JAPANESE MORNING PRESS HIGHLIGHTS 12/01/06

UNCLAS SECTION 01 OF 09 TOKYO 006795 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 12/01/06 Index: 1) Prime Minister's daily schedule North Korea problem: 2) Government-wide view is that restarting six-party talks on North Korea will be difficult this year 3) US, Japan agree that concrete results needed once six-party talks are resumed 4) US, Japan, ROK to seek during six-party talks North Korea's closing of nuclear testing facility 5) Foreign Minister Aso expects IAEA to play important role in denuclearizing North Korea 6) Foreign Minister Aso in JIIA speech outlines new diplomatic strategy centered on universal concepts of "freedom and prosperity" Defense and security agenda: 7) Bill raising JDA to ministry status clears the Lower House 8) Minshuto (Democratic Party of Japan) breaks with the opposition pack to vote in favor of bill creating defense ministry 9) V-shaped runway to be built on shores of Camp Schwab will be capable of emergency landings in either direction, with aircraft flying over local housing Political agenda: 10) National referendum on constitutional reform procedures will let 18 year olds vote 11) Minshuto engaged in intensive discussion now on whether to approve draft basic policies 12) Criticism erupts in Minshuto about some of the key parts of draft set of basic policies 13) Scandal over misuse of funds results in resignations of New Komeito members of Tokyo assembly Articles: 1) Prime Minister's Official Residence (Kantei) Prime Minister's schedule, Nov. 30 NIHON KEIZAI (Page 2) (Full) December 1, 2006 08:05 Met with Deputy Chief Cabinet Secretary Suzuki at Kantei. 09:00 Attended a meeting of the Upper House Special Committee on the Basic Education Law. 12:16 Arrived at Kantei. 13:30 Met with the government's Tax Research Council Chairman Honma, joined by Cabinet Office Vice Minister Uchida and others. 13:45 Attended the Lower House plenary session. TOKYO 00006795 002 OF 009 14:28 Met with OK Wave President Kaneto Kanemoto and Chiiki Ishin Group Representative Noriko Kondo at LDP headquarters. Afterwards, joined a round-table discussion with them for the New Year issue of the LDP organ paper "Liberal & Democratic." 15:35 Met with Nihon Keizai Shimbun Operating Officer Teruto Akiyama. 16:10 Met with Cabinet Intelligence Director Mitani at Kantei. Later, met with Shiseido Honorary Chairman Yoshiharu Fukuhara, a member of the Japan-France Club. 17:21 Met with State Minister in Charge of Economic and Fiscal Policy Hiroko Ota, and then attended a meeting of the Council on Economic and Fiscal Policy. 19:30 Met with Special Advisor Seko. 19:32 Returned to residence in Kantei. 2) Many government officials now believe resumption of six-party talks within this year is difficult YOMIURI (Page 4) (Full) December 1, 2006 United States Assistant Secretary of State for East Asian and Pacific Affairs Christopher Hill met his counterpart, Kenichiro Sasae, at Narita Airport. Hill briefed Sasae on his recent talks in Beijing with the chief delegates of North Korea and China. Hill quoted the North Korean representative as saying in response to his call on North Korea to scrap its nuclear ambitions, "I will bring the proposal back to my home country and look into it." Focusing on the fact that no date has been set for the next round, though mid-December was eyed for the talks, a number of government officials have begun to take the view that it might be difficult to resume the six-party talks by the end of the year. 3) Japan, US confirm need to produce "concrete results in resumed six-party talks" NIHON KEIZAI (Page 2) (Full) December 1, 2006 The Japanese Foreign Ministry's Asian and Oceanian Affairs Bureau Director-General Kenichiro Sasae, the chief delegate to the six-party talks on the North Korean nuclear issue, yesterday met at Narita Airport with his US counterpart in the six-party talks, Assistant Secretary of State Christopher Hill, who stopped over here in Japan on his way back to the United States from Beijing, where he had had trilateral talks with China and North Korea. According to Hill, the US demanded that North Korea come up with a concrete program for the dismantlement of its nuclear programs, and in response, the North Korean negotiators said, "We will take home your request and discuss it." Both Sasae and Hill confirmed the need to produce concrete results, TOKYO 00006795 003 OF 009 such as Pyongyang's freezing its nuclear-weapons-related facilities and accepting inspections by the International Atomic Energy Agency (IAEA) once the six-party talks are resumed. Later in the day, a Japanese government official commented, "America has made quite a tough demand," and revealed that the US and North Korea in their recent dialogues had not set a deadline for Pyongyang to come up with a reply. After the meeting with Hill, Sasae told reporters: "I hear the North Koreans have now deepened their understanding toward the common position taken by the US and Japan. We hope to see a constructive response from the North Koreans." When asked about whether the six-party talks will be restarted before the end of the year," Sasae stressed: "That possibility has not been ruled out." Meanwhile, Prime Minister Abe, when asked yesterday about some media reporting that North Korean Vice Foreign Minister Kim Kye Gwan remarked, "Japan is not qualified to join (the six-party talks), made this comment in a firm tone: "It's useless to react to each remark. We must use the six-party talks as the first step to push North Korea to scrap its nuclear weapons programs." 4) US requests include the closing of DPRK's nuclear testing ground ASAHI (Page 3) (Full) December 1, 2006 Tadahisa Takatsuki, Seoul The details of America's requests made to North Korea during the recent trilateral talks in Beijing among the chief delegates from the United States, North Korea, and China were revealed. The talks were held in Beijing until Nov. 29 with the aim of reopening the now stalled six-party talks. According to several sources familiar with the talks, the US called on the North to freeze or close its nuclear development-related facilities, such as the graphite reactor at Yongbyon and to close the testing ground in Hamgyongbuk-do's Punggyeri, where the recent nuclear test was conducted. These are a part of a priority list of requests indicated by the US to the North. The priority list consists of four items. One is that the North return to the International Atomic Energy Agency (IAEA) and again accept IAEA inspections. The other is that the North REPORT on all of its nuclear development plans and its nuclear facilities. Ahead of the resumption of the six-party talks, the US took the lead in forming this list, insisting that the talks cannot go ahead under the same conditions that were applied before the nuclear test. Reportedly, the list was approved during such meetings as the one held in Hanoi among the chief delegates from Japan, the US, and South Korea, members of the six-party talks. According to US Assistant Secretary of State Christopher Hill, North Korean Vice Foreign Minister Kim Gye Gwan said, "I will take it home and discuss it." Meanwhile, in the US-South Korea summit talks held in Hanoi on Nov. 18, President Bush conveyed to the South Korean president that the United States is ready to sign a document declaring an end to the Korean War, where there is currently only a cease-fire, according to a South Korean government official. TOKYO 00006795 004 OF 009 5) Foreign Minister Aso meets with IAEA director-general, expresses hope for IAEA role in leading DPRK to drop its nuclear programs NIHON KEIZAI (Page 2) (Full) December 1, 2006 Foreign Minister Taro Aso late yesterday met with International Atomic Energy Agency (IAEA) Director-General Mohammed ElBaradei at his ministry's Iikura Guest House and on the issue of how to dismantle North Korea's nuclear weapons programs, he stated: "I hope to see the IAEA play a vital role in this context at an appropriate time in the future." ElBaradei, analyzing the reason why the North is intent to possess nuclear weapons, stated: "Presumably, that country is trying to go nuclear simply for the survival of the nation, not to exercise influence in the region." 6) Aso unveils "arc of freedom and prosperity" initiative to support development of Asia, East Europe YOMIURI (Page 2) (Abridged slightly) December 1, 2006 In a lecture meeting held yesterday at a Tokyo hotel by the Japan Institute of International Affairs (JIIA),Foreign Minister Taro Aso unveiled a new foreign policy called "an arc of freedom and prosperity" to support the efforts of Southeast Asia, Central Asia, and East Europe for democracy and economic development. The aim is to clarify Japan's global contributions and realize national interests by, for instance, securing natural resources. The government intends to define it as the Abe administration's key diplomatic strategy along with the Japan-US alliance and neighboring diplomacy. In his speech, Aso said: "We are going to add a new key element to the country's foreign policy of enhancing the Japan-US alliance and relations with neighboring countries, such as China, South Korea, and Russia." He then explained that Japan will: (1) develop "diplomacy of values" putting high priority on such universal values as democracy, freedom, human rights, and rule of law; and (2) play an active role in creating an "arc of freedom and prosperity" connecting emerging democracies around the Eurasian Continent. Specifically, Japan's support to that region would include continued support for Cambodia, Laos, and Vietnam; assistance to the independent development of Central Asia and the stability of Afghanistan; and the stability of Georgia, Ukraine, Azerbaijan, and Moldova. Japan intends to establish a framework of dialogues with various countries, while pursuing cooperation with the EU and NATO. The government also plans to work closely with firms and NGOs actively conducting activities in those areas. 7) Defense ministry bill clears Lower House YOMIURI (Page 1) (Full) December 1, 2006 A set of bills to upgrade the Defense Agency (JDA) to a ministry were adopted at yesterday's Lower House plenary session getting the approval of the ruling parties - the Liberal Democratic Party (LDP) and the New Komeito - the Democratic Party of Japan (DPJ or Minshuto),and the People's New Party (PNP or Kokumin Shinto),and was sent to the Upper House. The Japanese Communist Party and the TOKYO 00006795 005 OF 009 Social Democratic Party voted against the bills. The bills will be enacted in mid-December. A defense ministry is expected to come into existence next January. The set of bills is intended to upgrade the JDA, currently the Cabinet Office's external organ, to an independent ministry and turn the JDA director general into a defense minister. The Self-Defense Forces' duties, such as international peacekeeping operations, transportation of Japanese nationals abroad in the event of emergency and providing logistical support in situations in areas surrounding Japan, will also be upgraded from additional duties to mainstay duties. Integration of the Defense Facilities Administration Agency (DFAA) into the defense ministry in fiscal 2007 has also been incorporated. If the JDA becomes a defense ministry, the defense minister will be empowered to directly make proposals at cabinet meetings or file budgetary requests with the finance minister, over which the prime minister, the head of the Cabinet Office, currently has authority. The DPJ approved the bills, but Takahiro Yokomichi, Lower House vice speaker (temporarily left the party to serve in the post),opposed them. The Lower House Security Committee met prior to the plenary session and adopted an additional resolution calling on the government to exercise civilian control in a far-reaching manner and investigate wrongdoings involving government officials, such as the bid-rigging incident involving the DFAA. 8) Minshuto, keeping in mind "ability to take power," approves defense ministry legislation, causing cracks in joint opposition front YOMIURI (Page 4) (Excerpts) December 1, 2006 Minshuto (Democratic Party of Japan) yesterday approved bills to upgrade the Defense Agency (JDA) to ministry status, changing its conventional confrontational stance against the government and the ruling camp. The policy switch reflects growing concern among conservative members that unless the party makes a realistic response regarding security issues, its ability to hold the reins of government might be questioned. Now that the coalition among Minshuto, the Japanese Communist Party, and the Social Democratic Party has collapsed, some effects are likely to appear in the management of the final stage of the current Diet session. In Minshuto, many members reportedly have favored the bills. Party head Ichiro Ozawa was also calling for elevating the JDA before his Liberal Party merged with Minshuto. Prior to the Okinawa gubernatorial election on Nov. 19, though, the main opposition party expressed opposition to taking a vote on the bills. The party wanted to avert a fissure in the opposition coalition, as well as a negative impact from appearing on the election outcome as a result of taking time in unifying views. Following Minshuto's defeat in the election, criticism erupted against Ozawa's confrontational stance against the ruling camp. In response, the executive finally launched an effort to unify views. Some voiced opposition to a measure to upgrade peacekeeping operations overseas to a main duty, one assailing: "The initial role TOKYO 00006795 006 OF 009 of the SDF is to engage in operations based on the exclusively defense-oriented policy. No public agreement has been obtained for its overseas activities." But such voices were pushed out by views in favor of the bills held mainly by conservative members. 9) Government to allow US aircraft to pass over residential areas to land at Nago V-shaped runways in both directions in emergency TOKYO SHIMBUN (Top play) (Abridged slightly) December 1, 2006 The government decided yesterday to allow US military aircraft to use the V-shaped pair of runways to be constructed on the coastline of Camp Schwab in Nago - the controversial relocation site for Futenma Air Station - in both directions strictly in emergency situations in compliance with a US request. The government intends to formally convey its decision to the US side at a meeting of senior foreign and defense officials of the two countries on Dec. ¶4. If two-way traffic is allowed, US aircraft would fly over residential areas. The government's decision is bound to draw fire from affected local municipalities that have accepted the V-shaped plan, believing flight paths would avoid residential zones. An agreement was reached in April this year between the government and affected municipalities, including Nago, to allow US aircraft to use the northern runway for landings and the southern runway for takeoffs in the event of north wind and vice versa in south wind. They decided not to allow two-way traffic in order to reduce accidents and noise by limiting flight paths to areas over the ocean. This agreement was designed to allow US aircraft to land only from the south in the event of north wind and from the north in a south wind. But in bilateral talks in October, the US asked Japan to allow two-way traffic in emergency situations regardless of wind direction. Japan has been studying the US request. As a result, the Defense Agency has concluded that the runways should be used in two directions strictly in emergency situations, such as a life-or-death situation concerning crewmembers or a lack of fuel. 10) LDP to accept idea of lowering age of eligible voters for national referendum to 18 years SANKEI (Top Play) (Excerpts) December 1, 2006 Concerning the national referendum bill needed for procedures to revise the Constitution, Hajime Funada, director of the Liberal Democratic Party Constitutional Research Special Committee, yesterday proposed at the Committee's examination task force meeting a plan to lower the age of voters eligible for a national referendum to 18 after a period of about three years. The Democratic Party of Japan (DPJ or Minshuto) is welcoming the proposal. With this proposal, the bill has taken a big step forward to passage during next year's regular Diet session, setting aside passage during the current session, which will come to a close soon. If civil law and other laws are revised in conjunction with this, the age of majority TOKYO 00006795 007 OF 009 in Japan will become 18 in the near future. This will likely have a major impact on various aspects of the social system. Citing reasons for lowering the voting age, Funada noted during deliberations at the examination panel: "Many young people aged 18 or 19 are active and discuss the issue very well. People aged 18 and over have the right to vote in many foreign countries. Main rules under the national referendum law should set the voting age at 18 and over." He then said: "A supplementary provision will stipulate a three-year-or-so provisional measure and set that civil law and the Public Office Election Law, which stipulate the age of majority, and criminal law and procedures, which separates minors and adults, should be revised. During the period of the adoption of the provisional measure, the voting age will remain 20 and over." The ruling camp's original plan set the age of voters eligible for a national referendum at 20, the same as the age set under the Public Office Election Law. The proposal this time is apparently a compromise with the DPJ proposal. The DPJ has insisted that the voting age should be 18 and over. Yukio Edano, chairman of the DPJ Constitutional Research Council, during the panel meeting gave high marks to the proposal: "If the cabinet secures revisions to civil law and other related laws, we will take the proposal positively." 11) Minshuto beefing up efforts to unify views on basic policies YOMIURI (Page 4) (Full) December 1, 2006 In a meeting of its Policy Research Council joined by all members at party headquarters yesterday, Minshuto (Democratic Party of Japan) launched an effort to unify views on its basic policies, which the party aims to finalize by year's end. Their draft includes measures to: (1) approve limited use of collective self-defense; and (2) keep the consumption tax at 5% and use all revenues to finance pension payments. In the meeting, former head Seiji Maehara criticized the party's decision of limiting the use of collective self-defense only to a case in which (Japan) is attacked suddenly and illegally. He claimed: "There will be no case that meets the condition. This is an ambiguous and ideological concept." Maehara also denounced the call for keeping the current consumption tax rate, saying, "The measure might be taken as an election ploy." By accelerating the process of formulating the party's basic policies, Minshuto aims to erase the criticism that the party is not united on policy and to be ready to devote itself to campaigning for the House of Councillors election next summer. On the defense ministry legislation and other security issues, however, the party is still divided. Things are unlikely to proceed as anticipated by the executive. 12) Minshuto's "administrative policies" draw criticisms TOKYO SHIMBUN (Page 2) (Abridged) December 1, 2006 The major opposition Munshuto (Democratic Party of Japan) yesterday kicked off full-scale discussions on its draft set of basic policies TOKYO 00006795 008 OF 009 for running the government. The plan to finance the pension programs totally with consumption tax revenues while keeping the rate at 5% drew fierce objections. Attended by some 100 Minshuto lawmakers of the two houses of the Diet, the meeting pointed out problems associated with the plans drafted by President Ichiro Ozawa. Former President Katsuya Okada and others urged the party to continue upholding the plan to raise the consumption tax by 3 points, as was mentioned in the party's campaign pledges for the Lower House election last year. Maehara also criticized the draft plan partially allowing the country to exercise the right to collective self-defense without dwelling on the history of discussions on whether it is individual or collective self-defense as ambiguous and ideological. The party plans to produce a final plan before the end of the year after holding several meetings. 13) Meguro Ward Assembly: Six New Komeito members, assembly chairman quit TOKYO SHIMBUN (Page 29) (Excerpts) December 1, 2006 The Tokyo Meguro Ward Assembly at yesterday's plenary session formally accepted letters of resignation submitted by all six Assembly members who belong to the New Komeito to take responsibility for the improper use of administrative affairs investigation expenses. Chairman Nobuo Miyazawa of the Liberal Democratic Party (LDP) also resigned to take responsibility for the unusual situation in which all members of the second largest group resigned. The six New Komeito members whose resignation was accepted are Takayoshi Shimazaki, Ichiro Tawara, Kunio Kobayashi, Yoshio Terashima, Eriko Kawasaki and Yoji Nakajima. The 36-seat Assembly will have eight vacancies, but there will be no by-elections. Nearly one-fourth of the seats will remain vacant until next spring's unified local elections. The six New Komeito members who submitted letters of resignation did not attend the plenary session. Miyazawa also allegedly spent funds in an inappropriate manner, as the financial audit carried out in response to a filed by ward residents unveiled his purchase of a cushion with the fund. However, when he announced his resignation as chairman at the plenary session, he did not touch on that at all. The ruling party at the plenary session adopted a censure motion against opposition party members who have pursued the series of improper uses of the funds. The opposition camp submitted a resolution urging Miyazawa, who stepped down as chairman, to resign. The uproar during the plenary session continued into the night. Checks by chairman did not function at all The Meguro Ward Assembly has an agreement on the criteria of usage TOKYO 00006795 009 OF 009 of funds for administrative affairs investigation. Under the agreement, Assembly members submit spending reports to the chairman, and the assembly secretariat checks the propriety of the reports at the request of the chairman. However, the agreement is a so-called gentleman's agreement with no legal power. The chairman himself was found to have spent funds in an improper way, revealing that the checking function did not work at all. SCHIEFFER