishment Law) to prevent terrorism."

Touching on the plan to amend the Organized Crime Punishment Law, a
domestic step required for ratifying the Convention against
Transnational Organized Crime, adopted by the United Nations in
2000, Abe said: "Britain was able to thwart a terrorist plot. Japan
must improve its law as a responsible signatory of the treaty."

13) Abe plans to review preamble to LDP-drafted constitution to
allow government to exercise collective self-defense right


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MAINICHI (Top play) (Excerpts)
September 4, 2006

Chief Cabinet Secretary Shinzo Abe has decided to draft a new set of
constitution by reviewing the one drafted by the Liberal Democratic
Party last October once he is elected new LDP president on Sept. 20.
Abe is expected to revise the preamble to the LDP-drafted
constitution to allow Japan to exercise the right of collective
self-defense. He intends to issue an order before year's end for
making preparations for launching a constitution-drafting panel
before the Upper House election next summer.

The LDP adopted a new constitution, drafted by a committee chaired
by former Prime Minister Yoshiro Mori, last October as a project
commemorating the 50th anniversary of the establishment of the
party. Former Prime Minister Yasuhiro Nakasone said on the
LDP-drafted constitution on a Fuji-TV program on Sept. 3: "(Mr. Abe)
said that once he was elected new LDP president, he would consider
drafting a second set of constitution. He also said: 'The first set
is insufficient. It has many problems, such as the question of the
right of collective self-defense.' I think he intends to revise the
preamble, as well."

The new constitution drafted last year specified Japan's possession
of the self-defense military (Jieigun) by totally revising the
controversial paragraph 2 of Article 9 of the Constitution to allow
the government to interpret it in a way allowing it to exercise the
right of collective self-defense. But the words "the right of
collective self-defense" did not make the draft resolution, and some
LDP members are unhappy with that.

14) Prime Minister Koizumi no longer insisting on convening extra
Diet session on Sept. 22

TOKYO SHIMBUN (Page 2) (Full)
September 5, 2006

The government and ruling coalition are carrying out final
coordination on plans to convene an extra session of the Diet on
Sept. 22 in which the next prime minister will be elected. With this
regard, Prime Minister Junichiro Koizumi told reporters yesterday:
"We should decide on it after listening to the view of Minshuto
(Democratic Party of Japan). Since the first Diet session under the
new government, I think the (ruling and opposition parties) should
discuss the matter well before arriving at a conclusion." He
indicated that he is not insisting on opening the extra session on
Sept. 22. Koizumi seems to have given consideration to Minshuto head
Ichiro Ozawa, who has expressed strong opposition to the plan to
convene the extra Diet session before his party's presidential race
on Sept. 25.

15) Shinzo Abe to give priority to amending Basic Education Law in
extraordinary Diet session; Social Insurance Agency Law also to be
revised

NIHON KEIZAI (Page 1) (Excerpts)
September 5, 2006

Chief Cabinet Secretary Shinzo Abe has revealed his intention to
give top priority to passing a bill amending the Basic Education
Law, which has been carried over from the previous regular Diet
session, in the autumn extraordinary Diet session, if he takes

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office as prime minister. He made this statement at a Tohoku bloc
conference of the Liberal Democratic Party held in Morioka City.
During the speech, Abe stressed: "Since the extraordinary Diet
session will be held only on a limited number of days, we must
intensively tackle agenda items. Amending the Basic Education Law
is, above all, important."

The features of a bill amending the Basic Education Law include: (1)
mentioning that the target of education is to cultivate an attitude
of loving our nation and local communities; (2) deleting the
provision that the duration of compulsory education is nine years;
and (3) adding an article concerning lifelong learning and private
schools. Abe is placing emphasis on educational reform, and this
will be the first set of his educational reform. However, the
extraordinary Diet session to be convened on September 22 will
likely run only until early December. Though the ruling camp expects
support from the Democratic Party of Japan (DPJ = Minshuto),the
deliberation schedule is going to be tight.

16) Three LDP presidential candidates positive about letting former
LDP rebels rejoin the party; "If they head same direction,
cooperation is possible," Abe says

NIHON KEIZAI (Page 2) (Full)
September 5, 2006

Three Liberal Democratic Party (LDP) presidential candidates took a
positive stance yesterday the LDP Kyushu regional convention toward
the view of allowing former LDP members who left the party after
defying the party and voting against the postal-privatization
legislation last year to rejoin the LDP. Chief Cabinet Secretary
Shinzo Abe stated: "Some members worked hard for the LDP for a long
time. If they are heading in the same direction as us, we should
consider ways to cooperate with them." Foreign Minister Taro Aso and
Finance Minister Sadakazu Tanigaki agreed with Abe.

While stressing, "The purpose is not to win the Upper House
election," Abe said, "We should let persons of excellent caliber
take part in our work of building an ideal country." Aso stated:
"Basically it was excessive that we forced them to leave the party.
If the prefectural chapters approve, it is not wrong for them to
rejoin the party." Tanigaki said, "I totally agree with Mr. Aso."

17) Sept. 3 Episode of "Hodo 2001": Machimura defends Abe's view on
Yasukuni

SANKEI (Page 5) (Full)
September 4, 2006

Former Liberal Democratic Party (LDP) Vice President Taku Yamasaki,
former Foreign Minister Nobutaka Machimura, and former Minshuto
(Democratic Party of Japan) Acting President Hirohisa Fujii
discussed the LDP presidential election and China policy.

-- Should Chief Cabinet Secretary Shinzo Abe become prime minister,
do you think a settlement will be brought to Yasukuni and other
historical issues?

Machimura: That depends on whether China would use (the historical
issue) as a bargaining chip toward Japan. Once we recognize that
China holds the key, things will become easily comprehensible. The
next prime minister should think about it in a cool-headed manner

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and determine (what response should be taken).

-- Mr. Abe has yet to clearly speak about his visit to Yasukuni
Shrine this April.

Yamasaki: That is an ambiguous strategy, and it is not like him to
take such an attitude.

Machimura: He deemed it improper to turn Yasukuni into a diplomatic
issue, and his judgment was proper. He believes that keeping silent
on (whether he visited the shrine) is in the interest of the nation
and will contribute to improving bilateral relations. He has no
intent of obscuring historical issues.

-- What do you think are the chances for a meeting between the
Japanese and Chinese leaders in the future?

Machimura: We have obtained information that the Chinese government
is now willing to review its policies toward Japan and North Korea.
There is a high possibility (that a summit will be held by the end
of this year).

-- How do you evaluate Mr. Abe's policy platform?

Machimura: Although Prime Minister Koizumi hardly touched on such
issues as constitutional revision and educational reform, Mr. Abe
has laid out a clear vision on these issues.

Fujii: The policy platform reminds me of Prime Minister Koizumi's
view that better relations between Japan and the US will serve to
resolve problems between Japan and other countries like China.
Things are not so simple.

-- Abe is ready to study a change in the government's interpretation
of the Constitution to enable Japan to use the right to collective
self-defense.

Yamasaki: It is impossible to allow (the exercise of) the right to
collective self-defense by changing or expanding the interpretation.
That would mean a denial of the basic view of successive LDP
administrations. To allow the exercise of the right, the
Constitution should be revised.

18) Takeo Hiranuma implies possibility of cooperation with Ichiro
Ozawa in Upper House election

NIHON KEIZAI (Page 2) (Full)
September 5, 2006

House of Representatives member Takeo Hiranuma, who bolted the
Liberal Democratic Party (LDP) after voting against the government's
postal-privatization bills, delivered a speech in a study session
yesterday of the group called "Isshin Kai" made up of junior
Minshuto (Democratic Party of Japan) lawmakers, who are close to
party head Ichiro Ozawa. In the study session held in Hakone,
Kanagawa Prefecture, Hiranuma stated, "Chances are strong that the
next summer's Upper House election will lead to changing the
political situation."

Regarding the possibility of cooperation with Ozawa, citing People's
New Party deputy head Shizuka Kamei, who has expressed his support
for Minshuto, Hiranuma said, "I understand his feelings."

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Prior to yesterday's study session, the group had held a session in
Shizuoka Prefecture, in which Lower House member Makiko Tanaka gave
a speech. Tanaka, referring to Chief Cabinet Secretary Shinzo Abe
becoming premier, said, "He will not last long." She criticized
Prime Minister Junichiro Koizumi, noting, "The public was at first
surprised by him. Now five years later, we must think about what he
did."

19) People's New Party to cooperate with Minshuto (Democratic Party
of Japan),says Kamei, in waging campaign battle against LDP, New
Komeito in Upper House election

ASAHI (Page 2) (Excerpt)
September 4, 2006

Shizuka Kamei, the president of the People's New Party (Kokumin
Shinto),appearing on a TV Asahi program on Sept. 3, predicted that
in next year's Upper House, "The Liberal Democratic Party (LDP) and
New Komeito will lose their majority." In addition, he was positive
about cooperation with President Ozawa of Minshuto (Democratic Party
of Japan); "We will join forces. We will give it our best shot in
the next (Upper House) election. After that, we will hound them into
dissolving (the Lower House)." He took a clear confrontational
stance toward the LDP.

20) Ozawa to engage in grassroots exchanges in US

SANKEI (Page 5) (Full)
September 4, 2006

Minshuto (Democratic Party of Japan) President Ichiro Ozawa left for
the United States by ANA from Narita yesterday. He will attend the
16th Japan-US Grassroots-level Summit Convention in Colorado on
Sept. 5 and exchange views with participants. He will return to
Japan on Sept. 7. Ozawa is scheduled to travel to China in October
for a Japan-China exchange program called the "Great Wall Program."
Through these overseas trips, he aims to promote grassroots
exchanges energetically.

While in the US, Ozawa has no plans to meet US government officials
but instead plans to meet private citizens. The annual grassroots
summit is held under the sponsorship of the John Manjiro Whitfield
International Grassroots Exchange Center, a foundation chaired by
Ozawa himself. The convention is alternately held in Japan and the
US. About 200 Japanese will attend. While staying with American
families, they will take part in a variety of exchange programs.

In the 14th four-day session of the Great Wall Program this year
starting on Oct. 26, Ozawa plans to attend a dinner party at the
Great People's Hall, tour the Great Wall, and do sightseeing in
Beijing.

DONOVAN