JAPANESE MORNING PRESS HIGHLIGHTS 02/22/06

UNCLAS SECTION 01 OF 11 TOKYO 000911

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SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 02/22/06


Index:

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

Defense issues:
4) USFJ realignment hits bump over changes in Futenma
relocation plan sought by Okinawa lawmakers and argument over
share of relocating Marines to Guam
5) Gulf widens more between Tokyo, Okinawa Prefecture over
Futenma relocation plan

6) Foreign Minister Aso, German counterpart confirm need to
further consult on UNSC reform

China connection:
7) METI Minister Nikai to meet Chinese premier Wen in possible
fence-mending visit
8) LDP's Hidenao Nakagawa in Beijing discusses possible
trilateral study of historical issues as effort to repair
strained relations
9) Japan-China trade in 2005 set new record for 7th year in row

Foreign aid intrigues:
10) Foreign Ministry, Finance Ministry reached backroom deal to
protect mutual vested interests in running parts of ODA program,
centered on JICA's jurisdiction
11) New JICA to be under Foreign Ministry's control, with yen
loans now administered by three ministries

12) Takenaka forum envisions possible breakup of still
monolithic-like NTT

Political showdown in Diet today:
13) Minshuto head Maehara, Prime Minister Koizumi to slug it out
verbally in Diet today, focusing on Livedoor scandal
14) Unable to prove authenticity, Minshuto to withdraw e-mail
that allegedly proved illegal money funneled from Livedoor's
Horie to son of LDP's Takebe

15) Another natural drop in population in 2005

Articles:

1) TOP HEADLINES

Asahi:
Financial Services Agency to revise legislation to abolish "gray-
zone interest rates" for moneylenders to relieve debtors

Mainichi:
Foreign Ministry, Finance Ministry reached secret agreement on
JICA's jurisdiction to continue keeping vested interests even
after ODA reform

Yomiuri, Tokyo Shimbun:
Livedoor window-dressed financial statements by 5 billion yen;
Representative director Kumagai admits to investigators that he
was involved in creative accounting worth 1.4 billion yen;
Prosecutors preparing to re-arrest Horie


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Nihon Keizai:
Honda to install hybrid engine to 1-million-yen-level Fit

Sankei:
Takenaka's advisory panel decides to review NTT's market control
with its dismantlement as one option

2) EDITORIALS

Asahi:
(1) Making houses earthquake-resistant essential to save lives
(2) Taking care of the aged is everybody's business

Mainichi:
(1) There are more than pessimistic stories on the Kyoto
Protocol that took effect a year ago
(2) Insurance must cover dependency on tobacco, a serious
illness

Yomiuri:
(1) DFAA officials rearrested for bid rigging: General
contractors also surfaced
(2) Government should take lead in raising patriotism

Nihon Keizai:
(1) Accounting and audit systems need further reform
(2) Put an end to a gap in views between Japan and Germany

Sankei:
(1) A cap must not be put on elementary schools in teaching
Kanji characters
(2) Takeshima Day: Japan's inherent territory should be
remembered

Tokyo Shimbun:
(1) Fiscal reconstruction: Have new targets been set?
(2) JAL crisis: Anxiety and distrust must be dispelled

3) Prime Minister's Official Residence (Kantei)

Prime Minister's schedule, February 21

NIHON KEIZAI (Page 2) (Full)
February 22, 2006

08:31
Attended cabinet meeting in the Diet building. After the meeting,
met with Foreign Minister Aso, followed by Internal Affairs and
Communications Minister Takenaka.

09:16
Arrived at Kantei.

10:51
Met Yuzo Seto, advisor to Asahi Breweries, who chairs the Japan-
Korea Economic Association.

17:01
Met with German Foreign Minister Steinmeier, joined by the
Foreign Ministry's Deputy Foreign Vice-Minister for Foreign
Policy Kono.


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19:02
Met commentator Naoki Tanaka, Toyota Motor Chairman Hiroshi
Okuda, and Canon President Fujio Miterai at Garden Court in Hotel
New Otani.

20:50
Returned to his official residence.

4) Future of Futenma relocation plan still murky; LDP lawmakers
from Okinawa call for changes to relocation plan; Japan may be
asked to bear cost for building power plant in Guam

SANKEI (Page 5) (Abridged slightly)
February 22, 2006

Based on the concurrence of Nago, the relocation site for the US
Marine Corps' Futenma Air Station, a group of Liberal Democratic
Party (LDP) lawmakers from Okinawa urged the government yesterday
to make changes to a plan to relocate the Futenma Air Station in
Ginowan, Okinawa Prefecture, as part of the planned realignment
of US forces in Japan. The government also pins hopes on the
lawmakers to serve as mediators between the central government
and local areas to restart talks. It is unknown however if
revision talks will become reality. Japan might end up bearing
the cost for building a power plant in relocating the US Marines
from Okinawa to Guam. The future of the planned Futenma
relocation is still unpredictable.

Five LDP lawmakers, including Chiken Kakazu, visited yesterday
the Prime Minister's Official Residence, Defense Agency, and
Foreign Ministry, to urge them to revise the plan to relocate
Futenma Air Station to the coastline of Camp Schwab in Nago and
other municipalities. Specifically, they are believed to have
asked the government to move the planned runway 1 kilometer
further offshore to remove it from Nago's residential areas,
based on the city's consent.

As seen in the Futenma relocation plan, the government's effort
centering on the Defense Agency to persuade local areas has hit
rocky ground. Nago Mayor Yoshikazu Shimabukuro remains adamant
not to discuss the Futenma relocation issue with the government
unless it makes changes to the plan. The Defense Agency remains
at odds with Nago. "In order to deal properly with the issue, we
need to learn of (local views)," Defense Agency Administrative
Vice Minister Takemasa Moriya said.

The group of LDP lawmakers, including Kakazu, fears that if the
government launches relocation construction work without local
consent, they would be forced to oppose the relocation. This
prompted them to take action. "If we supported the relocation
plan, that would conflict with Nago's consensus," Kakazu noted.

The Defense Agency is reluctant to make any changes to the
relocation plan. But because the coastal plan is designed to
allow aircraft to fly over residential areas, some Foreign
Ministry officials think a revision is worth considering. US
Ambassador to Japan Thomas Schieffer has also revealed a flexible
stance about making changes, saying, "If there are better plans,
we are obliged to lend an ear to them."

But even if the plan was revised, there is no knowing if Okinawa
Gov. Keiichi Inamine would accept it. His stance remains the

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largest variable for the government.

In addition, the government will be soon pressed for a political
decision on Japan's share of the expenses for the planned
relocation of the US Marines from Okinawa to Guam, the focus in
Japan-US deputy director-level talks.

The US has presented to Japan an estimate of 7.6 billion dollars
(900 billion yen) for the planned relocation. The US has also
asked Japan to bear over 50% of that amount. The US may also ask
Japan to bear the cost for building a power plant in Guam, citing
aging US base facilities and a chronic shortage of power there.
The government is being pressed to fathom the security
significance that strengthening base functions in Guam will
contribute to Japan's deterrence and limits to the understanding
of the public.

5) Gulf between government, Okinawa over Futenma relocation
remains wide, as Diet members hailing from prefecture seek
revisions in plan; Consideration of development package also
broached

YOMIURI (Page 4) (Excerpt)
February 22, 2006

The gulf is further widening between the central government and
Okinawa Prefecture over the issue of relocating the US Marine
Corps' Futenma Air Station (Ginowan City) to the coastal portion
of Camp Schwab -- a key element in the realignment of US forces
in Japan. With the prefecture and local governments on Okinawa
heightening their opposition to the plan, the central government
has refused to consider any alteration of it. The government also
is not moving ahead with its study of a new package of economic
vitalization measures, as well.

On Feb. 21, a delegation of Liberal Democratic Party (LDP)
lawmakers hailing from Okinawa and led by Masaji Nakamura visited
the Prime Minister's Official Residence, paying a call of Chief
Cabinet Secretary Shinzo Abe. They sought his concurrence for a
revision of coastal plan at Camp Schwab, saying, "We cannot
approve it." After the meeting, Abe told the press corps he had
rejected their request, stating, "We must brief and persuade the
local communities based on the interim report (of the Japanese
and US governments that states the relocation will be to the
coastal portion)."

6) Japanese, German foreign ministers confirm continuation of
talks on UNSC reform

NIHON KEIZAI (Page 2) (Full)
February 22, 2006

Foreign Minister Taro Aso met yesterday with his German
counterpart Frank-Walter Steinmeier in Tokyo. The two foreign
ministers confirmed that Japan and Germany would continue talks
on reform of the United Nations Security Council with the aim of
realizing such by September, although there are differences in
their policies, with Japan having come up with its own reform
proposals.

The foreign ministers agreed to strengthen the solidarity of the
international community for a peaceful settlement of Iran's

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nuclear issue. They also agreed to step up a government-private
sector dialogue, which discusses such common issues as the
falling birthrate and the graying society.

At a joint press conference, Aso stated, "We shared the view that
UNSC reform is an urgent issue." The German foreign minister said
categorically, "I would like to continue the talks in order also
to resolve gaps in views (of the two countries)." Steinmeier also
stated in a meeting with Prime Minister Junichiro Koizumi, which
was held prior to the foreign ministerial, "Based on Japan's
thinking, I hope that our countries will cooperate with each
other."

7) METI Minister Nikai to hold talks with Chinese Premier Wen

ASAHI (Page 3) (Full)
February 22, 2006

Takashi Kamikuri, Beijing

The governments of Japan and China revealed yesterday that
Japan's Economy, Trade and Industry Minister Toshihiro Nikai
would meet with Chinese Premier Wen Jiabao in Beijing. It will be
the first time for a Chinese leader to meet with a Japanese
cabinet minister since Prime Minister Junichiro Koizumi visited
Yasukuni Shrine last October.

Nikai, who arrived in Beijing last night, told reporters: "Japan
and China have not only the Yasukuni issue but also other issues
that must be overcome. I would like to hold a frank exchange of
views on those issues."

During his stay in Beijing until Feb. 23, Nikai is expected to
meet also with Chinese State Councilor Tang Jiaxuan, as well as
Commerce Minister Bo Xilai to discuss on the issue of gas
exploration in the East China Sea and trade issues.

8) LDP policy chief Nakagawa proposes probe into Sino-Japanese
war with participation of other countries

ASAHI (Page 3) (Full)
February 22, 2006

Shinya Minamijima, Beijing

Liberal Democratic Party (LDP) Policy Research Council Chairman
Hidenao Nakagawa, who is now visiting China, proposed a study of
the Sino-Japanese war, letting other countries participate. He
stated in a first meeting on Feb. 21 of the exchange council of
the ruling parties of Japan and China: "I propose Japan and China
initiate a joint study of the Sino-Japanese war. I welcome
participation of historians from third countries if necessary."

Nakagawa also proposed: A conclusion of bilateral economic
cooperation accord; promotion of cooperation on reform of the
United Nations and North Korea issue; and active exchanges of
young people of the two countries.

9) Trade with China in 2005 resets highest record for 7th
straight year, but growth slows down

TOKYO SHIMBUN (Page 8) (Full)

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February 22, 2006

The value of trade between Japan and China in 2005 reset its
highest level for the 7th consecutive year of rise, recording
189.3 billion dollars or approximately 22,337.4 billion yen,
according to an estimate released yesterday by the Japan External
Trade Organization (JETRO). Trade growth, though, slowed down to
a 12.7% pace, compared with 30.4% in 2003 and 26.9% in 2002.
Japan's trade deficit with China also hit a record high of 28.7
billion dollars or approximately 3,386.6 billion yen.

Exports to China increased 8.9% to 80.3 billion dollars or about
9,475.4 billion yen, given strong demand for image equipment
parts, meanwhile exports of electronic components dropped,
affected by inventory adjustment. Imports from China grew 15.7%
to 109 billion dollars or about 12,862 billion yen, topping 100
billion dollars for the first time ever. The increase is
attributable to brisk orders for personal computers and digital
portable music equipment in the nation.

The anti-Japan demonstrations in China in 2005 and the about 2%
cut in the value of the yuan "had no effect on trade between
Japan and China," according to an official of the JETRO Overseas
Research Department. JETRO expects trade between the two
countries in 2006 will hit a record high for eight years in a row
and exceed 200 billion dollars.

10) Foreign Ministry, Finance Ministry reached backroom deal to
maintain vested interests in ODA reform

MAINICHI (Top Play) (Full)
February 22, 2006

The government has decided to unify the sections responsible for
implementing the nation's official development assistance (ODA)
policy into the Japan International Cooperation Agency (JICA) in
its ODA reform plan. In this connection, the Ministry of Foreign
Affairs (MOFA) and the Ministry of Finance (MOF) have reached a
backroom deal for MOFA to have jurisdiction over JICA and for MOF
to take charge of yen loans, the Mainichi Shimbun learned
yesterday from a copy of the consensus document of the two
ministries. Despite the government's decision to unify ODA
functions under the control of MOFA, MOF will keep its authority
over ODA policy.

Regarding the jurisdiction of JICA, into which the three ODA
sections - yen loans, technical cooperation, and grant aid - will
be integrated, the consensus document specifies: "The MOFA
minister will continue to serve as competent minister, but the
MOF minister will be in charge of financial affairs and
accounting linked to yen loans." On lending for yen loans, too,
the document suggests keeping the current system under which the
MOFA, MOF and Economy, Trade and Industry Ministry (METI)
ministers hold a discussion and make a decision, noting: "There
will be no change in the current relations of authority set among
the competent ministers under the Japan Bank of International
Cooperation (JBIC) Law."

At present, MOF has control over JBIC, which takes charge of yen
loans. The government has decided to abolish JBIC, but even after
the yen-loan section is integrated into JICA, the Finance
Ministry will continue to keep its authority over ODA yen-loan

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policy.

According to informed sources, Chief Cabinet Secretary Shinzo Abe
discussed with the three relevant ministers on the morning of
Feb. 17 and confirmed that their authority will be kept intact
even after the three section are unified into JICA, in accordance
with progress made in discussions at the government's "Study
Group on Overseas Economic Cooperation."

Following this, MOFA and MOF administrative officials drafted a
document. On the evening of Feb. 20, MOFA Administrative Vice
Minister Shotaro Yachi and MOF Administrative Vice Minister
Koichi Hosokawa confirmed it by the phone and then officially
adopted it, according to the informed sources.

Given that the agreement was reached behind the scenes, MOFA
Minister Taro Aso denied in a press conference yesterday the
possibility that the ministry will continue to take control over
ODA policy.

In ODA reforms, MOF and business leaders strongly resisted to the
plan to dissolve JBIC, one official remarking: "A reduction in
financing will inevitably undermine Japanese firms'
competitiveness on the international stage." Prime Minister
Junichiro Koizumi was also overheard telling his aid: "The
Finance Ministry has made a strong reaction. Government offices
are very eager to protect their vested interests." Some observers
point out that the intention of MOF has been reflected, in the
end.

11) New JICA to come under MOFA's jurisdiction; Three ministries
to supervise yen loans

ASAHI (Page 2) (Full)
February 22, 2006

The government and the ruling camp have decided to place the main
body of the Japan International Cooperation Agency (JICA),which
is to be reorganized, under the jurisdiction of the Ministry of
Foreign Affairs (MOFA),and to have the Finance Ministry (MOF),
MOFA and the Ministry of Economy, Trade and Industry (METI)
jointly supervise yen loans to be integrated into JICA. As a
result of the reorganization, JICA will become a comprehensive
official development assistance (ODA) implementing organ in
charge of yen loans which are to be transferred from the Japan
Bank for International Cooperation (JBIC),now destined to be
disbanded, and grant aid cooperation, currently under MOFA's
jurisdiction, as well as technical cooperation, its original
responsibility.

A plan to place JICA as a whole under the jurisdiction of the
three ministries had been floated, but the Liberal Democratic
Party (LDP) and members of other parties pointed out the need to
maintain the efficacy of the integration of ODA functions. A
settlement was, therefore, reached on the plan to place part of
JICA's functions under the three ministries' jurisdiction.

MOFA has thus far been responsible for yen loans, acting as a
vehicle for negotiations with the government regarding budget
compilation and personnel changes, and made decisions in
consultation with the MOF and METI. Vice Foreign Minister Shotaro
Yachi and Administrative Vice Finance Minister Koichi Hosokawa

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yesterday discussed the issue and agreed that the two ministries
should maintain their current authority over the yen loan
function. A senor MOF official said, "The current mechanism will
be maintained after the yen loan function has been integrated
into JICA." A senior MOFA official noted, "The current authority
system and structure will be shifted to the new JICA as is."

A plan to place the main body of the new JICA has been floated,
because MOF has been a main government agency with jurisdiction
over JBIC. However, the LDP, in a plan mapped out on Feb. 16,
proposed that MOFA should be responsible for yen loans. The
agreement reached by the vice ministers of MOFA and MOF are
presumably aimed to avoid the confrontation of views between the
government and the LDP.

The government will incorporate the establishment of the new JICA
in an administrative reform promotion bill, which it intends to
introduce during the current Diet session. The allocation of
jurisdictions over detailed duties will be worked out in a
businesslike manner, by revising the International Cooperation
Organization Law, as Chief Cabinet Abe put it.

Various government agencies have been in charge of ODA functions.
The aim of the reform of the ODA system is to integrate those ODA
functions into an efficient single entity. Some government
officials and members of the ruling parties are concerned that if
the joint jurisdiction system covers as far as JICA"s
organization and personnel affairs, the meaning of the
integration of ODA functions will be undermined."

12) Private panel reporting to Minister of Internal Affairs and
Communications Takenaka unanimously agrees to review NTT Group
with disbandment in mind; Aim is to constrain giant company's
market control

SANKEI (Top Play) (Excerpts)
February 22, 2006

The Panel to Discuss the Proper Form of Communications and
Broadcasting Businesses (chaired by Toyo University Professor
Satoshi Matsubara),a private panel reporting to Minister of
Internal Affairs and Communications Takenaka, during yesterday's
meeting discussed the proper form of the communications industry.
Panel members agreed to drastically review the organization of
the NTT Group and its management system. The panel hopes to
create a level playing field by constraining the group's
overwhelming control of the market with a second reorganization
of NTT through a revision of the NTT Law in mind. The development
is extremely harsh for the NTT Group, which is now determined to
further integrate the management of group firms.

The meeting suggested the possibility of separating NTT's R&D
section and releasing its patents. Speaking to the press after
the meeting, Matsubara categorically said, "It would be rational
to place NTT's basic research section outside the group so that
its achievements can be utilized by other industries as well."

Regarding a possible review of NTT's duty to provide universal
landline service, a number of panel members noted that it was
questionable whether universal service via copper wires will
still be necessary by 2010, when a broadband-based communications
system is expected to be mostly completed.

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Referring to the organization of NTT and its management,
Matsubara stressed that panel members were unanimous in their
belief that NTT should undergo a second reorganization, saying
that when members were asked whether any of them thought the NTT
Law should be kept in place as is, everyone was silent.

Members also expressed concern over the fact that the NTT Group
continues to dominate the market, as can be seen by the fact that
it holds more than 50% of shares in all communications areas,
including landlines, cellular phones, and fiber-optic
communications, despite new entrants into the market following
liberalization in 1985.

Takenaka pointed out, "The primary issue is to promote
competition policy and competition itself."

The panel appears to have doubts about the group's current setup
in which NTT East and NTT West, regional providers, long-distance
service NTT Communications, and cell-phone provider NTT DoCoMo
all exist under a holding company, and the panel will likely
consider completely separating the capital of the group companies
or disbanding the group.

13) Minshuto (Democratic Party of Japan) President Maehara's
responsibility now called into questioned over controversial
"Horie e-mail"; Debate of party leaders today

SANKEI (Page 2) (Full)
February 22, 2006

Political maneuvering is continuing over the authenticity of the
controversial "Horie e-mail" and is likely to enter a crucial
stage with today's debate of party heads between Prime Minister
Junichiro Koizumi and Minshuto head Seiji Maehara. Minshuto finds
itself on the hot seat, coming under attack by the ruling
coalition, which has insisted that the burden of proof lies with
Minshuto. Some in Minshuto are beginning to blame Maehara. Can
Minshuto dispel criticism emerging inside and outside of the
party by presenting new information? Maehara's words and deeds
will draw attention.

Yesterday afternoon, Maehara remained defiant, telling reporters
in the Diet: "I believe (the e-mail) is highly credible. You can
look forward to tomorrow's (Feb. 22) developments." He then
indicated he would again demand that the ruling parties invoke
the investigative powers that he thinks are necessary to provide
information on a bank that might have been used for the transfer
of money.

These remarks hint at the possibility that Maehara will reveal
new information during the party-head debate. Indeed, he has
expressed his enthusiasm in this way: "There will be a
significant impact on the Koizumi administration" and "I'll shed
light on the shady relations (between the LDP and Takafumi
Horie)." But in contrast to his enthusiasm, a mood of disquiet is
growing in Minshuto.

Minshuto Upper House Diet Affairs Committee Chairperson Kenji
Hirata said that if Maehara failed to prove the authenticity of
the e-mail, he should take responsibility, noting: "It will be
difficult to leave the matter blurry. I think it's only natural

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for the person who raised this to take responsibility. This is
not a child's game." Many in Minshuto from the beginning have
insisted that it would be difficult to prove the authenticity of
the e-mail unless special investigative powers were invoked,
according to a senior party member. Only a few party members,
including Maehara, Diet Affairs Committee Chairperson Yoshihiko
Noda, and Hisayasu Nagata, have been privy to the information,
leaving other party members out of the loop. This situation is in
part helping to intensify other party members' irritation. In
fact, a conservative lawmaker who keeps his distance from Maehara
said flatly: "I'd like to help him, but I can't, as no
information is available to me."

Meanwhile, the LDP is stepping up its offensive against Minshuto.
Secretary General Tsutomu Takebe criticized Minshuto at a press

SIPDIS
briefing yesterday: "Once Minshuto reveals the bank account's
name and the account number, it will instantly become clear who
is wrong. Why can't they do so?" Upper House Caucus Secretary
General Toranosuke Katayama also said: "Minshuto should
demonstrate that what it is saying is not simply slander or
defamation before calling for special investigative powers to be
invoked." These two veteran lawmakers strongly insisted that
Minshuto has the responsibility to explain itself.

Prime Minister Koizumi recently challenged Minshuto by referring
to "bogus information." When asked by reporters about the party-
head debate, Koizumi said calmly: "I wonder what Mr. Maehara will
say. After hearing his views, I'll answer."

14) Minshuto (Democratic Party of Japan) abandons plan to prove
authenticity of controversial e-mail; Party leadership's
responsibility now being questioned

YOMIURI (Page 2) (Full)
February 22, 2006

Minshuto yesterday in effect gave up pursuing the controversial e-
mail that allegedly had been sent by former Livedoor President
Takafumi Horie to the second son of Liberal Democratic Party
(LDP) Secretary General Tsutomu Takebe, judging it difficult to
prove its authenticity. Amid increasing criticism of Minshuto,
party members are questioning the responsibility of its
leadership, including President Seiji Maehara and Diet Affairs
Committee Chairperson Yoshihiko Noda.

The LDP has come up with materials enough to cast doubts on the
authenticity of the e-mail, for example, when the e-mail arrived,
defendant Horie was on streets for Lower House election
campaigning, but Minshuto remains unable to cite anything to
rebut this. Given this, Minshuto has decided to focus its
energies on pursuing the truth of the alleged financial
assistance to Takebe's second son in the days ahead. A senior
party member explained: "The question is not the authenticity of
the email, but whether money was actually transferred to the
second son's bank account." Party head Maehara said firmly to
reporters yesterday: "I'd like to continue our call to invoke
special investigative powers in national politics."

Meanwhile, some in the party are beginning to openly question the
responsibility of the party executives. Meeting the press, Kenji
Hirata, chair of the party's Upper House Diet Affairs Committee,
referred to Maehara's attitude of placing full confidence in

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House of Representatives member Hisayasu Nagata who raised the
controversial e-mail issue and touched on Maehara's
responsibility, noting: "It's only natural that the person who
has left the matter to someone, saying, 'I'll leave it in your
hands,' should take responsibility." Satsuki Eda, chair of the
party's Upper House Caucus, also implied at a party executive
meeting yesterday that Noda was responsible, saying: "I'd like to
see Noda take the leadership in tiding over this issue."

15) Declining population confirmed; Decrease of 4,361 in 2005,
according to preliminary estimate

ASAHI (Page 2) (Abridged)
February 22, 2006

According to the Population and Vital Statistics of Japan for
Dec. 2005, released yesterday by the Ministry of Health, Labor,
and Welfare (MHLW),the nation's population in 2005, determined
by subtracting the number of deaths from the number of births,
dropped by 4,361. It has been confirmed that the population has
moved into the negative column for the first time since the
statistics were taken in the present form in 1899. The
preliminary figure includes foreigners who live in Japan and
Japanese who live abroad. Regarding Japanese who live in Japan,
MHLW released an annual projection late last year, which forecast
a fall of 10,000. It is now known that the margin of this fall
will likely expand to around 20,000.

The number of births registered with municipalities throughout
the country from Jan. through Dec. last year was 1,090,231 (down
4.2% from the previous year). The number of deaths registered was
1,094,598 (up 5.4% from the preceding year). Both the rates of
decline and the decrease in the number of births and the increase
in deaths for the year were larger than the ratios registered
from Jan. through Oct., the base period for the annual
projection. An official from MHLW said, "There is a possibility
the severe winter has affected the statistics."

SCHIEFFER