JAPANESE MORNING PRESS HIGHLIGHTS 11/24/06

UNCLAS SECTION 01 OF 10 TOKYO 006695 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 11/24/06 Index: 1) Top headlines 2) Editorials 3) Prime Minister's daily schedule Defense and security issues: 4) Government plans to continue development measures for northern Okinawa as incentive for acceptance of Futenma relocation plan 5) JDA chief Kyuma: If Itokazu had won the Okinawa governor's race, Tokyo prepared to restrict that office's base-related powers 6) Government is split on revision of Fukuda statement that MD for self-defense use only 7) Japan's NSC should be operating by next February after issues of framework and authority worked out 8) LDP policy chief Shoichi Nakagawa against a fourth no-nuclear principle: not talking about nuclear weapons 9) Minshuto (Democratic Party of Japan) may conditionally accept the bill raising JDA to a ministry status 10) Prime Minister ABE eager to bring Japan, US, Australia, and India together for a strategic dialogue but denies that the goal is to check China 11) Komeito head Ota in Moscow meets Russian parliamentary speaker, both agree on need for progress on territorial issue 12) China blasts former Prime Minister Mori for visiting Taiwan Political agenda: 13) About 80 or half of "town meetings" during Koizumi administration to discuss policy issues with local communities were rigged by pre-planned replies 14) Postal rebel Hiranuma's LDP reinstatement put off for a while 15) LDP wavering on issue of reinstating the postal rebels 16) Economy's expansion has overtaken Japan's previous record long period of growth Articles: 1) TOP HEADLINES Asahi: Equal treatment between part-timers, regular workers to be specified in the bill revising the Part-Timers Law Mainichi: Nationwide poll of governors: 22 governors point out "abuses of multiple election", but 40% of respondents say "no need" for restrictions on term of office Yomiuri: Coordination underway in government, ruling coalition to apply a pension system for part-timers on the conditions of "one full year of service" and "a monthly salary of 98,000 yen" Nihon Keizai: Mazda to construct factories in Thailand, North America to use them for strategic production bases for Ford Sankei: Ministry of Health, Labor and Welfare to remove regulations on TOKYO 00006695 002 OF 010 working hours to meet merit-based pay system Tokyo Shimbun: Cabinet Office survey: Nearly 80 government-sponsored town-hall meetings or 50% of the total held with prearranged questions Akahata: Prevention against making the Basic Education Law for worse: A 10,000-rally involving teachers and labor unions to take place tomorrow in Hokkaido 2) EDITORIALS Asahi: (1) Robust economy exceeding "Izanagi" boom: Crucial time to expand consumption (2) "Three-way mergers": Making a "Black Ship" fuss disgraceful Mainichi: (1) Tax system reform: It's unconvincing to implement corporate tax cuts first (2) Rights of part-timers: Youth Union of part-timers began defending its members Yomiuri: (1) Corporate interim closing: How long will firms can rely on this boom? (2) Nepal situation: Anxieties still remain even after the signing of a reconciliation pact Nihon Keizai: (1) Team effort needed for Japanese version of NSC (2) Nonlife insurance companies must compete for service targeting policy holders Sankei: (1) Budget compilation: Fiscal reconstruction essential for economic growth (2) Crime tendencies: Quick action needed to prevent sex crimes involving school children Tokyo Shimbun: (1) Crime Victim White Book: Listing measures insufficient (2) Prevention of global warming: Kyoto Protocol still valid Akahata: Budget compilation for FY2007: Put a stop to cutting off needy people from social security 3) Prime Minister's Official Residence (Kantei) Prime Minister's schedule, November 22 NIHON KEIZAI (Page 2) (Full) November 23, 2006 07:48 Met Deputy Chief Cabinet Secretary Suzuki 08:59 Upper House Basic Education Law Special Committee. TOKYO 00006695 003 OF 010 12:00 Arrived at the Kantei. 13:01 Upper House Basic Education Law Special Committee. 17:07 Met Chief Cabinet Secretary Shiozaki. 17:12 Met with Election Committee Chief Secretary Yatsu. Then attended a meeting of cabinet ministers related to monthly economic report. 18:49 Met with Seikei School Executive Director Kishi at Akasaka Prince Hotel. The attended a meeting to celebrate his assuming office as prime minister hosted by the alumni association. 20:10 Met with Kishi and President Kurita. 21:00 Met with former fellow students of the archery club of Seikei University at Top of Akasaka Lounge at the hotel. 22:19 Returned to private residence in Tomigaya. Prime Minister's schedule, November 23 NIHON KEIZAI (Page 2) (Full) November 24, 2006 Spend daytime at home in Tomigaya. 17:38 Attended Harvest Festival held at the Imperial Palace. 20:53 Arrived at his private residence. 4) Futenma relocation: Gov't to continue economic development package for Okinawa's northern localities NIHON KEIZAI (Page 2) (Abridged) November 24, 2006 The government has entered into coordination to continue its incentive package of economic development measures for Okinawa Prefecture's northern municipalities in connection with the issue of relocating the US Marine Corps' Futenma Air Station in the central Okinawa city of Ginowan to the island prefecture's northern coastal city of Nago. The government once set forth its intention to discontinue the economic development package at the end of the current fiscal year. However, Hirokazu Nakaima, backed by the ruling parties, won the recent Okinawa gubernatorial election. In response, the government judged that its continuation of the economic package would lead to an environment for local communities to accept the planned relocation of Futenma airfield. The government is planning to continue the package as a provisional measure for next fiscal year and later. TOKYO 00006695 004 OF 010 The northern economic package is for 12 municipalities in the northern part of Okinawa's main island. The package is to be annually budgeted at 10 billion yen under the Cabinet Office's jurisdiction. The government decided to introduce the package when it made a cabinet decision in 1999 to build an alternative facility in waters off Nago City's Henoko district. In May this year, Japan and the United States agreed on a modified plan for Futenma relocation to build a V-shaped pair of airstrips in a coastal area of Camp Schwab. The new cabinet decision superseded the 1999 decision. The government announced its intention to discontinue the package at the same time, reasoning that the Futenma relocation plan made no progress in spite of investing a huge amount of public money. The Defense Agency is planning to establish a new system to subsidize Okinawa's northern localities. The agency has been seeking to launch a system under which the amount of subsidies to base-hosting localities in the nation varies according to the degree of their cooperation on the planned realignment of US forces in Japan. The agency was poised to present legislative measures to the Diet in its ordinary session to be convened in January next year. 5) Gov't planned to transfer governor's authority over Futenma if Itokazu became governor: Kyuma TOKYO (Page 5) (Full) November 24, 2006 If Keiko Itokazu had won Okinawa Prefecture's recent gubernatorial election, the government would have planned special legislation intended to transfer the authority of local governors to the state for the use of public waters, Defense Agency Director General Fumio Kyuma revealed yesterday in a meeting of the ruling Liberal Democratic Party's House of Representatives members in Nagasaki City. Itokazu was a candidate opposing the planned relocation of the US Marine Corps' Futenma Air Station in the central Okinawa city of Ginowan to a site within the island prefecture. "I wondered what to do if we lost the Okinawa election," Kyuma said. He added: "I thought that we must carry it (Futenma relocation) out even by making a law and even by unilaterally transferring the governor's authority to the state. I made up my mind to do so even in a forcible way if we lost the election." However, Kyuma indicated that the government would not consider special legislation under Hirokazu Nakaima, Okinawa's governor-elect, who is in a position to conditionally accept Futenma relocation within the prefecture. 6) Japan's defense-only policy wavering with a possible pending review of the Fukuda statement on MD; Government is split on issue TOKYO SHIMBUN (Page 2) (Full) November 23,2006 Hidehiro Honda The government is accelerating the efforts to hurriedly deploy the missile defense (MD) system to deal with North Korea's nuclear threat, as evidenced by its recent nuclear test. When Japan decided TOKYO 00006695 005 OF 010 to introduce the MD system in 2003, then Chief Cabinet Secretary Yasuo Fukuda released a statement noting that the purpose of the system was exclusively to defend the country, but recently Prime Minister SHINZO ABE commented that Japan "will study" cases of intercepting missiles targeting the United States, too. On the other hand, Defense Agency Director-General Fumio Kyuma has objected to Abe's statement. Disarray in the government over its national credo -- defense-only policy -- is coming to the surface. The incident started with Abe's remark in an interview with a US newspaper on Nov. 14: "Why can't we intercept missiles that may target the US by means of the MD system? Is it because doing so corresponds to exercising the right to collective self-defense? We must study such cases." Following Abe, Chief Cabinet Secretary Yasuhisa Shiozaki on Nov. 20 referred to a review of the Fukuda statement, noting, "We'll discuss what is the real intention of the statement." Abe's confirmation of Shiozaki's comments created even more of a stir. Lying behind the remarks by the prime minister and the chief cabinet secretary are certainly America's expectations for Japan to exercise SIPDIS the right to collective self-defense as US Ambassador to Japan Thomas Schieffer stated, "It's an important task to be resolved." But Kyuma has raised an objection to such action. North Korea's Taepodong 2 missiles, which reportedly could reach the US, fly at a height of 1,000 or more kilometers, so it would be "physically impossible" for Aegis-ship -mounted missiles with the range of 300 or so kilometers to intercept Taepodong 2 missiles, according to Kyuma. Kyuma also stated that even if intercepting them is possible, the government shouldn't do so by revising the interpretations of the Constitution but it should do so by amending the Constitution. Kyuma on Nov. 21 emphasized that there was no need to review the (Fukuda) statement, saying, "I don't understand what situation (Mr. Shiozaki) had assumed." In 2003, the government repeatedly stressed that "the MD system is to be used for defense-only purpose," as then JDA Director-General Shigeru Ishiba stated. In the background is Japan's exclusively defense-oriented posture, namely, "defending our country and nearby areas." If Japan were to adopt a policy of intercepting missiles that target the US, it would mean a huge departure from the basic principle of self-defense only. At a press briefing on Nov. 21, Shiozaki challenged Kyuma by noting, "Discussion will be held on the assumption that it is possible for Japan to intercept them." The gulf in the government is widening. 7) Experts' council holds first meeting on Japanese version of NSC; Conclusion to be drawn by next February on framework and authority; YOMIURI (Page 2) (Full) November 23, 2006 TOKYO 00006695 006 OF 010 The Council to Strengthen the Kantei's (prime minister's official residence) Functions on National Security (chaired by Prime Minister Abe),a panel tasked with looking into the possibility of introducing a Japan-style National Security Council (NSC) with the aim of strengthening the Kantei's foreign and security policy making, yesterday met for the first time. Participants focused their discussion on the framework and authority that the NSC would have. They decided to reach a conclusion by next February. Based on the panel's conclusion, the government will then submit the legislation necessary to create a Japanese version of the NSC to next year's regular Diet session. The members of the panel chose Nobuo Ishihara, the former deputy chief cabinet secretary, as chairman. In exchanging opinions on functions the envisaged NSC should be equipped with, participants agreed it should (1) consider foreign and security policies from a comprehensive perspective; (2) compile a long-term strategy for the nation; and (3) gather and analyze intelligence. They also decided not to discuss case studies on the right to collective self-defense, as ABE has wished. 8) '4 nonnuclear principles' unacceptable: Nakagawa TOKYO (Page 2) (Full) November 24, 2006 Shoichi Nakagawa, chairman of the ruling Liberal Democratic Party's policy board, delivered a speech yesterday in the city of Gifu. In the speech, Nakagawa voiced his view of arguments in Japan over the recent uproar over the pros and cons of nuclear weapons. "I hear that these days there are the four principles of not producing, not possessing, not allowing nuclear weapons into the country, and not allowing anyone to say anything about nuclear weapons, but I won't accept such four nonnuclear principles," he said. With this, Nakagawa implied that it was strange to suppress talk about the subject. At the same time, however, he stressed that he "accepts the three principles." Nakagawa has recently refrained from speaking about the nuclear issue. In the speech, Nakagawa joked about the issue, indicating that he did not want to go into "round two." He continued, "This time around, I'm afraid, they may forge a fifth principle and start out to say they won't allow anyone even to think (about nukes)." 9) Defense ministry legislation; DPJ undertaking coordination of views on conditioned approval ASAHI (Page 2) (Full) November 24, 2006 The Democratic Party of Japan (DPJ or Minshuto) has started coordinating views on the pending Diet bill upgrading the Defense Agency (JDA) to a ministry with the possibility of approving it. The condition for approval would be a guaranteed in a supplementary resolution and in a committee statement in the Diet of civilian control and prevention of any recurrence of official wrongdoings. The aim is to obtain understanding from those party members cautious about the legislation by attaching conditions. The opposition camp has taken part in intensive deliberations in the current session on such subjects as the bid-rigging incidents involving the Defense Facilities Administration Agency, but it then boycotted deliberations on the bill itself. The DPJ will reach a TOKYO 00006695 007 OF 010 final judgment, after determining whether it has convinced cautious members that the issues of civilian control, prevention of a recurrence of wrongdoings, and nuclear possession arguments made by cabinet ministers have been dealt with. 10) Japan to push for concept of forming strategic dialogue among Japan, US, Australia, India MAINICHI (Page 5) (Excerpts) November 24, 2006 Prime Minister SHINZO ABE aims to reach an agreement with Indian Prime Minister Singh when he visits to Japan on Dec. 13 on forming a strategic dialogue among Japan, the United States, Australia, and India. Japan has already launched working-level talks with the countries concerned in a bid to establish first a "loosely knit body," as expressed by a senior Foreign Ministry official. In the government, though, there is concern that "the proposed body might be taken as a coalition against China." In addition, the US has not revealed a response yet. Difficult negotiations are expected. In a meeting with US State of Secretary Rice in Hanoi, Vietnam, on Nov. 16, Foreign Minister Taro Aso indicated eagerness to aim at bringing about a four-way strategic dialogue, saying, "It is significant to promote talks among Japan, the US, Australia, and India in the Asia-Pacific region." Prime Minister ABE has stressed the need to deepen cooperation with the countries that share such common basic values as freedom and democracy. Even from since assuming office, he has advocated the concept of strategic dialogue with India. Japan has already set up a framework for cabinet minister-level strategic dialogue on security and other issues. But the government is also eager to strengthen ties with India. Japanese officials discussed with visiting Indian National Security Advisor Narayanan late last month on the concept of forming a four-way strategic dialogue. 11) New Komeito head, Russian Federation Council chairman agree to push ahead with territorial talks NIHON KEIZAI (Page 2) (Full) November 23, 2006 Takeshi Kumon, Moscow New Komeito leader Akihiro Ota met on Nov. 22 in Moscow with Sergey Mironov, chairman of the Federation Council of the Federal Assembly of Russia. In the meeting, Ota told Mironov: "It is important for Russia and Japan to use our ingenuity to resolve" the northern territories issue. Mironov responded: "Coming up with a compromise plan is the only way to resolve (the territorial dispute),with both sides meeting halfway." The two officials then agreed on the need to push ahead with territorial negotiations. They also reached an accord to promote exchanges between the New Komeito and Russia's second-largest party, headed by Mironov. Prior to his meeting with Mironov, Ota met with Federation Council Committee on Foreign Affairs Chairman Mikhail Margelov and asked him Russia' cooperation for North Korea's abductions of Japanese nationals in the six-party talks. Margelov stated: "The abduction issue, which is a humanitarian problem, should be placed the center of political dialogue. Russia will speak up also regarding the TOKYO 00006695 008 OF 010 abduction issue." 12) China decries Mori's Taiwan visit TOKYO (Page 5) (Full) November 24, 2006 BEIJING-The Chinese Foreign Ministry severely decried former Prime Minister Yoshiro Mori for his recent visit to Taiwan and his meeting with Taiwanese President Chen Shui-bian and others during his Taiwan visit. "He did not think of China's grave concern and marred China's national interests," the ministry's deputy press chief said in a regular press conference, adding, "China expresses strong dissatisfaction and regret." 13) Cabinet Office survey on "staged questions": Requests for questions made for 80 town meetings TOKYO SHIMBUN (Top Play) (Excerpts) November 24, 2006 For nearly half or about 80 of the 174 town meetings held in the days of the Koizumi cabinet, prearrangements were made for questions to be made, according to survey results revealed by the Cabinet Office yesterday. The survey found that in five out of the eight meetings focusing on educational reform, the Cabinet Office had hand-picked questioners and asked them to present views in line with its scenario. In 25 gatherings on themes other than educational reform, 5,000 yen were paid each to the prearranged questioners, according to the survey. In many other meetings, as well, even if questions were not "staged," the government allegedly asked certain citizens to serve as ringers to pose questions on behalf of the government. 14) Prime Minister ABE implies punishments of those involved in issue of the government's pre-selecting questioners for town meetings; Minshuto to pursue large amount of rewards NIHON KEIZAI (Page 2) (Excerpts) November 23, 2006 At a session of the Upper House Special Committee on the Basic Education Law on Nov. 22, when opposition parties returned to Diet deliberations, Prime Minister SHINZO ABE faced questions about the Cabinet Office's pre-selecting questioners for town meetings on the government's education reform bills. In reply, ABE implied that officials involved in the issue would be punished: "We will clarify where responsibility lies and who were responsible for the staged town meetings." Abe also referred to his own accountability for the matter, noting, "As the chief cabinet secretary at the time I find it regrettable. We will have to find ways to prevent a recurrence." At the Upper House special committee session on Wednesday, Ren Ho, a lawmaker of the main opposition Minshuto (Democratic Party of Japan),pursued the issue as a questioner, presented the copy of an expense analysis sheet, which included: 15,000 yen paid each for TOKYO 00006695 009 OF 010 airport transfer of the cabinet minister as well as for a person who pushed the elevator button at a town meeting hall; 40,000 yen for meeting the minister and other officials and leading them at a hall. She also presented the copy of an advertising agency's invoice. According to the government's inquiries, a total of about 1.99 billion yen was spent for town meetings held from fiscal 2001 through 2006, costing about 10 million yen per town meeting. Ren Ho questioned: "Is it appropriate to pay 15,000 yen for just pushing the elevator button twice in two hours?" 15-1) Lawmaker Hiranuma delays rejoining LDP this year YOMIURI (Page 1) (Excerpt) November 23, 2006 The Liberal Democratic Party (LDP) is now mulling the readmission of 12 independent lawmakers, the so-called "postal rebels," who bolted the LDP last year in opposition to the government's postal-privatization bills. In that context, Secretary General Hidenao Nakagawa met on the evening of Nov. 22 with Takeo Hiranuma, the former trade minister, who represents the postal rebels. In the meeting, Nakagawa told Hiranuma to submit a written pledge before noon of the Nov. 27 that he would support the party's campaign pledges (Manifesto),including the privatization of the postal services. After the meeting, Hiranuma revealed his intention to postpone returning to the party this year. He said: "For me, it is difficult to accept Mr. Nakagawa's demand." 15-2) LDP split over issue of whether to reinstate postal rebels YOMIURI (Page 4) (Excerpts) November 24, 2006 The Liberal Democratic Party is split over a plan to reinstate "postal rebels" in the party. Secretary General Hidenao Nakagawa yesterday presented tough conditions for those who were expelled after voting against postal privatization bills to be allowed to rejoin the party. His stand, though, is evoking negative reactions even in the party executive. The LDP prefectural chapters to which the postal rebels belong are closely watching with a mixed feeling how the negotiations will develop. A final settlement is unlikely to be reached easily. In a meeting of his supporters' association in Higashi Hiroshima yesterday, Nakagawa said emphatically: "The LDP will never bend on its principles. Mr. (Takeo) Hiranuma (former minister of economy, trade and industry) is a person who follows his beliefs. Being faithful to their beliefs might be what politicians should do." On the issue of whether to reinstate the 12 lawmakers who do not belong to any party since being expelled, Nakagawa held negotiations with Takeo Hiranuma, who represents the rebels, on Nov. 22. But no agreement was reached on a plan for their reentry this year, with Hiranuma's rejection to the conditions attached by Nakagawa. The conditions include: (1) Observe the party's manifesto (policy pledges),including the privatization of postal services; and (2) support Prime Minister Abe's policies. In the supporters' meeting yesterday, Nakagawa also said, "The TOKYO 00006695 010 OF 010 confrontation of beliefs might be resolved in the course of discussing a constitutional revision and a regional bloc system (doshusei)," thus indicating a possibility of Hiranuma's return to the LDP. But Nakagawa, in a sense, "declared" that he would not lower the hurdle he set on the issue of postal rebels' reentry. Policy Research Council Chairman Shoichi Nakagawa snapped at Secretary General Nakagawa for his hard-line stance. In a party held SIPDIS by the LDP Gifu Prefectural Chapter yesterday, the policy chief assailed, "Hearing, 'summarize' or "reflect', I remember the Tiananmen Incident (in China). In politics, there should be some compassion." 16) Monthly economic report; Longest economic expansion in post-war years - four years and 10 months -- surpasses Izanagi business boom; Consumption remains weak MAINICHI (Top Play) (Full) November 24, 2006 State Minister for Economic and Fiscal Policy Hiroko Ota on Nov. 22 presented a monthly economic report for November at a meeting of related cabinet ministers. Following sluggish personal consumption, the report's overall assessment of the economy has been revised downward for the first time in a year and 11 months, with the remark, "Consumption is weak." The report, however, maintained the view that the economy is continuing its uptrend. It in effect included the judgment that the current economic expansion, which began in February 2002, has surpassed the Izanagi business boom from Nov. 1965 through July 1970, the longest in the postwar period until now. However, compared with improved business performances, the economic expansion has not fully reached the household economy. One such example is that wages are staying flat. Ota told a news conference, "The overall judgment in the monthly economic report is that the current economic expansion has surpassed the Izanagi business boom." However, since the judgment of the business peak and bottom is made later by the Cabinet Office, based on coincident economic indicators, which show general movements of the economy, and views of experts, formal recognition that the current economic expansion is the longest in the postwar period will not come for a while. The average growth rate of the current economic expansion is 2.4% in real terms and 1.0% in nominal terms, which more correctly indicate consumer feeling that the economy is favorable, showing a big gap with 11.5% in real terms and 18.4% in nominal terms marked in the Izanagi business boom occurred in the high-growth period. The lack of feeling that the economy is booming is largely due to the facts that the rate of the growth has been low and that companies have been constraining wages. SCHIEFFER