Identifier
Created
Classification
Origin
06TOKYO805
2006-02-15 04:29:00
UNCLASSIFIED
Embassy Tokyo
Cable title:  

JAPANESE MORNING PRESS HIGHLIGHTS 02/15/06

Tags:  OIIP KMDR KPAO PGOV PINR ECON ELAB JA 
pdf how-to read a cable
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RUCNDT/USMISSION USUN NEW YORK 8854
UNCLAS SECTION 01 OF 12 TOKYO 000805 

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 02/15/06


Index:
UNCLAS SECTION 01 OF 12 TOKYO 000805

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 02/15/06


Index:

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

4) Seeking North Korea breakthrough before leaving office,
Prime Minister Koizumi sends message to North Korea's Kim Jong Il
stressing need for dialogue

Defense issues:
5) US intercept missiles to be used to defend Tokyo area from
attack under missile-defense scheme
6) Chief Cabinet Secretary Abe says government will go all out
to obtain local understanding for Futenma relocation to Camp
Schwab coastline
7) LDP's Kyuma says the bill to make JDA into ministry will not
go to the Diet until next year's regular session

Beef stew:
8) Opposition camp to continue relentless pursuit in Diet of
government responsibility for US beef import resumption
9) LDP, Minshuto (Democratic Party of Japan) missions to US
have different versions of same plants inspected for beef
slaughtering safety
10) Agriculture Minister Nakagawa, USDA Secretary Johanns
discuss BSE issue by phone
11) Japan might make condition for restarting US beef imports
its own pre-checks at shipping time
12) Consumer groups, food industry slam OIE's easing of beef
trade standards based on scientific evidence
13) Since 2001, 82 companies went bankrupt due to Japan's BSE
problem

Political merry-go-round:
14) Slight difference in historical stances of Foreign Minister
Aso, Chief Cabinet Secretary Abe
15) Minshuto head Maehara meets SDP head Fukushima but no
meeting of minds on Constitution, Self-Defense Forces
16) Koizumi continues rebuttal of barrage of Diet criticism over
growing income disparity in Japanese society

17) Former National Land Agency director general Ito may have
acted as intermediary for architectural scandal-tainted Huser
company

Articles:

1) TOP HEADLINES

Asahi:
Kobe Airport to open tomorrow, New Kitakyushu Airport in March,
Shizuoka Airport in 2009; Many regional airports unprofitable

Mainichi:
Former National Land Agency chief Ito asked Industrial
Revitalization Co. last June to meet Huser President Ojima
regarding IRC's hotel auction

Yomiuri:
Livedoor instructed affiliates to fabricate financial data to
conceal its window dressing for business year to September 2004


TOKYO 00000805 002 OF 012


Nihon Keizai:
Banks, non-banks offering variety of housing loans focused on
people in their twenties and women

Sankei:
Tokyo Metropolitan Police investigating murder of Japanese man
last July in the Philippines, suspecting that the man was killed
for insurance money

Tokyo Shimbun:
5.5 trillion yen in government subsidies spent annually for 4,000
special public corporations and public-interest corporations,
Lower House learns

2) EDITORIALS

Asahi:
(1) Don't rush pluthermal program
(2) Japanese Communist Party and Social Democratic Party join
hands in search of past dream

Mainichi:
(1) The Koizumi government may not last until September
(2) We would like to see the results of Iwakuni referendum

Yomiuri:
(1) Global policy needed on recycling nuclear fuel
(2) Opening of Kobe Airport: How will three airports in Kansai
area overcome runway glut?

Nihon Keizai:
(1) Strengthen management oversight via outside board members
(2) Dispute over Muhammad cartoons should be settled thorough
dialogue

Sankei:
(1) Further vigilance required for avian flu
(2) Japan should display its prowess through another launch of
MTSAT2

Tokyo Shimbun:
(1) LDP Secretary General Takebe should tell us the truth
(2) Local residents have high hopes for Kobe Airport, but . . .

3) Prime Minister's Official Residence (Kantei)

Prime Minister's schedule, February 14

NIHON KEIZAI (Page 2) (Full)
February 15, 2006

09:01
Cabinet meeting in the Diet building. Finance Minister Tanigaki
stayed afterward. Then met with Agriculture Minister Nakagawa.

09:55
Met with members of the LDP's US Beef Import Issue Investigation
Team, including Lower House member Toshikatsu Matsuoka, at the
Prime Minister's Official Residence.

16:20
Deputy Foreign Minister Nishida.

TOKYO 00000805 003 OF 012



17:49
Met with State Minister in charge of Economic, Fiscal, and
Financial Policy Yosano.

18:38
Met at Hotel Okura with Takashi Imai, honorary chairman of Nippon
Steel Corp.; Hiroshi Okuda, chairman of Toyota Motors; and
Yoshifumi Nishikawa, president of Japan Post.

20:53
Arrived at official residence.

4) Koizumi sends message to Kim Jong Il underlining his dialogue
policy course in bid to find breakthrough before his term of
office expires

ASAHI (Page 4) (Full)
February 15, 2006

Prime Minister Junichiro Koizumi has sent a message to North
Korean leader Kim Jong Il, expressing his strong desire to pave
the way for normalizing diplomatic ties between the two countries
through dialogue before his term of office as Liberal Democratic
Party (LDP) president expires in September. The step apparently
also reflects his judgment that settling bilateral issues
requires political decisions by the two top leaders. Following
the failure of the recent intergovernmental talks, held for the
first time in three years and three months, calls are growing
stronger in the government and ruling coalition for applying
pressure on the North. Time is running out for Koizumi to advance
his dialogue strategy.

The message called for mutual efforts for solving problems in
accordance with the Japan-DPRK Pyongyang Declaration. The
Declaration specified an early normalization of diplomatic
relations between the two countries. The message was designed to
play up Tokyo's intention to abide by the Pyongyang Declaration
and the prime minister's dialogue policy course.

The September 2002 and May 2004 Koizumi-Kim talks have brought
about a series of positive results, such as the Pyongyang
Declaration and the repatriation of abductees and the handover of
their families to Japan. "The settlement of issues depends on
decisions by Kim Jong Il," a government source said.

The Japan-North Korea government-to-government talks held earlier
this month ended by just confirming each other's standpoints
without making any visible progress. A sense of disappointment is
looming over the government and the ruling bloc. LDP Secretary
General Tsutomu Takebe said on Feb. 13, "The dominant view in the
LDP is that the government should discuss seriously the option of
applying pressure on the North." Chief Cabinet Secretary Shinzo
Abe also told a press conference yesterday, "We must study
thoroughly what kind of pressure is best."

Koizumi is finding it difficult to ignore hardliners' views.

Unless Kim Jong Il exhibits a willingness to respond positively
to Koizumi's call for dialogue through the next intergovernmental
talks and other venues, it will be difficult for Koizumi to find
a breakthrough in the deadlocked relationship with the North in

TOKYO 00000805 004 OF 012


his remaining term in office.

5) Japan to propose deploying US intercept missiles for metro
defense

SANKEI (Page 1) (Abridged)
February 15, 2006

Japan and the United States will enter into intergovernmental
consultations for US Forces Japan's deployment of Patriot
Advanced Capability-3 (PAC-3) ground-to-air missiles in Japan to
defend Tokyo and its environs with an antiballistic missile
defense (MD) shield. The two countries will also integrate their
information networks, such as Aegis-equipped vessels and US early
warning satellites. In addition, Japan is going to lay down an MD
system with the United States late in fiscal 2006.

In October last year, the Japanese and US governments released an
interim report on USFJ realignment. The interim report clarifies
that the United States will deploy proactive defense
capabilities, such as the PAC-3 and the Standard Missile-3 (SM-
3). It also incorporates an agreement to share radar intelligence
in order to detect ballistic missiles.

In response, a deputy director of the US Missile Defense Agency
(MDA) will arrive in Japan tomorrow for consultations with the
Defense Agency. Meanwhile, the Japanese and US governments will
hold a meeting of officials late this month to exchange views for
intelligence sharing, with US Ambassador to Japan Schieffer and
the MDA director attending on the US side and the Joint Staff
Council chairman and others on the Japanese side.

In the talks, Japan will ask the United States to employ PAC-3
missiles to shield the Tokyo metropolitan area and other urban
areas if and when there is a sign indicating a ballistic missile
launch from North Korea or other countries.

Washington has already told Tokyo that the US government would
prioritize safeguarding Kadena base in Okinawa, which deploys F-
15 fighter jets. The US military is also expected to deploy PAC-
3s to Kadena. However, Japan will propose deploying them flexibly
in the Tokyo area and other urban districts in the event of
emergencies, since they are airliftable.

6) Gov't to explain Futenma relocation for local understanding:
Abe

ASAHI (Page 4) (Full)
February 15, 2006

The government will give thoroughgoing explanations to Okinawa
and its local communities about its agreement with the US
government to relocate the US military's Futenma airfield in the
city of Ginowan, Okinawa Prefecture, to the prefecture's northern
coastal city of Henoko, Chief Cabinet Secretary Abe told a news
conference yesterday. "We'd like to provide full explanations
about the agreement that has been reached so that we can obtain
local understanding," Abe said. US Ambassador to Japan Schieffer
remarked yesterday that the US government would respect local
proposals and would flexibly respond to talks about changes to
the Futenma relocation plan. However, Abe's remarks indicated
that the Japanese government would make efforts for local consent

TOKYO 00000805 005 OF 012


to the current relocation plan.

7) Defense Agency will be upgraded to ministry next year: Kyuma

ASAHI (Page 4) (Full)
February 15, 2006

Fumio Kyuma, chair of the ruling Liberal Democratic Party's
executive board, held a press conference yesterday, in which he
remarked that the government is not yet ready to upgrade the
Defense Agency to the status of a ministry. "The government does
not appear to be well prepared to come up with a bill (in the
Diet)," Kyuma said. "Even if the government introduces a bill (to
the Diet at the current session),it might be carried over to the
next ordinary Diet session after the Defense Agency submits its
budget estimate this summer and after the budget is compiled at
the end of the year," he said.

8) Opposition bloc to pursue government's responsibility in
intensive Diet deliberations on US beef

ASAHI (Page 4) (Full)
February 15, 2006

The House of Representatives Budget Committee will deliberate on
US beef imports for seven hours today. Prime Minister Junichiro
Koizumi is scheduled to attend the afternoon session. The
opposition bloc, including Minshuto (Democratic Party of Japan),
is expected to question the propriety of the government's
decision in December to resume beef imports and how it plans to
lift the second ban on beef imports in the future. The committee
is also scheduled to conduct intensive deliberations on the
Livedoor scandal on Feb. 17.

In today's session, Minshuto lawmakers, such as Masahiko Yamada,
who visited the United States on a fact-finding mission, are
expected to pursue the government's responsibility for allowing
substandard US beef to enter Japan, resulting in the second ban
on US beef. A senior Minshuto member said, "We have two
bombshells."

9) US beef imports: Investigation teams of LDP, DPJ split over
evaluation of safety control; Lower House to hold Intensive
deliberations on issue today

MAINICHI (Page 2) (Full)
February 15, 2006

The Liberal Democratic Party's (LDP) US beef import issue
investigation team (led by Toshikatsu Matsuoka),which visited
the US until Feb. 13., yesterday held a press conference at the
LDP headquarters. The team presented a report on inspection
results, which criticized the sloppiness of the safety control by
the US Department of Agriculture (USDA) but concluded that
meatpackers they have inspected were processing cattle in a
strict manner so that specified risk materials (SRM) could not be
mixed with meat for human consumption. The Democratic Party of
Japan's (DPJ=Minshuto) investigation team also inspected the same
companies from late last month through early this month. They
came up with a negative view, noting that the way the plants had
removed SRMs was slipshod.


TOKYO 00000805 006 OF 012


The LDP team visited meatpackers in Kansas, home to the beef
industry, for five days and inspected meat-processing operations
there. Matsuoka noted that there naturally were companies that
gave priority to their products being safe. He then criticized
the US government for the inclusion of SRMs in a Japan-bound
shipment, noting, "The problem was the sloppiness of the US
government, which authorized unreliable suppliers."

Regarding the inspection by the DPJ, some LDP members take the
view that the DPJ's inspection results do not reflect the actual
situation. DPJ chief Seiji Maehara during yesterday's news
conference raised doubts about the reliability of inspections by
the LDP, rebutting, "The members of our team were all experts.
They carried out inspections in a scrupulous manner." The Lower
House Budget Committee is expected to hold today intensive
deliberations on the reimposition of a ban on US beef imports.
There is the possibility of the difference in the views of the
two parties being discussed.

10) Agriculture minister tells Johanns by phone he sent
questionnaire over OIG report

TOKYO SHIMBUN (Page 8) (Full)
February 15, 2006

Agriculture, Forestry and Fisheries Minister Shoichi Nakagawa
held a telephone conversation with US Secretary of Agriculture
Johanns last night. Nakagawa told Johanns that he has sent a
questionnaire asking several questions. The questions include
whether the meat-processing facilities authorized to handle Japan-
bound meat are included among the facilities whose sloppy
management was pointed out by the Office of Inspector General
(OIG) early this month.

The OIG report noted that it was unable to judge whether
specified risk materials that could transmit BSE were properly
being removed at nine of the 12 abattoirs subjected to US
inspections. The written question asks the US to explain the
details of the recent Beef Export Verification violation.

11-1) Government, ruling parties to set Japan's prior inspection
of slaughterhouses in US as condition for resuming US beef
imports

NIHON KEIZAI (Page 1) (Full)
February 15, 2006

The government and the ruling parties decided yesterday that
Japan would propose prior inspections of meat-processing
facilities in the US by Japanese inspectors as a precondition for
resuming US beef imports. It will soon start negotiations with
the US on the resumption of imports. But in order to erase the
growing concerns in the nation about the safety of US beef, the
government now feels it is also necessary for Japanese experts to
inspect slaughterhouses in the US.

Liberal Democratic Party Secretary General Tsutomu Takebe said
yesterday: "It is necessary for Japanese inspectors to go to
slaughterhouses in the US and inspect them." LDP member
Toshikatsu Matsuoka, who visited such facilities, told reporters:
"It might be necessary (for Japanese experts) to confirm if the
slaughtering process is being properly conducted." The Japanese

TOKYO 00000805 007 OF 012


government will receive a report detailing measures to prevent
any Beef Export Verification violations this week. Based on the
report, Japan will engage in negotiations with the US. In the
negotiations, Japan intends to insist that only meat-processing
facilities inspected by a Japanese inspection team should be
allowed to handle Japan-bound meat. The inspection team will be
composed of mainly experts from the Ministry of Agriculture,
Forestry, and Fisheries and the Ministry of Health, Labor, and
Welfare. The team will check to see if such specified risk
materials as the brain and spinal cord have been completely
removed and whether processing records have been properly kept.

Under the bilateral agreement that restarted imports of US beef
last December, the US government certifies processing plants that
are allowed to export to Japan, and inspections by Japan are not
required.

11-2) US beef may be checked by Japan before shipment

SANKEI (Page 5) (Full)
February 15, 2006

A Liberal Democratic Party (LDP) fact-finding delegation led by
Toshikatsu Matsuoka to study the issue of US beef imports gave a
news conference of Feb. 14 at party headquarters. The delegation
stated that at the time of resumption of US beef imports, "there
needs to be checking (of shipments) by the Japanese government as
much as possible," indicating that it would be necessary for the
Japanese government to inspect the beef for safety prior to it
being exported to Japan. In addition, Matsuoka gave this
explanation about removing specified risk materials, which easily
accumulate agents that cause BSE: "We confirmed that the places
(meat-processing facilities they had observed) where beef was
being processed strictly observed the rules."

12) Japanese consumers, meatpackers criticize OIE plan to ease
standard restrictions on beef trade

ASAHI (Page 12) (Excerpts)
February 15, 2006

The Ministry of Agriculture, Forestry and Fisheries (MAFF) and
the Ministry of Health, Labor and Welfare listened to views
yesterday from domestic consumers and meatpackers about a plan by
the World Organization for Animal Health, known as OIE, to ease
standard restrictions on beef trade. The restrictions have been
imposed as measures to prevent the risk of BSE. Many criticized
the OIE's easing of its safety standards as an annual practice.
One respondent said: "The organization has given priority to
trade promotion over safety."

The government intends to express opposition to the proposal in
the OIE's upcoming annual assembly, but a MAFF official
commented: "Rules are adopted under the majority method. Under
this system, rules advantageous for exporters of beef products
tend to be adopted."

The OIE added boneless beef to the list of tradable products last
year. Japan and European countries raised objections to this. As
a result of debates, the OIE decided to attach these two
conditions for allowing all countries to trade boneless beef: (1)
only products from cattle up to 30 months of age are tradable;

TOKYO 00000805 008 OF 012


and (2) exported products should be free from any suspicion of
BSE infection or such infection has not been confirmed.

The OIE included the conditions, reflecting the assertions of
Japan and other importing countries. This year, however, it has
proposed scrapping these two conditions. If the proposal is
adopted, all countries will be allowed to export boneless beef
without any restrictions as long as they abide by the requirement
of removing specified risk materials that could transmit BSE.

Most of the OIE member countries are developing countries, many
of which have farm and livestock products as their mainstay
export items. In many cases, they have lagged behind
industrialized countries in terms of technical levels in hygienic
management. But the OIE has adopted the majority formula in
principle. The total number of votes of developing countries and
industrialized countries committed to exports of livestock
products, such as the US and Australia, can affect the
development of the OIE annual assembly. according to a senior
MAFF official.

13) BSE issue forces 82 companies out of business in timeframe
between Oct. 2001 and Jan. 2006: Total amount of debt reaches
80.2 billion yen

MAINICHI (Page 2) (Full)
February 15, 2006

The BSE-related bankruptcy statistics released yesterday by
Teikoku Databank found that the number of bankruptcies of such
companies as meat-processing companies and barbecue restaurants
during a timeframe between Oct. 2001 and Jan. 2006, Jan.,
following the discovery of the first domestic BSE case, reached
82 with the total amount of debt at 80.2 billion yen. It was
thought that the industry would break out of the slump, when US
beef imports were resumed last December. However, there has now
appeared concern over an increase in the number of bankruptcies
as a result of the reimposition of a ban in January.

According to the statistics, 22 companies went under in the
second half of fiscal 2001 and 23 in fiscal 2002. As more
companies shifted to imported beef, the number of bankruptcies
fell to 4 in fiscal 2003. After a temporary lull, bankruptcies
rose to 17 in fiscal 2004, following the introduction of a US
beef import ban at the end of 2003.

In fiscal 2005, 16 companies have gone bankrupt as of January
this year. There is still no prospect for resumption of US beef
imports.

14-1) Post-Koizumi candidates reveal subtle differences in war
views, foreign policy before Lower House Budget Committee; Aso
cautious, as Abe displays originality

MAINICHI (Page 2) (Excerpts)
February 15, 2006

By Takashi Suto

At a Lower House Budget Committee session yesterday, committee
members showered questions on two post-Koizumi candidates - Chief
Cabinet Secretary Shinzo Abe and Foreign Minister Taro Aso -

TOKYO 00000805 009 OF 012


about their views of war and Asia diplomacy. Their answers were
all innocuous and did not depart from government views. While Aso
shied away from a clear-cut mention of Japan's post-Koizumi
diplomacy toward China and South Korea, Abe spoke of his vision:
"We need to devise a mechanism to prevent an escalation of
trouble." Presumably keeping in mind the Liberal Democratic Party
(LDP) presidential race slated for September, the two revealed
subtle differences in their attitudes.

The first questioner was Katsuya Okada, former president of the
largest opposition party Minshuto (Democratic Party of Japan).
His questions started with this preliminary remark: "I'd like
those who seem more likely to lead Japan in the future to answer
my questions." In answering questions, Aso remained cautious,
while Abe was more bold. Subtle differences were revealed
accordingly.

When asked, "What will you do as the leader of Japan about policy
toward China and South Korea if you intend to pay homage at
Yasukuni Shrine?" Aso remained cautious about answering the
question and noted: "It's difficult to answer such a question
based on the premise that I will become prime minister." On the
other hand, Abe came up with an answer that envisioned his future
course, noting: "While paying attention to the movements of the
rest of the world, we have to consider it from a medium- to long-
term perspective." He thus revealed his eagerness to succeed
Koizumi.

In response to the question, "Was the war a war of aggression?"
Aso offered a model answer: "The so-called Murayama statement (in
1995 that expressed self-reflection on (Japan's) colonial rule
and aggression) is the government view. The foreign minister's
view conforms to it." Asked about the Tokyo Tribunal of War
Criminals (Tokyo Trials),Aso replied: "We accepted the decision
in the San Francisco Peace Treaty. That's all there is to say."

Meanwhile, Abe hinted that how to view it could change depending
on the situation, noting: "We need to think what parts of the war
we will deal with and how." On the Tokyo Trials, Okada said, "The
Japanese government is bound by the court decisions." But Abe
responded emotionally: "It sided with the General Headquarters
(GHQ)." And he revealed dissatisfaction, noting: "Japan could not
have recovered its independence if it had not accepted the peace
treaty. Japan owes what it is now to an agonizing decision at the
time."

Replies by Abe and Aso


1. Historical perception of WWII

2. Evaluation of the Tokyo Trials

3. Asia diplomacy

Chief Cabinet Secretary Abe

1. From the government's position, I should not say this or
that as though I am a judge in the court of history.

2. Japan could not have become independent if it had not
accepted (the San Francisco Peace Treaty that accepted the Tokyo
Tribunal's decision). Accepting it was an agonizing decision for
Japan.

3. Trouble could occur on the political front, but it is
necessary to create a mechanism to prevent the escalation of
trouble.

TOKYO 00000805 010 OF 012



Foreign Minister Aso

1. I have stated that the government view is that the war was a
war of aggression.

2. The San Francisco Peace Treaty accepted the decision. As a
member of the government, I am not in a position to comment.

3. Japan can hold summits with Asian nations other than China
and South Korea. Just because some are bad does not mean that all
are.

14-2) Foreign minister's history-related remarks under fire at
home and abroad

MAINICHI (Page 2) (Full)
February 15, 2006

By Takuji Nakata

Foreign Minister Taro Aso remained cautious during the Lower
House Budget Committee session, but he is facing growing
criticism at home and abroad for his recent remarks on history.
Referring to relations with China and South Korea, Aso has
stated: "Just because portions are bad doesn't mean that
everything is bad." However, the remarks of the foreign minister
are presenting obstacles for a government looking to improve
relations. This may explain in part Aso's cautious stance.

His recent remarks include such statements as: "The best way
would be for the Emperor to visit (Yasukuni Shrine)"; and "Japan
introduced compulsory education into Taiwan (when it was under
Japan's rule). As a result, the academic level there has improved
tremendously."

The Feb. 13 edition of the New York Times blasted Aso, writing,
"His sense of diplomacy is as strange as his historical
perception." The Feb. 14 edition of North Korea's government
paper Minju Choseon said that Aso is jockeying for position in
the party presidential race by trying to boost his political
popularity."

A diplomatic source expressed concern, saying: "Because Japan-
China summit talks have stopped, it has become important for the
foreign ministers to meet. But if a foreign ministerial meeting
were held at the wrong timing, the result would be serious."
However, there is no prospect of foreign ministerial talks being
resumed. Aso's remarks have also been criticized by senior
members of the New Komeito and others.

15) SDP's Fukushima says, "SDF's Iraq mission is
unconstitutional," but DPJ President Maehara warns, "Such might
give rise to misunderstanding that the party has returned to its
old self"

ASAHI (Page 4) (Full)
February 15, 2006

Social Democratic Party (SDP) head Mizuho Fukushima called on
Democratic Party of Japan (Minshuto) President Seiji Maehara
yesterday in which she repeatedly said, "The Self-Defense Forces'
mission in Iraq is unconstitutional, isn't it?" Fukushima's
courtesy call on Maehara followed the SDP's party convention,
which had adopted a platform describing the existence of the Self-

TOKYO 00000805 011 OF 012


Defense Forces as unconstitutional. In response to Fukushima's
remarks, Maehara simply said: "The expression (that the current
situation is unconstitutional) might give rise to a
misunderstanding that the SDP has returned to (the now defunct
Social Democratic Party of Japan). (Former Prime Minister and
SDPJ Chairman Tomiichi) Murayama also said that he didn't want to
get involved in it."
Maehara has opposed the deployment of SDF to Iraq for such
reasons as that there was no such area as a non-combat zone in
Iraq. Fukushima apparently wanted Maehara to share the SDP's view
that the SDF is unconstitutional in the current situation.

To begin with, Maehara is a constitutional revisionist who wants
to apply the brakes on the activities of the SDF. His view
completely differs from the SDP's standpoint to confine the SDF
within the framework of the current Constitution. Fukushima's
approach was inappropriate in the first place.

16) Prime Minister rebuts criticism of growing income disparity
in Japan

SANKEI (Page 5) (Excerpt)
February 15, 2006

Prime Minister Junichiro Koizumi last evening met with top
business leaders, including Nippon Keidanren Chairman Hiroshi
Okuda, at a Tokyo hotel. According to an attendee, the Prime
Minister responded to criticism that income disparity was growing
in Japan because the structural reforms he has himself promoted
served to boost competition. He rebutted: "If there was excessive
competition, the economy simply could not grow." In response to
it being pointed out that the reason for the Livedoor scandal lay
in the excessive deregulation, the Prime Minister stressed: "That
kind of thinking is completely wrong."

17) Former National Land Agency chief Ito asked senior IRC
official last June to meet Huser President Ojima regarding IRC's
hotel auction

MAINICHI (Top Play) (Excerpts)
February 15, 2006

It was learned yesterday that former National Land Agency Kosuke
Ito asked last June a senior Industrial Revitalization
Corporation (IRC) official to meet the developer Huser President
Susumu Ojima, who desired to make a successful bid for IRC's
hotel auction. Ito had introduced Ojima, who has now been accused
of the earthquake-resistance data scan, to a senior Land,
Infrastructure and Transport Ministry official. The IRC
reportedly did not help Huser win the bid, but the company
actually won the bid. It has not become clear that Ito repeatedly
asked officials concerned for help for the sake of Ojima.

Ito has admitted that he asked a IRC official to meet Ojima,
responding through his office and a his family member to
questions by this newspaper:

"Since Huser President Ojima told me that he wanted to question
the IRC about Seishin Oriental Hotel, I got in touch with an IRC
official and asked him to respond Ojima's questions. I regard
what I did as a kind of lobbying activities."


TOKYO 00000805 012 OF 012


The planning and coordination office head of the IRC, who was
asked by Ito, said, "We cannot respond to individual claims, but
we do sometimes respond to references from politicians and
companies. "

According to those involved, Ito made a telephone call in early
June last year to the IRC's planning and coordination office head
to ask him to meet Ojima. After that, the ROC official met with
Ojima and Huser employees. Ito did not accompany them, however.

SCHIEFFER