JAPANESE MORNING PRESS HIGHLIGHTS 10/11/06

UNCLAS SECTION 01 OF 12 TOKYO 005914

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SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 10/11/06


Index:

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

North Korea threat:
4) Ambassador Schieffer tells Japanese audience that the US nuclear
umbrella will protect Japan
5) Chief Cabinet Secretary Shiozaki calls on North Korea to
implement Pyongyang Declaration
6) Japan issues 3rd set of independent sanctions against North Korea
that includes full ban on imports from that country
7) Japan's sanctions could have impact on stopping DPRK's flow of
illegal money
8) Japan would have legal difficulty carrying out ship searches on
high seas if UN sanctions on North Korea include such
9) Government worried that dangerous North Korea might send agents
to carry out terrorist acts
10) Prime Minister Abe speculates that cumulative impact of
sanctions on North Korea could bring down the Kim regime
11) Upper House also passes its own resolution condemning North
Korea
12) Japan's additional sanctions on North Korea will further boost
Abe's diplomatic credentials
13) METI to strictly monitor third country trade to make sure North
Korea is not getting Japanese imports indirectly
14) Finance Minister Omi says that his ministry will strictly
monitor for possible cash remittances to North Korea
15) Speculation that further nuclear testing by DPRK is coming will
not die away

16) Atsugi Air Station under SOFA scrutiny for opening pizza parlor
to public

17) Four opposition parties agree to consolidate efforts to help
campaign of Itokazu for governor of Okinawa

18) Minshuto (Democratic Party of Japan) sponsoring handicapped bill
in order to drum up support for by-election on Oct. 22

19) Team of advisors to Prime Minister Abe further beefed up with
additional staff

20) Kyodo poll finds people are more cautious about prime
ministerial visits to Yasukuni following Abe's recent China and ROK
visits

Articles:

1) TOP HEADLINES

Asahi, Mainichi, Yomiuri, Nihon Keizai & Tokyo Shimbun:
Japan to ban all imports from North Korea as well as its ships'
entry into Japanese ports

Sankei:
Japan to ban all imports from North Korea as well as its ships'
entry into Japanese ports as sanction measures, tighten regulations
on entry into country; US president intends to enhance defense
cooperation with Japan: "A powerful UNSC will be essential"


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Akahata:
Lawmaker Inoue: Diplomatic solution to North Korea's nuclear test
issue essential to avoid war

2) EDITORIALS

Asahi:
(1) US, China should act together to deal with North Korea's nuclear
ambitions
(2) "New" Abe: Has he changed his mind?

Mainichi:
(1) Education Revitalization Council: Discussions should be made
open; national debate essential
(2) Cluster bombs: Pact banning their use necessary

Yomiuri:
(1) Education Revitalization Council: We expect proposals different
from those of bureaucrats
(2) Azadegan oilfield project: Priority given to international
cooperation over national interest

Nihon Keizai:
(1) Abe administration's harsh sanctions on North Korea
(2) Education Revitalization Council needs to come up with fresh
ideas

Sankei:
(1) Education Revitalization Council should aim to depart from
postwar thinking through drastic reform
(2) Transplants: Understanding required to resolve donor shortage

Tokyo Shimbun:
(1) UN Secretary General-elect Ban should do his best for UN-led
preventive diplomacy
(2) Chunichi Dragons' CL championship: We want to see them win Japan
Series

Akahata:
Consumer loans: Don't allow life insurance policies to be used as
collateral

3) Prime Minister's Official Residence (Kantei)

Prime Minister's schedule, October 11

NIHON KEIZAI (Page 2) (Full)
October 12, 2006

08:01
Met with Deputy Chief Cabinet Secretary Suzuki at the Prime
Minister's Official Residence (Kantei).

09:01
Upper House Budget Committee meeting.

12:13
Met with Suzuki at the Kantei.

13:00
Upper House Budget Committee meeting.


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17:06
Upper House plenary session.

17:30
Ceremony at the Kantei honoring people for the creation of safe and
secure towns. Then met with Chief Cabinet Secretary Shiozaki and
Assistant Deputy Chief Cabinet Secretary Ando.

18:20
Dined with the Emperor and the Empress together with his wife Akie.


20:40
Arrived at the Kantei.

21:03
Security Council meeting.

22:17
Returned to private residence at Tomigaya.

4) Nuclear umbrella of the US has protected Japan, US Ambassador
Schieffer says

ASAHI (Page 3) (Full)
October 12, 2006

US Ambassador to Japan Schieffer yesterday took part in an informal
meeting of the Japan Association of Corporate Executives (Keizai
Doyukai). In connection with North Korea's claim that it conducted a
nuclear test, he noted, "The nuclear umbrella of the US has
protected Japan. If Japan considers adopting an independent policy,
this region (East Asia) will soon be placed in a dangerous
situation." Schieffer presumably made this statement out of concern
that calls for nuclear arms might arise in East Asia, including
Japan.

Prime Minister Abe during yesterday's Lower House Budget Committee
categorically stated: "I have no intention whatsoever to change our
stance that possessing nuclear weapons is not an option. There will
be no change at all in Japan's three nonnuclear principles."

5) Chief Cabinet Secretary Shiozaki calls on North Korea to live up
to Pyongyang Declaration

ASAHI (Page 3) (Full)
October 12, 2006

Kim Yong Nam, chairman of North Korea's Supreme People's Council,
categorically stated during an interview with the Kyodo New Agency
that the 2002 Japan-North Korea Pyongyang Declaration is still
effective. Referring to this statement, Chief Cabinet Secretary
Shiozaki during yesterday's press conference stressed: "I heard that
North Korea is saying that the Declaration is still in effect. It is
important for it to implement items stipulated in the Declaration
one by one." Regarding Kim's indication of a view that Pyongyang is
ready to return to the six-party talks with the removal of financial
sanctions as a precondition, Shiozaki urged the North to return to
the framework without preconditions, saying, "The basic view of the
other five other countries is that the North should return to the
six-party talks without preconditions."


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6) Japan decides to ban all imports from North Korea for half year
as third independent set of sanction measures; North Korean ships
barred entry into Japan

NIHON KEIZAI (Top play) (Excerpts)
October 12, 2006

The government yesterday held a Security Council meeting at the
Prime Minister's Official Residence (Kantei) and decided to
independently impose a set of sanction measures on North Korea,
which days ago had declared it had tested a nuclear bomb. This
action will follow ones taken in July and September respectively.
Japan will cut off all imports, for example, of farm products, from
North Korea, and also ban North Korean ships from entering Japanese
ports. Entry into Japan by those people who are of North Korean
nationality will be prohibited, as well. Once the United Nations
Security Council (UNSC) adopts a sanction resolution, Tokyo will
come up with a fourth round of sanction measures including financial
actions.

The prohibition of entry into Japan (by North Korean nationals) was
put into force the same day. After obtaining approval of the
prohibition of entry into Japan by ships and the ban on imports at a
cabinet meeting tomorrow, the government will put them into force on
Oct. 14. These actions will be each valid for a half-year. After the
meeting, Prime Minister Shinzo Abe emphasized to rAPuPc North Korea itself
declared it conducted a nuclear test, that consultations on
sanctions measures are progressing at the UN, that Japan is now
under mounting threats of missile and nuclear development, and that
the North has failed to show a sincere attitude in dealing with the
abduction issue, Tokyo now decided to toughen sanctions.

Japan's major sanction measures against North Korea

First set of sanCQvQ
7 Ban on North Korea's cargb/Q;entry
into Japanese ports
7 Ban on North Korean chartered planes' flight :?`forth Korean government officials' entry into
Japan

Second set of sanction upQ{>QQe with
the UN resolution condemning North Korea)

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7 Prevention of remittances to 15 organizations and one individual
highly suspected of having links to development of weapons of mass
destruction

Third set of sanction measures (decided on Oct. 11) before the UNSC
adopts a resolution in response to the North's announcement that it
conducted a nuclear test

7 Ban on entry into Japan by North Korean ships
7 Ban on all imports from North Korea
7 Ban in principle on entry into Japan by those people who are of
North Korean nationality

7) Additional sanctions by Japan on North Korea may be effective in
sealing off flow of secret funds

SANKEI (Page 1) (Excerpt)
October 12, 2006

The government yesterday decided to impose on North Korea a set of
additional sanction measures on its own. The aim was to give
additional impetus to the sanctions resolution anticipated to be
adopted by the United Nations Security Council later this week.
Japan felt it was necessary to show North Korea its strong will in
resolving the nuclear issue and the abduction cases, as well. But
the hidden reason seems to have been the calculation that the
sanctions would be effective in cutting NortQ(QOQ9uQWon of ships difficult under existing law; recognition of
state of conflict needed

NIHON KEIZAI (Page 2) (Full)
October 12, 2006

The government is negative toward carrying out inspections of ships
in seas close to North Korea, which the US is calling for as one
sanction item. Though Japan has a legal framework to carry it out,
taking such action essentially requires that areas near Japan be in
a state of battle. The government judgment is that the present state
of affairs does not meet this requirement for invoking such a
sanction.

The Vessels Inspection Activities Law, which went into force in
2001, stipulates that Japan can independently carry out maritime
inspections of ships. The law envisages Maritime Self-Defense Force
(MSDF) vessels inspecting ships on the high seas. This would enable
MSDF vessels to board and search ships to and from North Korea and
urge such ships to change their destinations.

The application of the law requires the identification of a
contingency in an area surrounding Japan. The government must adopt
a basic plan, including a specific activity area and the contents of
such an activity, at a cabinet meeting and obtain Diet approval.

The problem is the definition of a contingency, because it is
extremely vague: "a situation in areas close to Japan that has a
serious impact on Japan's peace and security." The provision
envisions a possible dispute on the Korean Peninsula. However, the
views of government officials are divided over whether this

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provision can be applied to the situation this time.

Defense Agency Director General Akio Kyuma during yesterday's Upper
House Budget Committee meeting categorically stated, "It is not
possible to recognize the current situation as an emergency."

9) Government on alert for possible terrorist activities by North
Korean agents, instructs police, SDF to tighten security measures

YOMIURI (Page 2) (Full)
October 12, 2006

The government yesterday raised the level of alert, based on the
judgment that the risk of terrorist activities by North Korean
agents has increased following Japan's imposition of strict
sanctions on that nation. The National Police Agency (NPA)
instructed prefectural police headquarters to strengthen their
crisis-management and quick-response systems. It also set up a
security headquarters under the NPA director general yesterday. In
addition, NPA has ordered the Defense Agency (JDA) and the
Self-Defense Force (SDF) to make preparations to be able to take
quick action in times of emergency.

North Korea remains confidence, as seen from an official's statement
that the international community's moves toward sanctions against
his country are tantamount to a declaration of war. In the
government, there is a growing concern that North Korea might launch
destructive operations in Japan in reaction to the stricter
sanctions. As possible targets for destructive or obstructive
operations by agents, some list power plants, communication
facilities and transport facilities, which have a serious impact on
the people's livelihood if they are destructed, as well as SDF and
US military bases.

In a House of Councillors Budget Committee meeting yesterday,
National Public Safety Commission Chairman Mizote stated: "I have
instructed prefectural police headquarters on what measures should
be taken to prevent various types of illegal activities by North
Korean agents, including destructive operations against Japan."

The JDA issued an order under the name of Joint Staff Chief Takashi
Saito to the Ground, Maritime and Air Self Defense Forces on Oct. 9
to reinforce their quick-response systems. Specifically, the JDA
includes measures to deal with an emergency, such as an increase in
the number of personnel at each station and restrictions on SDF
members' prolonged outings.

Assuming that North Korean spy boats might appear in waters near
Japan, if it is judged that only the Japan Coast Guard (JCG) alone
cannot deal with the situation, the JDA plans to quickly instruct
the Maritime Self-Defense Force to mobilize escort vessels or P3C
patrol aircraft for joint operations with the JCG against the spy
boats based on the Self Defense Force Law.

10) Prime minister: Harsh sanctions on North Korea might destroy Kim
regime

YOMIURI (Page 2) (Full)
October 12, 2006

In a House of Councillors Budget Committee meeting yesterday, Prime
Minister Abe stated, "Due to its development of nuclear weapons,

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North Korea will gradually face more severe conditions for its
survival." He thus indicated that harsher sanctions on North Korea
by the international community could push the Kim regime to
collapse.

The prime minister said:

"North Korea, drawing international attention for arming itself with
nuclear weapons, might have begun to believe it has grown into a
country that can negotiate with the United States, but such a view
is an illusion. . . . The North Korean government should make utmost
efforts to improve the lives of its people instead of producing
nuclear weapons."

11) Upper House also adopts resolution condemning North Korea

YOMIURI (Page 2) (Full)
October 12, 2006

In its plenary session yesterday, the House of Councillors
unanimously adopted a resolution denouncing North Korea's nuclear
test and calling on the North to scrap its nuclear weapons and
nuclear program. The House of Representatives adopted a similar
resolution on Oct. 10. The resolution condemning Pyongyang's nuclear
development as a direct threat to the peace and safety of the entire
Northeast Asian region, including Japan, as well as a serious
challenge to the peace and safety of the international community.

12) Government decides to invoke additional sanctions: Preemptive
move to orchestrate Japan's independent stance with aim of
demonstrating Abe diplomacy

MAINICHI (Page 2) (Full)
October 12, 2006

The government yesterday evening decided to independently invoke
additional sanctions against North Korea. It judged that by doing so
at that time, it would be able to demonstrate the efficacy of Prime
Minister Abe's diplomacy by issuing such while coordination of views
on adoption of a sanctions resolution by the United Nation Security
Council (UNSC) was entering the home stretch. Some government
officials took the view that such sanctions should be adopted after
the international community judged that North Korea had actually
carried out a nuclear test. However, the government has allowed
itself to take this risk, based on the calculation that if it waits
any longer and the invocation of sanctions coincides with the UNSC
adoption of a North Korea resolution, then its sanctions would lose
their individuality. An aide to Prime Minister Abe explained the
reason for the quick decision, "The UNSC is acting quickly. It was
necessary for us to show that Japan is spearheading the move before
the Council adopts its resolution."

The government had originally considered the possibility of
independently invoking sanctions as early as on Oct. 9, when Abe was
scheduled to return home from his visits to China and South Korea.
However, some suggested that the test might turn out to be a failure
or North Korea might be faking the test, using conventional
explosives. Foreign Minister Aso noted, "It is better to refrain
from Japan alone going ahead. North Korea is claiming that it has
carried out a nuclear test, but the possibility of its claim being
false cannot be ruled out."


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Abe aims at displaying leadership in the diplomatic field, following
the recent visits to China and South Korea. He directly ordered the
inclusion of the abduction issue in the announcement of the
government decision to invoke sanctions against North Korea
regarding its nuclear test. With the two Lower House by-elections
close at hand (voting on Oct. 22),Abe appears to be motivated by
the desire to hold a commanding lead in the election campaigns by
showing a resolute stance to North Korea.

13) METI to strictly monitor imports of North Korean products via
third countries

MAINICHI (Page 2) (Full)
October 12, 2006

Following the government decision to invoke a blanket ban on imports
from North Korea, the Ministry of Economy, Trade and Industry (METI)
yesterday revealed its policy of strictly monitoring possible
imports of North Korean products via third countries. It will call
for far-reaching country-of-origin labeling and strengthen efforts
to crack down on false labeling. If it notices a sharp increase in
imports of specific items from third countries after the invocation2qhp"aih Korea will conduct another nuke test will
not go away

NIHON KEIZAI (Page 3) (Full)
October 12, 2006

Two days has now passed since North Korea proclaimed that it had
conducted a nuclear test. Yet, no radioactive gasses have been
detected in the atmosphere. The government therefore remains unable
to obtain final confirmation. Still, the government has become
increasingly alarmed, presuming that North Korea will likely proceed
with a second nuclear test. Despite no readouts of abnormal seismic
waves or radioactive substances, Chief Cabinet Secretary Yasuhisa
Shiozaki, meeting the press yesterday afternoon, stressed that the
gover&~(Uht
on the alert, with the Self-Defense Forces flying aircraft on a
monitoring mission.

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There are three reasons for such a deep-seated conjecture pointing
to the possibility of North Korea going ahead with another nuclear
test.

First, nuclear powers tend to conduct a series of nuclear tests
during a certain period. Nuclear testing is intended to see if
nuclear weapons will detonate as designed. So they need to confirm
the power of several nuclear bombs with different explosive yields
and different detonating systems. In addition, they also need to
detonate some nuclear bombs of the same type in order to confirm the
quality of mass-produced weapons.

Second, some sources in the international community are saying the
underground nuclear test proclaimed by North Korea on Oct. 9 ended
in failure. If that is true, North Korea needs to conduct another
test and make it work right North Korea has already acquired
technical know-how for producing nuclear weapons. Even so, the
bomb-which North Korea tried to detonate in its Oct. 9 test-might
have been defective.

Furthermore, the US government remains cautious in confirming the
nuclear test. As it stands, the United States seems to be
intentionally ignoring the North Korean nuke test by remaining
silent. This stance can be taken to mean that the United States by
not acknowledging the fact about the nuclear test itself, will try
to baffle North Korea's attempt to have the international community
acknowledge that it is now a nuclear power and use this to gain an
edge in talks it wants to pursue with the United States.

If that conjecture is correct, North Korea would need to carry out
more nuclear tests in order to advertise its success at home and
abroad. The North Korean Foreign Ministry yesterday hinted at the
likelihood of another test. Government officials will likely become
edgy for a while.

16) US Atsugi Naval Air Station to suspend openings of cafeterias to
Japanese public; Taking out pizzas violates SOFA

ASAHI (Page 38) (Full)
October 12, 2006

US Atsugi Naval Air Station (Yamato and Ayase Cities in Kanagawa
Prefecture) has decided to temporary suspend biweekly openings of
its cafeterias since Yokohama Customs Office has complained that
some visitors have purchased and taken out large quantities of
pizzas, which the office claims violates the US-Japan. Status of
Forces Agreement (SOFA),which prohibits taking tax-free items out
of US installations.

The base started on Sept. 16 the openings of cafeterias every other
Saturdays at the proposal by the commander in the hope of deepening
cultural exchanges with residents in the region. On the opening day,
about 1,000 visitors came to the base to buy cheap goods. However,
once tax-free items are taken out of the base, they become taxable.
Base officials urged visitors not to take them out, but some
Japanese reportedly have taken out large quantities of cheap
pizzas.

Yokohama Customs Office said that it had overlooked the issue when
the base only carried out the openings of the pizza parlor twice a
year -- one in spring and the other in fall. The office reportedly

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made a complaint because the number of such openings has increased.

The base side reportedly is disappointed with the customs office's
position, saying, "It is difficult to realize our objective to
deepen cultural exchanges with regional residents." It will now only
open its cafeterias once a month, starting in November, while
reminding Japanese visitors not to take anything out.

17) Four opposition parties band together for Okinawa election

TOKYO SHIMBUN (Page 2) (Full)
October 12, 2006

Four opposition parties held a rally in Tokyo yesterday for Keiko
Itokazu, an independent House of Councillors member who will run in
Okinawa Prefecture's Nov. 19 gubernatorial election. The rally was
held with the participation of opposition leaders from the
Democratic Party of Japan (Minshuto),the Japanese Communist Party,
the Social Democratic Party (Shaminto),and the New Party Nippon
(Shinto Nippon).

In the rally, DPJ Secretary General Yukio Hatoyama concluded that
the Japanese and US governments' agreement on a plan to relocate the
US Marine Corps' Futenma Air Station in Okinawa Prefecture to a
coastal area of Camp Schwab in Nago City was "deceitful." He
clarified that the DPJ would do its best to win the election.

18) Minshuto submits to Lower House bill revising Law to Support the
Handicapped

MAINICHI (Page 5) (Full)
October 12, 2006

The main opposition party Minshuto (Democratic Party of Japan)
submitted yesterday to the House of Representatives a bill amending
the Law to Support the Handicapped, which was just put into force in
April. Main features of the bill include: suspending for the time
being the new system under which the handicapped have to pay 10% of
total support service charges and restore the conventional one under
which the handicapped should pay based on their incomes. Moreover,
in order to maintain those services, the central and regional
municipalities would provide them with necessary assistance.

Since narrowing the income gap in society is the largest opposition
party's campaign pledge for the Oct. 22 Lower House by-elections,
the party is trying to play up its effort by submitting the bill
aimed at reducing the burden of the handicapped.

Secretary General Yukio Hatoyama repeatedly stressed in his speeches

SIPDIS
supporting the party's candidates for the by-elections, saying: "I
wonder how the handicapped will survive under the law. We must give
consideration to them." A main member of the group drafting the
revision bill said, "We considered the by-election. The bill will
become a symbol of the party's campaign pledges for the
by-elections."

19) Special Advisor Nemoto, 10 junior bureaucrats to strengthen
Kantei functions

MAINICHI (Page 5) (Full)
October 12, 2006


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As part of effort to bolster the functions of the Prime Minister's
Official Residence (Kantei),the government has formed a taskforce
in charged of economic and policy affairs under the leadership of
Special Advisor to Prime Minister Shinzo Abe on Fiscal Policy Takumi
Nemoto. The group, made up of ten junior bureaucrats from the
Ministry of Economy, Trade and Industry, the Ministry of Education,
Culture, Sports, Science and Technology and other ministries, is
commonly called "Takumi Team." It is in charge of drafting specific
strategy for economic growth. In addition to economic strategy, the
team is looking into the possibility of promoting "an Asia Gateway"
aimed to have Japan become a bridge between Asian and the rest of
the world through economic, information and cultural exchanges.

Nemoto underscored: "We would like to play a part of the Kantei-lead
management and accelerate the pace of policy-making effort."

However, its relations with the government's Economic and Fiscal
Policy Council remain unclear. Nemoto has not revealed the division
of roles, saying, "The council is an engine for the reform drive. We
will cooperate with it. It is not necessary" to decide on how to
cooperate. The issue will likely be resolved from now on.

20) Poll: Public cautious about Abe's Yasukuni Shrine visit after
his visits to China, South Korea

TOKYO SHIMBUN (Page 2) (Abridged)
October 12, 2006

Kyodo News conducted a telephone-based spot nationwide public
opinion survey on Oct. 10-11 after Prime Minister Shinzo Abe's
recent visits to China and South Korea. The issues of historical
perception and Yasukuni Shrine were brought up in his talks with the
Chinese and South Korean leaders. In response to this, 56.6%
answered that the prime minister should not visit Yasukuni Shrine,
up 5.3%age points from 51.3% in a previous survey taken right after
the Abe cabinet's inauguration. Meanwhile, 32.6% urged the prime
minister to visit the shrine, down 0.4 points.

Respondents were also asked if they appreciated the prime minister's
visits to China and South Korea. In response to this question, a
total of 83.2 answered "yes," broken down into "yes" and "yes to a
certain extent." Negative answers-"not very much" and "no"-totaled
13.1%. However, when asked if they thought Japan's relations with
China and South Korea would change for the better, 35.9% answered
"yes," with 48.7% saying they "can't say which."

The public gives high marks to Abe's China and South Korea visits
this time, during which he agreed with the two countries' leaders to
improve relations. However, the public is increasingly cautious
about the prime minister's Yasukuni visits, a primary factor that
has caused Japan's relations with the two countries to go from bad
to worse. There are not so many people taking an optimistic view of
Japan's future relations with China and South Korea. This shows that
the public's careful wait-and-see attitude toward the Abe cabinet,
focusing their attention on whether it will be able to reconstruct
Japan's Asia diplomacy. The rate of public support for the Abe
cabinet was 62.7%, slightly down from 65.0% in a previous survey.
The nonsupport rate was 19.5%.

In the breakdown of public support for political parties, the ruling
Liberal Democratic Party stood at 43.5%, with the leading opposition
Democratic Party of Japan (Minshuto) reaching 22.6%. The New Komeito

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party, an LDP-allied coalition partner, was at 3.5%. The Japanese
Communist Party was at 2.2% ; the Social Democratic Party (Shaminto)
at 1.6% ; the People's New Party (Kokumin Shinto) at 1.2% ; the New
Party Nippon (Shinto Nippon) at 0.1% ; and none at 24.2%.

SCHIEFFER