JAPANESE MORNING PRESS HIGHLIGHTS 12/07/06

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E.O. 12958: N/A TAGS: OIIP KMDR KPAO PGOV PINR ECON ELAB JA SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 12/07/06 Index: 1) Top headlines 2) Editorials 3) Prime Minister's daily schedule 4) Kyodo poll: Sudden drop in support rate for Abe Cabinet to 48.6% attributed to public reaction premier's DECISION on reinstating postal rebels into LDP 5) Government planning to send police for PKO in East Timor, first time in 7 years for civilian dispatch for such service 6) Tokyo sees no radical change in US policy toward IRAQ but careful watching White House response to latest critical report Defense and security issues: 7) Deputy Under Secretary of Defense Lawless: If Japan doesn't intercept missile heading over Japan toward the US, it's "crazy" and "not an alliance then" 8) Upper House deliberating bill elevating JDA to a ministry 9) JDA upgrade bill expected to be enacted on Dec. 13 Diplomatic agenda: 10) Prime Minister Abe attending the East Asia Summit tomorrow to announce and energy conservation aid plan 11) Japan, China, South Korea meet trilaterally on easing investment restrictions 12) Nishida appointed Ambassador to Canada 13) UNDP asks Japan to make efforts to reach international ODA outlay target of 0.7% of GNI 14) Japan urged to join the International Criminal Court 15) Former Prime Minister Koizumi says he had wanted to make a third trip to Pyongyang Political agenda: 16) Farm Minister Matsuoka, when he was LDP official in charge of avian flu policy, took large contributions from the poultry industry 17) LDP reaches general agreement on the road tax issue 18) Minshuto (Democratic Party of Japan) still hung up internally over finalizing its policy platform Articles: 1) TOP HEADLINES Asahi: Four-Hospital Council to send unpaid bills to National Health Insurance and other insurers Mainichi Yomiuri and Sankei: Iraq Study Group report urges President Bush to withdraw all US combat troops from IRAQ by spring 2008 Nihon Keizai: Elpida to finance 800 billion yen for new Taiwan chip plant Tokyo Shimbun: Poll: Cabinet support plunges to 48.6% ; 67.9% do not support readmission of postal rebels TOKYO 00006877 002 OF 010 Akahata: Calls for more discussion on Basic Education Law revision dominate public hearings yesterday 2) EDITORIALS Asahi: (1) Japan-Australia FTA: Agricultural reform essential (2) Nepal moving toward democracy Mainichi: (1) Pork tariff evasion case exposes need to review system (2) Teacher's disturbing website overlooked Yomiuri: (1) Shortage of nurses serious (2) Drivers with dementia should hang up car keys Nihon Keizai: (1) Steel realignment must follow tie-ups among three Asian giants (2) Digital terrestrial broadcasting requires improved viewing system Sankei: (1) Road-related taxes must be used for general purposes (2) Extended ASDF IRAQ mission comes with international responsibility Tokyo Shimbun: (1) Business circles and politics: Pay taxes before making political donations (2) Kinmirai Tsushin fraud case Akahata: (1) Burden on the handicapped must be reduced 3) Prime Minister's Official Residence (Kantei) Prime Minister's schedule, Dec. 6 NIHON KEIZAI (Page 2) (Full) December 7, 2006 09:50 Met Chief Cabinet Secretary Shiozaki at Kantei. 10:10 Met Deputy Chief Cabinet Secretary Shimomura, Foreign Ministry Deputy Foreign Minister Yabunaka, Asian and Oceanian Affairs Bureau Director General Sasae, and others. Joined by Special Advisor Seko. 12:00 Met journalist Soichiro Tawara, Dentsu Supreme Advisor Yutaka Narita, Central Japan Railway Company Chairman Kasai, and others at the Garden Court Club in the Hotel New Otani. 13:06 Attended a meeting of the "Wives Network" of LDP lawmakers' wives at the Akasaka Prince Hotel. 14:45 Met Finance Minister Omi at Kantei. Later met former Foreign TOKYO 00006877 003 OF 010 Minister Machimura and Central Union of Agricultural Cooperatives Chairman Miyata. Followed by JICA President Sadako Ogata. 6:09 Met Cabinet Intelligence Director Mitani. Followed by State Minister in Charge of Economic and Fiscal Policy Ota, Special Advisor Nemoto, Assistant Deputy Chief Cabinet Secretary Saka, and others 17:03 Attended a meeting of the Intellectual Property Strategy Headquarters. 18:46 Dined with Upper House Secretary General Katayama and others at a restaurant in the Hotel Okura. Joined by Upper House LDP Caucus Chief Aoki, Policy Research Council Chairman Nakagawa, and Secretary General Nakagawa. 20:26 Met Shiozaki, Deputy Secretary General Ishihara and others at a Japanese restaurant in the same hotel. 21:35 Returned to his official residence. 4) Poll: Cabinet support tumbles to 48.6% TOKYO (Top play) (Abridged) December 7, 2006 The rate of public support for Prime Minister Shinzo Abe and his cabinet was 48.6% in a telephone-based spot nationwide public opinion survey conducted by Kyodo News on Dec. 5-6 after the ruling Liberal Democratic Party's reinstatement of postal rebels. The survey posted a sharp drop of 7.9 percentage points from a previous survey conducted Nov. 25-26. The Abe cabinet's support rate was 65.0% right after its inauguration in September. However, it continued to go down and fell below 50% in two months. The nonsupport rate was 35.3%, up 11.2 points from last time. The LDP recently reinstated 11 independent lawmakers who voted against the government's now-enacted postal privatization bills in the Diet last year as LDP members and left the LDP. In the survey, respondents were asked whether they support those postal rebels' return to the LDP. In response to this question, a total of 67.9% answered "no." Even among LDP supporters, more than half, or 53.2%, were negative about their return to the LDP. Their return to the LDP has not won public understanding, and this is presumably why the support rate went down. In the breakdown of public support for political parties, the LDP stood at 44.6% (43.3% in the last survey),and the leading opposition Democratic Party of Japan (Minshuto) was at 20.3% (16.4% in the last survey). The New Komeito, the LDP's coalition partner, was at 3.5%. Among other parties, the Japanese Communist Party was at 3.0%, the Social Democratic Party (Shaminto) at 1.4%, the People's New Party (PNP or Kokumin Shinto) at 0.6%, the New Party Nippon (NPN or Shinto Nippon) at 0.1%, and no particular party affiliation at 25.0%. 5) Japan to send civilian police to E. Timor for PKO, first such dispatch in 7 years TOKYO 00006877 004 OF 010 ASAHI (Page 2) (Abridged) December 7, 2006 The government decided yesterday to send civilian police officers to the United Nations Integrated Mission in Timor-Leste (UNMIT),an entity for UN peacekeeping operations in East Timor. The government will shortly send a fact-finding team to East Timor to look into the local security situation. After that, the government will make a formal DECISION early next year to send about three civilian police officers from the National Police Agency and local police. Japan first sent civilian officers to Cambodia in 1993 under the Law for Cooperation on United Nations Peacekeeping Operations, or the so-called PKO cooperation law, and next to East Timor in 1999. This is the third time for Japan to send civilian police on a PKO mission overseas. According to government officials, Japan will send a total of about three civilian police officers, broken down into one from the NPA and two from local police headquarters. The United Nations has asked Japan to send 20-30 police officers. However, there are also cautious arguments because of the aggravated local security situation. The government therefore decided to send three or so as it did in 1999. The government is now preparing to send a fact-finding team of officials from the Foreign Ministry and the NPA to East Timor within the month at the earliest. East Timor is interested in Japan's policing system to recover public security, and the country mulls introducing Japan's koban (police box) system. In East Timor, Japanese civilian police officers are expected to pass on Japan's advanced koban system as their main task. 6) Government expects no drastic change in IRAQ policy, determined to watch US response SANKEI (Page 5) (Abridged slightly) December 7, 2006 The government does not think the presentation of a report by the Iraq Study Group to US President George W. Bush will result in a drastic change in the country's IRAQ policy. IRAQ policy is a symbol of the Japan-US alliance. The government intends to carefully watch Washington's response for formulating a new strategy. Against the backdrop of growing calls in the US for reviewing IRAQ policy, the government plans to approve at its cabinet meeting today an extension of the Air Self-Defense Force's airlift mission in IRAQ until July 31 under the IRAQ Reconstruction Support Special Measures Law. Vice Foreign Minister Shotaro Yachi noted: "Japan must consider what to do in the future based on changes in America's policy, but I don't think a situation will arise where the need for the ASDF's airlift mission will disappear immediately or need to be enhanced significantly." The government has rejected America's wishes for dispatching Ground Self-Defense Force troops to IRAQ as well as for the ASDF's expanded activities after the departure of the ground troops. Even after the Republican Party's defeat in the US midterm elections, which were TOKYO 00006877 005 OF 010 fought mainly over IRAQ policy, Tokyo has emphasized that there would be no change in IRAQ policy, with Prime Minister Shinzo Abe declaring, "Japan has been extending reconstruction assistance based on its own decisions." If the government changes its IRAQ policy in linkage to Washington's move, it might be criticized as a liar. In expressing support for the IRAQ war, former Prime Minister Junichiro Koizumi said, "The United States is the only country that has declared, 'We will regard an attack on Japan as an attack on us.'" This rhetoric has helped strengthened the Japan-US alliance. In view of such developments, America's move might affect Japan's own decision. The government is wary of the Bush administration fundamentally reexamining its overall foreign policy because of IRAQ policy. The US Democratic Party is critical of the Bush administration that places high priority on the six-party talks on the North Korean issue, Japan's top priority. If Washington shifts weight to bilateral talks with Pyongyang, Tokyo might be out of the loop. 7) Lawless: "It would be crazy for Japan not to intercept" missile headed for US SANKEI (Page 5) (Full) December 7, 2006 It was confirmed yesterday that during his visit to Japan for senior bilateral consultations, US Deputy Undersecretary of Defense Lawless, in connection with missile defense (MD) and collective self-defense, stated, "It would be crazy if it was clear that a missile was headed for the United States, and Japan had the capability of shooting it down but did not do so." The remark was made to former Defense Agency Shigeru Ishiba by Lawless during their meeting last week, and introduced to the Liberal Democratic Party subcommittee on defense policy studies, which Ishiba chairs. 8) Deliberations on bill elevating the JDA to ministry start in Upper House ASAHI (Page 4) (Full) December 7, 2006 The explanation of the bills upgrading the Defense Agency (JDA) to a ministry and also moving up the Self-Defense Forces' (SDF) overseas operations into primary duties was given in a plenary session yesterday in the Upper House. JDA Director-General Kyuma and other officials took the floor to answer. The bills were approved by a majority of votes from the ruling Liberal Democratic Party (LDP), its junior coalition partner New Komeito, the main opposition Democratic Party of Japan (DPJ) and others. The bills are likely to be enacted during the current session of the Diet. Deliberations on the bills in the Upper House Committee on Foreign Affairs and Defense will begin today. 9) Defense Ministry bill likely to be enacted Dec. 13 NIHON KEIZAI (Page 2) (Excerpt) December 7, 2006 A bill to upgrade the Defense Agency to a ministry is expected to become law on Dec. 13. The ruling coalition of the Liberal Democratic Party and the New Komeito will take a vote on the TOKYO 00006877 006 OF 010 legislation in a meeting of the House of Councillors Foreign and Defense Affairs Committee on Dec. 12 and in a plenary sitting of the House of Councillors on Dec. 13. The leading opposition Democratic Party of Japan (Minshuto) also supports the legislation. The bill will likely be enacted into law as envisioned by the ruling parties if the Diet is not stalled with confusion in the House of Councillors' voting on a bill to amend the Fundamentals of Education Law. 10) Prime Minister Abe to announce at East Asia summit Japan's support for energy conservation MAINICHI (Page 5) (Full) December 7, 2006 Prime Minister Shinzo Abe will visit the Philippines on Dec. 8-13 to attend the second East Asia summit to take place on the Cebu Island. He plans to announce Japan's support, including financial assistance, for energy conservation, as well as for the development of alternative energy. The government is also undertaking coordination to set forth its assistance for disaster prevention, including measures to cope with a tsunami. The East Asia summit aims to decide the areas of cooperation such as disaster prevention and financial cooperation, and to consolidate a system to check progress in cooperation. The expectation is that a chairman statement on the energy security issue will be released. The Association of Southeast Asian Nations (ASEAN) plus three (Japan, China and South Korea) summit will be held on Dec. 11. Japan and ASEAN will hold a summit on Dec. 12. In his meeting with the ASEAN leaders, Abe is expected to announce Tokyo's support for correcting gaps among ASEAN member countries, as well as its determination to push ahead with negotiations on economic partnership agreements (EPAs). In the series of meetings, North Korea's nuclear programs seems to be discussed but they will unlikely become a main topic of discussion. Abe will hold a meeting with Chinese Premier Wen Jiabao. He is also going to attend the Japan-China-South Korea summit, which will be held for the first time in two years. Abe and Wen will carry out final coordination on a visit to Japan by a Chinese leader. Abe plans to hold talks also with Australian Prime Minister John HOWARD and the two will likely to agree to start negotiations for an EPA conclusion. In his meeting with the leaders of Cambodia, Laos, and Vietnam, Abe will reveal Tokyo's DECISION to continue its assistance of 1.5 billion dollars for the development of the Mekong Basin Development. 11) Japan, China, South Korea to launch negotiations on investment pact NIHON KEIZAI (Page 5) (Full) December 7, 2006 The governments of Japan, China and South Korea have agreed to initiate negotiations on concluding a trilateral investment pact. The three countries aim to promote investment among three countries by removing improper discriminatory and restrictive measures toward foreign firms, including China's authorization system and investment restrictions imposed on Japanese and South Korean firms. The three countries expect to officially decide on the start of negotiations TOKYO 00006877 007 OF 010 during the Japan-China-South Korea summit to be held in the Philippines next week. Japan concluded an investment agreement in 1989. This agreement, however, includes only these basic provisions: "Japanese companies' assets should not be seized without their permission;" and "companies' remittances should not be obstructed." Given this, there reportedly were cases in which a Japanese company willing to invest in China was told to set up a research section, beside a manufacturing one, or in which restrictions were placed on the number of branch offices. Japan and South Korea will call on China to ease regulations so than their companies will be able to do business in China on equal terms with local companies. Other major themes include the protection of intellectual property rights and the establishment of rules for dispute-settlement procedures. Such problems as China's sudden change in its rules have also been pointed out, so measures to ensure transparency in administrative procedures will also be placed on the agenda. 12) Deputy Foreign Minister Nishida to become ambassador to Canada MAINICHI (Page 5) (Full) December 7, 2006 The Ministry of Foreign Affairs (MOFA) decided yesterday to transfer Deputy Minister for Political Affairs Tsuneo Nishida to the post of ambassador to Canada. The ministry will then appoint Deputy Minister for Economic Affairs Mitoji Yabunaka as the replacement of Nishida. Some government officials regard these personnel changes as the dismissal of Nishida because of his leaving the post after serving only 16 months, as well as of confrontation with the Prime Minister's Official Residence (Kantei) over the North Korea missile issue. Nishida jointed MOFA in 1970. He assumed his current post in August 2005, as the successor to Hitoshi Tanaka, a senior fellow at the Japan Center for International Exchange. It is believed that his relationship with Prime Minister Shinzo Abe has worsened as he called on the government for a cautious response to a UN Security Council sanction resolution against North Korea's firing of missiles in July when Abe was chief cabinet secretary. 13) UNDP administrator calls on Japan to "achieve the ODA outlay goal" NIHON KEIZAI (Page 8) (Full) December 7, 2006 United Nations Development Programme (UNDP) Administrator Dervis in an interview yesterday with the Nihon Keizai Shimbun called on the Japanese government to achieve the goal of disbursing 0.7% of the gross national income for official development assistance (ODA) as set by the UN. Pointing out such nations as Denmark and the Netherlands have already achieved that goal, Dervis continued: "That figure is fully possible for Japan to achieve." 14) ICC hopes for Japan's early participation NIHON KEIZAI (Page 8) (Full) December 7, 2006 TOKYO 00006877 008 OF 010 Visiting Judge Philippe Kirsch, president of the International Criminal Court (ICC),yesterday met the press at the Japan National Press Club in Tokyo's Uchisaiwai-cho and expressed his expectation of Japan joining the ICC as soon as possible. Kirsch stated: "It will be very significant if Japan, a leader of Asia, becomes a member of only the standing international court to try individuals." 15) Is former Prime Minister Koizumi eager to make third trip to North Korea? NIHON KEIZAI (Page 2) (Full) December 7, 2006 Former Prime Minister Junichiro Koizumi dined yesterday with Taku Yamasaki of the Liberal Democratic Party (LDP) at a Japanese restaurant in Tokyo. According to Yamasaki, Koizumi lamented the 2002 Pyongyang Declaration, which he and North Korean leader Kim Jong Il signed, becoming a dead letter due to North Korea's nuclear test. Yamasaki quoted Koizumi as saying: "I think it is all right for me to consider making a third trip to Pyongyang in order to reaffirm the declaration. I will revive it." Yamasaki also quoted Koizumi as saying: "I will never interfere with what the Abe government does. But I want to realize denuclearization on the Korean Peninsula. Both dialogue and pressure are necessary. We must not do away with dialogue." Koizumi was quoted as saying, "I would like to hold a YKK (Yamasaki, Koizumi and Koichi Kato) meeting soon." He was positive about mending fences with Kato. 16) Political donations from poultry farmers funneled toward Agriculture Minister Matsuoka ASAHI (Page 39) (Excerpts) December 7, 2006 Political groups of Agriculture, Forestry and Fisheries (MAFF) Minister Toshikatsu Matsuoka, a House of Representatives lawmaker elected in the Kumamoto No. 3 district, received approximately 11 million yen worth of political donations from more than 10 poultry farmers and related persons during about three months starting just after the outbreak of bird flu in Ibaraki Prefecture last year. During this period, poultry farmers were petitioning the ministry to take measures to protect the industry, and Matsuoka was in the post of heading the Liberal Democratic Party's Bird Flu Taskforce. Their political donations were funneled mainly toward Matsuoka. In response to an interview with the Asahi Shimbun, one donor commented, "We wanted to support Matsuoka, who understood our call to protect the industry." In the financial reports for 2005 of two political groups for Matsuoka, the Asahi Shimbun examined donations from about 40 executives of the two political groups and related entities. The group that manages Matsuoka's political funds received about 4.3 million yen from 11 persons, including executives at seven entities and their relatives. The LDP Kumamoto No. 3 Constituency Branch TOKYO 00006877 009 OF 010 Office, in which Matsuoka serves as head, accepted about 7 million yen from six leading group companies and six poultry entities. In late June of last year, avian flu broke out in Ibaraki Prefecture. Most of the donations to Matsuoka were offered from late July, just after the outbreak, through late October. During this period, poultry industry groups presented MAFF with several written requests calling for killing chickens with state subsidies and allowing vaccination as part of measures to prevent the spread of bird flu. There were few donations to lawmakers other than Matsuoka from executives in the two industrial groups. The Japan Poultry Political League, composed of industrial groups, purchased party tickets worth 1.5 million yen from Matsuoka, and two companies operated by executives in industrial groups purchases tickets worth 1.4 million yen. A poultry farmer who is also an executive in an industrial group said, "Entities offered donations on their own judgment and not on a systemic basis. 17) LDP approves government plan to revise road tax system in principle YOMIURI (Page 1) (Excerpts) December 7, 2006 The Liberal Democratic Party decided yesterday to accept in principle a government plan to revise the system of road-related tax revenues. The proposal seeks to revise the special law on tax revenues during the 2008 ordinary Diet session to pave the way for gasoline tax revenues to be used for general purposes. The LDP will discuss the government proposal with the New Komeito. It then is expected to ask the government to include provisions for guaranteeing necessary road construction and maintenance and for giving consideration to local communities beyond fiscal 2008 The LDP hopes to exchange a formal agreement on the matter between the government and the ruling camp before Prime Minister Shinzo Abe leaves for an overseas trip on Dec. 8. In a meeting of the LDP taskforce on reviewing road-related tax revenues, Chief Cabinet Secretary Shiozaki presented a four-point proposal. The proposal calls for truly necessary road development to be implemented in a planned manner. It also says that if revenues from road-related taxes surpass road-related expenditures in a single fiscal year, the difference should be used as general revenue. In the meeting of the taskforce, many participants voiced opposition to the government proposal, but the members agreed to leave the matter to Policy Research Council Chairman Nakagawa. 18) DPJ faces difficulties in coordination of views over policy platform with eruption of objections to pension plan, security posture SANKEI (Page 5) (Full) December 7, 2006 The Democratic Party of Japan (Minshuto or DPJ) has run into difficulties in shaping its "policy platform" ahead the Upper House TOKYO 00006877 010 OF 010 election slated for next summer. Of the policy proposals shown by the party's Policy Platform Committee chaired by Hirotaka Akamatsu, pension and security policy proposals have encountered objections. At the three rounds of the plenary meeting held until yesterday of the party's members of both houses of the Diet, pension policy, which had been extensively modified from the one declared in the party's manifesto for last year's Lower House election, met with this objection: "The previous one is better." Which will come first, campaign strategy or policy consistency? The party is wavering between these two. The primary issue for pension policy is whether to hike the consumption tax with an eye on a future drastic reform of the pension programs. Minshuto in its manifesto released last year mentioned that the basic pension should be all financed by the consumption tax by raising the tax by 3 points. But the pension policy proposal shown this time states that the current consumption rate should be retained, that all the consumption tax revenue should be used to fund the pension (basic portion),and that the shortage should be covered by premiums. President Ichiro Ozawa is concerned that the party might not be able to do well in the election if it proposes hiking the consumption tax. At the plenary meeting, however, one person said: "The public wants peace of mind through a quick hike of the consumption tax." The policy change came under fire, in part because in the 2004 Upper House election Minshuto had made gains by asserting the need to raise the consumption tax for pension purposes. On the other hand, a number of the participants favor the policy proposal this time, arguing that the party cannot win the election if it calls for a tax increase at a time when the ruling parties remain mum. Akamatsu intends to go against the opposition with the policy proposal, thinking that a majority is not opposed to the policy proposal. On the right to self-defense, the security policy proposal states: "We should not insist on a conceptual debate over what is individual and what is collective, and we should exercise the right to self-defense only in cases where our nation's peace and safety are threatened by an imminent and illegal attack." Former President Seiji Maehara criticized this expression as "conceptual" and insisted on rephrasing that passage in a way to enable Japan to cope with ballistic missile launches, terrorism, and contingencies near the country. SCHIEFFER