JAPANESE MORNING PRESS HIGHLIGHTS 02//06

UNCLAS SECTION 01 OF 07 TOKYO 000749

SIPDIS

SIPDIS

DEPT FOR E, P, EB, EAP/J, EAP/P, EAP/PD, PA;
WHITE HOUSE/NSC/NEC; JUSTICE FOR STU CHEMTOB IN ANTI-TRUST
DIVISION; TREASURY/OASIA/IMI/JAPAN; DEPT PASS USTR/PUBLIC AFFAIRS
OFFICE; SECDEF FOR JCS-J-5/JAPAN,
DASD/ISA/EAPR/JAPAN; DEPT PASS ELECTRONICALLY TO USDA
FAS/ITP FOR SCHROETER; PACOM HONOLULU FOR PUBLIC DIPLOMACY
ADVISOR; CINCPAC FLT/PA/ COMNAVFORJAPAN/PA.

E.O. 12958: N/A
TAGS: OIIP KMDR KPAO PGOV PINR ECON ELAB JA

SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 02//06


Index:

(1) Prime Minister Koizumi's failure to attend rally calling for
return of Northern Territories creating stir in Russia; Perhaps
he intends to leave issue on back burner?

(2) GSDF's 10-year participation in UN PKO on Golan Heights;
UNDOF commander says, "They are the best ambassador"

(3) Japan enters into final coordination with other countries
over timing for GSDF pullout from Iraq

(4) World is being divided in two; Japan needs to discuss what
image to project as a state

(5) ITC launches investigation into Toyota on suspicion of
violating US patent, aiming perhaps to constrain Japanese
automakers; Move could become source of bilateral trade dispute

(6) Yamaguchi-gumi commands majority of gangsters nationwide

ARTICLES:

(1) Prime Minister Koizumi's failure to attend rally calling for
return of Northern Territories creating stir in Russia; Perhaps
he intends to leave issue on back burner?

ASAHI (Page 7) (Full)
February 10, 2006

By Akiyoshi Komaki, Moscow

Prime Minister Junichiro Koizumi's failure to attend a national
rally calling for the return of the Russia-held four islands off
Hokkaido on Feb. 7 is creating a stir in Russia. Some have raised
the view that Koizumi may have excluded the Northern Territories
issue from his priority issues since he has been busy devoting
foreign policy attention to Asia. Koizumi attended annual rallies
in 2002, 2003, and 2004. He did not take part in last year's
rally because of his cold, but he sent his proxy to deliver his
message. However, he did not send even a proxy to this year's
rally.

Russia's Independent Newspaper wrote in its edition on Feb. 8:
"It is strange that Prime Minister Koizumi, who takes the time to
visit Yasukuni Shrine, did not attend the national rally."

The Kommersant Daily pointed out in yesterday's edition: "For
Koizumi, complicated relations with China are far more important
(than the northern territorial issue). Understanding that there
will be no improvement in the territorial issue, he has no desire
to spend any time on the matter."

(2) GSDF's 10-year participation in UN PKO on Golan Heights;
UNDOF commander says, "They are the best ambassador"

YOMIURI (Page 6) (Slightly abridged)
February 10, 2006

By Michiro Okamoto

Ten years have passed since the Ground Self-Defense Force (GSDF)

TOKYO 00000749 002 OF 007

SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 02//06

dispatched its troops for the first time to the United Nations
Disengagement Observer Force (UNDOF) on the Golan Heights. UNDOF
undertakes the task of supervising the implementation and
maintenance of the ceasefire between Syria and Israel. A GSDF
battalion has engaged in the transport duties as part of logistic
support. The troops currently stationed there is the 20th unit to
be dispatched. Their activity is inconspicuous, but their
continued performance in their duties as part of PKO have set the
basis for the present-day international contributions by the Self-
Defense Forces (SDF),for instance, assistance to Iraq
reconstruction. This reporter visited the GSDF unit on the Golan
Heights in the midst of the severe winter.

The day was cloudy and a cutting wind was lashing at my face. A
GSDF member wearing a blue helmet was driving a bulldozer to
smooth the dirt road. This was to ensure the smooth traffic of
ceasefire monitoring vehicles. I saw the intruder prevention
fence along the ceasefire line (set in 1974) on the Israeli side
a few hundred meters away.

During the Six-Day War in 1967, Israel captured the Golan Heights
in the southwest of Syria. Lying on the east side is the
disengagement zone, which is the major sphere of GSDF activity.
The area was wasteland running 75 kilometers from north to south
and extending 200 meters to nine kilometers in width. In the
northern Golan is Mt. Hermon (2,814 meters),covered with snow.
At times explosions from demining echoed across the area.

Under criticism that sending SDF personnel abroad was the same as
deploying troops abroad to do battle, and after much debate on
the question of carrying weapons, Japan in spite of the fears,
dispatched GSDF personnel to the Golan Heights. Then UNDOF
Commander Kosters told me: "I'd like to see SDF personnel come as
full-fledged soldiers."

Incumbent UNDOF Commander Sharma gave high praise to the GSDF
unit, noting: "It is essential. Japan has sent its best
'ambassador.'" The total distance of transport by the GSDF unit
has come to about 2,620,000 meters - equivalent to circling the
earth 65 times. The gross weight of transport reaches 23,000
tons.

In recent years the Japanese troops' role has become increasingly
important. That is because with a surge in the construction of
private houses, some parts of the area have become blind spots
for ceasefire monitoring. So patrolling has become more
important. Helping the patrol is the gravel path leveled by
Japanese troops. The distance of the leveled road exceeds 350
kilometers.

Some 880 SDF personnel experienced the participation in the Golan
PKO. Masahisa Sato, who had headed the first GSDF unit to the
Golan Heights, later headed the advance unit to Iraq and was
stationed in Samawah. All those SDF personnel have now been
central to SDF troops to be dispatched abroad.

There are challenges for them to tackle, however. For example,
the SDF cannot take part in policing training for camps because
of the restrictions relating to the right to collective defense.
Masaki Maejima, a member of the logistic staff now working for
the headquarters, said soberly: "Ten years of experience could be
taken as a big step forward, but it has only been 10 years."

TOKYO 00000749 003 OF 007

SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 02//06


(3) Japan enters into final coordination with other countries
over timing for GSDF pullout from Iraq

ASAHI (Page 4) (Full)
February 10, 2006

Japan has now entered into the final phase of coordination with
other countries over when and how to recall its Ground Self-
Defense Force troops currently deployed in the southern Iraqi
city of Samawah. The government plans to complete the pullout of
all those Samawah-based GSDF members during Prime Minister
Koizumi's remaining term of office as president of his ruling
Liberal Democratic Party. The government would also like to start
the GSDF's withdrawal from Iraq during the first half of this
year. However, the situation there remains sensitive when it
comes to whether four government-set preconditions for the GSDF's
pullout-such as progress in Iraq's political process-will be all
met within that timeframe.

Japan paying attention to Britain's moves

Britain is leading Japan and other multinational force members
with its timetabled pullout of troops currently deployed to
Iraq's southeastern districts including Samawah.

On Jan. 11, Brittan's Defense Secretary Reid met with Japan's
Defense Agency Director General Nukaga in London. In the meeting,
Reid said: "That country's southeastern districts are
comparatively safe. There's no need for our and Australian troops
to keep staying there any longer." With this, Reid told Nukaga
that the time for Britain's troop pullout was drawing near.

Reid also showed the British military's pullout plan. The British
defense minister told Nukaga that Britain would move its troops
to Basra or elsewhere in Iraq's southeastern province and would
flexibly pull them out of Iraq while watching how Iraqi security
forces will maintain public security in that country. Nukaga told
Reid that the GSDF would be closely in touch with the British and
Australian forces.

According to Japanese government officials, Britain has told
Japan that it would like to spare troops for Afghanistan and
other regions. "They cannot afford to keep troops in a safe
place," one Japanese government official said.

On Jan. 23, working-level officials from the governments of
Japan, Britain, Australia, and the United States also met in
London. In that meeting, a British official revealed a plan to
"complete the pullout of troops in May at the earliest." This
British pullout plan is premised on Iraq's establishment of
government as scheduled. It will take a couple of months to
withdraw troops, so Britain is expected to begin its troop
pullout in March.

Senior officials in the Japanese Foreign Ministry and the Cabinet
Secretariat have stressed that the British government has yet to

SIPDIS
make a formal decision on that pullout plan. "That meeting was
not at a level for the government to make a decision," one
official recounted. This official also said the four countries
were prying into each other.


TOKYO 00000749 004 OF 007

SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 02//06

In setting a timetable for the GSDF's withdrawal from Iraq,
however, Japan cannot ignore the British military's moves in that
country. "They're likely to come under attack when withdrawing,"
a senior official of the Foreign Ministry explained. This
official went on: "GSDF personnel are almost unarmed. But in the
case of British forces, their troops are fully armed and they
have enough troops. So the GSDF has no choice but to move
together."

In response to the British military's moves, the government is
now already seeking behind the scenes to recall the Samawah-based
GSDF contingent while looking into Japan's overseas troop
dispatches in the past, such as the GSDF's withdrawal from East
Timor. The government is simulating when and how to withdraw the
GSDF troops from Iraq.

Iraq yet to establish government, Tokyo urged for difficult
decision

The Japanese government has set four preconditions for the GSDF's
simulated withdrawal from Iraq. One of these preconditions is how
other Iraq-based multinational force members will move. Another
key factor is progress in Iraq's political process. "We will
continue to help Iraq with its people's nation-rebuilding
efforts," Koizumi told reporters on Feb. 2. "That's important,"
he added.

The second precondition factored in by the government is public
security, which is synchronized with progress in the political
process. Nukaga, in his meeting with Reid, noted that how a full-
fledged government will come into existence is closely linked to
public security.

On Jan. 20, Iraq announced the outcome of its recent national
election. Iraq's major groups-representing the Shiites, Kurds,
and Sunnis-have just kicked off their talks to establish a new
government of Iraq's own. One Japanese government official
predicts Iraq's establishment of a new government into March even
at the earliest.

However, the British military might begin its troop pullout in
March. A high-ranking official of the Japanese government says,
"We can't withdraw until the new government becomes stabilized."
As it stands, the Japanese government will be urged to make a
difficult decision.

The fourth and last precondition set by the Japanese government
is progress in Iraq's reconstruction. The GSDF wound up its water
supply service a year ago. A government official thinks the GSDF
has "fulfilled its role to a certain extent."

At the same time, however, what to do about Japan's new
contribution to Iraq's reconstruction after the GSDF's withdrawal
is also likely to become a key. That is because "the United
States wants the GSDF to leave its footprints in Iraq somehow," a
senior official of the Foreign Ministry says. On Jan. 17, US
Defense Secretary Rumsfeld met with Nukaga. "All countries are
reluctant to train local security forces, so it would be
appreciated if Japan will do so," Nukaga later quoted Rumsfeld as
saying in that meeting. Nukaga answered, "It's legally
impossible."


TOKYO 00000749 005 OF 007

SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 02//06

The United States has also asked Japan behind the scenes to
participate in a "provincial reconstruction team" (PRT) that is
made up of armed forces and civilians for Iraq's public security
and reconstruction. However, Japan is reluctant to consider the
PRT initiative. A senior official of the Foreign Ministry has
voiced concern, saying: "We must carefully nail down the United
States' intention, or our relationship we have established
through the Self-Defense Forces' deployment could worsen."

(4) World is being divided in two; Japan needs to discuss what
image to project as a state

YOMIURI (Page 11) (Excerpts)
February 9, 2006

By Yukio Okamoto, head of Okamoto Associates

US President Bush last week delivered his State of the Union
address. The speech seemed to have parts that received applause
from only members of the Republican Party, more so than in usual
years. Bipolarization is apparently in progress in the US.
President Bush is losing his power base, which has made it more
difficult for him to unite the American people.

The US is wounded. In particular, its foreign policy is seriously
hurt. The opening of the Iraq War, based on wrong information,
the abuse of inmates at Iraqi prisons, and the treatment of
detainees at the Guantanamo security facility are shaking the
moral fiber of American diplomacy. A chastened American thus has
taken no action in the face of the massacre of hundreds of
thousands of people in Sudan.

Bipolarization is also going on in all corners of the world.
Though the reasons may be different, the climate and conditions
exist in many countries for treating anti-American actions in a
matter of fact way. Examples include the victory of the Islamic
militant group Hamas in the recent Palestinian election, Iran's
drive to become a nuclear state, and the suppression of human
rights in Burma.

In South Korea, key government positions are now filled with
officials from a generation that was persecuted during the
military-regime period. One senior US official observed that
South Korea is rapidly breaking away from the US because this
generation saw the shadow of the US behind the military regime at
the time."

The US is no longer able to form an international order on its
own. On the other hand, China and India have emerged at
tremendous speed. According to the World Bank's statistics, China
ranks second in the world in terms of purchasing power parity,
and India is in fourth place. The extraordinary amounts of
natural resources and energy needed by these two countries, both
of which have enormous populations, have brought about a sharp
rise in crude oil prices. In particular, China is trying to
corner natural resources all over the world, including crude oil
in the Middle East and mines in Africa, backed by its foreign
currency reserves, which stand at a pronouncedly high level in
the world.

Having spent much energy on its integration, Europe's drive to go
out into outside the region has declined. The rise of China and

TOKYO 00000749 006 OF 007

SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 02//06

India is beginning to bring an end to the age of the US and
Europe in the true sense of the term.

The free-market economy and globalization have created winners,
such as the US, China and India. But there also are many losers
in Latin America, Africa, and Europe. The multilateral trade
talks (Doha Round) aimed for trade liberalization remain stalled.
The divide between successful countries and those that are not is
widening due to the emergence of free competition and information
and technology (IT),a powerful tool.

Religion is also accelerating the bipolarization. The religious
right in the US and the Russian Orthodox Church are becoming more
conservative. The expansion of Islamic extremists is not only
intensifying tension in the Middle East but also having a major
impact on the world. Such factors have served as a cause of
racial disturbances in Europe.

What image of the state and basic policy should Japan pursue amid
such a trend? We need to discuss what image of the state we would
like to pursue over the mid- to long-term. To that end, there are
lots of matters to attend to, including becoming a mid-size and
high-performance country or starting up human exchanges with
China with an eye on 10 years hence. This is no time to engage in
petty disputes.

Yukio Okamoto: Former prime ministerial assistant. 60 years old.

(5) ITC launches investigation into Toyota on suspicion of
violating US patent, aiming perhaps to constrain Japanese
automakers; Move could become source of bilateral trade dispute

YOMIURI (Page 8) (Full)
February 10, 2006

The International Trade Commission (ITC) on Feb. 8 started
investigation into Toyota Motors regarding the technology it has
applied to its hybrid cars, which employ both an electric motor
and an engine. The investigation is based on Article 337 of the
US Tariff Act, which regulates unfair trade practices. The move
is likely to become a new source of trade friction between Japan
and the US. The investigation was launched in response to a
complaint filed by Solomon Technologies, a machinery
manufacturer. It is viewed as being aimed to check Japanese
automakers, such as Toyota, which are expanding their business
performance in the US through brisk sales of hybrid cars.

Sales of fuel-saving hybrid cars are sharply increasing in the US
auto market in the wake of a rise in gasoline prices, leading to
an increase in the shares of Japanese automobiles.

There is a preliminary calculation that the sales of hybrid cars
will increase to 780,000 units, four times the current level, by

2012. General Motors, the largest automaker in the US, and Ford
Motors, plan to manufacture hybrid cars on a full scale, centered
on sports utility vehicles, but they are far behind Toyota.

While the two major US automakers are suffering a long-standing
sales slump, Toyota has tried to increase local production in
order to avoid the recurrence of Japan-US auto friction. As part
of such efforts, it has decided to manufacture the hybrid version
of Camry sedans in the US.

TOKYO 00000749 007 OF 007

SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 02//06


However, since it is difficult to locally manufacture the
complicated hybrid system, it has to rely on imports for the
procurement of key parts. For this reason, if the ITC has ruled
that Toyota is guilty of infringing on a US patent, it will have
to take a second look at its strategy for the sales of hybrid
cars on the North American market. In addition, since Toyota has
transferred the hybrid technology to Nissan Motors and Ford
Motors, the outcome of the ITC 's investigation will likely
affect the hybrid car strategies of other companies.

(6) Yamaguchi-gumi commands majority of gangsters nationwide

MAINICHI (Page 28) (Full)
February 10, 2006

It was learned yesterday from the National Police Agency's 2005
report on gangs that the membership of Yamaguchi-gumi is about
27,000 (an increase of 700 from the previous year) or about 50.1%
of the entire membership of organized groups of gangsters. Since
the boss of the Yamaguchi-gumi was replaced last August, the
largest organized group of gangsters in Japan has increased its
membership, such as absorbing other gangs. The NPA is alarmed
that Yamaguchi-gumi has expanded its membership.

The entire membership of all gangs totaled about 43,000 at the
end of 2005 (drop of 1,000 from year before). When adding the
quasi-membership of gangsters to the full membership, the number
of gangsters was about 86,300 (drop of 700 from the previous
year). The number of gangsters was on the increase from 1996
until last year, when it declined for the first time in ten
years.

The number of Yamaguchi-gumi members including quasi-members of
about 19,300 (increase of 900 from a year earlier),however,
increased last year to about 41,000 or 47.5% of the whole. The
membership of Yamaguchi-gumi has continued to expand from 36.2%
of the whole in 2001.

The number of full- and quasi-members of the three major
organized groups of mobsters -- Yamaguchi-gumi, Sumiyoshi-kai,
and Inagawa-kai -- totaled about 63,000 (increase of 1,700 from
the previous year) last year. The membership of 63,000 is
equivalent to 73% of the whole membership of gangsters.

According to the NPA, the activities of organized mobsters have
become diversified, with activities including taking protection
money from shopkeepers, billing fraud, and wiretapping.

In addition, the full- and quasi-memberships are almost always
the same numbers. The NPA sees the gangs thus as disguising their
activities.

SCHIEFFER