DAILY SUMMARY OF JAPANESE PRESS 10/25/06

UNCLAS SECTION 01 OF 11 TOKYO 006222 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 10/25/06 INDEX: (1) US taking passive-aggressive approach to North Korea (2) Former South Korean President Kim Yong Sam: China, South Korea should apply harsh sanctions, like Japan (3) Fallout from DPRK's nuclear test: China troubled about eruption of anti-North Korea public sentiment (4) UN Security Council resolution and PSI: US expects third countries to inspect North Korean vessels while in their ports in order to block nuclear proliferation (5) Editorial: Okinawa minister's remark -- Fangs hidden behind her flowery words? (6) LDP wavering over whether to let former postal rebels rejoin the party; LDP Upper House expects their cooperation in next election, while Secretary General Nakagawa concerned about public opinion (7) Editorial: Arrest of ex-Fukushima governor - Reform needed to eradicate corruption ARTICLES: (1) US taking passive-aggressive approach to North Korea (Yoshichi Funabashi, Asahi Shimbun columnist) ASAHI (Page 3) (Full) October 25, 2006 In reaction to North Korea's nuclear test, even members of the Republican Party began to call on the Bush administration to review its North Korea policy. James Baker, who served as secretary of state in the administration under President George H. W. Bush, the father of the current president, said, "Talking with one's enemy is not appeasement." Senator Chuck Hagel (Nebraska) also reiterated the need for direct talks between the US and North Korea. One official in charge of East Asian affairs in the US Department of State indicated that when influential officials from the administration of Bush senior offer advice, the current administration tends to become stubborn, as was the case with the Iraq war. State Secretary Rice said that Washington has rejected direct talks with Pyongyang, citing the experience it had in the bilateral talks with the North over dinner prior to the six-party talks in the summer of last year. She said: "They (North Korean officials) want to talk only with the US. They usually take the approach of reaching an agreement with the US, violating it, and then blaming the US." Why does the Bush administration despise direct talks with North Korea so much? In his meeting with President Bush in late June, then Prime Minister Junichiro Koizumi strongly called for direct talks between the US and North Korea. But the president did not assent. TOKYO 00006222 002 OF 011 Bush even said, "We don't have any good options for if that fails." Unable to use military power, the US administration doesn't want to be in North Korea's pocket. The US still remembers that it had to pay a high price over the 1994 Agreed Framework. Although Pyongyang promised to freeze its nuclear development program, it was secretly pushing ahead with a uranium enrichment program. The US has a sense of distrust toward North Korea, deeming talking and reaching any agreements with such a nation as meaningless. The fallout of 9/11 is also behind Washington's negative stance toward bilateral talks with the North. The Bush administration has little room for diplomacy as a result of the growing presence in the administration of "sheriffs" in charge of preventing WMD proliferation and terrorism, as well as "sheriffs" in charge of cracking down on money laundering related to such operations. Former Deputy Secretary of State Armitage has said that at a time when the US has no military options and is bogged down in a quagmire, a skillful diplomatic course is needed more than ever, but Vice President Cheney and Defense Secretary Rumsfeld blocked his efforts out of the belief that diplomacy is an expression of weakness. On the North's nuclear development, as well, the US has demonstrated neither leadership nor diplomatic capability. In describing the features of "Cheney politics," a senior US military officer called the US stance "a passive-aggressive approach." This description can be applied to the Bush administration's stance toward North Korea. Without taking the initiative, the US has launched a passive attack intended to prompt the other side to make a response and have it suffer losses caused by its own negligence or to overreact and drive itself to destruction. Such a passive attack might be a stance or a political approach, but is not a strategy or a policy. (2) Former South Korean President Kim Yong Sam: China, South Korea should apply harsh sanctions, like Japan ASAHI (Page 7) (Full) October 25, 2006 In an interview with the Asahi Shimbun, former South Korean President Kim Yong Sam, 78, said in reference to North Korea's nuclear test, "As long as the North continues to call for direct talks with the United States, that nation is expected to show up at the six-party talks, which is the solo arena for discussion." Regarding moves by the international community to apply sanctions on the North, Kim said: "It is essential (for the international community) to apply pressure (on the North) while suspending its economic cooperation (to the nation) for the time being. China and South Korea should apply the same level of harsh sanctions to those by Japan and cooperate with it." Kim served as president from 1993 through 1998. He takes a conservative stance critical of the Sunshine Policy taken toward North Korea by President Kim Dae Jung and later by President Roh Moo Hyun. While in office as president, Pyongyang announced its decision TOKYO 00006222 003 OF 011 of withdrawing from the International Atomic Energy Agency (IAEA), received a visit by former US President Carter, and the 1994 framework accord reached between the US and North Korea. He thus experienced the tense "first nuclear crisis." Recalling back in such days, Kim said: "We were in an touch-and-go situation, with a number of US military vessels deployed in the surrounding sea areas. I made a phone call to President Clinton as many as 20 times asking him to refrain from taking military action. . . . Reaching the US-North Korea accord was an unavoidable option, but North Korea told a lie and forged ahead with nuclear development. The result was its major failure." He then stressed the need for tenacious efforts by countries concerned, saying "The North has called for direct talks with the US from before. It might be difficult to reach a settlement as long as the US continues to refuse bilateral talks, but the six-party talks should be continued even if no results are produced. Holding talks itself is significant." Further, Kim expressed concern about North Korea's reckless acts and stressed that the focus should be on China's future moves, saying: "The North might have believed that once the nation had nuclear weapons, it would be treated on a footing of equality, but no countries recognize the North as a big power, and its economic plight will not be improved even by holding nuclear weapons. . . . Japan's ban on North Korean ships from entering Japanese ports and restrictions on trade are effective sanctions. China and South Korea, major support nations for North Korea, should also cooperate with Japan. South Korea must immediately suspend such projects as constructing an industrial complex in Kaicheng and tours to Mr. Kumgan. It also should stop financial support for the North and carry out talks, taking advantage of the South Korea-US alliance." On talks of nuclear option in Japan, Kim made the following remark: "Considerable strong reactions will inevitably erupt, some speculating that Japan, which caused WWII, might be aiming to control the world again. South Korea should never go nuclear, either." (3) Fallout from DPRK's nuclear test: China troubled about eruption of anti-North Korea public sentiment SHUKAN ASAHI (pp 140-141) (Slightly abridged) November 13, 2006 Kohei Koizumi, Hideo Sato "A silly Kim Jong Il is pushing his country into hell step by step... (omitted portion) The North Korean people can't live in their own way until the myth of the Kim family disappears." "North Korea is a rogue state. Their possession of nuclear weapons is an enormous threat to China. They may threaten us with nuclear weapons to get food from us." "Kim Jong Il lacks the guts, so he can't start a revolution." "Frankly speaking, I want to spank Kim Jong Il." TOKYO 00006222 004 OF 011 A slew of strident verbal attacks against North Korean leader Kim Jong Il like the above were posted recently in the blog "Sina," one of the three major portal sites in China. North Korea conducted a nuclear test on Oct. 9 and met with strong objections from the rest of the world. On Oct. 14, the United Nations Security Council (UNSC) adopted a sanctions resolution against that country. Although China prohibits its people from criticizing its government, when it comes to North Korea, there are entries that are as blistering as anti-Japanese ones. The relationship between China and North Korea is always portrayed as a "blood alliance" in view of the two countries having fought side by side in the Korean War. But the Chinese public's discontent with North Korea is growing so strong behind the scenes at present that even the government seems unable to bring it under its control. When we look at the series of recent movements of China from that point of view, we can see China has been driven to its wits' end about what to do about North Korea. Satoshi Tomisaka, a journalist familiar with the Chinese situation and the author of the book "Iradatsu Chugoku" (Irritating China), gave this explanation about rising anti-North Korea sentiment among the Chinese public: "Discontent tends to be voiced particularly in three northeastern provinces (Liaoning, Jilin, and Heilongjiang). Trade between this region and North Korea has been flourishing since 2002, but North Korean dealers have a tendency to shirk their payments, and they frequently have taken part in criminal activities, such as smuggling narcotics and using fake bills. The Chinese government, however, has not come down hard on such activities, fueling public discontent instead. Even an incident occurred that a local municipality took the liberty of stopping a freight train carrying government aid supplies bound for North Korea." There is no end to smugglers and defectors from North Korea in the region near the China-North Korea border. Last year, in China's Yanbian, there was an incident in which a North Korean resident, armed with a gun, shot and killed a Chinese People's Liberation Army soldier. In China, criticizing North Korea had been taboo for many years in part because of the blood-cemented alliance between the two countries. The first complaint against the North was not voiced until two years ago, according to Tomisaka. In 2004, China's leading opinion journal "Strategy and Management" in its 4th edition published in August of that year carried an essay titled "The Korean Issue and the Northeast Asian Situation from a New Angle." The paper unusually rebuked the Kim Jong Il regime this way: "North Korea is trying to develop nuclear weapons in defiance of its public's life or death issues and without making efforts to raise the living standards. "It has shown no appreciation for China's political support and economic assistance, and it has lacked understanding toward and support for China at a crucial moment." TOKYO 00006222 005 OF 011 Soon after the release of this edition, the sale of the journal was banned by the Chinese government, and all copies of that edition were rounded up. China, encountering vehement protest from North Korea, did so, reportedly out of fear that that could affect the six-party talks on the North Korean nuclear issue. However, the situation is changing after the North's missile launches this July and its nuclear test just recently. Tomisaka said: "Media that do not come under the government's control carry articles critical of North Korea. Even a newspaper affiliated with the state-run New China News Agency indirectly criticizes North Korea, commenting, 'If this goes on, Japan will go nuclear.' The Chinese government presumably deems it difficult to put more restraints." China remains unable to contain a rise in anti-North Korea public sentiment at home. In addition, China is under strong pressure from the international community. Sakai Tanaka, journalist well versed on international issues, explained: "The United States has regarded itself as the 'world's policeman,' but it has been exhausted by the Iraq War, so it definitely can't afford another war. Washington apparently wants China to play a part in bringing stability to East Asia. Perhaps reflecting this desire, the US has begun frequently using the expression 'stakeholder' since the summer of last year to portray China. Washington is prompting Beijing to behave as a 'responsible big power' instead of seeing a rising China as a threat. Washington in this context has been consistent in its attitude of entrusting China with persuading North Korea not to set off a second nuclear test." Aside from America's desire, Tomisaka said China is now placed in a very difficult situation, noting: "China is perhaps in the most difficult situation in dealing with the North Korean issue, because its 'kid brother' has now become out of control. Yet, if this issue were to be resolved by other countries, for instance, the US or Russia, China would lose its face as a big power and diminish its influence over the Korean Peninsula. It must persuade the North somehow on its own." On Oct. 19, a Chinese delegation led by State Councilor Tang Jiaxuan visited Pyongyang and met with Kim Jong Il for the first time after the North conducted a nuclear test. On Oct. 20, Tang met with US Secretary of State Rice, who was on the tour of Northeast Asian SIPDIS countries, and told her: "(My visit to North Korea) was of some service." Tang is said to have made Kim Jong Il pledge "not to set off a second nuclear device." China, using its "blood alliance" with the North, appears to have saved its face somehow for now, but there are few who take that pledge "not to set off a second nuclear device" at face value. "The rest of the world is our enemy." This kind of instruction was reportedly given by General Secretary Kim Jong Il at a meeting in Pyongyang of ambassadors assigned to other countries. Kim did not attend the meeting, but this instruction blasted not only the US favoring the UNSC resolution but also China and Russia by naming them this way: "They are untrustworthy." TOKYO 00006222 006 OF 011 "There's more," said Tomisaka, "More than 10 North Korean Embassy officials repeatedly protested against China in front of the (Chinese Foreign Ministry) in Beijing, shouting, 'Betrayer!'" Is it possible for China to topple the Kim Jong Il regime? Tomita added: "That's impossible. If the current regime were to be toppled and if two Koreas were to be reunified, China would face a big power with a population of more than 60 million people and nuclear arsenals. China's real feeling would be that North Korea remains divided as it is. In addition to that, given that one million or so Chinese were killed or injured in the Korean War, and given that their bereaved families still live in the country, if China were to allow the North to collapse now, there would emerge an eruption of discontent in the country like, 'What did the sacrifice made at the time mean?'," (4) UN Security Council resolution and PSI: US expects third countries to inspect North Korean vessels while in their ports in order to block nuclear proliferation YOMIURI (Page 13) (Abridged slightly) October 25, 2006 A cargo ship has departed from North Korea. How will the UN resolution be implemented? The Defense Agency and other relevant government offices have learned from the US military that a cargo vessel that left Nampo, a seaport southwest of Pyongyang, on Oct. 20. has gone south in the East China Sea. Although the vessel's destination and what it is carrying are unknown, a cargo boat was used in the past to transport weapons to the Middle East. The boat is reportedly under surveillance by US military satellites. On Oct. 14, the UN Security Council adopted a sanctions resolution mandating all member countries to conduct cargo inspections under their domestic legislation and international law to prevent the illegal trade in weapons of mass destruction (nuclear, biological, and chemical weapons) and ballistic missiles to deliver them. This can explain why the North Korean cargo is drawing much attention. Three years ago, the United States unveiled the Proliferation Security Initiative (PSI) to deal with new threats, such as the "rogue states" and the potential danger of nuclear proliferation to terrorist groups. Over 75 countries, including Japan, Britain, Germany, France, Singapore, and Spain, have endorsed the initiative and repeatedly conducted cargo inspection training at sea. But international law does not provide the authority or ground for inspecting foreign vessels simply because they are suspected of carrying weapons of mass destruction. In December 2002, the Spanish Navy ordered a North Korean ship loaded with a large number of Scud missiles to halt in waters off Yemen for failure to display its nationality. The vessel was eventually allowed to deliver the missiles to Yemen as they were proven to be purchased by the country for defense purposes. The latest UN resolution against North Korea mandates an embargo on weapons of mass destruction and missile-related materials, effectively giving a seal of approval to the PSI. The UN also TOKYO 00006222 007 OF 011 adopted a WMD nonproliferation resolution two years ago prohibiting member countries from trading in nuclear weapons. Oct. 22, Hong Kong maritime authorities inspected a North Korean vessel -- the first since the UN resolution was adopted -- under its domestic port safety management legislation. It is not known, however, whether the inspected vessel is the same as the one under US watch. The US is expected to continue conveying satellite data on North Korean vessels suspected of carrying military materials to coastal countries, such as Japan, China, and Indonesia so that they can conduct ship inspections in accordance with their respective domestic legislation. The Maritime Self-Defense Force (MSDF) also intends to step up guard and surveillance activities in waters near Japan by P3C patrol aircraft under Defense Agency Establishment Law Article 5 (on defense and security duties). The absence of the phrase "under the authority of the UN Security Council" from the UN resolution has raised questions about the effectiveness to conduct cargo inspections. In Japan, focus was on whether on not the MSDF would carry out cargo inspections in compliance with the UN resolution specifying weapons of mass destruction, WMD-related materials, luxury goods, and military equipment, such as tanks, as subject to inspection. "America's aim is to block nuclear proliferation. Inspecting cargos to prevent luxury goods and other items from flowing into North Korea in Japan's vicinity is low on the US list of priorities," a senior Defense Agency official said, although things depend on how North Korea moves. The US is especially on the lookout for the transport of weapons of mass destruction and related materials to Iran. North Korean ships headed for the Middle East are certain to make port calls in third countries for refueling. Attention is focused on whether third countries will inspect North Korean vessels in their ports, as the US expects. (5) Editorial: Okinawa minister's remark -- Fangs hidden behind her flowery words? OKINAWA TIMES (Page 5) (Full) October 24, 2006 After assuming her post, Minister of State for Okinawa Sanae Takaichi recently visited Okinawa Prefecture for the first time. Referring to interactions between the issue of relocating the US Marine Corps' Futenma Air Station and the government's economic package of economic development measures for the northern region of Okinawa's main island, Takaichi stated as follows: "It's incorrect to think that these two matters are not linked to each other." Takaichi further remarked: "It's also wrong to say the government will undertake all (of the economic package) even if there's no progress in the relocation issue." With this, she indicated that the relocation of Futenma airfield and the implementation of the economic package for the northern region were linked to each other. In other words, Takaichi's remarks can be taken to mean that the government would show its "utmost consideration," in her words, if TOKYO 00006222 008 OF 011 Okinawa accepts the government's plan to lay down a V-shaped pair of airstrips in a coastal area of Camp Schwab in Nago City but that the government would suspend its economic package if Okinawa opposes the relocation plan. The Defense Agency has been pressuring Okinawa Prefecture and its municipalities since last year with incentives for them according to progress in the construction of a new base. The Okinawa minister's remarks this time are in line with such an incentive payment formula. This time around, the Defense Agency and the Cabinet Office, coupled with each other, came to pressure Okinawa. The Cabinet Office has so far placed its emphasis on how to alleviate Okinawa's base-hosting burden, while distancing itself from the Defense Agency, which gives priority to improving deterrence. We wonder if there were some hidden "fangs" behind the Cabinet Office's flowery words about alleviating Okinawa's burden. In late August, the Japanese government launched a consultative body with Okinawa Prefecture and its municipalities, including Nago, to talk about the issue of relocating Futenma airfield. They supposedly agreed not to link the new base plan and the economic package. It's only natural that Okinawa's prefectural and municipal governments are now at a loss. Okinawa Governor Keiichi Inamine asked Takaichi for government aid to Okinawa so that it can utilize five US military facilities located south of the Kadena Air Base, including the Makiminato Service Area, Naha Port Facility, and Camp Kuwae (i.e., Camp Lester),once they are vacated. According to the logic of linking, the five facilities will not be actually returned as long as Futenma airfield is not relocated elsewhere in Okinawa Prefecture. However, the Japan-US Special Action Committee on Facilities and Areas in Okinawa (SACO) agreed in December 1996 to return the sites of these five facilities. It is unreasonable to link their reversion to Futenma relocation along with the realignment of US forces in Japan. If the economic package is to be implemented in exchange for Okinawa's burden of hosting more bases, an Okinawa with no bases will never be achievable. (6) LDP wavering over whether to let former postal rebels rejoin the party; LDP Upper House expects their cooperation in next election, while Secretary General Nakagawa concerned about public opinion ASAHI (Page 4) (Full) October 25, 2005 The Liberal Democratic Party (LDP) has been shaken by Prime Minister Shinzo Abe's remarks about bringing back into the party some former party members -- the postal rebels -- who left or were removed from the LDP because they had voted against the government's postal-privatization bill. A tug of war has come to the fore between Mikio Aoki, chairman of the LDP caucus in the House of Councillors, who has called for unconditionally letting them join the fold at an early date, and the party's Secretary General Hidenao Nakagawa, who takes it for granted that the rebels should agree to the TOKYO 00006222 009 OF 011 government's plan to privatize the postal services as a precondition. The more heated the debate becomes, the more difficult it will be for the LDP to let them return, if consideration is given to public opinion. Nakagawa, who is in charge of this issue, stressed yesterday at a press conference: "I do not think the prime minister favors completely the idea of letting the rebels rejoin the party, even though some party members say so." The reason why Nakagawa spoke for Abe is that when the prime minister told reporters on the night of Oct. 23, "I want the secretary general and other party executives to discuss the issue," his remark was taken "approval of the return of rebels to the party." Asked anew about his view by reporters on the night of Oct. 23, ABE corrected his previous remarks, responding, "We will consider the issue once we obtain the understanding of the public. I will make a final decision after hearing the party's opinion." A person close to the prime minister explained: "Strict conditions are needed for their return to the party. The leadership should obtain a signed agreement from each rebel that they now approve the postal-privatization program and that they will not seek any corrections." However, it is difficult for ABE to retract his remarks favoring the idea of letting the rebels return to the LDP. The reason is that ABE is the person who shifted his position to allow them to come back. Appearing on a TV talk show during the September presidential race, Abe was adamant, saying: "We conducted the Lower House election in which we asked voters about whether they agreed to the postal-privatization program or not. But I think that was over. I will let many party members take part in my vision of creating a new country (if I become LDP president and prime minister). Abe's remark strengthened expectations in the party of an early return to the fold of the rebels. LDP Upper House Secretary General Toranosuke Katayama underscored yesterday to reporters: "I want the prime minister to let those who approve his vision and policy rejoin the party. In order to deal with major political issues, it is necessary to increase the number of party members." In a meeting of the secretaries general of the six LDP factions, some participants raised views favoring the rebels returning to the party. Pressure on ABE has increasingly become stronger. LDP Upper House Chairman Mikio Aoki's opinion is that in order to insure a victory in the next year's Upper House election, cooperation of the rebels, who have influence in their single-seat constituencies, is absolutely necessary. ABE and Nakagawa are concerned about whether voters accept such an idea. Former Prime Minister Junichiro Koizumi yesterday told former Secretary General Tsutomu Takebe: "If we rely on votes from the post SIPDIS office masters and other vested interests, we will lose the Upper House election." He meant that if the LDP allowed the rebels to return to it unconditionally, voters would see this as inconsistent with last year's dissolution of the Lower House to call a snap election and the LDP would lose the race. TOKYO 00006222 010 OF 011 One of Abe's aides said: "If we accept the Upper House's hard-line argument, the party will come under fire from the public." Yet, of the 12 independent lawmakers, who are rebels in question, only Takeo Hiranuma, former international economy, trade and industry minister, voted against the postal bill after last year's Lower House election. All rebels, including Hiranuma, however, voted for ABE in the prime ministerial election. Therefore, the dominant view in the LDP is that the rebels will be able to return to the party. The last obstacle is whether the LDP can secure the public's understanding, as ABE said yesterday. (7) Editorial: Arrest of ex-Fukushima governor - Reform needed to eradicate corruption MAINICHI (Page 5) (Full) October 24, 2006 Former Fukushima Gov. Eisaku Sato was arrested by the special investigation squad of the Tokyo District Public Prosecutors Office on suspicion of receiving bribes. Sato stepped down as governor in September, taking moral responsibility for the arrest of his younger brother on charges of involvement in a bid-rigging scandal. The former governor claims that he is totally innocent, saying, "I am completely clean." If his hands are dirty, however, it would be a serious breach of trust to the prefectural residents. Was his image of being "a clean governor" a fabrication? Sato is charged with taking a large amount of money from a general construction company, a bid-winner for the Kido dam construction project that the prefecture plans. The contractor purchased land -- well above market value -- belonging to a menswear company run by Sato's brother. This is seen as a reward to Sato for helping win the bid. His brother has been rearrested on additional charges. By taking advantage of the governor's authority, Sato's brother ran the show in rigging bids in the construction industry on public works projects ordered by the prefectural and selected bid-winners. In return for this, the brother received kickbacks. These bid-rigging practices appear to have been conducted under the lead of the then governor. It is outrageous if it is true that Sato, known as an incorruptible governor, engaged in wrongdoings while serving five terms or 18 years in office, taking advantage of his brother's services. In 1976, 30 years ago, then Fukushima Gov. Kimura was arrested on charges of bribery. It is unprecedented to have two governors of the same prefecture arrested. Former Gov. Sato must have known how that earlier scandal created serious turmoil and stalemate in the prefectural administration. Sato was regarded as one of the governors promoting decentralization efforts. He is doubly guilty for having disappointed people looking forward to "the age of the regions." Construction firms always crowd around governors, who have authority over public works projects, and offer bribes at high levels so that they will be chosen as successful contractors by a rigging of the bids. The construction industry continues its bid-rigging practices. In 1993, the arrests of the governors of Ibaraki and Miyagi prefectures brought to light the collusive ties they had with construction firms. Learning from this lesson, local governments have made efforts to reform the bidding system to prevent illegal practices. However, the breeding ground of corruption has yet to be TOKYO 00006222 011 OF 011 eliminated. In 2000, Fukushima Prefecture introduced a system to make public bid ceilings in advance in order to improve bidding transparency. Ironically, however, the Kido dam project was a showcase public works project for the fiscal year. By disclosing the estimated price, companies could set their bidding prices at a high-level, but there was also an aspect of the set up making bid-rigging practices by construction firms easier. Therefore, the bidding price for the Kido dam project reached 97% of the bid ceiling. Another problem was the fact that the prefectural assembly, which has oversight over prefectural administration, did not do its work. Far from that, many prefectural assembly members reportedly received cash from Sato's brother. The practices were indeed deep-rooted. In Wakayama Prefecture, too, the chief of the disbursements office was recently arrested on suspicion of involvement in a government office-led bid rigging on a project ordered by the prefecture. The two bid-rigging scandals have suggested the urgent need for a drastic reform of the bidding system of public works projects. The official campaign for the Fukushima gubernatorial election will kick off on Oct. 26. Candidates should come up with a bidding system to prevent future corruption. SCHIEFFER