JAPANESE MORNING PRESS HIGHLIGHTS 05/25/07

UNCLAS SECTION 01 OF 09 TOKYO 002342 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 05/25/07 Index: 1) Top headlines 2) Editorials 3) Prime Minister's daily schedule 4) Prime Minister Abe unveils climate initiative to halve greenhouse gas emissions by 2050 5) Foreign Minister Aso calls on Iran to halt uranium enrichment 6) Makiko Tanaka to join People's New Party today 7) MSDF destroyer captain on duty to be quizzed in Indian Ocean over Aegis data leaks 8) House panel approves DFAA dismantlement 9) Japan, Australia set to hold two-plus-two ministerial on June 6 10) China possibly tests OTH radar in East China Sea 11) Japan-China summit eyed 12) China rejects Japan's call for talks over joint gas field development premised on equidistance line 13) Tokyo, Beijing nervous about former Taiwan President Lee Teng-hui's journey to Japan 14) Farm minister hints at easing conditions for US beef imports 15) Health ministry to abolish BSE blanket testing subsidies There will be no Morning Highlights on May 28 - an American holiday. Articles: 1) TOP HEADLINES Asahi, Mainichi, Yomiuri, Sankei, Tokyo Shimbun, and Akahata: Six MAFF-affiliated executives, others arrested over J-Green bid-rigging Nihon Keizai: Abe unveils climate change initiative to halve emissions by 2050 2) EDITORIALS Asahi: (1)Abe's climate change initiative (2)Japan Green Recourses Agency bid-rigging scandal Mainichi: (1)Japan must take initiative in creating post-Kyoto framework (2)J-Green's bid-rigging practice and its closed nature Yomiuri: (1)Global climate initiative hinges on China, US (2)J-Green's bid-rigging exploited forest road survey projects TOKYO 00002342 002 OF 009 Nihon Keizai: (1)Abe's climate change initiative to halve emissions must be implemented (2)China must respect intellectual property rights 
Sankei: (1)J-Green's bid-rigging points to need for overhaul of independent administrative corporations (2)Lay judge system requires alteration Tokyo Shimbun: (1)Who needs J-Green? (2)Brisk business performance a chance for major reform Akahata: (1)Government must stop increasing taxes 3) Prime Minister's Official Residence (Kantei) Prime Minister's schedule, May 24 NIHON KEIZAI (Page 2) (Full) May 25, 2007 09:10: Received a call from Australian Prime Minister HOWARD with Chief Cabinet Secretary Shiozaki, Special Advisor Seko and others also present. Met with Deputy Assistant Chief Cabinet Secretaries Ando and Saka. After them, met with Environment Minister Wakabayashi and Vice Environment Minister Tamura. 10:43: Met with Deputy Prime Minister and Foreign Minister Khien of Vietnam. 11:05: Met with Hokkaido Gov. Takahashi and members of a group calling for the return for the Northern Territories, joined by State Minister in Charge of Okinawa and Northern Territories Issues Takaichi and others. Afterwards, met with Japan Racing Association Chairman Masayuki Takahashi. 11:35: Met with Ayame (Iris) Girl Tomomi Nakayama from Itako City, Ibaraki Prefecture, former NHK Chairman Katsuji Ebisawa, who now serves as ambassador to riverside Itako and others, joined by House of Representatives member Fukushiro Nukaga and others. 11:45: Met with Deputy Chief Cabinet Secretary Matoba. Later, met with Chubu Economic Federation Chairman Fumio Kawaguchi, joined by Deputy Chief Cabinet Secretary Suzuki. 12:07: Met with members of a group helping disabled persons become self-reliant at the south garden of Kantei. 13:50: Met with Vice Foreign Minister Yachi. 15:00: Met with journalist Soichiro Tawara. Afterwards, Met with State Minister in Charge of Economic and Fiscal Policy Ota, joined by Special Advisor Nemoto, Saka and others. Afterwards, met with LDP Public Relations Headquarters Chairman Futada and Public Relations Bureau Director-General Katayama. 16:14: Met with incoming and outgoing Supreme Court Justices Muneharu Ueda TOKYO 00002342 003 OF 009 and Toyozo Ueda. Later, met with Cabinet Intelligence Director Mitani. After him, met Secretary-General Nakagawa. 17:05: Attended a meeting of the Council for Gender Equality. Afterwards, met with Minister of Internal Affairs and Communications Suga. 18:24: Attended a dinner party hosted by the International Conference on "The Future of Asia" at Imperial Hotel. 20:53: Arrived at Kantei residence. 4) Abe unveils climate initiative to halve greenhouse gas emissions by 2050 NIHON KEIZAI (Top Play) (Excerpts) May 25, 2007 In a speech in the 13th session of the Future of Asia yesterday, Prime Minister Shinzo Abe said: "The global community should halve greenhouse gas emissions from current levels by 2050." This proposal marks the first long-term anti-global-warming initiative by the leader of an industrialized country. He also argued that such large emitters as the United States, China, and India should join a post-Kyoto Protocol international framework. Prior to the speech, the prime minister explained the initiative over the phone to US President Bush, British Prime Minister Blair, and German Chancellor Merkel. Philippine President Arroyo and Malaysian Prime Minister Abdullah, both of whom listened to Abe's speech in the session, expressed their support for his initiative. The prime minister intends to ask participants in the June G-8 Summit in Heiligendamm for their cooperation in cutting greenhouse gas emissions and have it reflected in the G-8 joint statement. The emissions reduction targets under the Kyoto Protocol are set to end in 2012. Abe stressed in the speech: "It is necessary to create a new framework that involves the entire global community." Acknowledging that existing technologies alone are not sufficient to meet the 50 PERCENT goal, the prime minister expressed his determination to attain the goal by making use of Japan's cutting-edge technologies, referring to "developing high technology to generate nuclear power" and "creating a society in which the goal of reducing gas emissions can be achieved while people enjoy affluent lives." On a successor to the Kyoto Protocol, Abe said: "Even if we prepare an outstanding strategy, it will be meaningless unless everyone on the planet participates in it." He then advocated these three principles in working out a new framework: (1) Involve all major greenhouse gas emitters, such as the US, China, and India; (2) create a flexible and diverse framework that takes into account each nation's circumstances; and (3) balance environmental protection and economic development. Furthermore, the prime minister revealed a plan to support developing countries eager to proactively take anti-global-warming measures. The support is expected to be separate from the conventional official development assistance (ODA) program, and Japan will call on other industrial countries, the United Nations, and the World Bank for their cooperation. TOKYO 00002342 004 OF 009 Key points in Abe's climate initiative -- Halve greenhouse gas emissions across the world by 2050. -- Develop innovative technologies and create a low-carbon society to reduce gas emissions. -- Adopt three principles regarding a post-Kyoto framework: Participation of all greenhouse gas emitters; taking into account each country's circumstances; and balancing environmental protection and economic growth. -- Create a new funding mechanism for developing countries eager to tackle global warming. -- Carry out a national movement for each person to reduce greenhouse gas emissions by 1 kg a day. 5) Aso calls on Iran to suspend uranium enrichment NIHON KEIZAI (Page 2) (Full) May 25, 2007 Foreign Minister Taro Aso late yesterday held a 30-minute teleconference with Iranian Foreign Minister Mottaki. In the conversation, Aso called on Mottaki to shut down its uranium enrichment facility in response to a United Nations Security Council resolution. Aso conveyed Japan's intention to impose additional sanctions on Iran and also prodded him to attend ambassadorial talks between Iran and the United States in a constructive manner. 6) Lawmaker Makiko Tanaka to reach agreement today to join People's New Party SANKEI (Page 2) (Abridged) May 25, 2007 Preparations are underway for former Foreign Minister (independent) Makiko Tanaka to leave the Lower House group consisting of members of the Democratic Party of Japan (DPJ or Minshuto) and independent lawmakers and instead join another Lower House group composed of members of the People's New Party (PNP),Sozo, and independent lawmakers, sources revealed yesterday. Tanaka is to meet with PNP Secretary-General Hisaoki Kamei today and likely to reach an accord SIPDIS on her joining the group. This move is seen as part of the PNP's efforts to garner more votes in the upcoming Upper House election this summer by teaming up with Tanaka, a well-known politician. It will take more time, however, for Tanaka to restore relations with the ruling Liberal Democratic Party, because many in the party still hold antipathy toward her. Depending on the outcome of the Upper House election, the PNP may have the deciding vote. Some in the LDP are therefore looking for ways to team up with the PNP. 7) MSDF captain on mission in Indian Ocean to be questioned about Aegis data leak SANKEI (Page 1) (Excerpts) May 25, 2007 The Kanagawa Prefectural Police and the Maritime Self-Defense Force Police Command decided yesterday to question a 47-year-old MSDF destroyer captain who used to teach at the MSDF's 1st Service School in Etajima, Hiroshima Prefecture, in connection with a case in which a 33-year-old petty officer 2nd class belonging to MSDF Escort TOKYO 00002342 005 OF 009 Flotilla 1 based in Yokosuka City, Kanagawa Prefecture, took key data on the Aegis system out of the office. They will send investigators to the Indian Ocean, where the captain is commanding a ship under the Antiterrorism Special Measures Law. It is unusual to question a captain on a mission overseas. The captain, who holds the rank of commander, served as an instructor at the school from 2002 through 2003, when the data is believed to have leaked. The Defense Ministry was initially reluctant to question the captain while he is on an overseas mission, as doing so might have a negative impact on the morale of the troops and the operation of the vessel. But the extremely difficult investigation has forced the ministry to conclude that questioning the captain is essential in order to determine how the data had spread in the service school. 8) Bill for dismantling DFAA approved NIHON KEIZAI (Page 2) (Full) May 25, 2007 An amendment to the Defense Ministry Establishment Law to dismantle the Defense Facilities Administration Agency (DFAA),which had been tainted by bureaucracy-initiated bid-rigging scandals, was approved by a majority from the ruling parties at a meeting yesterday of the Lower House Committee on Security. 9) Japan, Australia to hold 2-plus-2 on June 6 SANKEI (Page 5) (Full) May 25, 2007 Prime Minister Shinzo Abe called Australian Prime Minister HOWARD yesterday and confirmed that Japan and Australia would continue to cooperate on North Korea, IRAQ reconstruction, and other issues. The two leaders also concurred on steadily implementing a joint declaration that was released by Japan and Australia in March when they met. The two countries will hold a two-plus-two foreign and defense ministerial meeting of their intergovernmental security consultative committee on June 6. 10) China likely tested new radar near Japan-China median line in East China Sea SANKEI (Page 2) (Excerpts) May 25, 2007 It is believed likely that China tested the capabilities of an over-the-horizon (OTH) radar system, now under development, in late April in waters near the Japan-China median line in the East China Sea, according to the Defense Agency Defense Intelligence Headquarters (DHI). The deployment of the high-performance OTH radar may enable China to discern the moves of Japanese vessels on the Japanese side of the median line. Highly alarmed at the possibility, the Defense Ministry is going to analyze the data further. According to the DHI, an MSDF P3C patrol plane on a routine mission TOKYO 00002342 006 OF 009 to monitor waters in the East China Sea in late April spotted an old Chinese destroyer on the Chinese side of the median line. The P3C continued to monitor the Chinese destroyer and took pictures. Although the destroyer navigated north and south along the median line, it never crossed it. Analyzing such factors as the destroyer's wakes, intercepted Chinese radio communications, and intelligence from the US military, the Defense Ministry has essentially concluded that the destroyer's navigation was for testing the capability of OTH radar. The DHI now believes that China tested the radar's acquisition and resolution by using the OTH radar believed to be installed on the coastline in Zhejiang Province by moving the destroyer around in waters near the Japan-China median line as a mock target. 11) Japan-China summit likely on sidelines of G-8 Summit YOMIURI (Page 2) (Full) May 25, 2007 A government source has revealed that the governments of Japan and China are undertaking coordination with a view to holding a summit between Prime Minister Abe and President Hu Jintao on the sidelines of the Heiligendamm Summit to be held on June 6-8 in Germany. A summit between the two leaders would be the first since they met on the sidelines of the PEC meeting held in Hanoi last November. They are expected to discuss North Korea and the development of gas fields in the East China Sea, as well as to exchange opinions on a visit to China within the year by Abe and a visit to Japan by Hu. 12) China: "Median line is not a condition for start of talks on gas field development" NIHON KEIZAI (Page 2) (Full) May 25, 2007 Ken Sato, Beijing At a press briefing yesterday, Chinese Foreign Ministry Deputy Spokesperson Jiang Yu mentioned bureau director-level talks between Japan and China to discuss gas field development in the East China Sea and said: "The so-called Japan-China median line is based on the Japanese side's unilateral assertion. We can't accept talks on the joint development based on that median line. There is no change in China's position." As an area for joint development, Japan has suggested a sea area covering gas fields near the Japan-China median line, such as the Shirakaba (Chunxiao) gas field, but the Chinese spokesperson again indicated China's position of rejecting joint development. China intends to make a new proposal for joint development at today's bureau director-level talks, but the two countries are still far apart. The Japanese Foreign Ministry's Asian and Oceanian Affairs Bureau Director-General Kenichiro Sasae arrived in Beijing yesterday and told reporters: "The important thing is for China to come up with a positive, specific idea. I expect it to do so." 13) Japan, China nervous about Lee Teng-hui's visit to Japan from TOKYO 00002342 007 OF 009 May 30; China may react strongly if he refers to Taiwanese independence ASAHI (Page 7) (Full) May 25, 2007 Tsuyoshi Nojima, Taipei SIPDIS Former Taiwanese President Lee Teng-hui will visit Japan on May 30. The upcoming Japan visit will be his third since he stepped down from the presidential post, making his first trip to Tokyo where he will give speeches. In an interview on May 24 by the Asahi Shimbun, he stressed that the purpose of his visit was sightseeing and academic exchange. A response by China, which has kept guard on Lee regarding him as a leader of advocators for an independent Taiwan, will be determined by Lee's words and actions in Tokyo. Lee is expected to deliver three speeches on the international situation and other issues in Tokyo and other places. He plans to travel to the Tohoku region, which is famous for "The Narrow Road to the Deep North" a major work by the Japanese poet Matsuo Basho (1644-1694). He is then scheduled to hold a press conference on June ¶9. Lee said in the interview: "I wanted to tour the place famous for 'The Narrow Road to the Deep North.' I will deliver cultural and academic speeches. I will not carry out political activities." He was optimistic about China's response, saying, "China has became soft and wise." The former Taiwan leader visited Japan in 2001 for medical treatment. In 2004 he did sightseeing in the Hokuriku region. China made strong protests against Japan over Lee's Japan visits. Although Lee is a private citizen since he resigned from the presidential post seven years ago, he is a spiritual leader of the Taiwan Solidarity Union, a political party that advocates Taiwanese independence. Lee has close ties with Xie Chang-tein, the ruling Democratic Progressive Party's candidate for the presidential election. Given that, he has some political influence. In 2001 and 2004 the Japanese government asked Lee to refrain from giving speeches and holding press meetings in return for the issuance of tourist visas. Lee reportedly has decided the contents of his speeches based on consultations with the Prime Minister's Official Residence and the Foreign Ministry. There will be no restrictions on his remarks in principle. The Japanese government assumes that as long as Lee's visit ends with sightseeing and academic exchanges, China's criticism of Japan will not be strong. However, China is sensitive about the Taiwan issue more than the history issue. Chinese Prime Minister Wen Jiabao stressed in his speech in Japan in April that the Taiwan issue is "China's core interest." He sought to constrain Japan. 14) US beef imports: Agriculture Minister Matsuoka hints at easing import conditions, noting, "The Food Safety Commission will discuss the matter" SHIMBUN AKAHATA (Page 14) (Excerpts) May 25, 2007 TOKYO 00002342 008 OF 009 Following the World Organization for Animal Health (OIE) DECISION to classify the US as a country with a "controlled risk" of BSE, Agriculture, Forestry and Fisheries Minister Toshikatsu Matsuoka yesterday said, "The OIE's DECISION will not immediately lead to Japan's easing of its import condition imposed on US beef limiting beef eligible for export to cattle aged 20 months or younger." Matsuoka was replying to questions asked by reporters at his ministry. However, he hinted at his stance of pressing ahead with efforts to ease import conditions, such as the age criterion, as sought by the US, based the outcome of inspections of US meat-processing facilities, which Japan is now conducting. He noted, "The Food Safety Commission will discuss the results of the inspections." 15) BSE: Government to scrap blanket cattle inspection subsidies next July; Response from local governments to become focus of attention MAINICHI (Page 1) (Full) May 25, 2006 The Ministry of Health, Labor and Welfare (MHLW) has decided to end subsidies it now provides to prefectural governments to cover the full cost of their BSE testing of cattle aged 20 months or younger at the end of July next year. It will not appropriate funds for such subsidies for August 2008 and beyond in its budget request for fiscal 2008. The MHLW was forced to adopt the subsidies system after meeting opposition from a number of local governments to the government DECISION to limit cattle subject to inspection to those aged 21 months or older. Since there are still calls for the continuation of blanket testing, how prefectural governments will respond to the MHLW's DECISION to end the system will become a focus of attention. Since the discovery of the first domestic case of BSE in Sept. 2001, the government has inspected all cattle to ensure safety. However, amid mounting pressure for resuming US beef imports, which were suspended in Dec. 2003, the MHLW raised the age of cattle subject to blanket inspection to those aged 21 months or older, revising the relevant ministry ordinance in Aug. 2005. However, since a number of prefectures that are home to cattle production, such as Gifu and Hyogo, announced their plans to continue blanket testing at their own expense, the MHLW decided to subsidize the cost of inspections of cattle aged up to 20 months with a three-year expiration date attached. There are approximately 1.2 million head of cattle throughout the nation, of whom approximately 150,000 are aged 20 months or younger. Subsides for blanket testing cost 300-400 million yen a year. The MHLW Food Safety Department explained its DECISION to end the subsidies by saying that now that a DECISION has been reached that the infection risk of cattle aged 20 months or younger is not high, based on verification by the Food Safety Commission, it is not possible for it to continue to spend tax money on testing. Concerning the beef trade, the World Organization for Animal Health (OIE) issued international safety standards that boneless beef from cattle aged up to 30 months can be exported without any conditions. Since the OIE at its general meeting on May 22 classified the US as a country with a "controlled risk" of mad cow disease, meaning that TOKYO 00002342 009 OF 009 it can export its beef without any conditions, the US intends to strengthen its request to Tokyo to ease its import conditions. SCHIEFFER