JAPANESE MORNING PRESS HIGHLIGHTS 02/23/06

UNCLAS SECTION 01 OF 11 TOKYO 000929

SIPDIS

SIPDIS

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SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 02/23/06


Index:

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

Defense topics:
4) Kevin Maher picked as next consul general for Naha Consulate
in Okinawa
5) Estimated cost of relocating Marines from Okinawa to Guam
upped to 813.2 billion yen
6) MSDF secret data including top-secret crypto material leaked
out on 290 floppy disks
7) Foreign ministerial meeting of US, Japan, Australia next
month to discuss Samawah troop withdrawal
8) Former reporter who broke story of "secret pact" between US,
Japan at time of Okinawa reversion blasts Foreign Ministry for
denying pact's existence

China connection:
9) Chinese premier meets METI Minister Nikai but no compromises
on the historical issue
10) Talks between Japan, China on gas field development to start
next month
11) Taiwan's Lee Teng-hui receives approval to visit Japan again

12) ROK asking Japan to compensation for deaths or injuries of
100,000 WWII forced laborers

13) Now Russia is irritated at comment by Foreign Minister Aso
taken as "interference in internal issues"

14) ODA restructuring plan is complete

15) 1,300 tons of US beef still unloaded and unclaimed in Japan
due to import ban

Minshuto's e-mail caper:
16) In debate with Prime Minister in Diet, Minshuto's Maehara
unable to show proof that Livedoor Horie's money ever went to son
of LDP's Takebe
17) Takebe considering lawsuit against Minshuto's Nagata for
defamation of character over phony charges against Takebe's son

Articles:

1) TOP HEADLINES

Asahi, Yomiuri, Nihon Keizai, Sankei, and Tokyo Shimbun:
Horie and three other former Livedoor executives rearrested on
suspicion of padding the company's earning to 5.3 billion yen;
Representative director Kumagai also arrested

Mainichi:
Maritime Self-Defense Force's encoded secret documents equivalent
to 290 floppy discs leaked to Internet through file-sharing
program Winny

2) EDITORIALS

Asahi:
(1) Window-dressing by Livedoor must be brought to light

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(2) Minshuto must not leave questions up in the air

Mainichi:
(1) Horie rearrested: Strict punishment required for preventing
financial crimes
(2) Horie e-mail: Minshuto's credibility at stake

Yomiuri:
(1) Minshuto must not be allowed to switch stalking horses
(2) Solid system necessary to prevent building code violations

Nihon Keizai:
(1) Restore market health by uncovering window-dressing tricks
(2) An ambiguous settlement unacceptable

Sankei:
(1) Livedoor: Uncover the whole picture of the complex scandal
(2) Horie e-mail: Minshuto must not leave its pursuit unfinished

Tokyo Shimbun:
(1) Diet party-head debate: Minshuto must not allow suspicions
to linger on
(2) Horie rearrested: There is no magic wand

3) Prime Minister's Official Residence (Kantei)

Prime Minister's schedule, February 22

NIHON KEIZAI (Page 2) (Full)
February 23, 2006

10:07
Handed at his official residence a written official appointment
of a National Public Safety Commission member to JR East Chairman
Kasai, attended by Chief Cabinet Secretary Abe and NPSC Chairman
Kutsukake.

15:00
Participated in party-heads debate at the Diet.

15:51
Arrived at Kantei.

16:35
Met with Intellectual Property Strategy Promotion Chief of
Secretariat Arai and Assistant Deputy Chief Cabinet Secretary

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Saka.

17:33
Attended monthly economic report-connected cabinet minister's
meeting.

18:15
Met with Financial Affairs Minister Yosano.

18:51
Dined with LDP lawmakers belonging to no factions at Chinese
restaurant Taikan En at Hotel New Otani, joined by Secretary
General Takebe.

20:52
Returned to his official residence.

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4) Maher to become new consul general in Okinawa, arriving
possibly in July

OKINAWA TIMES (Page 1) (Full)
February 22, 2006

The US Department of State has appointed Kevin Maher, currently
chief of the security unit at the US Embassy in Tokyo, to succeed
Thomas Reich as US consul general in Okinawa. He is expected to
arrive in July.

Consul-general designate Maher is in charge of US force
realignment issues at the US Embassy in Japan. He also is very
familiar with US military affairs in Japan. He has served three
times in the US Embassy in Japan, from 1984 to 1986, 1989-92, and
from 2001 to the present. From 1998 to 2001, he served as consul
general in Fukuoka. This will be his first posting to Okinawa. He
is fluent in Japanese, having had the experience of being a
research fellow at Tokyo University's Oriental Cultures Research
Institute from 1997 to1998.

5) In relocation of US Marines to Guam, other facilities
construction being added to 813.2 billion yen cost

YOMIURI (Page 4) (Full)
February 23, 2006

Working-level talks were held on Feb. 21 (Feb. 22, Japan time) in
Hawaii between the Japanese and American governments on the
realignment of US forces in Japan. The US delegation indicated
that they were adding to the overall cost of moving US Marines
from Okinawa to Guam, until now an estimated $7.6 billion (or
813.2 billion yen at a fiscal 2005 rate exchange),the cost of
building facilities for the use of the Self-Defense Forces when
there is joint training in Guam with US forces. The estimated
cost included the price of land to be acquired for construction
and outlays for construction of housing.

6) MSDF's classified data leaked on Internet via Winny

MAINICHI (Top play) (Full)
February 23, 2006

The Maritime Self-Defense Force's classified information has been
leaked in large quantities on the Internet, sources revealed
yesterday. That leaked information-equivalent to about 290 floppy
disks-includes classified documents regarding the MSDF's secret
codes, battle training plans, and evaluations, and various other
documented data. The leaked files also include maritime telephone
numbers for about 130 MSDF vessels, MSDF personnel's photo
rosters, and emergency telephone trees. The Defense Agency is now
investigating the case. An expert on military affairs warns that
the leaked data include top-secret information. The case is
likely to develop into the largest military intelligence breach
ever.

The classified information had made its way to the Winny file-
sharing network, according to informed sources. Those classified
files, judging from their contents, are believed to have leaked
from a virus-infected personal computer belonging to a sailor on
board the Asayuki, a Sasebo-based destroyer with a displacement

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of about 3,000 tons and a total crew of about 200.

One of the files is a folder labeled "crypto-related." The folder
contained a detailed description of manuals for a "code changer"
that is believed to be a decoder. In addition, the folder also
contained a "table of cryptographic documents," which lists names
and reference numbers for various "crypto-related" documents,
such as emergency cryptographic documents and random number
tables. One of those filed documents was a "classified" encoding
and decoding table of random numbers used by MSDF vessels on the
watch at sea. There was another classified document that lists
call signs for MSDF vessels.

Another folder, named "drill package," contained a log titled
"surveillance summary," which apparently records operations
conducted by an MSDF vessel chasing a ship. The log described the
radar discovery of a ship at sea, reading "detection at 258
degrees, 38 miles away (1,600 yds)" and "1,000 yards ahead."
There is no knowing if the MSDF vessel was on a training mission.
However, an expert notes that the MSDF's operational capability
could be made known.

There was also a file named "telephone number list," which
contains telephone numbers beginning with 090, fax and other
maritime telephone numbers, and satellite telephone numbers with
a note of "as of March last year" on its upper part. The leakage
of that many telephone numbers could result in access to even
more important information.

The leaked roster of MSDF personnel is possibly a listing of
about 40 MSDF crewmembers on board the Asayuki as of April last
year. The list also has spaces to write in their legal domiciles,
current addresses, family dependents, educational backgrounds,
and religion. In addition, there are Asayuki-related documents
containing various data, such as an "emergency telephone call
network," an "onboard work schedule," a "personnel deployment
table," and a "shift timetable."

Internet bulletin boards have posted about the leaked information
for several days. The Defense Agency is now investigating the
case, according to its public information division.

7) Japan, US, Australia foreign ministerial planned for mid-March
to discuss troop withdrawal from Samawah

YOMIURI (Page 4, 2006

Foreign Minister Taro Aso will visit Australia for three days
from March 17 to hold foreign ministerial talks with Australian
counterpart Alexander Downer and US Secretary of State
Condoleezza Rice, according to informed government sources
yesterday. The three are expected to discuss plans to withdraw
troops stationed in Iraq, including the timing for withdrawing
Ground Self-Defense Force (GSDF) troops from Samawah, southern
Iraq.

The government plans to withdraw GSDF troops out of Iraq starting
in late March. Over the plan, Japan will iron out differences
with the US, Britain and Australia.

Initially, Japan, the US and Australian planned to hold foreign
ministerial talks in Australia in January, but with Israeli Prime

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Minister Ariel Sharon's massive stroke, they decided to postpone
the talks.

8) Former Mainichi Shimbun reporter Nishiyama criticizes
government over Japan-US secret deal on reversion of Okinawa

ASAHI (Page 38) (Full)
February 23, 2006

Former Mainichi Shimbun reporter Takichi Nishiyama, 74, who had
been found guilty in the official telegram leakage case
concerning a secret pact relating to the agreement on the
reversion of Okinawa, yesterday held a press conference at the
Judicial Press Club at Kasumigaseki, Tokyo, where he criticized
the government for continuing to deny the existence of the secret
pact despite the fact that Bunroku Yoshino, former chief of the
Foreign Ministry's American Affairs Bureau who had been in charge
of negotiations on the reversion of Okinawa to Japan, recently
told the media, including the Asahi Shimbun, that there was the
secret deal concluded between the Japanese and US governments on

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the reversion of Okinawa.

Nishiyama has filed suit against the government to seek 33
million yen for compensation, arguing: "The existence of the
secret deal has been already made clear by US official documents,

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but the government has not made any apology at all."

Speaking of the former diplomat's recent statement, Nishiyama
conjectured the reason why he made the statement by breaking his
silence for some 30 years: "Now that the existence of the secret
pact was made clear also in US official files, the diplomat
perhaps felt like seeking public judgment on his common sense as
a diplomat."

Meanwhile, the government has rejected the diplomat's statement
this time or in the words of Chief Cabinet Secretary Abe: "We
have been informed that there was no such a secret pact at all."

9) Chinese premier takes uncompromising position on historical
issues in meeting with Nikai

MAINICHI (Page 2) (Full)
February 23, 2006

Shoji Nishioka, Beijing

Economy, Trade and Industry Minister Toshihiro Nikai, now in
China, met with Premier Wen Jiabao in Beijing yesterday. Wen
restated his criticism of Prime Minister Junichiro Koizumi's
repeated visits to Yasukuni Shrine, indicating that he would not
compromise in his position on historical issues. Wen said: "Some
Japanese leaders do not have an accurate understanding of the
history of Japan and China. I have been disappointed by this
fact."

The meeting marked the first time for a Chinese leader to meet a
Japanese cabinet minister since Koizumi's last visited the shrine
last October.

Talks on gas filed development next month

Nikai also met with Chinese State Council member Tang Jiaxuan

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(former foreign minister) the same day. Tang proposed holding
government-level talks on the issue of gas field development in
the East China Sea in Beijing early next month. Nikai agreed to
the proposal.

In the meeting with Premier Wen, Nikai said: "Japan is willing to
make utmost efforts to move forward bilateral economic ties,
based on a friendly, future-oriented spirit." In response, Wen
indicated that China welcomes Japanese firms' participation in
the Beijing Olympic Games in 2008 and the Shanghai Exposition in

2010. He then implied that the current strained bilateral
relations over historical issues should not be reflected in the
economic area. In reference to the gas field development issue,
Wen stated: "It is important for the two countries to cooperate
in developing the East China Sea, defining it as 'peaceful
waters,' while putting the conflict on the backburner." Nikai
asked Wen to visit Japan.

Premier Wen met a Japanese cabinet minister in China for the
first time in one year and 10 months. Keeping Prime Minister
Koizumi's departure from the current post in September, China
aims to demonstrate, through Chinese leaders' meetings with
Nikai, who has good channels in the Chinese government, the
stance of placing importance on talks with key other Japanese
government officials than Koizumi.

10) METI minister agrees in meetings with Chinese leaders to hold
talks on gas field development in Beijing next month

TOKYO SHIMBUN (Page 3) (Excerpts)
February 23, 2006

Toru Shiraishi, Beijing

Economy, Trade and Industry Minister Toshihiro Nikai, now
visiting China, met Premier Wen Jiabao, State Council member Tang
Jiaxuan (for foreign affairs),and other Chinese officials in
Beijing yesterday. Both sides agreed on the need for the two
countries to make efforts to deepen mutual understanding as a
step toward repairing strains in the bilateral relationship.
Premier Wen met a Japanese cabinet minister for the first time
since April 2004. In the meeting with Tang, Nikai agreed to hold
the fourth bureau director-level talks on the issue of developing
gas fields in the East China Sea in Beijing in early March.

11) Government to allow Taiwan's Lee Teng-hui to visit Japan

YOMIURI (Page 2) (Full)
February 23, 2006

The government decided yesterday to allow a visit to Japan by
former Taiwanese president Lee Teng-hui in May. In consideration
of China, which regards Lee as advocate of an independent Taiwan,
the government will ask him to refrain from carrying out
political activities. It intends, however, to allow him to
deliver a speech, which it did not permit in his previous visits,
on condition of his not referring to political affairs.

Since the government has exempted short-stay visas for tourists
from Taiwan since last March, Lee will come to Japan without a
visa.


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Lee has expressed his desire to travel to the Tohoku region,
including the city of Sendai and Akita Prefecture, where Matsuo
Basho, a Japanese poet of the Edo period, traveled and later
wrote his famous book Oku no Hosomichi (The Narrow Road Through
the Deep North). He also hopes to visit Tokyo.

In order not to irritate China, the government intends to discuss
the matter with Taiwan and place conditions on Lee's visit to
Japan. However, since more than five years have passed since Lee
stepped down from Taiwan's presidency, the government intends to
allow him freer movements.

Specifically, the conditions include: Lee will not be allowed to
meet the prime minister, cabinet ministers, and Diet members; he
will be allowed to deliver speeches only such themes as culture
and history; and he will be able to visit Tokyo.

12) South Korea to compensate a maximum of 100,000 draftees
during WWII, some of whom have already died or suffer injuries,
not to seek compensation from Japan

ASAHI (Page 1) (Full)
February 23, 2006

Hayami Ichikawa, Seoul

The South Korean government decided to offer in effect individual
compensation to bereaved relatives of those Koreans who, after
being recruited by Japanese firms or its military during its
colonial rule of Korea from 1910 to 1945, died or were injured. A
maximum of 100,000 or so Koreans are likely to receive
compensation. Those Koreans who came back alive from the front
will be excluded. The amount of unpaid wages by Japanese firms to
recruited Koreans is estimated to exceed 230 million yen. In this
regard, too, the South Korean government will pay them from the
national treasury instead of asking Japan to pay them.

This policy decision was revealed by several government sources.
The South Korean government will ask the Japanese government to
cooperate to provide materials, such as firms' payrolls on
deposits for unpaid wages, necessary to identify victims.

The action this time is part of the review of modern history now
promoted by the Roh Moo Hyun administration. In the process of
normalizing diplomatic ties between Japan and South Korea in
1965, the Pak Chong Hui regime accepted a political decision that
Japan would offer 300 million dollars in grant aid and 200
million dollars in loans in return for South Korea's waiver of
claim rights for property. But this decision did not necessarily
satisfy all Koreans. Last year, the Roh administration disclosed
every document related to Japan-South Korea negotiations and
declared that South Korea on its own initiative would resolve
such issues as compulsory recruitment during the period of
colonial rule.

In past Japan-ROK negotiations, the South Korean government
produced file indicating that there were 1.03 million victims of
the recruitment with damages amounting to some 300 million
dollars. Between 1975 and1977, the Pak administration used less
than 10% of the 300 million dollars of grant aid to pay 300,000
won (about 37,000 yen at the current exchange rate) each to some
8,500 bereaved relatives of draftees. But the administration met

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with criticism that the coverage of recipients and the amount of
money paid were not sufficient. Since the beginning of the 1990s,
victims and concerned people have filed suits against the
Japanese government or Japanese firms to claim compensation for
recruitment or to seek payment of unpaid wages.

The South Korean government has stated that the reason for
payment does not stem from state responsibility but from the
notion of assistance to people's livelihoods. But a government
official commented: "In actuality, it is compensation." Some war
victims and bereaved family organizations in South Korea call for
expanding the budget for assistance, arguing that the 300 million
dollars paid in the past should have been given to war victims.
How much money will be actually paid is likely to be determined
in March. On humanitarian issues, including military comfort
women, which was not discussed at the time of normalization talks
with Japan, the South Korean government's position is that
portions of legal and moral responsibilities lie with Japan.

Regarding Japan's colonial rule of the Korean Peninsula, in the
recent Japan-DPRK talks on diplomatic normalization North Korea
insisted that in addition to economic cooperation, compensation
is necessary. South Korea's policy decision this time could have
an impact on Japan-DPRK talks in the months ahead.

13) Russia: Foreign Minister Aso's remarks rapped as
"interference in domestic affairs"

ASAHI (Page 4) (Full)
February 23, 2006

Akiyoshi Komaki, Moscow

The Russian Foreign Ministry released on Feb. 22 a statement
severely criticizing a series of remarks by Foreign Minister Taro
Aso on Japan-Russia relations. The statement wrote: "We regard
(his remarks) as interference in our country's domestic affairs."
Deputy Foreign Minister Alexeyev called Japanese Minister to
Russia Yohitaka Akimoto in his ministry to inform him of the
ministry's statement.

The statement does not specify as which remarks Aso made that
Russia was criticizing. According to the Japanese embassy in
Moscow, Alexeyev, referring to Aso's remark on the northern
territories issue in a public meeting on Feb. 18 in Tokyo,
pointed out, "(His speech) goes against an agreement reached in
the summit last November that the two countries will not publicly
address this issue."

Aso said in the public meeting: "I want the residents of the four
northern islands (to think) that if the islands were Japanese
territories, their standard of living would be improved." He then
suggested that Japanese TV programs be broadcasted to the
islands.

14) Cabinet council to be established anew to discuss ODA;
Reorganization of MOFA Economic Cooperation Bureau proposed

YOMIURI (Page 2) (Full)
February 23, 2006

The Council to Consider Overseas Economic Cooperation (chaired by

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Akio Harada, former attorney general),a private panel reporting
to Chief Cabinet Secretary Abe, is expected to submit a report to
Abe late this month. The full text of the report was unveiled
yesterday. The report said that in order for the government to
promote official development assistance (ODA) in unison, a new
cabinet council (chaired by the prime minister) to be established
under the Cabinet should discuss the ODA Charter, mid-term policy
and resources, and energy policy. The panel has also come up with
a proposal for drastic reorganization of the Economic Cooperation
Bureau of the Ministry of Foreign Affairs (MOFA) from the
perspective of enhancing Japan's ODA strategy.

The report also noted the yen loan section of the Japan Bank for
International Cooperation should be transferred to the Japan
International Cooperation Agency (JICA),and its international
financing section to a policy-financing organization to be
established anew. The report added that JICA should be solely
responsible for the implementation of ODA projects through a
revision of the International Cooperation Organization Law,
rather than newly setting up an ODA implementing organization,
because the name of JICA is internationally recognized.

For the planning and formulation of ODA projects, the report
characterized MOFA as the center of intragovernmental
coordination. In order to reinforce the functions of ODA-
implementing vehicles in recipient countries, the report called
for an increase in the number of staff members for posts
responsible for economic cooperation at diplomatic missions
abroad and the assignment of aid experts from outside.

15) Imported US beef with nowhere to go: 1,300 tons stored in
warehouses at airports, ports

NIHON KEIZAI (Page 5) (Excerpts)
February 23, 2006

A large quantity of US beef is stuck at ports and airports
throughout the country due to an embargo. US beef shipped prior
to Jan. 20, when the government decided to ban its imports,
remains unable to clear customs. An organization of importers has
asked the US to buy back the products, but it has received no
positive reply yet. Importers are trying to work out what to do
about the products, which have nowhere to go, and warehouse
costs.

According to the Japan Meat Import and Export Association (JMIEA)
(Minato Ward, Tokyo),consisting of 31 companies, such as trading
houses, approximately 1,366 tons of US beef worth about 1.4
billion yen is being stored at warehouses at ports and airports.
Since contracts for those products have already been made,
Japanese companies are obligated to pay for them. Boxes of beef
that contain backbones are believed to be stored near Narita
Airport.

JMIEA on Feb. 9 called on the US Meat Export Federation (USMEF),
based in Colorado, to buy back the products and pay the warehouse
costs. JMIEA said it had received no reply yet. The government is
determined to watch the situation calmly, with Agriculture
Minister Shoichi Nakagawa saying, "The case is basically an issue
concerning the private sector."

In view of the possibility of the embargo becoming protracted,

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importers have taken various measures, including moving chilled
beef to cold storage warehouses. However, they believe that
storage costs will continue to grow and just want to return the
products rather than waiting for a resumption of beef trade.

16) Party-head debate on Horie e-mail: Minshuto fails to produce
new evidence

ASAHI (Page 1) (Full)
February 23, 2006

In his party-head debate in the Diet yesterday, Minshuto
(Democratic Party of Japan) President Seiji Maehara took up the e-
mail allegedly sent by former Livedoor President Takafumi Horie
instructing his company to send money to the second son of
Liberal Democratic Party Secretary General Tsutomu Takebe.
Maehara explicitly said, "We have conclusive evidence that funds
were provided to (Takebe and others) via his son." But despite
his party's efforts to find evidence verifying the authenticity
of the e-mail, Maehara failed to produce clear evidence in the
session. Maehara also call for the invocation of the Diet's
investigative powers to clarify fund flows. In response, Prime
Minister Junichiro Koizumi urged Minshuto to disclose evidence,
saying, "Once evidence is produced to prove that (the e-mail) is
authentic, there is no need to exercise the Diet's investigative
powers."

Minshuto is in the hot seat due to the questionable Horie e-mail
despite its offensive against the LDP over a set of four issues,
including the question of resuming US beef imports. Maehara
failed to turn the tables in yesterday's one-on-one debate with
Koizumi.

Maehara thinks that proving the authenticity of the e-mail is
difficult in the current situation, according to a Minshuto Diet
Affairs Committee member. As a result, he has shifted focus from
Horie to the flow of funds to Takebe. The party's failure to
produce evidence may draw strong criticism from the public. Such
a consequence is certain to cause the Minshuto leadership to lose
its grip on the party.

Chief Cabinet Secretary Shinzo Abe commented at a meeting in
Tokyo last night, "If Minshuto cannot produce solid evidence,
someone would have to take the blame."

In his 45-minute debate with Koizumi yesterday, Maehara did not
broach the alleged Horie e-mail until 10 minutes before the end
of the debate. Maehara finally said:

"We will disclose the account name and account number. We want
you to produce the account book. If you have nothing to hide, you
should allow the Diet to exercise its investigative powers to
bring things to light."

In response, Koizumi said:

"If there is clear evidence, we are willing to exercise the
Diet's investigative powers. But such would be unnecessary if you
can produce evidence that can verity the authenticity (of the e-
mail)."

17) LDP Secretary General Takebe considering filing defamation of

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character lawsuit against Minshuto lawmaker Nagata

MAINICHI (Page 5) (Full)
February 23, 2006

House of Representatives member Hisayasu Nagata (Minshuto or
Democratic Party of Japan) made statements on a TV program about
an e-mail which he claimed proved that money had been
"transferred" (from former Livedoor president Horie) to the son
of Liberal Democratic Party (LDP) Secretary General Tsutomu
Takebe. The Secretary General said yesterday: "Diet members are
exempted from liability for their speeches in the Diet. But he
said it on a TV program. I think I can sue him and, so, I'm
preparing to do just that." Takebe revealed that he was
considering filing a defamation of character lawsuit against
Nagata.

SCHIEFFER