Identifier
Created
Classification
Origin
06TOKYO658
2006-02-07 01:18:00
UNCLASSIFIED
Embassy Tokyo
Cable title:  

JAPANESE MORNING PRESS HIGHLIGHTS 02/07/06

Tags:  OIIP KMDR KPAO PGOV PINR ECON ELAB JA 
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UNCLAS SECTION 01 OF 11 TOKYO 000658 

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: JAPANESE MORNING PRESS HIGHLIGHTS 02/07/06

Index:
UNCLAS SECTION 01 OF 11 TOKYO 000658

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: JAPANESE MORNING PRESS HIGHLIGHTS 02/07/06

Index:

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

North Korea problem:
4) Talks between Japan, North Korea on settlement of past
issues go nowhere, with DPRK refusing Japan's formula for
economic cooperation
5) Nikkei poll finds 71% of public favoring economic sanctions
against North Korea

6) Prime Minister Koizumi in Diet says Japan will work directly
on Iran to convince it to constrain nuclear development program

7) Foreign Minister Aso blasted by China for praising Japanese
colonial rule in Taiwan, denies calling Taiwan a "country"

Defense issues:
8) Minshuto head Maehara leads opposition attack on JDA chief
Nukaga for DFAA bid-rigging scandal
9) USFJ realignment process hit by triple whammy: JDA's
isolation, DFAA scandal, and Iwakuni city referendum
10) Iwakuni mayor to proclaim city referendum in a day or two on
propriety of transferring US Navy jets from Atsugi
11) JDA chief Nukaga in Diet reaffirms Henoko Point plan for
Futenma relocation site but is conciliatory toward local concerns
about runway, aircraft noise
12) Cabinet approves USFJ realignment-related changes in JDA
facilities law

13) Opposition centers attack on ruling camp in the Diet on four
issues, including new DFAA scandal

Economic agenda:
14) LDP members in Diet exchanges split on issue of impact of
Koizumi economic reforms on income disparity
15) LDP policy chief Nakagawa upbeat about economy, sees "rising
tide" that could lead to 4% growth, income growth

Beef issue:
16) Criticism of Japanese and US governments' handling of US

beef issue escalates in Diet
17) Agriculture Ministry raises doubts about OIE's scientific
basis for allowing unrestricted export of boneless beef

Articles:

1) TOP HEADLINES

Asahi:
Livedoor subsidiaries trying to dissociate themselves from parent
company; MEX asking for review of capital tie-up; Livedoor Auto
plans to change name of company

Mainichi:
Horie suspected of insider trading, selling 6 million shares last
December, seeing raid coming; Four billion yen in profits

Yomiuri:
Toyoko Inn Hotel Chain violates law at 60 hotels; Illegal

TOKYO 00000658 002 OF 011


renovations made at 77 facilities, according to MLIT

Nihon Keizai:
Justice Ministry ordinance under Corporate Law obligates
disclosure of measures to guard against takeovers, explanation to
shareholders on selection of outside directors

Sankei:
China shuts down 76 websites; Aim is to strengthen control?

Tokyo Shimbun:
Japan, North Korea fail to agree on "settlement of past
accounts"; Pyongyang rejects Tokyo's proposal for economic
cooperation formula

2) EDITORIALS

Asahi:
(1) Cartoons of Mohammed: Be temperate and broad-minded
(2) Kim Dae Jung abduction: We want to know the truth

Mainichi:
(1) Kim Dae Jung abduction: What has become of the core elements
of the incident?
(2) Bureaucrat-orchestrated bid-rigging: Revealing full picture
of amakurari practices (golden parachute) is needed

Yomiuri:
(1) Iwakuni referendum: Security policy cannot become subject to
referendum
(2) Defeat in recycling trial raises question

Nihon Keizai:
(1) Careful Diet discussions needed from the people's
perspective
(2) US strategy keenly aware of China

Sankei:
(1) Revision of US defense plan: Increase efficacy of Japan-US
alliance
(2) Iran's nuclear development at a key phase

Tokyo Shimbun:
(1) Debate over economic growth rate: Show broader range of
options
(2) Drs. Yukawa and Tomonaga: There is still a foundation for
teaching kids to love science

3) Prime Minister's Official Residence (Kantei)

Prime Minister's schedule, Feb. 6

NIHON KEIZAI (Page 2) (Full)
February 7, 2006

08:12
Met Deputy Chief Cabinet Secretary Nagase at Kantei.

09:00
Attended a meeting of the Lower House Budget Committee.

12:06

TOKYO 00000658 003 OF 011


Arrived at Kantei.

13:00
Returned to the Lower House Budget Committee.

17:03
Attended a party executive meeting.

17:31
Attended a cabinet meeting. Later, met Foreign Minister Aso.

17:54
Arrived at Kantei.

18:41
Returned to his official residence.

4) Japan, North Korea fail to reach agreement on comprehensive
"settlement of past accounts"; North Korea frowns on Japan-
proposed economic cooperation formula

TOKYO SHIMBUN (Top play) (Full)
February 7, 2006

Takaharu Watanabe, Beijing

The Japanese and North Korean governments yesterday held
negotiations on diplomatic normalization at a Beijing hotel.
Responding to the North's request for a "settlement of past
accounts," Japan revealed an economic cooperation formula so as
to resolve all issues across the board. But the North Korean team
argued against Japan's proposal, saying that a single approach is
inadequate. The two nations thus failed to reach agreement.

Taking part in the talks were Japanese Ambassador for Diplomatic
Normalization Koichi Haraguchi and his North Korean counterpart,
Song Il Ho.

In the talks, Haraguchi pointed out that the Japan-North Korea
Pyongyang Declaration, signed by Prime Minister Junichiro Koizumi
and General Secretary Kim Jong Il, specifies that North Korea
will waive all claims on Japan's colonial rule, while Japan will
provide North Korea with economic cooperation. Elaborating on the
mechanisms of Japan's official development assistance (ODA) and
its results, Haraguchi sought the North Korean team's agreement
on a Japanese plan to offer an economic cooperation package.

Song, however, frowned on Japan's plan, and both sides failed to
reach agreement.

The North Korean negotiators called for improvement of the social
status of North Korean residents in Japan, as well as a proper
response to the action taken by the Resolution and Collection
Corporation (RCC) toward North Korean-affiliated credit unions.
On the issue of cultural assets from the colonial era, the North
Korean negotiators demanded that Japan provide compensation for
the assets it destroyed or took home.

The Japanese negotiators called on North Korea to pay for such
costs as the cleanup of oil leaked from a North Korean ship that
had foundered off Hitachi Port in Ibaraki Prefecture in 2002 and
interest on rice aid.

TOKYO 00000658 004 OF 011



So far, negotiations on normalization of diplomatic ties have
been held 13 times. This round was the first since October 2002.

5) Poll: 71% urge tough stance toward North Korea, including
sanctions

NIHON KEIZAI (Page 2) (Full)
February 7, 2006

In a recent public opinion survey conducted by the Nihon Keizai
Shimbun on Feb. 2-5, a total of 71% said Japan should take a
strong stance, including economic sanctions, in negotiating with
North Korea. The figure was up 4 percentage points from the last
survey taken in December 2005. The public now is even more
insistent on a hard-line stance toward North Korea. The
proportion of those insisting Japan should urge North Korea to
soften its attitude through dialogue and humanitarian aid was
18%, down 2 points from the last survey.

6) Prime Minister to call on Iran to halt nuclear development

YOMIURI (Page 4) (Full)
February 7, 2006

In a meeting of the House of Representatives Budget Committee
yesterday, Prime Minister Koizumi said in reference to the
International Atomic Energy Agency's (IAEA) adoption of a
resolution calling for the Iranian nuclear issue to be referred
to the United Nations Security Council:

"We need to work on Iran (to have it reflect on its activities)
so that the nation will not be isolated in the international
community. Ranking officials of the Iranian government may visit
Japan."

He indicated that he would directly work on Iran to swiftly
suspend activities linked to uranium enrichment. This remark was
in response to a question by New Komeito Policy Research Council
Chairman Inoue.

7) Aso denies he called Taiwan a country

MAINICHI (Page 2) (Full)
February 7, 2006

Foreign Minister Taro Aso called Taiwan a country time and again
in his speech delivered on Feb. 4. In addition, Aso also said
Japan contributed to improvements in Taiwan's compulsory
education. But Aso denied his remarks. "I've never said Taiwan is
a country," Aso told a news conference yesterday. "I know it's
problematical to say Taiwan is a country, and I'm not that
stupid," Aso added.

In his Feb. 4 speech, Aso remarked: "The literacy rate and other
factors have now improved, so Taiwan is a country whose
educational level is extremely high. That's why Taiwan is able to
catch up with the modern age."

Taiwan does not want dispute

Taipei, Tetsuya Shoji

TOKYO 00000658 005 OF 011



In his recent remarks, Foreign Minister Taro Aso linked Taiwan's
high level of education to Japan's one-time colonial rule over
Taiwan. In this regard, Taiwan's Foreign Minister Huang Zhi-fang
said yesterday, "I hope he will not bring about any dispute with
Taiwan as well."

8) DPJ head Maehara concentrates fire on DFAA big-rigging scandal

YOMIURI (Page 4) (Full)
February 7, 2006

In a meeting of the House of Representatives Budget Committee
yesterday, Democratic Party of Japan (Minshuto) head Maehara took
the floor as the first questioner from the opposition camp and
focused his attack on the bid-rigging scandals involving the
Defense Facilities Administration Agency (DFAA). Minshuto is
poised to grill the government at the Budget Committee over the
DFAA scandals, the beef issue, the Livedoor incident, and the
quake-resistance data falsification scam as a set. Maehara first
took aim at the DFAA scandals, for which Defense Agency Director
General Nukaga has been pressed to take responsibility. In
questioning, Maehara pursued the responsibility of Nukaga as
supervisor, arguing, "Taxpayers' money has been wasted (as a
result of the bid-rigging practices)." He added: "The entire
picture should be shown, including what jobs have been done (at
contractors) and how retired DFAA officials have landed on posts
there. This is the condition for starting deliberations (on the
budget)."

Prime Minister Koizumi only replied: "Such debates should be
fully conducted in discussion on the budget. We will submit
necessary data through debates."

After the questioning session, Maehara told reporters: "We are
determined to thoroughly pursue the government over the four
issues and also to present countermeasures."

9) USFJ realignment: Gov't in trouble with Defense Agency's
isolation, DFAA's bid-rigging scandal, Iwakuni plebiscite

MAINICHI (Page 2) (Full)
February 7, 2006

The government is now in a bind over the realignment of US forces
in Japan. For one thing, the Defense Agency's lack of
coordination has brought a note of discord into the government.
For another, the Defense Facilities Administration Agency's bid-
rigging scandal has been brought to light. Furthermore, there is
a backlash from municipalities against US military realignment
plans. In this move, the city of Iwakuni in Yamaguchi Prefecture
has clarified that it will conduct a plebiscite. All are
concerned with the Defense Agency's responsibility. Meanwhile,
Japan has promised the United States to work out a final report
on the US military realignment in March. This timetable, however,
is becoming increasingly difficult to keep.

"Citizens should be provided with an opportunity to express their
will." With this, Yamaguchi Prefecture's Iwakuni Mayor Katsusuke
Ihara clarified a plan on Feb. 2 to poll his city's population in
March over whether to accept the planned redeployment of US
carrier-borne fighter jets to Iwakuni base. Late last year, the

TOKYO 00000658 006 OF 011


Japanese and US governments released an interim report naming
Iwakuni for the redeployment of US fighters. The mayor was
apparently feeling that he could not shoulder the responsibility
alone. In Iwakuni, local business communities were in favor of
the redeployment plan. The government was therefore optimistic,
with an official saying Iwakuni is easier than other
municipalities to coordinate with. That is why the government is
growing impatient and nervous about a possible spread of those
moves to Okinawa and other base-hosting localities. What if
Iwakuni votes down the redeployment in its referendum? In that
case, a government official presumes that it will be impossible
to obtain a local consensus before the final report.

Another focus is Futenma airfield in Okinawa Prefecture. The
Japanese and US governments have agreed to relocate the heliport
functions of Futenma to a site in the island prefecture's
northern coastal city of Nago. However, Nago Mayor Tateo
Kishimoto has refused to sit down with the government. The
government has been unable to find a way out of the impasse.

In addition, the DFAA has been involved in a bid-rigging scandal.
In this case, a number of DFAA officials were arrested. The
scandal is likely to involve even more. The opposition is
pursuing Defense Agency Director-General Fukushiro Nukaga's
responsibility. Defense Agency officials have their hands full
with the scandal.

The interim report is now facing a backlash from within the
government. "The Defense Agency didn't undertake prior
consultation and decided with the US side on its own," one
official said. There also has been no progress in discussions on
the advisability of sharing costs for the planned relocation of
Okinawa-based US Marines to Guam. "The Defense Agency said it
would pay for building a base overseas for a foreign country, but
we've never heard of such a thing," a Finance Ministry official
said.

On Jan. 31, Chief Cabinet Secretary Shinzo Abe expanded a cabinet
ministerial meeting at the Defense Agency's request to talk about
the US military redeployment. The Defense Agency asked for
cooperation in that meeting. However, other government ministries
and agencies are growing distrustful of the Defense Agency, with
one official saying that the Defense Agency is trying to spread
the responsibility in case it fails. The Defense Agency's
isolation has yet to be dissolved.

10) Iwakuni mayor to propose referendum in a day or two on plan
to relocate carrier-borne aircraft to Iwakuni base

YOMIURI (Page 2) (Full)
February 7, 2006

Iwakuni Mayor Katsusuke Ihara has decided to propose a municipal
referendum in a day or two on a plan to relocate carrier-borne
aircraft to US Marine Corps Iwakuni Air Station in Yamaguchi
Prefecture. Ihara has also notified Iwakuni Assembly Chairman
Toshiyuki Kuwahara and other groups that are opposed to a
referendum that he will not withdraw the plan. The referendum is
expected to take place on March 12.

11) Defense chief suggests giving consideration to locals while
affirming Cape Henoko plan

TOKYO 00000658 007 OF 011



ASAHI (Page 4) (Full)
February 7, 2006

In connection with the fact that Mayor Tateo Kishimoto of Nago, a
relocation site for US Marine Corps Futenma Air Station, released
a statement the other day rejecting separate talks with the
government, Defense Agency Director General Fukushiro Nukaga told
a press conference yesterday:

"Talks are underway between Japan and the United States based on
principles in an interim report. We have been working hard to
minimize the local burden."

Nukaga thus indicated that the government would give
consideration to flight routes and noise while suggesting
maintaining a Cape Henoko plan, as agreed upon between Japan and
the US.

Defense Agency Administrative Vice Minister Takemasa Moriya also
stressed in the press conference yesterday that the government
would keep working on Nago to persuade the city to accept the
Cape Henoko plan.

12) Defense Agency Establishment Law revision bill adopted in
cabinet meeting

MAINICHI (Page 2) (Full)
February 7, 2006

The government yesterday held a cabinet meeting, in which it
adopted a bill to revise the Defense Agency Establishment Law in
order to restructure the Defense Agency with a number of steps,
such as establishing a defense facilities division for the
realignment of US forces in Japan. The bill will be presented to
the Diet today. The government will implement it this summer.

The Defense Facilities Administration Agency is in charge of
administrative affairs regarding US military facilities. In the
case of US military realignment, however, there are many plans
that are linked to defense policies. The government will set up a
defense facilities division in the Defense Agency's Defense
Policy Bureau.

13) LDP weakened in Diet battle due to set of four issues; LDP
lawmakers praise Koizumi reform drive, willing to change "tidal
flow"; Nakagawa takes offensive with eye on atmosphere in the
party

TOKYO SHIMBUN (Page 2) (Full)
February 7, 2006

The ruling Liberal Democratic Party (LDP) struggled yesterday to
create a "Diet session focused on administrative reforms" during
debate on the fiscal 2006 budget in the Budget Committee of the
House of Representatives. The government and ruling parties have
only defended so far against the attacks by opposition parties,
which have secured a "set of four weapons" to attack the
government and ruling camp. During the Diet battle yesterday, the
LDP seemed to have wanted to change the tidal flow.

Four LDP lawmakers, including Policy Research Council Chairman

TOKYO 00000658 008 OF 011


Hidenao Nakagawa, who took the floor at first, praised the
Koizumi reform initiative, spending four hours and 15 minutes.

Nakagawa stated:

"Opposition parties are trying to apply the brakes on our reform
efforts under the name of 'Diet on safety.' I feel danger that
would drag the Japanese economy back into darkness and change
Japan back into a loser in the world."

Nakagawa sought to check the main opposition party Minshuto
(Democratic Party of Japan, which characterizes the current Diet
session as a "session to debate safety affairs."

Following Nakagawa, former labor minister Bunmei Ibuki expressed
indignation on behalf of Prime Minister Junichiro Koizumi,
arguing,

"I think it is extremely regrettable that the opposition parties
say that the Koizumi reform drive is to blame for the Livedoor
scandal and the earthquake-prevention data falsification scan."

Akira Amari, acting chairman of the Policy Research Council,
also, praised the Koizumi reform drive, saying, "The reform drive
has certainly produced achievements," enumerating the data
showing an increase in foreign investment in Japan and other
factors.
Koizumi, who received supportive statements, expressed again his
enthusiasm to continue to carry out his reform drive. He stated,
"I take the criticism humbly, but I cannot implement the reforms
while maintaining the status quo."

Not only Koizumi but also especially Nakagawa probably do not
want to see a Diet session where debate is focused only on the
"negative aspects" of the reforms.

Nakagawa in concert with Internal Affairs and Communications
Minister Heizo Takenaka has had the leadership in working out a
series of reform measures, including the integration of
government-affiliated financial institutions. With the revelation
of the Livedoor scandal, however, Takenaka, who supported former
Livedoor Corp. President Takafumi Horie (who has been arrested on
suspicion of violating the securities law) in last year's Lower
House general election, has come under fire. As a result, anti-
Koizumi feelings are erupting again in the LDP and Nakagawa's
influence in the party has declined. Nakagawa's questions at
yesterday's session seem likely to be his declaration of the
offensive.

"You made good questions. You did a good job," Koizumi told
Nakagawa in a board meeting of the LDP yesterday evening. The
question is whether Koizumi can bring back the trend of
"administrative Diet." The opposition will shift gears upward for
questions on a full-scale from today.

14) LDP split over issue of impact of Koizumi reforms on income
gap

YOMIURI (Page 4) (Excerpts)
February 7, 2006

The impact of the Koizumi administration's ongoing structural

TOKYO 00000658 009 OF 011


reforms on the widening wealth gap took center stage in a meeting
of the House of Representatives Budget Committee yesterday. Four
questioners from the Liberal Democratic Party (LDP) stressed the
positive results achieved through the reforms and the need for
continued reform efforts. But the meeting underscored the fact
that views are not unified among LDP members on specific ways of
promoting reforms.

Among the four LDP members, Policy Research Council Chairman
Nakagawa, a close aide to Prime Minister Koizumi, took the floor
as the first questioner. Nakagawa denounced the opposition camp's
criticism of the negative aspects of the Koizumi reform
initiative. Nakagawa said:

"Thanks to the Koizumi reform drive, we can finally see light in
the Japanese economy. But (if reforms are discontinued,) we will
put the economy back in darkness again and make Japan one of the
losers in the international community. It is utterly foolish to
stop the reforms from the viewpoint of narrowing the wealth gap
and retrace our steps backward."

Other questioners also emphasized: "The result of the reforms is
a separate matter from the widening gap in the society."

However, former Labor Minister Fumiaki Ibuki, chairman of the
Ibuki faction, expressed apprehension about reforms going too far
through deregulation. Ibuki made the following remarks:

"It is necessary for the ruling parties, which are responsible
for the cabinet, to promote reforms. But when they are headed the
wrong way, the brakes must be applied. . . . Unless (market and
competitive principles) are used consciously and modestly,
problems like the wealth gap will unavoidably emerge. . . . I
hope the prime minister will also grapple with constitutional
revision, a revision of the Basic Education Law, and a
resuscitation of local communities and families with earnest, as
was done for the postal privatization issue."

Meanwhile, LDP cabinet ministers also indicated slightly
different stances in their Diet replies on future structural
reforms. Minister of Economy, Trade, and Industry Nikai
reiterated the need for efforts to dissolve economic
discrepancies between cities and farming villages, saying:
"Reform is a wonderful word, but regional gaps are now apparent.
We would like to work out (official aid measures) and present
bright prospects for the Japanese economy."

15) Policy Research Council Chairman Nakagawa comes up with
rising-tide policy; Aimed to double income through 4% growth in
GDP

MAINICHI (Page 5) (Excerpts)
February 7, 2006

Hidenao Nakagawa, chairman of the Liberal Democratic Party (LDP)
Policy Research Council during yesterday's Lower House Budget
Committee session in the Diet came up with a rising-tide policy
of aiming for an annual growth rate of 4% for nominal gross
domestic product (GDP). He has thus taken the offensive on a
mounting argument denying the Koizumi reform initiative, by
advocating an economic policy, premised on progress in the
government's reform efforts. He stressed that under the proposed

TOKYO 00000658 010 OF 011


policy, national income will double over less than two decades, a
policy that sounds like a second coming of the Ikeda cabinet's
income doubling plan. This policy is, however, already drawing
criticism as being pie in the sky.

Policy proposed to counter denial of reform efforts; Criticism
being heard from fellow LDP lawmakers

Nakagawa is motivated by the desire to take the lead on economic
policy, by helping to bring about a premiership under Shinzo Abe
through a rising-tide policy. This policy will likely become a
main contentious issue in the race to choose a successor to Prime
Minister Koizumi.

The rising-tide policy consists of two growth strategies and five
policy items intended to materialize them. The policy aims to
attain 4% growth, by strengthening the nation's international
competitive edge and combining various financial policies, on the
basis of progress in the structural reforms. Nakagawa also
referred to a possible introduction of an inflation target,
noting, "It is a common practice throughout the world to aim for
an inflation of 2 - 3 % ."

16) Defense chief suggests giving consideration to locals while
affirming Cape Henoko plan

ASAHI (Page 4) (Full)
February 7, 2006

In connection with the fact that Mayor Tateo Kishimoto of Nago, a
relocation site for US Marine Corps Futenma Air Station, released
a statement the other day rejecting separate talks with the
government, Defense Agency Director General Fukushiro Nukaga told
a press conference yesterday:

"Talks are underway between Japan and the United States based on
principles in an interim report. We have been working hard to
minimize the local burden."

Nukaga thus indicated that the government would give
consideration to flight routes and noise while suggesting
maintaining a Cape Henoko plan, as agreed upon between Japan and
the US.

Defense Agency Administrative Vice Minister Takemasa Moriya also
stressed in the press conference yesterday that the government
would keep working on Nago to persuade the city to accept the
Cape Henoko plan.

17) Global ban on boneless beef exports likely to be lifted with
OIE's proposal for easing the current guideline allowing exports
of cattle aged at 30 months or younger; MAFF skeptical, saying,
"It's questionable from scientific point of view"

YOMIURI (Page 2) (Full)
February 7, 2006

The OIE, a Paris-based world organization for animal health that
sets the international guidelines against BSE, has indicated to
its member nations a proposal for revision to the guidelines
against BSE, the Yomiuri Shimbun learned yesterday. According to
the proposal, the present requirement of beef trade allowing free

TOKYO 00000658 011 OF 011


trade of boneless beef from cattle aged 30 months or younger will
be eased to allow exports of boneless beef from cattle of all
ages. Japan's Ministry of Agriculture, Forestry and Fisheries
(MAFF) and other government agencies are critical of the revision
proposal, arguing: "That is questionable from a scientific point
of view." The revision proposal will be put on agenda for
discussion at the OIE general assembly slated for May.

MAFF and the Ministry of Health, Labor and Welfare (MHLW) will
hold an expert meeting today and discuss the OIE's proposal.
Based on views indicated at that meeting and other opinions, the
government is expected to determine its attitude. Japan has
stated that the condition for the second resumption of US beef
imports is to remove the specified risk materials, such as
brains, from cattle younger than 20 months. If the OIE revision
is approved, the United States is likely to increasingly pressure
Japan.

SCHIEFFER