JAPANESE MORNING PRESS HIGHLIGHTS 09/08/06

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E.O. 12958: N/A TAGS: OIIP KMDR KPAO PGOV PINR ECON ELAB JA SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 09/08/06 Index: 1) Top headlines 2) Editorials 3) Prime Minister's daily schedule Koizumi countdown: 4) Ambassador Schieffer delivers President Bush's message of thanks to Prime Minister Koizumi 5) Koizumi attendance at ASEM conference in Finland is his last diplomatic event 6) Koizumi tells press he intends to avoid public spotlight after leaving office Political agenda: 7) Diet to convene for extra session on Sept. 26, electing a new prime minister 8) Public's favorite for next prime minister is Shinzo Abe with 55% support in Mainichi poll 9) Abe certain to be elected next LDP president with over 70% of the party vote locked up 10) Newly released political contribution figures show Abe to be the top fundraiser among LDP presidential candidates 11) Political funding report for 2005 shows big dip in corporate, organizational contributions Foreign relations: 12) Abe seeking bilateral summit meeting with Chinese Premier Hu at APEC forum in November 13) JCP Chairman Shii says his premier visit to South Korea "opened up a major channel" for dialogue 14) Japan proposes joint survey with South Korea to measure marine radiation Energy policy: 15) Russia's halting of Sakhalin resource development project due to environmental suit perplexed energy-hungry Japan 16) Japan to join China, US, ROK next month in signing energy security pact 17) US Naval Forces commander cites need for Japan to use collective self-defense, hopes to see deep debate on Constitution 18) September economic report skips part about deflation being ended in Japan, reflecting concern about US economy Articles: 1) TOP HEADLINES Asahi: Survey of political funds: Abe's fund-raising doubles over five years Mainichi: Suspected killer hangs self after killing classmate Yomiuri: Abe intends to hold a summit with China on sidelines of APEC in November Nihon Keizai: TOKYO 00005113 002 OF 010 METI to take action to expand stockpiles of rare metals for stable supply Sankei: Japan Institute of Invention and Innovation to establish three licenses aimed at fostering experts for protecting intellectual property rights of small and midsize companies Tokyo Shimbun: Political fund report for 2005: Total income at 13.28 billion yen, down 3.8% from the previous year; Snap dissolution of Lower House blamed for low contributions from firms, organizations Akahata: Political fund report for 2005: Political party subsidies used as major financial sources for all political parties but JCP for general election, with Minshuto (DPJ) dependent on them 100% and LDP 80% 2) EDITORIALS Asahi: (1) Abe's remarks: We don't want Abe to throw away the Murayama statement (2) ASEM: It's time to learn from Europe's experience Mainichi: (1) Political funds: Possible to stay away from corporate contributions (2) Money lending regulations: Why is much consideration given to this industry? Yomiuri: (1) Sakhalin 2 project: Russia's high-handed state control of resources (2) First trial of architect Aneha: Construction administration and construction industry are both in effect on trial Nihon Keizai: (1) Russia's credibility now questioned over Sakhalin 2 project (2) Japan should demonstrate its presence at ASEM Sankei: (1) Murayama statement: Rectification after full discussion (2) Intelligence-gathering satellites: National security should be ensured with own technology Tokyo Shimbun: (1) Political funds: Far from transparent (2) Minamata disease: All patients should be provided relief Akahata: Political funds may reflect the way political parties are carrying out politics 3) Prime Minister's Official Residence (Kantei) Prime Minister's schedule, September 7 NIHON KEIZAI (Page 2) (Full) September 8, 2006 TOKYO 00005113 003 OF 010 10:31 Met US Ambassador to Japan Schieffer at Kantei. 11:03 Met MAFF Minister Nakagawa, followed by former MAFF Deputy Vice Minister Kinoshita. 16:47 Departed from Haneda Airport to attend ASEM. 4) US Ambassador Schieffer conveys President Bush's appreciation for Prime Minister Koizumi MAINICHI (Page 5) (Full) September 8, 2006 Prime Minister Junichiro Koizumi met yesterday with US Ambassador to Japan Thomas Schieffer at the Prime Minister's Official Residence. The ambassador conveyed a message from President George W. Bush to the prime minister. The president in the message said, "I thank you for building an extremely good relationship." After the meeting, Schieffer told reporters: "Even after the new cabinet is formed, there will be no change in US-Japan relations. The president will be eager to meet with the new Japanese prime minister." 5) Koizumi leaves for Finland, his last overseas trip as premier MAINICHI (Page 5) (Full) September 8, 2006 Prime Minister Junichiro Koizumi departed yesterday afternoon for Finland to attend the summit of the Asia-Europe Meeting (ASEM) to be held in Helsinki. Koizumi will be the first Japanese prime minister to visit Finland in 19 years since Prime Minister Yasuhiro Nakasone traveled there in 1987. This will be Koizumi's last overseas trip as premier. The ASEM will hold its summit on Sept. 10 -11 to discuss Iran's nuclear program and reconciliation in Lebanon. Koizumi is expected to meet with Finish Prime Minister Matti Taneli Vanhanen on the afternoon of Sept. 8. He will return home on the 12th. Chinese Prime Minister Wen Jiabao and South Korean President Roh Moo Hyun will take part in the summit, but Koizumi will not likely meet with them. Prior to his departure, Koizumi told reporters: "I don't feel like meeting (Wen and Roh) since they attached a condition (not to visit Yasukuni Shrine)." 6) Prime Minister Koizumi intends to avoid media after stepping down ASAHI (Page 4) (Full) September 8, 2006 It has been learned that Prime Minister Junichiro Koizumi told persons close to him that he would not avoid the media after he steps down from office. He will soon move out of the prime minister's official residence. Yesterday he bid goodbye to US Ambassador to Japan Thomas Schieffer, telling him, "I enjoyed working with you." Schieffer called at the Prime Minister's Official TOKYO 00005113 004 OF 010 Residence to convey President George W. Bush's message of appreciation to Koizumi. Although many news companies have asked Koizumi to respond to interviews, he reportedly refused to accept their requests, citing, "I want to live quietly as just another lawmaker." When he visited Central Asia in late August, he told reporters, "I intend to stay in the background after I end my presidency of the Liberal Democratic Party." He will set up an office besides the one for him in the Diet Members' Building. 7) Extra Diet to open on Sept. 26; Battle over education law and other bills expected SANKEI (Page 5) (Excerpts) September 8, 2006 Liberal Democratic Party Diet Affairs Committee Chairman Hiroyuki Hosoda and his Minshuto (Democratic Party of Japan) counterpart Kozo Watanabe reached an agreement yesterday to convene an extraordinary Diet session on Sept. 26 to designate the new prime minister following the Sept. 20 LDP presidential election. Other parties also approved the plan. The ruling coalition intends to get important bills, including one to revise the Basic Education Law, approved in the extra session before it ends in early December. Minshuto is expected to take a clear adversarial stand against the ruling coalition with an eye on the Lower House by-election in October. The next administration is expected to face difficulties in managing Diet affairs immediately after its inauguration. The government and the ruling coalition plan to launch a new cabinet on Sept. 27, the day after the prime ministerial election on Sept. 26, and have the new prime minister give his Diet policy speech on Sept. 29. They also intend to facilitate deliberations on a bill to extend the Antiterrorism Special Measures Law, scheduled to expire in November, and a bill to revise the salary law to implement the National Personnel Authority's recommendations in August. Further, they plan to speedily enact national referendum legislation stipulating a set of procedures for amending the Constitution and a bill to revise the Basic Education Law. Establishing a new Constitution and revising the Basic Education Law are main campaign pledges of Chief Cabinet Secretary Shinzo Abe, who is expected to become the next prime minister. Abe said in the Sept. 3 LDP Tohoku bloc convention: "We must conduct intensive deliberations in the upcoming extraordinary Diet session, which would not be long. Above all, it is important to revise the Basic Education Law." Abe also plans to give high priority to bills to upgrade the Defense Agency to ministry status and conspiracy legislation. The New Komeito, the LDP's coalition partner, is also eager to enact controversial defense ministry-related bills in the extra session before next year's regular session for the sake of the unified local elections and the Upper House election next year. Meanwhile, Minshuto intends to lock horns severely with the ruling coalition by keeping the Lower House Kanagawa Constituency No. 16 and Osaka Constituency No. 9 by-elections in October in mind. TOKYO 00005113 005 OF 010 8) Poll: 55% support Abe in LDP presidential race that will officially begins today MAINICHI (Page 1) (Full) September 8, 2006 The Liberal Democratic Party will publicly announce today its presidential election slated for Sept. 20, in which Chief Cabinet Secretary Shinzo Abe, 51, Foreign Minister Taro Aso, 65, and Finance SIPDIS Minister Sadakazu Tanigaki, 61, have already announced their candidacies. The Mainichi Shimbun conducted a nationwide interview-based opinion survey on Sept. 1-3 asking who was most fit to become the next prime minister. As a result, 55% of all respondents, or 74% of LDP supporters, picked Abe, far outdistancing the other candidates. Abe's lead seems unshakable, being supported by nearly 80% of LDP lawmakers, as well. The focus will be whether he can come up with new policy stances in upcoming presidential debates on Asia policy, social security, taxes, and other issues that sum up five years of the Koizumi reform line. The LDP will elect a new president, which automatically brings with it the post of prime minister, for the first time in five years and five months since April 2001. The party will officially accept applications for 30 minutes starting 11:00 a.m. today and those who have thrown their hats in the ring will conduct a joint press conference at 2:00 p.m. today. The new president will be determined by a total of 703 LDP votes: 403 lawmaker votes and 300 local party votes. Abe is expected to garner a majority of votes that would not entail a runoff. In the Mainichi poll, Abe was picked as the most suitable person to become the new prime minister with 55%, and Aso and Tanigaki with 6% each. The differences with the two widened among LDP supporters with Abe marking 74%, Aso 5%, and Tanigaki 3%. 9) Abe certain to assume LDP presidency, with 70% of lawmakers' votes ASAHI (Page 1) (Excerpts) September 8, 2006 In the Liberal Democratic Party presidential election, which will be officially announced today, the Asahi Shimbun has found through interviews that 270 votes, nearly 70% of all the 403 lawmakers' votes, are likely to go to Chief Cabinet Secretary Abe. In interviews with senior members of LDP prefectural chapters about the trend of votes, more than 70% said: "Abe has the lead." It is now certain that Abe will be elected new LDP president in the election on Sept. 20. 10) Poll on political funds in 2005: Abe's fund-raising ability doubles over five years to 300 million yen ASAHI (Top Play) (Excerpts) September 8, 2006 A political group headed by Chief Cabinet Secretary Abe raised approximately 295 million yen last year, nearly twice what it did five years ago, according to a political fund report released by the TOKYO 00005113 006 OF 010 Internal Affairs and Communications Ministry and another report by the election office in his electoral district, Yamaguchi Prefecture. Through interviews with firms and individuals offering contributions, it has been found that about 30% of them have offered political donations to the Abe group since his father was a candidate for the Liberal Democratic Party presidency. It has also been learned that donations from individuals jumped more than four times over the previous year. Looking at the details of the income in 2005, revenues from political fund-raising parties and other events totaled approximately 137 million yen, the largest amount on the list. In the first fund-raising party after Abe assumed his current post, about 52 million yen was collected. Corporate or group donations totaled 56.6 million yen, nearly 20% of the total, while individual donations totaled 29.2 million yen, about 10% of the total. Asked about reasons for offering donations (multiple replies acceptable),54% said: "Since I used to support Mr. Shintaro Abe (his father),now I back Mr. Abe," followed by 26% with the reply: "for social reasons;" 18% saying, "I was attracted by his personality; and 9% answering, "I was attracted by his policies and philosophy." Three cited "Abe's response measures to the abduction issue." Immediately after his father, then Foreign Minister Shintaro Abe, suddenly passed away in 1991, Abe assumed the chairmanship of his core political group. The group raised funds amounting to about 240 million yen in 1992. Most of the funds came from companies supporting his father. In 1993, when Abe ran in the general election for the first time and won a seat, the group earned more than 400 million yen, including nearly 300 million yen raised in fund-raising parties. 11) Political funds in 2005: Total income stands at 132.8 billion yen, down 3.8%, due to sudden dissolution of Lower House; Donations by companies and organizations at a low TOKYO SHIMBUN (Top Play) (Excerpts) September 8, 2006 The Ministry of Internal Affairs and Communications (MIC) in the official gazette for Sept. 8 released a political funds income and expenditure statement (with the central portion of the report covering 3,887 organizations) and a political party subsidies expenditure report. The total income of political parties and groups was 132.85 billion yen, down 3.8% from the previous year. Of that amount, donations made by companies and organizations stood at 3.42 billion yen, down 7.2% from the preceding year and the lowest level since 1976, when statistics became available. Total expenditures stood at 135.85 billion yen, down 2.8% from the year before. Both income and expenditures stood at an unusually low level for an election year. With a set of postal privatization bills voted down in the Diet, Prime Minister Junichiro Koizumi last year dissolved the Lower House. For this reason, political parties and groups were unable to raise sufficient funds for the election. The size of expenditures was also TOKYO 00005113 007 OF 010 small due to the short-term battle, which allowed little time for preparation. 12) Abe eyes Japan-China summit at APEC in November YOMIURI (Top play) (Excerpts) September 8, 2006 If he becomes prime minister, Chief Cabinet Secretary Shinzo Abe, 51, intends to hold talks with Chinese President Hu Jintao on the sidelines of the Asia-Pacific Economic Cooperation (APEC) forum to be held in Hanoi on Nov. 18-19. Abe hopes to resume Japan-China summit talks with the establishment of the new administration to improve relations between the two countries. Abe is unlikely to visit Yasukuni Shrine during the shrine's annual autumn festival in October or on any other occasions this year. Summit talks between the two nations have been stalled since April 2005 due to China's opposition to Prime Minister Junichiro Koizumi's visits to the shrine. The Foreign Ministry has begun setting the stage with China in line with Abe's wishes, who is likely to replace Koizumi. Beijing is expected to accept a summit with Abe if he does not visit the shrine in the fall. A senior government official said yesterday: "China needs Japan. Our two countries are beginning to share the view that both sides have to exercise restraint." Thus, he indicated that the environment has been improving for the summit talks in November. 13) JCP Chairman Shii: Broad channel has been opened up; Agreement reached between Shii and ruling ROK party leaders on historical issue MAINICHI (Page 5) (Excerpts) September 8, 2006 Japanese Communist Party (JCP) Chairman Kazuo Shii, now visiting South Korea -- a first time for a JCP leader, yesterday completed his schedule of planned meetings with leaders of major South Korean political parties, including the Uri Party and the Grand National Party. At a press conference later, Shii stressed, "A major channel has now been opened between Japan and South Korea." Shii and South Korean party leaders agreed on the need to resolve the history issue between the two countries. He played up the differences in his party's diplomatic stances from those of the Koizumi government, which has seen relations with South Korea deteriorate due to Prime Minister Koizumi's repeated visits to Yasukuni Shrine. Uri Party leader Kim Geun Tae told Shii on Sept. 7: "If I met you before the 1987 democratic declaration, I would have become the subject to the National Security Law." In the past, relations between South Korea, which has taken an anti-communist stance from the position of facing off against North Korea, and the JCP, which had criticized South Korea for being controlled by a government under military dictatorship, were not good. The JCP, however, opposed in the prewar period Japan's colonial rule of the Korean Peninsula. Regarding this point, "South Korea highly values our party," said a JCP International Bureau official. The JCP aims to expand exchanges with South Korea. The Korean side wants to play up criticism of the Koizumi government for its handling of the history issue. The similar aims of the two sides TOKYO 00005113 008 OF 010 seem to have brought Shii to Seoul. 14) Japan proposes to ROK a joint radiation survey around Takeshima/Dokdo TOKYO SHIMBUN (Page 3) (Full) September 8, 2006 Kiyoshi Nakamura, Seoul Japan and South Korea yesterday wrapped up the two-day strategic dialogue between Japanese Administrative Vice Foreign Minister Shotaro Yachi and South Korean Vice Minister for Foreign Affairs and Trade Yu Myung Hwan. The talks had been held at a hotel in Seoul. During the meeting, Japan proposed establishing a prior notification system for scientific surveys in order to prevent unforeseen situations in waters around Takeshima/Dokdo, where the two countries' exclusive economic zones overlap. But South Korea expressed opposition to the proposal. Japan then seemed to offer another proposal for a joint radiation survey, which is being planned in Japan, as a breakthrough in the stalemate in the talks. Japan and South Korea conducted joint radiation surveys in 1994 and 1995 in order to deal with nuclear waste dumped by the former Soviet Union. Japan wants to use the joint survey as a framework for cooperation in waters around Takeshima/Dokdo. After the talks, Vice Minister Yachi mentioned the radiation survey and revealed that working-level talks on would continue, saying: "Discussions are moving in a good direction for Japan-South Korea relations." According to a diplomatic source, if South Korea refuses to accept Japan's compromise proposal, Japan will conduct the radiation survey as initially planned. 15) Russian barriers stand in way of natural resource development: Lawsuit filed for suspension of Sakhalin-2 project, citing environmental reasons ASAHI (Page 3) (Excerpts) September 8, 2006 The planned oil and natural gas production under the Sakhalin-2 project, financed by leading Japanese trading firms, is at a crossroads. Work to construct pipelines has been halted due to environmental issues. In addition, the Russian Federal Service for the Supervision of Natural Resources filed a lawsuit calling for a suspension of the development. Behind these moves seems to be a strategy of the Putin administration, which has strengthen its grip over natural resource development in the nation. Japan concerned about delay in production In Japan, concerns are growing about a delay in production in the project. Exports of liquefied natural gas to Japan and other countries are scheduled to begin in the summer of 2008. This is already more than one year behind schedule. The project aims to produce 9.6 million tons of natural gas, of which Japanese electric and gas companies expect to purchase more than 4 million tons. An employee of Tokyo Gas Co., which plans to buy 1.1 million tons, said: "Since there is no official explanation, TOKYO 00005113 009 OF 010 we cannot figure out how much effect this will have." The company, which imports about 9 million tons of natural gas from Southeast Asia and elsewhere annually, has placed high expectations on the Sakhalin-2 project as part of its strategy to diversify suppliers. Focusing on its short transport distance, Tokyo Electric Power Co., Toho Gas Co., and Kyushu Electric Power Co. also intend to procure gas produced under the project. Few companies believe that the project itself will be suspended. Although Russia has certainly attained remarkable economic growth recently, the nation is still dependent on foreign investment because its technologies to liquefy natural gas and drilling in frozen land lag far behind developed countries. Petroleum and Mining Association of Japan's Planning and Research Department Head Taro Shoji commented: "The aim of Gazprom's participation in the project is to acquire technology to liquefy natural gas. Russia does not want the project suspended. Its recent moves reflect a national strategy of gathering information and authority for the Sakhalin-2 project." 16) Energy security: Japan, China, US, South Korea and India to create framework NIHON KEIZAI (Page 5) (Full) September 8, 2006 The Ministry of Economy, Trade and Industry (METI) yesterday revealed a plan for energy ministers of Japan, China, the US, South Korea and India to meet in Beijing in late October with the aim of creating an energy security framework. The participants will discuss emergency measures, including energy conservation and oil reserves, and the diversification of energy sources. It is said that these five countries account for approximately 50% of the world's energy consumption. This is the first time for concerned ministers to meet to discuss the energy issue. China, whose energy demand is pronouncedly growing, has proposed holding such a meeting. Based on its experience with past two oil crises, Japan will introduce its efforts to reserve oil and conserve energy. Japan and China held a bilateral energy dialogue at METI. During this meeting, too, the two countries reassured technical cooperation between the two countries. 17) Commander of US Naval Forces Japan says to deepen debate on exercise of right to collective self-defense to deal with North Korean missiles TOKYO SHIMBUN (Page 3) (Full) September 8, 2006 Rear Admiral James Kelly, commander of US Naval Forces Japan, yesterday met the press at the US Fleet Activities Yokosuka at Yokosuka City, Kanagawa Prefecture, and said that in order for Japan and the United States to work together to deal with North Korean ballistic missiles under the missile defense (MD) system, "I hope to see debate on constitutional revision deepen here so that (Japan) can exercise its right to collective self-defense." When North Korea test-fired ballistic missiles on July 5, the US TOKYO 00005113 010 OF 010 Navy and the Japanese Maritime Self-Defense Force's (MSDF) Aegis ships moved jointly to detect and track the missiles. Kelly stated, "If MSDF ships come under attack while on duty of this kind, the US Navy will defend them, but the MSDF can't do so in the opposite case." He thus implied that it is unavoidable to debate the question of the right to collective self-defense in order for Japan and the US to join hands under the MD system. Kelly also explained that a North Korean Rodong missile, if it were fired toward Japan, could land in the country in less than 10 minutes, and that it must be intercepted within two minutes and 30 seconds. Speaking of who will make a final decision to fire Standard Missile 3 (SM3) missiles to intercept it during that short period of time, he stated, "Who will decide to do so has yet to be decided." Referring to the right of collective self-defense and the question of command and control that are both related to the MD system, Kelly told the press that discussions had been launched between Japanese and US foreign affairs and defense officials, including uniformed officers. And he expressed his hope that Japan and the US would build a mechanism for both sides' ships to defend each other during the one year of discussions. 18) September economic report will not declare end of deflation due to concern over slowdown of US economy TOKYO SHIMBUN (Page 1) (Excerpts) September 8, 2006 The Cabinet Office yesterday decided not to declare the end of deflation in the monthly economic report for September to be released on Sept. 15. With price-related indexes taking an upward turn, calls have been growing for the government to declare the end of deflation as an achievement of the Koizumi administration's management of the economy. However, the Cabinet Office has judged that it is premature to issue such a declaration because of various risk factors, including crude oil prices still at a high level and concern over the slowdown of the US economy. The Cabinet Office has judged, based on the July economic report that the situation is not such in which prices are falling continuously. However, declaring the end of deflation is attached with a severe condition that there is no prospect for the return of deflation. The Cabinet Office has, therefore, carefully looked into whether it is appropriate to issue such a declaration under the present economic climate. SCHIEFFER