JAPANESE MORNING PRESS HIGHLIGHTS 05/25/07

UNCLAS SECTION 01 OF 09 TOKYO 002342

SIPDIS

SIPDIS

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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

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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

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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.


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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

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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

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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

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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


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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

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it can export its beef without any conditions, the US intends to
strengthen its request to Tokyo to ease its import conditions.

SCHIEFFER