DAILY SUMMARY OF JAPANESE PRESS 09/08/06

UNCLAS SECTION 01 OF 08 TOKYO 005166 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: DAILY SUMMARY OF JAPANESE PRESS 09/08/06 INDEX: (1) Japan needs national major oil company: Plan to revise energy program revealed (2) Symposium to think about Japan-US alliance: Japan fettered by its growing dependence on US (3) Editorial: Intelligence-gathering satellite - National security should be ensured with own technology (4) JIIA suspends website articles due to criticism they were "anti-Japan"; Some officials unhappy, citing "overreaction" (5) IIPS releases "21st Century State Image," calling for new intelligence bureau under prime minister and study to arm Japan with nuclear weapons (6) Japan, Philippines to sign EPA tomorrow; Part of labor market to be liberalized, including allowing in nurses; Pact to come into force possibly next spring (7) More than 100 tombs vandalized at Japanese graveyard in Australia (8) Window column: Whaling town Taiji on Sept. 6 ARTICLES: (1) Japan needs national major oil company: Plan to revise energy program revealed YOMIURI (Page 9) (Full) September 7, 2006 A set of proposals to revise the basic energy program, which sets the government's energy policy for the next 10 years, was unveiled yesterday. The package stressed the need to establish a large-scale company that undertakes businesses ranging from the development of oil fields and refining to sales on par with international oil majors. As a main feature, the package urged the development of domestic oil and the reorganization of oil refiners-distributors. It will be presented at a meeting of the subcommittee of the Comprehensive Natural Resources and Energy Research Council (an organ reporting to the economy, trade and industry minister),which the Natural Resources and Energy Agency will hold on Sept. 7. The government will then adopt it at a cabinet meeting in December. The basic program is based on the Basic Energy Policy Law. The package reflected the new national energy strategy, which METI released in May. ; The package stressed the need to set up a major national oil company, noting: "It is necessary to drastically improve Japan's earnings system ranging from development and refining to distribution and nurture a company with international procurement capability." In the domestic oil development industry, INPEX Corporation and Teikoku Oil entered into a merger in April, but their daily production stands at 370,000 barrels, only about 14% of that of Exxon Mobile. TOKYO 00005166 002 OF 008 (2) Symposium to think about Japan-US alliance: Japan fettered by its growing dependence on US ASAHI (Page 15) (Slightly abridged) September 7, 2006 Noriyuki Wakisaka, editorial writer The University of Tokyo and the Asahi Shimbun jointly hosted a symposium at Sapporo City, Hokkaido. The objective of the symposium was to think about the Japan-US alliance in comparison with the relationships that exist between the United States and other countries, for instance, European nations and South Korea. Over the past five years since the Sept. 11, 2001, terrorist attacks in the US, Japan has strengthened its alliance ties with the Bush administration in fighting the war on terror. On the other hand, participants in the symposium analyzed that Japan appeared to have lost latitude in its diplomacy, compared to other countries, Europe, for example, and that chances of Japan being involved in a US-led war are increasing. Japan may be gradually involved in war How has the Bush administration shifted relations with its allies after the terrorist attacks on Sept. 11? The US is moving in the direction of realigning and strengthening its alliances with other countries, particularly in the military area, because of the need to cope with the threats of terrorism and nuclear proliferation. The participants in the symposium from Japan, the US, and Europe agreed on this view. They noted that the US had raised the requirement levels required of its allies in the following four areas: (1) global deployment transcending regional frameworks; (2) human contributions through, for instance, dispatch of troops, in addition to the hosting of US bases; (3) expansion of anti-terror measures currently centered on police and legal activities so as to involve military activities; and (4) larger financial contributions for the US military presence. The Bush administration's initial foreign and security policy was put in the hands of Secretary of Defense Donald Rumsfeld and other neo-conservatives. According to US Boston University Prof. Thomas Berger, a decisive factor in the upcoming US off-year election in November would be how far public opinion critical of the Iraq war can spread across the country, given the declining influence of neo-conservatives at present. The professor, however, added that America's security strategy that gives top priority to eradicating the threats of terrorism would remain the same. "The US can't return to where it was before the 9/11 incident," the professor continued, "Perhaps the gaps in the recognition of threats could make relations with allies unstable." Alliances between Europe, US consolidated, but US-ROK alliance cools down How did changes in US relations with its allies affect its alliances? One clear thing is that the alliances between the US and European countries, even after going through a shaky period, have been able to return to what they were before. Germany and France raised objections head-on to the US, which was rushing into war with Iraq in 2003. However, their good relations with the US were restored later, and in dealing with Iran's nuclear TOKYO 00005166 003 OF 008 weapons development and the Lebanon crisis, European countries and the US are jointly looking for ways to resolve the situations. The members of the European Union (EU) have occasions for joint talks with the US, aside from the North Atlantic Treaty Organization (NATO),the basis of the military alliance between the US and the EU. Compared to European countries, Asia seems unstable in terms of bilateral relations with the US. Relations between the US and South Korea, in particular, have cooled off. The Roh Moo Hyun administration in trying to restore its national defense autonomy has requested that the US forces transfer wartime command authority to the South Korean forces. Responding to the South Korean request in August, the Bush administration declared it would transfer such authority to South Korea in 2009, three years earlier than the timeframe requested by Seoul, but this caused an eruption of criticism from the opposition party. In the discussion at the symposium, Seinan Jo Gakuin University Prof. Hideki Kan stated: "Because of the difference in views about the North Korean threat between South Korea and the US, South Korea may be discarded by the US." In recent years, the Japan-US alliance no doubt has further strengthened its cooperation. The Koizumi administration established the Law regarding Situations in Areas Surrounding Japan and a new set of guidelines for Japan-US defense cooperation. It also has been cooperative toward the US force transformation and dispatched Self-Defense Forces (SDF) troops to Iraq. In the discussion, however, someone pointed out that the Japan-US alliance still faced difficult situations. One example is deployment of the missile defense (MD) system, which is now being accelerated due to North Korea's recent missile launches. Christopher Hughes, professor at the University of Warick in Britain, noted that chances are strong that Japan will be involved in a US-led war, saying: "Japan cannot help depending even more on the US given the characteristics of the highly advanced missile technology and the integration of the US forces and the SDF." Concerns voiced over lack of Asia diplomacy How can Japan gain enough room to make its own decisions to deal with possible contingencies on the Korean Peninsula and in the Taiwan Strait? Is there also the possibility that Japan may be placed at the forefront in the US war on terror? In the process of talks on revising the Japan-US Security Treaty and the guidelines for Japan-US defense cooperation, Article 9 of the Constitution that prohibits the overseas dispatch of SDF troops checked Japan from going too far. Past political administrations gave consideration to public opinion and the views of opposition parties. Japan was in a way under a flexible political structure that was able to ensure national interests were served, even without saying "no" clearly to the US. The problem facing Japan now is that this structure has been changing under the Koizumi administration. One problem is Japan's lack of an Asian diplomacy. In the case of Europe, most countries take a united view backing each other in negotiations with the US. Waseda University Prof. Takehiko Yamamoto TOKYO 00005166 004 OF 008 explained that Japan's inability to have summit talks with China and South Korea because of Prime Minister Koizumi's visits to Yasukuni Shrine "has made it difficult to create an East Asia security community that will embrace the Japan-US alliance." Secondly, Japan's identity of being a pacifist nation is shifting, and nationalism is emerging in Japan, China, and South Korea. In the discussion, many took the view that instead of pragmatic conservatism stemming from national interests, conservatism under the strong influence of ideology is gaining strength, and ironically, it is narrowing the range of diplomatic options for Japan to choose. (3) Editorial: Intelligence-gathering satellite - National security should be ensured with own technology SANKEI (Page 2) (Full) September 8, 2006 An H-2A No. 10 rocket carrying Japan's intelligence-gathering satellite will be launched on Sept. 10 from the Tanegashima Space Center. This optical satellite, the third one to be launched, is capable of taking a picture of an object on the Earth by using visible light that is similar to ordinary cameras. If a radar satellite is launched in early next year, four satellites will be in operation all together as the government planed. Once the optic satellite goes into orbit between the North and South Poles, it will be able to take a picture anywhere on Earth once a day. We would like the Japan Aerospace Exploration Agency (JAXA) to succeed in launching the rocket without fail. JAXA was supposed to have launched four satellites three years ago. However, JAXA failed in launching two of the satellites. In July, North Korea launched ballistic missiles that included a Taepodong-2 long-range ballistic missile. The rumor is that the North may next conduct nuclear weapons tests. The North's next move is extremely dangerous. To meet the threat from Pyongyang, an intelligence-gathering system is needed in order ensure Japan's security. Once the four-satellite system is operational, it will have 24-hour coverage. Japan's next technical challenge is to improve the accuracy of imagery. If there is a limit to image quality, analysis will not be thorough enough. It is possible to make up for shortfalls by purchasing commercial satellites from Europe and the US. But since this is a matter related to national security. Japan should aim to secure its own technology. We are highly interested in the launch of H-2A No. 10 rocket. It is the first time for Japan to continue launching a rocket ten times. The continued launches of the same model of rocket have shed light on its defects, thereby allowing the improvement of its technology and enhancing its credibility. Japan has placed emphasis on the challenge of developing new technologies in succession. Some have noted that going against the grain, Japan failed to develop a rocket that is internationally acceptable. TOKYO 00005166 005 OF 008 The H-2A rocket is capable of crossing over into the global rocket market. The development of the H-2A rocket will be completely transferred to the private-sector companies next year. Once the No. 10 rocket is launched successfully, the success rate will increase to 90%. Considering this point, failure is unacceptable. We hope for a complete success. (4) JIIA suspends website articles due to criticism they were "anti-Japan"; Some officials unhappy, citing "overreaction" ASAHI (Page 3) (Abridged slightly) September 8, 2006 The Japan Institute of International Affairs (JIIA),a foundation affiliated with the Foreign Ministry, has suspended its online series of commentaries in reaction to the Sankei Shimbun's description that one article was an "official anti-Japanese essay." JIIA President and former ambassador to the United Nations Yukio Sato expressed his regrets to the Sankei Shimbun. Some JIIA and Foreign Ministry officials are unhappy with Sato's move, regarding it as an overreaction. A US newspaper also ran an article about suppression of freedom of speech. In an interview with the Asahi Shimbun, Sato said: "There were some inappropriate expressions, such as 'Yasukuni cult.' The problem was the expressions, not the contents. We are closely reexamining matters." The article that drew a barrage of criticism was titled "How Japan Imagines China and Sees Itself," written by the editor-in-chief of the English-version of the JIIA website. The article read: "Other countries will not understand Japanese political views," citing rising "hawkish nationalism" in discussing the background of strained Japan-China relations and describing visits to Yasukuni Shrine by Prime Minister Koizumi and other past prime ministers as part of a "Yasukuni cult." A Sankei Shimbun reporter's column critical of the essay appeared in the Aug. 12 morning edition, reading: "Its tone suggests that attacks on Japan by China and other countries were just." It also openly asked Sato: "What is the reason for entrusting Japan's external messages to a person with extreme views rejecting Japan's foreign policy and its current security foundation?" According to JIIA, the institute has suspended the series, including removing the offending article, as it was inundated with criticisms and queries following the appearance of the Sankei column. The paper's Aug. 18 morning edition carried Sato's reply that went: "It is true that the essay contained some expressions unfit for JIIA, a public-interest corporation, and terms that may cause some misconceptions about Japan's position and its situation. As president of the organization, I deeply regret it." The standpoint of JIIA, a think tank receiving subsidies from the Foreign Ministry, is that it can conduct its activities independently. Some sources connected with JIIA are unhappy with the organization's move. A senior Foreign Ministry official also criticized the suspension of the article and called Sato's apology an overreaction. On Aug. 27, the electronic edition of the Washington Post ran op-ed article that went, "Backed by growing nationalism, thought control is becoming mainstream." The commentary also referred to an arson attack on the house of former LDP Secretary General Koichi Kato. SIPDIS TOKYO 00005166 006 OF 008 Sato noted: "The sensation resulted from our failure to examine the essay in advance, and I will assume the blame for that. We would like to resume posting essays by launching an editorial board of outside experts and establishing a solid screening system for the essays." (5) IIPS releases "21st Century State Image," calling for new intelligence bureau under prime minister and study to arm Japan with nuclear weapons YOMIURI (Page 2) (Excerpts) September 6, 2006 The Institute for International Policy Studies (IIPS) chaired by former Prime Minister Yasuhiro Nakasone released on Sept. 5 a set of proposals, "Image of Japan as a State in the 21st Century," discussing security, crisis management, and social security policies deemed essential for the country. The report called for the establishment of a national intelligence agency directly under the prime minister to single-handedly manage internal and external intelligence and prepare intelligence and data for national policies. It also underscored the need to study the nuclear-weapons issue in order for Japan to be prepared against future international upheavals. Touching on the Constitution, the report also proposed revising Article 9 in a way to specify the Self-Defense Forces as national army, allow the country to exercise the right of collective self-defense, which is prohibited under the government's interpretation of the Constitution, and establish a basic security law governing ways to exercise the collective self-defense right. The establishment of a National Security Council by upgrading the existing Security Council of Japan was also proposed. Regarding the question of nuclear weapons, the report read: "Japan must make efforts to strengthen the Nuclear Nonproliferation Treaty (NPT) regime and to study the nuclear weapons issue, while standing firm as a non-nuclear nation to be prepared against future international upheavals." Nakasone said in a press conference: "First, Japan must remain a non-nuclear nation; and second, the NPT regime must be strengthened. Based on that, Japan should study the question of (possessing) nuclear weapons because nobody knows how international relations may change in the future." Nakasone thus pointed to the need to review the three non-nuclear principles and study the option of Japan possessing nuclear weapons to be ready against a collapse of the NPT and the arrangements under the US-Japan Security Treaty. On the diplomatic front, the think tank also proposed: (1) establishing an Economic Cooperation Organization in Asia and an East Asian Community including the United States, India, and Australia; and (2) regular summit talks among Japan, China, and South Korea by strengthening relations with those countries. (6) Japan, Philippines to sign EPA tomorrow; Part of labor market to be liberalized, including allowing in nurses; Pact to come into force possibly next spring TOKYO 00005166 007 OF 008 TOKYO SHIMBUN (Page 9) (Almost Full) September 8, 2006 The government will sign an economic partnership agreement (EPA), including the acceptance of nurses and attorneys, with the Philippines tomorrow. The likelihood is that the pact will come into force as early as next spring, once it obtains Diet approval. Once the accord comes into force, Japan will allow in nurses and other guest workers from that nation. The Philippines is Japan's fourth EPA partner, following Malaysia and two other countries. This is the first EPA that includes partial liberalization of the labor market. The EPA is an agreement aimed at promoting labor mobility and liberalization of investment between two countries, in addition to the movements of goods covered under a free trade agreement (FTA). It is meant to back overseas advance and the establishment of operation bases there by companies. Since the pact with the Philippines covers a wide range of products from mined and manufactured products to agricultural products, it will serve as a model case, sparking economic tie-up talks with major Asian countries, such as Thailand. Prime Minister Junichiro Koizumi is expected to visit Finland to attend a summit of the Asia-Europe Meeting (ASEM). On that occasion, he will meet with Philippine President Arroyo and sign the agreement. Japan has agreed to accept a certain number of nurses and nursing-care workers with Japanese national licenses at the request of the Philippines, a supplier of such workers. The Philippines will scrap most of tariffs on electric appliances, electronic goods, automobiles and other goods as requested by Japan. Prime Minister Koizumi will also hold a summit with the Vietnamese leader on Sept. 11 and call for starting EPA talks at an early date. In rivalry with China, which is increasing its presence among Asian economies, Japan is rushing to sign EPAs with Southeast Asian countries. It will likely sign an EPA with Thailand and reach agreement in general outline with Indonesia within the year. Talks with Brunei and Chile are going on for an agreement in general principle. Talks with Gulf nations will start in late September. Japan also aims at reaching agreement to start talks with India before the year's end. (7) More than 100 tombs vandalized at Japanese graveyard in Australia MAINICHI (Page 26) (Full) September 8, 2006 Jakarta, Jun Ida According to Australian Associate Press, it was found on Sept. 6 that more than 100 tombs at a Japanese cemetery in Broome, Western Australia, were vandalized. An event related to the Japan-Australian exchange year was being held in the city that day. The local administrative authority told that those tombs were so badly smashed that they cannot be repaired. Many Japanese pearl fishers worked in the pearl industry, which prospered in Broome TOKYO 00005166 008 OF 008 since the 19th century. Japanese pearl divers who died while at work are buried at the cemetery. The pearl festival, an official event for the Japan-Australia exchange year, has been held in Broome since the 1st. Many Japanese were taking part in the festival from Taiji Town, which has a sister city relationship with Broome. Since Taiji Town is known as a whaling town, members of anti-whaling groups protested the participation of citizens from Taiji Town during a parade in the pearl festival. (8) Window column: Whaling town Taiji on Sept. 6 NIHON KEIZAI (Western edition) (Page 17) September 7, 2006 Thirty-five bottlenose dolphins were landed on Sept. 6 at Taiji Town, which is known as a whaling town, for the first time since a ban on drive-in net fishing was removed this year. Thirteen fishing boats left a port early in the morning. They found a shoal of dolphins in the Sea of Kumano about eight kilometers off the town. The fishing boats surrounded the shoal in a semicircle. Then fishermen guided dolphins to a bay by around 10:30 a.m., by making noise with iron bars. The captured dolphins were two to five meter-long and weighed about two to three tons. They are to be sold by tender on the morning of Sept. 7 and shipped to various parts f the country. This fishing method is exempt from regulations set by the International Whaling Commission. Taiji Town carries out whaling based on this method every year, obtaining permission from the prefectural governor. They are allowed to catch a total of 2,380 whales until the end of next February. SCHIEFFER