JAPANESE MORNING PRESS HIGHLIGHTS 10/26/06

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SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 10/26/06


Index:

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

Political agenda:
4) Prime Minister Abe: Seems like I've been in office a year and not
just a month
5) With the by-elections over, the next political battles will be
the upcoming Fukushima and Okinawa gubernatorial races
6) Koizumi still popular and active since stepping down as prime
minister
7) "Koizumi's children" freshmen LDP lawmakers object to Abe's
plan to reinstate "postal rebels" in the party
8) Controversial criminal conspiracy bill, put off until next year,
may be tough to pass then, too
9) New Komeito head Ota calls for politics to move from right to
center

Defense and security issues:
10) Komeito head Ota raps Foreign Minister Aso and others for
stirring up the nuclear pot in Japan
11) Debate over whether Japan should debate having nuclear arms
remains heated
12) Diet deliberation starts next month on bill to raise JDA to
ministry status
13) Petition drive to block relocation of aircraft-based US Navy
jets to Iwakuni has gathered 60% of signatures of local population
14) Basic plan has been completed for extension of MSDF for supply
duty in Indian Ocean

North Korea fallout:
15) Government sets timetable for carrying out ship inspections and
logistical support of US forces under North Korea sanctions scheme

16) JDA chief Kyuma sees Japan soon reaching final conclusion on
contents of North Korea's nuclear test
17) JDA chief says US has still not made up its mind on particulars
of high-seas inspections of North Korean cargo on ships

18) Deputy Chief Cabinet Secretary Shimomura calls for revision of
Kono statement that recognizes existence and responsibility for
wartime comfort women

19) Keidanren business mission to accompany Prime Minister Abe on
trip to Vietnam

20) With CO2 reduction in Japan not occurring under Kyoto Protocol
plan, government to revise targets to make them reflect reality

Articles:

1) TOP HEADLINES

Asahi:
63 high schools in 10 prefectures fail to teach required subjects

Mainichi:
65 schools in 10 prefectures shirk teaching required subjects to
12,000 students


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Yomiuri:
65 schools in 11 prefectures avoid vital subjects

Nihon Keizai:
Japan Securities Dealers Association to tighten additional share
sales rules to protect investors

Sankei:
66 high schools in 11 prefectures fail to provide over 7,000
students with required subjects

Tokyo Shimbun:
Tokyo District Court orders daycare center to accept physically
handicapped Higashiyamato City girl

Akahata:
Public corporation under control of Land, Infrastructure, and
Transport Ministry falsified contract

2) EDITORIALS

Asahi:
(1) Abolition of special measures for money lending business only
natural
(2) Why did Nara prefectural government keep employee on extended
sick leave on its payroll?

Mainichi:
(1) Falsified records on high school required subjects must be made
clear
(2) Regulations on money lending industry: Special interest rates
must not be allowed

Yomiuri:
(1) DPJ should cooperate in revising education law
(2) Fatal child abuse incident in Kyoto: Protecting children
everybody's business

Nihon Keizai:
(1) Strategy promoting private-sector technical innovation needed
(2) Look squarely at bullying

Sankei:
(1) Education law revision requires DPJ cooperation
(2) Winning public trust imperative for IP telephone services

Tokyo Shimbun:
(1) Establish solid system to report child abuse
(2) Stricter gas mileage rules essential for energy conservation

Akahata:
(1) Preparations for overseas war intolerable

3) Prime Minister's Official Residence (Kantei)

Prime Minister's schedule, Oct. 25

NIHON KEIZAI (Page 2) (Full)
October 26, 2006

08:31
Attended a meeting of the Education Revitalization Council at

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Kantei.

09:52
Met Deputy Chief Cabinet Secretary Matoba.

11:00
Met Vice Foreign Minister Yachi. Later met Tokyo Governor Ishihara.

14:02
Met Kansai Keizai Doyukai members, including President Shunzo
Morishita. Followed by Special Advisor Koike.

17:28
Met former Foreign Minister Machimura.

19:04
Dined at a French restaurant in the Akasaka Prince Hotel with
cabinet ministers.

21:15
Returned to his private residence.

4) Prime Minister Abe: I fee like I've been in office one year even
though today marks one month since my administration was
inaugurated

TOKYO SHIMBUN (Page 2) (Full)
October 26, 2006

Asked by reporters last night about his impression of serving in
office one month today, Prime Minister Shinzo Abe responded: "I felt
like it has been one year. There are many domestic and diplomatic
issues, but I was able to start working on most of those that I had
promised the public." He stressed that his government had made a
fairly good start.

As specific achievements, Abe cited his first overseas trips,
saying, "I visited China and South Korea with a policy of attaching
importance to Asia. I was able to make a fresh start (by
successfully repairing relations with both countries)."

At a hotel last night, Abe gave a party in recognition of his
cabinet members' services. At the party, Finance Minister Koji Omi
tried to flatter him, saying, "While former Prime Minister Junichiro
Koizumi was in office, cabinet members got too nervous to speak
their views. I'm glad that we feel comfortable to speak to you."
Defense Agency Director General Fumio Kyuma, however, requested
Abe:

"The number of times administrative vice ministers have visited you
is less than that under the previous prime minister. I want you to
make opportunities to hear views directly from the top
administrators of government agencies. "

5) Abe administration set to face Fukushima, Okinawa gubernatorial
races following victories in by-elections

TOKYO SHIMBUN (Page 2) (Abridged slightly)
October 26, 2006

In the wake of the Liberal Democratic Party's victories in the two
Lower House by-elections held on Oct. 22, election campaigns for the

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Fukushima and Okinawa gubernatorial races will kick off on Oct. 26
and Nov. 2, respectively. In the races, the ruling coalition and the
opposition camp will clash head on, as the major opposition Minshuto
(Democratic Party of Japan) will not jointly support candidates
endorsed by the ruling parties. The Abe administration will provide
national-level assistance so as not to offset its victories in the
by-elections.

LDP Secretary General Hidenao Nakagawa is scheduled today to stump
for the LDP candidate running in the Fukushima gubernatorial race
and return to Tokyo to attend a rally for the party's Okinawa
candidate in the evening.

Reflecting the Abe administration's extraordinary enthusiasm, the
government and the ruling coalition are considering sending Prime
Minister Shinzo Abe to the two prefectures to stump for the LDP
candidates.

Although the Abe-led LDP won the Kanagawa and Osaka by-elections on
Oct. 22, they had been vacated by the deaths of LDP lawmakers in the
first place.

LDP members have now begun voicing calm views. One said: "It was a
given that we would win the by-elections. We must buckle down and
make steady efforts for the Upper House election next summer."

In Fukushima, a former Minshuto Upper House member will face off
with the LDP candidate, and in Okinawa, opposition parties will
field a unified candidate against the LDP. "The environments
surrounding both races seem severer than those of the by-elections,"
Nakagawa said.

The government and the ruling coalition are already under fire in
Okinawa due to the Futenma Air Station relocation issue, the
toughest challenge in US force realignment.

Minshuto envisions an all-out battle with the ruling coalition in
Okinawa, with party head Ichiro Ozawa saying, "Okinawa is vital in
every respect, including the international situation and Japan-US
relations."

The two gubernatorial races are important as a prelude to a series
of local elections leading up to the Upper House election next
summer. The pattern of the ruling coalition squaring off with the
opposition camp has already been set up for the Aichi gubernatorial
race and the Kitakyushu mayoral race next February.

Should Minshuto win either the Fukushima or Okinawa race, the
largest opposition party is certain to gain momentum and become even
more confrontational. Tense days await the Abe administration even
after the by-elections.

6) Former Prime Minister Koizumi still enjoys popularity; No
interest in controlling government from behind the scenes

NIHON KEIZAI (Page 2) (Full)
October 26, 2006

Former Prime Minister Junichiro Koizumi has been living easy since
he stepped down from office one month ago. He freely travels back
and forth between his lodging in the parliamentarians' compound and
his private residence in Yokosuka City, Kanagawa Prefecture. He has

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shown no interest in controlling the government from behind the
scene. He appears to be devoting more time to enjoy listening to
music, one of his hobbies, being freed from the high tensions of
spending five and a half years in office.

He called at the secretary general's room of the Liberal Democratic
Party (LDP) in the Diet building immediately after a plenary session
of the House of Representatives on Oct. 24. In the room, he met
former Secretary General Tsutomu Takebe and Taku Yamasaki. He told
them: "I will not take part in local elections because I don't want
to intervene in local administration." Yamasaki then said to him, "
Let's drink together next time!" He replied, "Well, I will see about
it."

Koizumi is now a member of the Lower House Committee on Discipline.
He has attended Lower House plenary sessions, but he has not shown
up for LDP division meetings. He has declared, "I will not appear on
TV talk shows for the time being. I will not respond to any
interviews." A source familiar with his office stressed that Koizumi
needed to recharge his batteries, noting, "He has neither held
meetings with politicians nor anyone else."

However, Koizumi remains popular among the public. The book "I'm
Koizumi Junichiro," containing his mail magazines issued while he
was in office, has sold 40,000 copies so far from Oct. 18 when it
was put on sale. When he went to Kanagawa and Osaka to give speeches
for the LDP candidates for the Lower House by-elections, he received
cheers from enormous audiences.

7) Reinstatement of postal rebels in LDP; Opposing move, "Koizumi
children" to consider submitting opinion paper at plenary meeting
today

MAINICHI (Page 5) (Full)
October 26, 2006

The Liberal Democratic Party (LDP) leadership has begun undertaking
coordination on the issue of allowing lawmakers who voted against
the postal privatization bill to rejoin the party. In this
connection, it was learned that lawmakers who were elected for the
first time in last year's Lower House election are considering
submitting an opinion paper seeking a cautious approach. Their move
has presumably been prompted partly by former Prime Minister
Koizumi's opposition to their reinstatement. The group of 83
freshman lawmakers will hold a plenary meeting today and confer on
the issue.

Lower House member Jiro Ono (representing the South Kanto
Proportional Representation District),who served as secretary (from
the National Policy Agency) to Koizumi, is spearheading the move.
Ono and some others intend to release an opinion paper calling for a
cautious approach to the idea of allowing postal rebels to rejoin
the party and seek support from members. They intend to eventually
collect supporters' signatures and submit the paper to the party
leadership. Opposition is especially strong among the rookie
lawmakers, the so-called "Koizumi children" who ran against postal
rebels as "assassins" but were defeated and then reinstated in
proportional representation districts. Some members of the Group of
83 are cautious about submitting such a paper, which could give rise
to a confrontation with the leadership. However, Koizumi's statement
to former Secretary General Tsutomu Takebe on his cautious stance
toward the reinstatement of postal rebels at an early date has

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prompted their move to submit the opinion paper.

Former Vice LDP President Taku Yamasaki during yesterday's plenary
meeting of his faction expressed concern that the reinstatement
issue could develop into an intraparty standoff. New Komeito head
Akihiro Ota during yesterday's press conference also noted, "The New
Komeito supported freshman lawmakers who were dispatched as
assassins. We must give detailed explanations to their supporters.
The LDP is accountable for its decision."

8) Bill punishing conspiracy carried over to the next Diet session
or after; "It will be even more difficult to enact it next year,"
ruling camp says, envisioning Upper House elections

ASAHI (Page 4) (Excerpts)
October 26, 2006

Miako Ichikawa, Shigeo Tosa

A vote on the bill amending the Law on Organized Crime, including
conspiracy, was again carried over to the next Diet session or
after. Members from the ruling parties of the Lower House Committee
on Judicial Affairs who had been engaged in creating the amendment
had shown their enthusiasm, saying that they aimed to enact the bill
during the current Diet session, but they were unable to make the
Prime Minister's Official Residence (Kantei) and the ruling
coalition leadership, which give the highest priority to revising
the Basic Education Law, change their mind. Concerned lawmakers and
relevant ministries and agencies predict that it will be even more
difficult to enact the bill in next year's ordinary Diet session,
given that the Upper House elections are approaching.

On Oct. 5, the ruling coalition leadership approved five bills,
including the one amending the Basic Education Law and the one
upgrading the Defense Agency, as priority bills for enactment during
the current Diet session. The five bills do not include the bill
relating to conspiracy. Already at this point, the conspiracy bill
was very likely to follow the same path as it had followed to date
since 2003, namely that the bill was killed at one point and then
once again put on agenda and discussed.

Nonetheless, lawmakers of the ruling coalition who are members of
the committee and the Ministry of Justice and the Ministry of
Foreign Affairs did not give up on the idea of enacting the he
conspiracy bill during the current Diet session. Committee member
Tadataka Hayakawa of the Liberal Democratic Party (LDP),who is a
lawyer, and others continued working on the bill so as to make it
the "sixth important bill." Compared to the government-sponsored
bill, the bill they worked out narrowed the scope of activities
subject to conspiracy. Their aim was to show their willingness to
compromise with the opposition camp, even though it may be difficult
to get approval from the opposition Democratic Party of Japan
(Minshuto),which is stepping up its offensive against the ruling
parties.

9) New Komeito leader Ota in speech urges Prime Abe to move toward
center course rather than stay on the right

AKAHATA (Page 4) (Full)
October 26, 2006

In his speech delivered yesterday at the Japan National Press Club,

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New Komeito Chief Representative Akihiro Ota said: "The nation's
fundamental issues should be discussed on mid-field. If all such
issues are discussed on right field, we will not be able to obtain
broad public support." He urged Prime Minister Abe, who is regarded
as being a hawk politically, to aim at a middle-of-the-road policy
in the LDP-New Komeito coalition government.

Asked about the fact that Abe has refrained from speaking his views
on the history issue since he assumed the prime ministership, Ota
supported Abe, saying, "Mr. Abe has made remarks appropriate for the
LDP president and prime minister."

Regarding the question of whether Japan should debate a nuclear
option, he criticized LDP Policy Research Council Chairman Shoichi
Nakagawa and Foreign Minister Taro Aso, arguing:

"Both LDP policy chief Nakagawa and Foreign Minister Aso have the
tendency of making provocative remarks. Japan is not a situation
where responsible persons can say that Japan should study a nuclear
option."

10) New Komeito chief criticizes nuclear remarks by Foreign Minister
Aso

MAINICHI (Page 5) (Full)
October 26, 2006

New Komeito head Akihiro Ota during a speech given yesterday at the
Japan National Press Club criticized statements made by Liberal
Democratic Party Policy Research Council Shoichi Nakagawa and
Foreign Minister Taro Aso regarding Japan possessing nuclear arms:
"They sometimes make provocative statements, but it is not the case
that anybody is free to study such an issue. When the government is
taking the position of not allowing the nuclear test by North Korea,
harboring such an idea in order to counter that nation is not
good."

11) Debate on whether to debate nuclear option still heated; Foreign
Minister Aso calls for "allowing debate"; JDA Director-General Kyuma
stresses "nuclear disarmament"; Opposition parties criticize cabinet
for "discord"

SANKEI (Page 3) (Full)
October 26, 2006

Debate on whether Japan should debate a nuclear option, fueled by
North Korea's nuclear test, has intensified. Foreign Minister Taro
Aso yesterday again stated that he wanted to see such debate
allowed, but Defense Agency (JDA) Director-General Fumio Kyuma, who
is dismissive of having debate in itself, insisted on stressing
"nuclear disarmament." Meanwhile, the opposition parties, which are
strengthening their offensive against the cabinet, described the
cabinet as "not being united."

At a meeting of the Lower House Committee on Foreign Affairs, Aso
made it clear that the government's position was to firmly uphold
the three nonnuclear principles, noting: "Putting a stop to even the
move for conducting a debate, including a discussion of why (Japan)
won't go nuclear, is akin to suppressing freedom of speech." "Given
North Korea's nuclear possession," he continued, "the situation in
Far Eastern Asia has changed completely. Despite such a country
located next door to Japan, do you think it is not a problem even

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though Japan cannot do anything about it?"

On the other hand, Kyuma stated in a speech at the Foreign
Correspondents Club of Japan: "If nuclear weapons serve as a
deterrent and thereby other countries give up the idea of possessing
nuclear weapons, that would be good, but conversely, such a move
could fuel a nuclear arms race. I'd like every nuclear power to
scrap their nuclear arsenals in the future." Asked by a foreign
reporter about a contradiction of his argument that he is calling
for nuclear disarmament while Japan remains under the US' nuclear
umbrella, Kyuma answered: "Yes, there is a contradiction indeed, but
even though a neighboring country has nuclear weapons, Japan won't
possess them. In the event of an attack, Japan has to depend on the
United States as a deterrent."

The opposition Democratic Party of Japan's (Minshuto) Policy
Research Council Chairman Takeaki Matsumoto criticized the
government at a press conference yesterday: "It's out of the
question for responsible members of the government to debate whether
Japan should possess nuclear weapons." Minshuto's position is,
"Debate in itself on such a matter would send a wrong message,"
according to its Secretary General Yukio Hatoyama. The party, which
wants to bring "discord in the cabinet" to the forefront, intends to
call for intensive deliberations on the nuclear row at the Lower
House Budget Committee.

Even in the ruling parties, the debate is intensifying. The "Forum
of Traditions and Creativity," a group composed of one-term
lawmakers of the Liberal Democratic Party (LDP) headed by Tomomi
Inada, yesterday decided to hold a study meeting next month and
invite LDP Policy Research Council Chairman Shoichi Nakagawa, who
triggered the debate on nuclear option, to the meeting to give a
lecture. This decision reflects the Forum's thinking, as one senior
member said, that: "It's no good to suppress debate. We want to hear
Mr. Nakagawa's way of thinking." Meanwhile, Prime Minister Shinzo
Abe reiterated his previous view to reporters late yesterday: "We
firmly uphold the three nonnuclear principles. No debate on them
will take place in my government."

12) Diet deliberations to kick off this month on 'Defense Ministry'
bill

ASAHI (Page 2) (Abridged)
October 26, 2006

The Diet will enter into deliberations this month on a
government-introduced package of bills upgrading the Defense Agency
to the status of a ministry, as a result of negotiations between the
ruling and opposition parties yesterday. The Diet will hear the
government's explanation of the legislative measures and will hold
interpellations in a plenary session of the House of Representatives
tomorrow at the earliest. The government and ruling parties
prioritize the legislation as well as a bill revising the Basic
Education Law, aiming to get it through the Diet during its current
session. The Diet will now deliberate for the first time upgrading
the Defense Agency, which has seen numerous ups and downs over the
past decade.

The legislative measures include a bill revising the Defense Agency
Establishment Law to reconfigure the Defense Agency into a ministry
and a bill revising the Self-Defense Forces Law to task the SDF with
overseas activities as a fundamental mission and not an incidental

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one. The bills were introduced to the Diet in its previous ordinary
session, but the Diet forewent deliberations on the bills partly
because it was just after the Defense Facilities Administration
Agency's bid-rigging scandal was brought to light. However, the New
Komeito, the ruling Liberal Democratic Party's coalition partner,
wants the legislation passed during the current Diet session so as
to avoid possible repercussions on next year's simultaneous local
elections and House of Councillors election, so the ruling coalition
will go ahead with Diet deliberations on the legislation.

13) Civic group opposed to relocation of carrier-based air wing to
Iwakuni collects signatures from more than 60% of local population

AKAHATA (Page 4) (Excerpts)
October 26, 2006

Seven members of the Association to Keep the Sky over Oshima Quiet,
a group against the planned relocation of a carrier-based air wing
to the US Marine Corps' Iwakuni Air Base, Yamaguchi Prefecture,
submitted a petition yesterday calling on Suooshima Town Mayor Fujio
Nakamoto and Chairman Niiyama to ask the central and prefectural
governments to suspend the relocation plan.

The group, composed of residents in Suooshima Town, collected
signatures from 13,130 local residents, more than 60% of the
population, for the petition calling for suspending the relocation
plan.

Group Chairman Hiroshi Kawai commented: "We collected signatures
from more than 60% of the population, showing that a majority of the
citizens are opposed to the plan. The mayor said that he pays
respect to the will of the citizens, so association members need to
fully discuss how the will of the local citizens should be
represented."

14) Basic plan to extend MSDF mission in Indian Ocean approved

SANKEI (Page 5) (Full)
October 26, 2006

The Liberal Democratic Party (LDP) yesterday held a national
defense-related joint meeting at the party headquarters.
Participants in the meeting approved a basic plan to extend the
Maritime Self-Defense Force's mission in the Indian Sea, which the
government is expected to adopt once a bill amending the
Anti-Terrorism Special Measures Law obtains Diet approval, by
another six months. Since the amendment bill intended to extend the
term of the law by another year is expected to be enacted in the
Diet session as early as within this week, the government will adopt
the basic plan that sets the date for the end of the dispatch at May
1 next year possibly on Oct. 30 and report the decision to the
Diet.

15) Japan to wait and see what US does before starting ship
inspections

YOMIURI (Page 2) (Full)
October 26, 2006

Following up the United Nations Security Council's North Korea
sanctions resolution, Japan plans to implement ship inspections and
support US forces in the rear. The government, however, will

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cautiously wait and see about when to go ahead. That is because the
United States has yet to decide on what to do. The government will
prepare to take action under the Law Concerning Measures to Ensure
Japan's Peace and Security in the Event of Situations in Areas
Surrounding Japan or the so-called "regional contingency security
law" in order to cooperate with US forces. At the same time, the
government will strongly pressure North Korea with Japan's own
sanctions.

In response to the UNSC resolution, Japan and the United States are
now intensively keeping tabs on ships to and from North Korea and
boosting their activities under the proliferation security
initiative (PSI). However, the US government has yet to complete
interdepartmental coordination between the State Department and the
Defense Department, according to Japanese government officials.

In the United States, the ruling Republican Party is now on the
defensive, with the Nov. 7 mid-term elections ahead. The United
States is therefore expected to take full-fledged action after the
elections.

Defense Agency Director General Kyuma, in his speech delivered
yesterday in Tokyo, indicated his view, saying, "The United States
probably not yet decided on having its warships carry out ship
inspections on the high seas."

16) Japan to reach conclusion soon on North Korea's nuke test:
Kyuma

YOMIURI (Page 2) (Full)
October 26, 2006

Defense Agency Director General Kyuma, speaking yesterday before the
Foreign Correspondents' Club of Japan in Tokyo, referred to North
Korea's recent nuclear test and indicated that the government would
shortly make a finding of fact about the nuclear test, as the US
government has now concluded that North Korea conducted a nuclear
test. "Based not only on the United States' judgment but also on
other countries' judgments, I think the Japanese government will
also reach a conclusion soon," Kyuma said. As grounds for
determining whether it was a nuclear test, Kyuma said the United
States detected (nuclear) substances, though the amounts were
slight. In addition, he said the explosion would have required too
great an amount of conventional explosives, and that the seismic
waves picked up were indicative of a nuclear test.

In this connection, Prime Minister Abe told reporters yesterday at
his office, "I think the possibility is very high, but we have to
analyze and check it further."

17) US undecided on high-sea inspections: Kyuma

ASAHI (Page 4) (Full)
October 26, 2006

Defense Agency Director General Kyuma, speaking yesterday before the
Foreign Correspondents' Club of Japan in Tokyo, referred to cargo
inspections incorporated in the United Nations Security Council's
North Korea sanctions resolution and remarked as follows: "I wonder
what the United States itself is thinking to do about ship
inspections and how far. I think the United States has not gone so
far as to make up its mind to use warships for inspections on the

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high seas."

18) Deputy Chief Cabinet Secretary Shimomura mentions a review of
"Kono statement" on comfort women

ASAHI (Page 4) (Full)
October 26, 2006

Deputy Chief Cabinet Secretary Hakubun Shimomura yesterday gave a
speech in Tokyo, in which he referred to "Chief Cabinet Secretary
Kono's statement" admitting to the military authority's involvement
in the comfort women issue and "enforcement." Saying this was his
personal view, Shimomura said there is a need to review the
so-called Kono statement, saying, "I think we should examine facts
more carefully and take more time to collect objective and
scientific knowledge when we think of the issue."

Asked if Prime Minister Abe's historical views have changed from the
ones he previously had, Shimomura stressed: "It's only natural for
the prime minister to change his views from when he stated as a
lawmaker. This change does not mean the prime minister has bent his
views or that he is sitting on the fence." "Rather than accepting
100% as is the Kono statement and the so-called Murayama Statement
(in which Murayama admitted to Japan's colonial rule and aggression
and offered an apology),the prime minister has given replies based
on the position he holds," Shimomura added.

19) Keidanren to accompany prime minister to Vietnam in
mid-November

NIHON KEIZAI (Page 9) (Full)
October 26, 2006

The Japan Business Federation (Nihon Keidanren) decided yesterday to
dispatch a delegation headed by Chairman Fujio Mitarai (Canon
chairman) to Vietnam in conjunction with the planned official visit
to that nation by Prime Minister Shinzo Abe in mid-November. The
business organization made the decision in response to a request
from the prime minister. This will be the first case for Keidanren
to send a delegation in concert with an overseas trip by the prime
minister. In European countries, the government and companies work
together to strengthen relations with specific countries. Japan's
economic diplomacy will take a step closer to the European type.

Prime Minister Abe is scheduled to officially visit Vietnam to
attend the Asia-Pacific Economic Cooperation (APEC) forum in Hanoi
on Nov. 18-19 and stay there until Nov. 20. Keidanren is planning to
dispatch its delegation composed of executives from a dozen
companies operating in Vietnam. Arrangements will be made to have
delegates attend a meeting between the prime minister and major
Vietnamese cabinet members, as well as a banquet to be held for the
Japanese prime minister.

The Vietnamese economy has been sharply growing owing to the Doi Moi
policy introducing a market economy, and that nation will soon join
the World Trade Organization (WTO). Keidanren is willing to offer
indirect support for the negotiations to start next year between
Japan and Vietnam with the aim of concluding an economic partnership
agreement (EPA).

20) METI starts reviewing plan to reach targets under Kyoto
Protocol, given slow progress in CO2 cuts

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ASAHI (Page 9) (Excerpts)
October 26, 2006

The Ministry of Economy, Trade and Industry (METI) started yesterday
the review of the current plan to reach the nation's targets for
greenhouse gas emissions under the Kyoto Protocol. Japan is required
to cut its emissions from 1990 levels by 6% between 2008 and 2012
but it has seen the volume of gas emissions increasing each year.
The global environment subcommittee under the Industrial Structure
Council, an advisory panel to the METI minister, will discuss over
the coming one and a half years if additional measures are necessary
and what targets should be set for new industries.

Greenhouse gas emissions in FY2005 (quick estimation announced by
the Environment Ministry) increased 9.1% over 1990 levels. A plan
adopted in a cabinet meeting in April of last year presented 8.6% as
the target for emission cuts below 1990 levels for industries,
including plants, between 2008 and 2012, and 6% for the entire
nation. Under the current situation, however, it is difficult to
reach these targets.

SCHIEFFER