DAILY SUMMARY OF JAPANESE PRESS 02/08/06

UNCLAS SECTION 01 OF 13 TOKYO 000693

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SUBJECT: DAILY SUMMARY OF JAPANESE PRESS 02/08/06

INDEX:

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

North Korea talks:
4) No progress on abduction, security issues in Japan-North
Korea talks
5) Government reconsidering three-track approach to North Korea
talks that just ended in failure

6) Prime Minister Koizumi taking flack for not attending annual
northern territories day rally

7) Singapore's senior minister urges Koizumi to stop visiting
Yasukuni Shrine, states, "Japan is becoming isolated
diplomatically"

8) Law being amended to require foreigners entering Japan to be
fingerprinted as anti-terrorist measure

Defense and security issues:
9) New Komeito halting discussion of raising JDA to ministry
until DFAA bid-rigging scandal resolved
10) USFJ realignment talks restart in Tokyo tomorrow
11) Urasoe suggested in USFJ realignment talks as transfer sight
for Naha military port
12) US asks Japan to bear 75% of cost of moving Okinawa Marines
to Guam
13) March 12 set as date for Iwakuni City referendum on transfer
of US carrier-based jets from Atsugi

Beef brawl:
14) Minshuto head Maehara rebuts Tyson Foods, which demanded
apology for visiting party delegate publicly slamming company's
US beef plant
15) Japanese food-safety experts criticize as unscientific OIE's
proposed easing of international beef-export standard
16) Agriculture Minister Nakagawa says Japan may do prior
inspections of US meat processing plants at time of resumption of
US beef imports
17) US irritated at Japan for "overreacting" to import violation
and re-imposing ban on US beef

18) USDA to shrink BSE inspectors drastically, with no funds
even requested in budget

19) Japan to enter FTA negotiations with India

20) Japan's pluthermal nuclear energy plan being criticized

Diet debate:
21) Minshuto steps up attack against Koizumi administration in
Lower House budget deliberations
22) Former Minshuto (Democratic Party of Japan) head Okada takes
podium to lead attack against Koizumi administration policies
23) Government to consider withdrawing proposed change to
Imperial Household Law to allow female on the throne

Articles:

1) TOP HEADLINES

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Asahi: Mainichi: Yomiuri: Sankei: Tokyo Shimbun
Princess Kiko pregnant; Expecting birth of third child in fall;
Boy would be third in line for the throne; Could affect debate on
revision of Imperial House Law

Nihon Keizai:
National Development Arterial Expressway Construction Council
decides on construction of almost all sections of highway
networks, using tax money; Seven sections added

2) EDITORIALS

Asahi:
(1) Princess Kiko pregnant: We want to quietly keep watch
(2) Iran's nuclear development program: Stop uranium enrichment

Mainichi:
(1) Princess Kiko expecting third child: We pray for safe birth
(2) Ten years since SDF dispatch to Golan Heights; We want to
make more contributions

Yomiuri:
(1) Exports of unmanned helicopters: Sounding the alarm against
business transactions with China
(2) Tottori Prefecture Human Rights Ordinance put on hold: Need
to reconsider human rights bill

Nihon Keizai:
(1) Promotion of road construction plan indicates reform being
stripped of meaning
(2) US plan for fiscal reconstruction does not warrant optimism

Sankei:
(1) Princess Kiko pregnant: We want to wait for the birth calmly
(2) Expressway construction: Show rational reason to the people

Tokyo Shimbun:
(1) Charging fees for issuing medical statement not acceptable
(2) Internet and broadcasters: Consider viewers' standpoint as
well

3) Prime Minister's Official Residence (Kantei)

Prime Minister's schedule, February 7

NIHON KEIZAI (Page 2) (Full)
February 8, 2006

08:11
Met at Kantei with Deputy Chief Cabinet Secretary Nagase.

09:00
Attended a Lower House Budget Committee meeting.

12:05
Arrived at Kantei.

13:00
Returned to the Lower House Budget Committee meeting.

17:42
Met Chief Cabinet Secretary Abe at Kantei.

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17:57
Had a haircut at the barbershop "Muragi" in the Capital Tokyo
Hotel.

20:25
Returned to his official residence.

4) Japan-DPRK talks: No progress on abduction and security
issues; North Korea accuses NGOs supporting North Korean
defectors

YOMIURI (Page 2) (Full)
February 8, 2006

Takaharu Yoshiyama, Kyoji Fukushima, Beijing

In the talks yesterday at a Beijing hotel, Japanese and North
Korean government officials dealt again with the Japanese
abductees issue in the afternoon meeting. The Japanese
negotiators strongly demanded that North Korea take action
quickly to return abductees to Japan, shed light on the truth of
the abduction issue and hand former North Korean agent Sin Guang
Su over to Japan. But the North Korean team did not accept these
requests.

The abduction issue was discussed again yesterday, following the
session on Feb. 5. Because there was no progress on the issue in
the previous talks, the Japanese team demanded that the issue be
discussed again. The talks yesterday was taken part in by Kunio
Umeda, deputy director-general of the Foreign Ministry's Asian
and Oceanian Affairs Bureau and other officials from Japan and
Kim Chol Ho, deputy director of the North Korean Foreign
Ministry's Asian Bureau and other officials from the North.

In response to Japan's requests, North Korean officials raised
doubts about Japan's DNA analysis of the ashes North Korea had
provided to Japan as Megumi Yokota's and demanded they be
returned to the North swiftly.

Moreover, the North Korean negotiators accused people concerned
with non-governmental organizations supporting North Korean
defectors, arguing, "North Koreans are being kidnapped in areas
near the China-North Korea border." They named seven NGO members,
for instance, Hiroshi Kato, secretary general of the Life Funds
for North Korean Refugees and Kansai University Prof. Lee Young
Hwa, representative of North Korean People! Urgent Action Network
(RENK) and demanded that these NGO members be handed over to the
North.

On the issue of Megumi Yokota's ashes, Japanese officials
rebutted by citing two factors: 1) The man who handed the ashes
to Japan identified himself as Megumi's husband, but his identity
is in doubt; and 2) it is the North Korean officials' job to
determine the cause of why more than one DNA traces were
detected. Japan refused to hand the named NGO members to the
North. After the talks, Japan's chief negotiator Umeda told
reporters: "With no convincing reply from North Korean officials,
the gap was not bridged. This is extremely regrettable." Umeda
criticized North Korea's response.

In the morning session yesterday, both negotiators were engaged
for the first time in full-fledged discussion on the security

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issues, including nuclear and missile development.

Japan called on North Korea to rejoin the six-party talks on
North Korea's nuclear issue unconditionally. In the talks on the
missile issue, too, Japan called for the continuation of the
missile-launching moratorium as specified in the 2002 Japan-DPRK
Pyongyang Declaration, demanding that the North stop developing
missiles and scrap them. The North Korean negotiators agreed on
the importance of the six-party talks, but insisted; "We won't
return to the six-party talks unless the United States removes
economic sanctions now imposed on us."

A plenary meeting is set to occur this morning. Both the
negotiating teams are expected to assess the results of all the
negotiations this time. Late yesterday, a high-level Japanese
official indicated an outlook that this round of negotiations
would close tomorrow, noting: "Given no progress on the abduction
issue, continuing talks is of no use."

5) Failure of parallel talks overshadows the future course of
dialogue

NIHON KEIZAI (Page 2) (Full)
February 8, 2006

Toyofumi Amano, Beijing

The parallel negotiation formula was introduced into this round
of the dialogue between the Japanese and North Korean
governments, but the negotiations did not proceed as Japan
expected and foundered.

The negotiation formula Japan had initially charted was to
discuss three subjects simultaneously and on the same day. The
point in this formula was to put pressure on North Korea to
concede by linking talks on the abduction issue Japan has
emphasized to talks on the nuclear and missile issues.

However, in a plenary session on Feb. 4, North Korean officials
refused to follow this formula. Negotiations came to be held with
one subject for one day, ending up with each subject detached
from the others. The dialogue proceeded in a way that was far
from Japan's initial plan, which was to negotiate flexibly while
seeing the North's reaction.

With no progress on the abduction issue, calls for economic
sanctions seem likely to flare up in the Liberal Democratic Party
(LDP) and other quarters in Japan. The Foreign Ministry is
cautious about sanctions, thinking that they would not be
effective without cooperation from other nations, such as China
and Russia. But it is certain that Japan's dialogue line will be
affected by the outcome of the negotiations with the North this
time.

Meeting reporters late yesterday, Prime Minister Junichiro
Koizumi said: "We are making efforts to resolve the abduction
issue as well as the nuclear and missile issues, but the gap is
still wide. It's difficult indeed." At a press conference, Chief
Cabinet Secretary Shinzo Abe referred to North Korea's rejection
of Japan's proposal for "the settlement of past accounts" by
providing economic cooperation and criticized the North's
response. Abe stated: "That way of thinking is specified in the
Japan-DPRK Pyongyang Declaration. I want the North Koreans to

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have a clear understanding of that point."

6) Prime minister skips annual Northern Territories rally,
sparking questions about interest in territorial issue

YOMIURI (Page 4) (Full)
February 8, 2006

A national rally to demand the return of the northern territories
was held in Tokyo yesterday under the sponsorship of the
government and private groups. Prime Minister Koizumi did not
attend the rally citing ongoing Diet deliberations as the reason.
There was no reading of the prime minister's speech by proxy,
either. Seeing this, many participants were heard questioning the
prime minister's eagerness to resolve the stalled territorial
issue. The prime minister was also absent from the annual rally
last year with a cold. According to the Cabinet Office, the prime
minister's absence from the rally for two consecutive years is
the first time for a prime minister since 1981, when such
attendance was started. No reading of the prime minister's speech
by proxy is also unprecedented.

In the rally, New Komeito House of Councillors meeting Hisashi
Kazama referred to the fact that there was no progress on the
northern territorial issue during the Japan-Russia summit last
November. He said: "The prime minister should have come here and
said, 'I'm sorry,'" getting applause from the audience.
Journalist Yoshiko Sakurai also criticized the prime minister:
"The prime minister's absence for the second straight year might
give the wrong political message to Russia."

On the Northern Territorial issue, Japan's assertion is that
Japan and Russia should conclude a peace treaty after resolving
the issue of claims to the four territories based on the 1993
Tokyo Declaration. But Russia insists that it returns only the
Habomai and Shikotan islands to Japan after the two countries
conclude a peace treaty based on the 1956 Japan-Soviet Union
Joint Declaration.

7) Singapore's senior minister urges Koizumi to discontinue
Yasukuni visits, describing Japan as diplomatically isolated

ASAHI (Page 4) (Full)
February 8, 2006

Izumi Ogura, Singapore

Singapore's Senior Minister Goh Chok Tong, a former prime
minister, delivering a keynote speech at the Feb. 6 Asia-Pacific
Roundtable, strongly urged Prime Minister Junichiro Koizumi and
other Japanese cabinet ministers to stop visiting Yasukuni
Shrine. He said:

"Japanese leaders should stop visiting the shrine and think of
other ways to pay respect to the war dead, excluding war
criminals. As far as this issue in concerned, Japan is
diplomatically isolated."

8) Government to present a bill amending the Immigration Control
Law to fingerprint foreigners aged over 16 in principle

MAINICHI (Page 1) (Full)
February 8, 2006

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The government is planning to present to the current Diet session
a bill to amend the Immigration Control and Refugee Recognition
Law with the aim of preventing terrorist attacks. The bill is
designed to obligate foreigners aged over 16 to be fingerprinted
in principle when going through immigration. In order to block
terrorists from entering Japan, a provision will also be added to
the law to allow authorities to deport those who have been
designated by the justice minister as individuals who might
commit crimes that threaten public security.

Fingerprinting will be exempted for the following: (1) special
permanent foreign residents, such as ethnic Korean residents in
Japan; (2) those under age 16; (3) those visiting Japan on
diplomatic or official business; and (4) governmental guests and
others. The Justice Ministry is also considering an ordinance
requiring the collection of facial images, in addition to
fingerprinting. Fingerprints and other data will be stored on the
computer system to allow immigration officers to check them
against fingerprints of those who have been deported in the past
in order to prevent them from reentering Japan. Upon request by
investigative authorities, data will be used in criminal
investigations.

Authorities will be allowed to deport those who have been
designated by the justice minister as individuals who might
commit such crimes as murder and hijacking for the purpose of
posing a threat to the country that are specified in the
legislation for punishing those who provide funds to terrorists.
Those who make preparations for or assist such crimes will also
be deported. In addition, ships and planes will be required to
present their lists of passengers before arriving in Japan.

Although the United States has already adopted the immigration
fingerprinting system, the introduction of the system in Japan is
likely to spark controversy, as the Japan Federation of Bar
Associations (JFBA) and other organizations are opposed to it. A
JFBA source expressed opposition to the use of such data in
criminal investigations, saying: "Fingerprinting violates the
Constitution stipulating respect for individuals and the code of
freedom. Such will violate privacy and disturb the formation of
our society where Japanese people are living side by side with
foreigners."

9) New Komeito halts discussion on raising JDA to ministry status
until investigation of DFAA for bid-rigging is ended

YOMIURI (Page 4) (Excerpt)
February 8, 2006

The New Komeito yesterday held a meeting of its national security
department and agreed to an unified position on discussion in the
Diet on raising the status of the Japan Defense Agency (JDA) to a
ministry that has been halted since the beginning of the year:
"The hearings should not be held until the truth and the
situation about bid-rigging by the Defense Facilities
Administration Agency (DFAA) is cleared up." After the meeting,
department chairman Shigeki Sato told the press: "When the
investigation winds up, we should once more properly discuss in a
calm atmosphere." He indicated that discussion on the issue of
raising JDA to a ministry status would be put off.

10) Realignment talks to start tomorrow

TOKYO 00000693 007 OF 013



MAINICHI (Page 2) (Full)
February 8, 2006

The government announced yesterday that Japan and the United
States would hold senior-working-level consultations in Tokyo
Feb. 9-10 to discuss the planned realignment of US forces in
Japan.

The realignment talks will take place with the participation of
the Foreign Ministry's North American Affairs Bureau Deputy
Director General Kazuyoshi Umemoto, the Defense Agency's Defense
Policy Bureau Deputy Director General Hironori Kanazawa, and
other officials on the Japanese side, and Deputy Under Secretary
of Defense Lawless and others on the US side.

11) Japan, US discuss building alternative in Urasoe for US
military's Naha port facility

MAINICHI (Page 2) (Full)
February 8, 2006

The Japanese and US governments are looking into the possibility
of building an alternative facility in the city of Urasoe,
Okinawa Prefecture, to take over the functions of a US military
port facility in the city of Naha in the island prefecture,
officials said yesterday. The two governments have agreed to
return the Naha port facility to Japan.

Last October, the Japanese and US governments released an interim
report on the realignment of US forces in Japan. The interim
report incorporated a plan to consolidate US military bases
located in the central and southern parts of Okinawa Prefecture.
The alternative port facility plan was once scrapped but came up
again out of consideration for local communities.

12) US to ask Japan to bear 75% of cost required for relocating
US Marines to Guam

ASAHI (Page 2) (Full)
February 8, 2006

Yoichi Kato, Washington

The US Defense Department, estimating that the relocation of US
Marines from Okinawa to Guam as part of the planned realignment
of US forces in Japan would cost 8 billion dollars (940 billion
yen) in total, has begun making arrangement to ask Japan to bear
75% of that cost, a source familiar with the US government
revealed yesterday.

Although the US government is considering removing 7,000 to 8,000
troops and the command of the 3rd Marine Expeditionary Force
(IIIMEF) to Guam, the island lacks facilities to accommodate
them. The source said that 8 billion dollars is a rough estimate
required for building such facilities.

According to the source, because the budget for building Marine
Corps facilities is set about at 100 million dollars annually, it
would take the US nearly 20 years to complete the planned
relocation even with some assistance from Japan. "In order to
realize the relocation more quickly, we will have to ask the
Japanese government to shoulder a substantial portion of the

TOKYO 00000693 008 OF 013


cost," a Pentagon official said. The US aims to complete the
relocation by 2012.

But because the US did not come up with this estimate by adding
up individual facilities, Japan is asking for detailed plans and
estimates.

Tokyo and Washington intend to determine their shares of costs
for the relocation by the end of March, when they are scheduled
to produce a final report on US force realignment.

13) Iwakuni poll set for Mar. 12 over US carrier-borne aircraft
redeployment

YOMIURI (Page 2) (Full)
February 8, 2006

The city of Iwakuni in Yamaguchi Prefecture will officially
announce a plebiscite on March 5, with voting and vote counting
scheduled for March 12, over the planned redeployment of carrier-
borne fighter jets from the US Navy's Atsugi base to the US
Marine Corps' Iwakuni base. Iwakuni Mayor Katsusuke Ihara
initiated the plebiscite yesterday to ask citizens if they will
accept the redeployment. Meanwhile, the heads of seven
municipalities, which will consolidate with Iwakuni City on March
20, presented Ihara with a resolution yesterday afternoon
opposing the plebiscite.

14) Minshuto head Maehara rebuts US meatpacker's demand for
apology over party delegation's report citing insufficient safety
procedures

YOMIURI (Page 4) (Full)
February 8, 2006

Democratic Party of Japan's (Minshuto) delegation recently
visited the facility of Tyson Foods, the largest meat processor
of the US, and reported: "Japan's safety criteria are not being
observed." In reaction, the American company has demanded an
apology from the party and a retraction of the view. On this
issue, party head Maehara refuted Tyson Foods: "I received the
report and also watched a video tape. It is undeniably true (that
the company is not observing safety procedures). Tyson's protest
is way off-base, and we will make a resolute response."

15) Beef trade: OIE proposals for new guidelines come under fire
at BSE experts' meeting as biased toward exporting countries

MAINICHI (Page 9) (Full)
February 8, 2006

The Ministry of Agriculture, Forestry and Fisheries (MAFF) and
the Ministry of Health, Labor and Welfare (MHLW) yesterday held a
meeting of BSE experts and unveiled new beef trade guidelines,
which the Office of International des Epizooties (OIE) presented
to its member nations. It turned out that the set of proposals
proposed by the world organization for animal health had modified
the existing guidelines, such as that it removed the condition
that boneless beef traded without any restriction be limited to
cattle aged up to 30 months. A number of participants voiced
criticism of the proposed standards. The OIE will discuss the
propriety of revising the beef trade guidelines in a plenary
session to be held in May.

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The present beef trade guidelines include a condition that
tradable boneless beef should be free from any suspicion of BSE
contamination or any such contamination has not been confirmed.
But this condition has been replaced with a condition that
boneless beef can be exported, if it passes inspections,
including eye inspections, by exporting countries. The adoption
of new guidelines will mean that there will remain almost no
trade restrictions, except for the removal of specified risk
materials (SRM). The surveillance obligation to check
contamination status has also been eased. The package of new
guidelines is thus advantageous for beef-exporting countries,
such as the US.

The package drew a number of critical remarks, some stating that
the BSE agent can accumulate in meat as well, and others saying
there is no valid reason to remove the age restriction --
previously limited to cattle up to 30 months of age -- from the
guidelines. Some argued that the new guidelines were not based on
scientific grounds.

16) Agriculture Minister Nakagawa suggests possibility of prior
inspections of US meat plants at time of resumption of US beef
imports

NIHON KEIZAI (Page 5) (Excerpt)
February 8, 2006

Speaking before the House of Representatives Budget Committee on
Feb. 7, Minister of Agriculture Shoichi Nakagawa stated that the
government was considering possibly carrying out prior
inspections of meat-processing facilities inside the United
States at the time of the resumption of US beef imports. He was
asked by Minshuto (Democratic Party of Japan) lawmaker Yorihisa
Matsuno, "We would like you to think about to restarting imports
under the condition of first carrying out local inspections to
see if the situation is all right." Nakagawa answered, "I will
take your suggestion fully seriously and give it consideration."

17) US irritated at "Japan's overreaction" to import violation

YOMIURI (Page 11) (Full)
February 8, 2006

Following Japan's second ban on US beef imports, a perception gap
over food safety between Japan and the US has stood out in bold
relief. The Japanese government intends to call on the US to
thoroughly check its inspection system, but people affected by
the matter in the US are increasingly irritated at Japan's
response, calling it "excessive."

In a meeting of the House of Representatives Budget Committee
yesterday, a member of the Democratic Party of Japan (Minshuto)
said that the government's decision late last year to resume US
beef imports was too hasty. In response, Health, Labor, and
Welfare Minister Kawasaki said: "The insufficiency of the safety
procedures being taken by the US (including the requirement of
removing specified risk materials) has been pointed out. We will
discuss such problems with the US." Agriculture, Forestry, and
Fisheries Minister Nakagawa also reiterated his determination to
take all possible measures to prevent BSE, saying: "Even if US
safety measures are judged proper, if there is something more
that can be done to ensure food safety, we will discuss it."

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Just after Japan's reimposition of the ban, the US was at a loss
regarding Japan's criticism of the US, as seen from the remark
made by US Agriculture Under Secretary J. B. Penn: "The risk of
BSE is much lower than that of getting into an auto accident."
Now that there are signs of the issue being protracted, however,
such bewilderment is turning into irritation. Tyson Foods, the
largest meat processor in the US, called for Minshuto's apology
yesterday for its earlier announcement in which it said the party
had confirmed that Japan's safety criteria were not being
observed. A Minshuto executive fiercely reacted to the protest,
claiming, "It is groundless and way off-base." The move by a
meatpacker represents growing frustration in the US. Japan will
not be able to easily resume imports this time, but the US is
expected to urge Japan to reopen its market at an early date,
stressing the recent Beef Export Verification violation as a
technical mistake. Should the current situation persist,
dissatisfaction in the US with Japan may grow stronger.

18) USDA to shrink BSE inspections to one-tenth of previous
level, with no request for funds in budget

TOKYO (Page 3) (Excerpt)
February 8, 2006

Jiji Press, Washington

A spokesman for the US Department of Agriculture (USDA) revealed
on Feb. 6 that in the Department's portion of the 2007 budget
request President Bush presented to the Congress, a request for
funding to continue expanded inspections for BSE was omitted.
USDA is now considering revising its expanded inspection regime,
so if the budget stands as is, the US' BSE inspections will
shrink to a level of one tenth of the annual 40,000 head level
that it has been until now.

19) FTA talks with India to start

YOMIURI (Page 2) (Full)
February 8, 2006

The Ministry of Economy, Trade and Industry (METI) yesterday
revealed its plan to enter free trade agreement (FTA) talks with
India. Once coordination of views with the Foreign Ministry and
the Ministry of Agriculture, Forestry and Fisheries is over, the
leaders of the two countries will aim to reach a formal agreement
to launch negotiations. For Japan, this is going to be the first
FTA talks with one of the influential developing countries called
BRICs, a term that indicates Brazil, Russia, India, and China.

India's economy is continuing to grow, boosted by the information
and technology (IT) industry. The nation has the second largest
population, following China. The amount of trade between Japan
and India, however, has remained small. Japan exports machinery
parts to that nation and imports iron ore. However, as a trade
partner India in 2004 ranked 25th in terms of export value and
29th in terms of import trade value. At work behind Japan's move
to start FTA talks with India is that it wants to increase trade
and investment ties with that nation with an eye on its huge
market.

Japan and India had set up a joint study group consisting of
those representing industrial, government and academic circles.

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The panel in July 2005 started looking into the possibility of
the two countries signing an FTA.

20) US sets forth int'l control plan for nuclear fuel recycling:
Japan may be criticized for "special treatment"

NIHON KEIZAI (Page 3) (Full)
February 8, 2006

On Feb. 6, the day before Japan restarted its pluthermal program,
the United States announced a plan to resume the halted nuclear
fuel cycle reprocessing. With Iran and other countries in mind,
the United States aims to place nuclear fuel reprocessing for
plutonium under international control. However, if this
initiative goes on, special treatment given to Japan, which has
promoted its own nuclear fuel cycle under the US umbrella, could
stand out internationally.

Japan has proceeded with its nuclear fuel cycle under the United
States' agreement. Although Japan is not a nuclear power, it has
its own nuclear fuel cycle facilities. This is a unique case.

"The United States has explained that Japan is not subject to
international control," said an official of the Nuclear Energy
Policy Planning Division of the Agency for Natural Resources and
Energy. However, the Japanese government wants to push ahead with
its stagnated pluthermal power plan in order to keep up its
nuclear fuel recycling policy. Japan envisions working together
with the United States in developing reprocessing technologies
that cannot easily be diverted to weapons, as well as in
developing advanced nuclear reactors. In the future, the
government will also look into the feasibility of providing
nuclear power plant fuel to countries that abandon nuclear
weapons development.

However, developing countries that are eager to have their own
nuclear fuel cycle may critically wonder why Japan alone is not
under international control.

21) Minshuto's attack on government fails to score hit at Lower
House Budget Committee sessions

TOKYO SHIMBUN (Page 2) (Excerpts)
February 8, 2006

At a House of Representatives Budget Committee session yesterday,
the incumbent and former presidents of the main opposition party
Minshuto (Democratic Party of Japan) took the floor as
questioners. The two representatives from the largest opposition
party strongly pursued the government on the US beef import
issue, the earthquake-resistance data falsification scam, and the
Livedoor scandal.

However, they failed to obtain Diet testimony by Liberal
Democratic Party (LDP) lawmaker Kosuke Ito. Minshuto has placed a
high priority on this goal. They were also unable to undermine
the government's conventional answers to questions about the US
beef issue. In an attempt to strengthen its defense, the
government held a regular cabinet meeting one day earlier than
due. There seems be an increasing sense of frustration in
Minshuto even though the party now feels like it is riding high.

Incumbent President Seiji Maehara, who took the floor as the

TOKYO 00000693 012 OF 013


first questioner, tenaciously pursued the Japanese side's
responsibility for having made a decision to resume US beef
imports last December.

Prime Minister Junichiro Koizumi, however, just reiterated: "The
United States did not observe the bilateral agreement. The
Japanese government has handled the matter properly."

Maehara then questioned, "Have you raised a protest against
President Bush?" Koizumi fended him off by responding, "I decide
on the rank of the official to whom I talk. I don't need any
advice."

Yorihisa Matsuno, who lured "inconsistent answers" from
Agriculture, Forestry and Fisheries Minister Shoichi Nakagawa at
the previous Budget Committee session, attacked again Nakagawa
and Chief Cabinet Secretary Shinzo Abe. The only answer he
obtained from them was "The resumption of US beef imports do not
violate the cabinet decision."

Sumio Mabuchi pursued the earthquake-proof data falsification
scam, posing alleged financial scandal involving Ito's found
management organization. Land, Infrastructure and Transport
Minister Kazuo Kitagawa categorically said, "Mr. Ito has not at
all interfered in our ministry's business."

22) Former Minshuto Okada takes the floor at Lower House Budget
Committee, engaging in battle of words with Prime Minister
Koizumi over Livedoor scandal

TOKYO SHIMBUN (Page 2) (Full)
February 8, 2006

At a session yesterday of the House of Representatives Budget
Committee, Katsuya Okada, former president of Minshuto
(Democratic Party of Japan),engaged in a battle of words with
Prime Minister Junichiro Koizumi regarding the fact senior
Liberal Democratic Party (LDP) members supported former Livedoor
Corp. President Takafumi Horie (who has been arrested on
suspicion of violating the securities law). Okada took the floor
as a questioner at the Lower House Budget Committee for the first
time since he quit the presidency to take responsibility for the
party having been defeated in last September Lower House
election.

In the session Okada explained that he had decided not to ask
Horie to run in the election when he had met him. He said, "He
was not a person whom Minshuto could back in the election." He
pressed Koizumi: "Don't you feel responsibility for those who
bought Livedoor stacks believing Horie, whom the LDP supported
the election?"

Koizumi responded, saying, "I am forced take criticism that
Koizumi, who was unable get an insight into the real character of
the person, was foolish." Regarding the connection between his
election support for Horie and Livedoor's stock price, he said,
"They are separate matters. I neither recommended the
(Livedoor's) shares nor said the stock price would jump."

23) Government mulling postponement of submitting to current Diet
session bill revising Imperial House Law

NIHON KEIZAI (Page 1) (Excerpts)

TOKYO 00000693 013 OF 013


February 8, 2006

Following the news that Princess Kiko, the wife of Emperor
Akihito's second son, is pregnant, the government yesterday
started looking into the possibility of giving up submitting to
the ongoing Diet session a bill to revise the Imperial House Law
to allow female imperial family members and their descendants to
ascend to the imperial throne. If the expected baby is male, he
will be third in line to the throne (after Crown Prince Naruhito,
45, and Prince Akishino, 40, under the current succession rule).
The move follows growing opinion in the ruling Liberal Democratic
Party favoring caution regarding the revision bill.

Prime Minister Junichiro Koizumi discussed how to handle the bill
yesterday with Chief Cabinet Secretary Shinzo Abe. They confirmed
that preparations for submitting the bill should be moved ahead
as planed and that the prime minister would make a final decision
on whether to submit the bill or not while giving consideration
to debate on the bill in the LDP, as well as to the trends of
public opinion.

Abe stated in a press conference last night, "I think various
views will be raised regarding a report drafted by a group of
experts on the Imperial House Law and this good news." He
indicated in his remarks that the government would make a
judgment on whether to submit the bill to the current Diet
session after seeing the development of discussions in the LDP.

Abe had emphasized the government's policy of presenting the bill
to the ongoing regular Diet session. If the government does so,
he stressed that the LDP should bind party members to vote
according to its decision. The government is now taking a
cautious stance toward the submission of the bill.

SCHIEFFER