JAPANESE MORNING PRESS HIGHLIGHTS 06/06/07

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E.O. 12958: N/A TAGS: OIIP KMDR KPAO PGOV PINR ECON ELAB JA SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 06/06/07 Index: 1) Top headlines 2) Editorials 3) Prime Minister's daily schedule 4) Prime Minister ABE will use every diplomatic moment at G8 summit to seek breakthrough on North Korea problem 5) Japan, EU at the G8 summit to focus on issue of reduction of greenhouse gases 6) ABE meets Germany's prime minister in Berlin 7) Australia thinking of joining Japan, US in missile-defense program says defense minister 8) Defense Minister Kyuma, Australian counterpart agree in meeting to strengthen exchanges 9) SDF personnel to participate as observers at US-Australian joint exercise 10) LDP, Komeito to present bill to Diet allowing military use of outer space 11) Upper House election campaign turning into all out fight between LDP, Democratic Party of Japan (Minshuto) on pension issue 12) LDP, alarmed by Abe's plunging support rates, suddenly changes election tactics 13) Opposition camp criticizes Nakayama candidacy as LDP using abduction issue for political gain 14) Foreign Minister Aso launches strategy to succeed ABE as prime minister 15) Ruling camp in proposed bill to allow tax exemptions to those whose pension-payment records were lost 16) Three bills, including one creating an NSC and another unifying pension systems will be carried over to the next Diet session 17) With Diet extension, ruling camp plan to pass civil-service reform bill this session Articles: 1) TOP HEADLINES Asahi: Science ministry to install 500 quake observation devices off Japan's Pacific coast for research Mainichi: LDP, Minshuto face off over pensions in platforms for Upper House election Yomiuri: Gangsters arrested for smuggling forged taxi charge coupons from TOKYO 00002517 002 OF 011 China Nihon Keizai: Marubeni to launch power generation and desalination projects in United Arab Emirates by investing 360 billion yen Sankei: Japanese companies expect to gain greenhouse gas emissions quotas as first case for ODA project Tokyo Shimbun: Social Insurance Agencies made 930,000 pension record-keeping errors in 1964 Akahata: Missing pension payments cause 20 trillion yen worth of losses to the people 2) EDITORIALS Asahi: (1)Environment G-8: Widen framework of Kyoto Protocol (2)Cut off cozy relations between accountants and companies Mainichi: (1)Measures for missing pension payments will not serve to dissolve public distrust, concern (2)Deployment of MD system in East Europe: Efforts needed not to cause a new cold war Yomiuri: (1)Environment white paper: Devise system to create energy-saving society (2)Stricter punishments to be applied to driving accidents Nihon Keizai: (1)Japan first should promote gas emission cuts to combat global warming (2)LDP, Minshuto focus on pensions in election platforms Sankei: (1)G-8 Summit: Pave way to an agreement on global environment (2)North Korean defectors and stimulants: Japan should show proper stance as nation under rule of law Tokyo Shimbun: (1)Government's pension plan far from contributing to dissolving public concerns (2)Guidelines on economic and fiscal policy less substantive Akahata: (1)Fully examine and resolve pension problem on government's responsibility 3) Prime Minister's Official Residence (Kantei) Prime Minister's schedule, June 5 NIHON KEIZAI (Page 2) (Full) June 6, 2007 08:33: TOKYO 00002517 003 OF 011 Attended a cabinet meeting in Diet. 08:57: Met with Chief Cabinet Secretary Shiozaki and Deputy Chief Cabinet Secretary Suzuki at Kantei. SIPDIS 09:53: Left Haneda Airport on a government plane to attend the G-8 summit in Heiligendamm, Germany. Local time Afternoon: Arrived at Tegel Airport in Berlin, Germany. Arrived at Intercontinental Hotel. Met with German Chancellor Merkel at her office. Evening: Received a set of proposals from the Japan-Europe Business Dialogue Roundtable composed of corporate managers from Japan, the EU. Attended summit between Japan and the EU. 4) Prime Minister to search for clues for breakthrough in North Korean issues NIHON KEIZAI (Page 2) (Excerpts) June 6, 2007 Berlin, Hiroshi Minegishi Prime Minister SHINZO ABE will seek ways to break the impasse on the abductions of Japanese nationals by North Korea and the North's nuclear ambitions through bilateral talks at the Group of Eight summit in Heiligendamm, Germany. He also wants to display his political presence on the environment issue. Abe said; "I have already met with the leaders of the G-8. I want to frankly exchange views with them," ABE told reporters prior to his departure at the Prime Minister's Official Residence. Abe and German Chancellor Angela Merkel reportedly confirmed close bilateral cooperation on the issue of reducing greenhouse gas emissions, as well as on reform of the United Nations Security Council. At last year's G-8 summit, Japan demanded the inclusion of the wording "an early resolution" of the abduction summit in the chairman's statement. It is certain that ABE also will bring up the abduction issue, but whether how far he can step into the issue is uncertain. The Japanese government aims to involve the United States, China and European countries, which have diplomatic ties with Pyongyang, in applying greater pressure on the North. 5) G-8 summit begins: Japan-EU summit will likely call for all major industrialized countries to join the drive to cut greenhouse gas emissions NIHON KEIZAI (Page 1) (Full) June 6, 2007 Berlin, Hiroshi Minegishi The three-day G-8 summit will open in Heiligendamm on June 6 in northeastern Germany. Prime Minister SHINZO ABE on the afternoon of the 5th arrived in Berlin and met with German Chancellor Merkel and other EU leaders. Concerning greenhouse-gas emissions cuts, the top TOKYO 00002517 004 OF 011 agenda item at the summit, participating countries are expected to reach an agreement on the need to create a framework joined by all major industrial powers, including the US, China, and India. This will be the first summit for ABE since his inauguration as prime minister. The Japan-EU summit will bring together Chancellor Merkel, EU Chairman Barroso, and others. Regarding a new framework replacing the Kyoto Protocol, which demands emissions cuts, ABE will call for a flexible and diverse system that gives consideration to signatory countries' respective situations. Participants are also expected to reach a consensus on the sharing of information leading to the protection of intellectual property rights. Abe is expected to call on the international community to come together to strengthen pressure on North Korea regarding its nuclear program so that the communist nation will take concrete action for denuclearization. The EU will likely support Japan's effort from the perspective that the abductions are a serious human rights issue. Abe will convey to German Chancellor Merkel during a bilateral summit Japan's stance of aiming for a permanent seat on the United Nations Security Council (UNSC). He will ask that Germany work together with Japan. The environment, nuclear development by Iran and North Korea, Africa, and the liberalization of trade and investment will top the agenda of the summit starting on the 6th. 6) Abe-Merkel meeting held YOMIURI (Page 2) (Full) June 6, 2007 Toshiyuki Ito, Berlin Prime Minister SHINZO ABE held a meeting with Chancellor Angela Merkel of Germany, the chair of the European Union, in Berlin on the evening of June 5 (late hours of June 5, Japan time). ABE is believed to have expressed his determination to play an active role in bridging the gap between the United States and the EU on global warming in the G-8 Summit in Heiligendamm that will start on June ¶6. Abe later attended a Japan-EU summit, which will be followed by a joint statement. The joint statement is expected to call for an economic partnership agreement featuring a free trade agreement on mutually scrapping tariffs by Japan and the EU. 7) Australia considering joining Japan-US MD system YOMIURI (Page 2) (Full) June 6, 2007 Visiting Australian Defense Minister Brendan Nelson held a press conference yesterday at the Japan National Press Club in Tokyo's Uchisaiwaicho. He indicated that Australia is studying joining the Japan-US missile defense (MD) system, saying: "Australia supports it. We are studying the extent to which Australia might be able to cooperate in a responsible way in the defense area." Japan, the United States, and Australia have been stepping up defense cooperation in recent years. Nelson's statement is drawing attention as expressing the country's willingness for trilateral cooperation TOKYO 00002517 005 OF 011 on the MD as well. Nelson said: "We are considering the option of equipping the three destroyers to be constructed shortly with a mobile antiballistic missile defense system. A specific response is an item for discussion." He also indicated that North Korea's missile development would become a direct threat to Australia, saying: "Theoretically, (North Korean missiles) are capable of reaching mainland Australia." A new Taepodong missile now being developed by North Korea is believed to have a range of over 10,000 km. Nelson added: "Japan is our close ally. Japan, China, and South Korea are our major trade partners. The North Korean threat can affect Australia's economic interests." Tokyo and Canberra signed this March the Japan-Australia Joint Declaration on Security Cooperation. Reaching an agreement to draw up an action plan on promoting security cooperation, the declaration also stipulates greater cooperation for resolving North Korea's nuclear and ballistic missile issues. The two countries are also scheduled to hold their first foreign and defense ministers' meeting (2+2) today. The United States and Australia signed in July 2004 a memorandum of understanding on MD cooperation. 8) Kyuma, Nelson agree to strengthen defense cooperation YOMIURI (Page 2) (Full) June 6, 2007 Defense Minister Fumio Kyuma held a meeting with visiting Australian Defense Minister Brendan Nelson at the Foreign Ministry yesterday. The two leaders reached an agreement to enhance defense exchanges, such as the Self-Defense Forces' participation as an observer in the US-Australia joint military exercise to be held in Australia later this month. They also agreed to increase exchanges in disaster relief and technology development. Touching on reconstruction assistance in Afghanistan, Nelson expressed hopes for SDF deployment, saying: "If Japan assists that country in a way (other than funds),we will cooperate." Kyuma replied: "Although Japanese troops are not in Afghanistan because of constitutional restrictions, (Maritime Self-Defense Force) troops have been engaged in refueling activities on the Indian Ocean." Ahead of his meeting with Kyuma, Nelson took a firsthand look at the PAC-3 ground-to-air guided missiles at the Air Self-Defense Force's Iruma Base (Sayama City, Saitama Prefecture). The two countries will hold their first foreign and defense ministers' meeting (2+2) today in Tokyo. 9) SDF to join US-Australia military exercise as observer SANKEI (Page 5) (Full) June 6, 2007 Defense Minister Fumio Kyuma held a meeting with visiting Australian Defense Minister Brendan Nelson yesterday in which Kyuma told his TOKYO 00002517 006 OF 011 Australian counterpart that the Self-Defense Forces will participate as an observer in the US-Australia joint military exercise to be held in Australia later this month. The two leaders also confirmed a line of increasing defense cooperation in international disaster relief in Southeast Asia. 10) LDP, New Komeito to submit space bill to current Diet session, opening the way for Japan to use space for defense purposes ASAHI (Page 1) (Excerpts) June 6, 2007 The ruling Liberal Democratic Party and its coalition partner New Komeito yesterday decided to draft, in the hands of lawmakers, a basic bill on space (tentative name),which enables Japan to use information obtained from high-performance spy satellites for defense purposes. This decision came because the New Komeito, which until then had been cautious about such a bill in the fear that it could open the way for Japan to use the space for military purposes, turned around at a Policy Research Council meeting yesterday to allow such a bill but with some conditions attached, such as the inclusion of language restricting the use of the space purely for defense purposes. However, the current Diet session is to close on June 23, so the bill is expected to be carried over to the next session of the Diet for deliberations. The bill is likely to be adopted in an extraordinary Diet session expected to take place this fall or after. The Diet adopted a resolution allowing the use of the space for peaceful purposes in 1969. This resolution is interpreted as allowing the use of the space for nonmilitary purposes. Because of this resolution, the Self-Defense Forces (SDF) cannot use more high-performance satellites than commercial ones. So LDP lawmakers affiliated with the defense industry have aimed for legislation that will change the interpretation of the resolution from the current "nonmilitary" to "nonaggression." The LDP's manifesto for the Upper House election released yesterday also includes establishing a basic law on space and nurturing the space industry. 11) LDP, Minshuto at odds over pensions in platforms for Upper House election MAINICHI (Top Play) (Full) June 6, 2007 The Liberal Democratic Party yesterday released its party platform for the House of Councillors election this summer. The Democratic Party of Japan (Minshuto) has already announced its draft manifesto. Prime Minister SHINZO ABE had stressed that the party would make constitutional revision a major campaign issue, but the ruling party uses a good part of the platform to deal with pocketbook issues, though it refers to "making a proposal on constitutional revision in 2010." The LDP initially aimed to secure a majority while dodging such themes being pursued by Minshuto as pensions and social disparities, but it has now been driven into the heart of the enemy camp by severe circumstances, changing its policy course. Politics and money On the controversial record-keeping blunder, the LDP pledges to "finish a thorough computer-aided name-identification check of 50 TOKYO 00002517 007 OF 011 million cases of unpaid benefits within a year" and scrap a five-year statute of limitations on retroactive pension payments. It also proposes swiftly unifying the mutual pension and public pension systems as part of systemic reform, but it stopped short of referring to the national pension plan, into which many people have skipped payments, developing into a serious social problem. Minshuto also stressed its determination to "thoroughly examine the problem of massive amounts of unpaid pension and take measures to rescue victims." As a different point from the LDP, Minshuto called for unifying all the pension programs, including the national pension program, into one system. It underscored a policy difference from the LDP, noting: "We will carry out a drastic reform to rebuild a pension system for all the people." The politics-and-money problem is now taken more seriously than before in the wake of former Agriculture, Forestry and Fisheries Minister Toshikatsu Matsuoka's suicide. The two parties emphasize the need for reform. The LDP proposes placing restrictions on real estate holdings by politicians' fund management organizations, while Minshuto calls for requiring politicians to attach receipts for office and other expenditures of more than 10,000 yen. Social disparities The main ruling and opposition parties also clash head-on over social disparities. Minshuto includes measures giving consideration to local areas in the industrial sector, calling for a compensation system for each farmer who produces for the market and for legislation to restrict improper discounts by large companies as measures to protect small businesses. The LDP sets forth measures to cope with the shortage of doctors in rural areas, such as establishing an emergency doctor-dispatch system. It also proposes adjusting the existing differentials in local governments' financial strength. On "hometown taxation," the ruling party just says: "We will look into how the taxation scheme and contributions should be." Constitutional revision Although the LDP has shifted the focus of its strategy to "livelihood," it cites the Constitution at the beginning in the platform, noting: "We will aim to make a proposal in the Diet in 2010." Keeping in mind the fact that a Diet proposal on constitutional revision will be frozen for the three years up until a national referendum is carried out, the LDP underlines its eagerness to launch the constitutional-revision process, but it sidestepped specific amendments, supposedly in hopes of avoiding antagonizing New Komeito. Minshuto shied away from this issue, given that some of its members are in favor of revising the Constitution and also reflecting its consideration to election campaign cooperation with the Social Democratic Party. 12) 2007 Upper House election: Alarmed by plunging cabinet approval ratings, LDP makes drastic changes to its political campaign promises MAINICHI (Page 2) (Excerpts) June 6, 2007 TOKYO 00002517 008 OF 011 The ruling Liberal Democratic Party's (LDP) set of campaign promises, adopted yesterday for the upcoming Upper House election, is noticeably heavy on items related to the livelihood issue, such as the pension problem and measures to deal with a lack of physicians. The switch reflects alarm at the recent rapid plunge in public approval ratings for the ABE cabinet. The items were added as "urgent issues," LDP Policy Research Council Chairman Shoichi Nakagawa explained. The party's sudden shift from an ideological line, such as the inclusion of constitutional reform, which Prime Minister SHINZO ABE had insisted o, to an emphasis on livelihood issues reflects the LDP's sense of crisis. On June 4, when Nakagawa and LDP Policy Board Chairman Yoichi Masuzoe in the Upper House presented a draft campaign platform to Abe at the Prime Minister's Official Residence (Kantei) before ABE departed to attend the Group of Eight (G-8) summit conference, ABE told them: "I want you to work hard on the pension issue." On that occasion, constitutional revision was supposed to be at the top of the 155-item set of campaign promises, but it was decided to have the pension issue be the leading in the pamphlet that will be available to voters. Looking back on recent developments, a senior Policy Research Council member said: "The contents have changed drastically in only 10 days." Adde to the campaign promises was a commitment to crosscheck the 50 million records of unidentified premium payments within a year and to repeal the five-year statute of limitations on pension claims. These items were not in the original draft manifesto of late May, when the LDP was rocked by opinion polls showing plunging cabinet approval ratings. On the other hand, controversial items, such as allowing the exercise of the right to collective self-defense, an issue opposed by the coalition partner New Komeito, were dropped, even though constitutional revision will still be priority for the Abe-led LDP. At a press conference yesterday, Nakagawa emphasized: "The basic policy (of the ABE administration) is to rebuild Japan into a 'beautiful country.' The challenge is how to realize it." The buzzword in the draft set of campaign promises is "beautiful." For instance, there is a passage, "rebuild a beautiful country." Included also are educational reform, which ABE is trying to implement, and a commitment to finding a resolution of the abduction issue. A senior Upper House lawmaker of the LDP ridiculed it yesterday: "What color does 'beautiful' connote?" 13) Special Advisor Nakayama to run in Upper House election ASAHI (Page 4) (Full) June 6, 2007 Kentaro Kawaguchi Kyoko Nakayama, special advisor to Prime Minister SHINZO ABE on the abduction issue, has decided to run in the House of Councillors election on the ruling Liberal Democratic Party (LDP) ticket as a candidate for the proportional representation segment. Her decision is now creating a stir in political circles. Minshuto (Democratic Party of Japan),the largest opposition party, is strongly reacting against her candidacy, saying, "The LDP is tying to use the TOKYO 00002517 009 OF 011 abduction issue for the election." Nakayama met yesterday with some members of the group of the families of victims of kidnapped by North Korea. After the meeting she told reporters: "I would like to announce my decision early next week." Shigeru Yokota, leader of the group, indicated that he would basically respect her decision, saying, "We will not endorse her. But I want her to run in the race and win a seat." Prime Minister ABE asked her to run, telling her, "I think a person like you who can get support from voters will be very effective." A government official, however, stated: "To this point, the LDP and Minshuto have worked together on this issue and refrained from politicizing it. If Nakayama is elected, superpartisan cooperation on the issue will become impossible. This spells trouble for the abductees' families." Lower House member Shu Watanabe, chief of secretariat for Minshuto's abduction issue task force, said yesterday: "Special Advisor Nakayama will run. The ABE government is suddenly focusing on the abduction issue." He then called for modifying a bill to deal with North Korea's violations of human rights. The LDP bill calls on the government to provide "thorough consideration" not to provide aid to North Korea unless there is progress on the abduction issue. Minshuto, however, wants the government to be stricter about not extending aid to the North. The abductee support groups have taken a stance of not supporting specific political party or candidates. Therefore, the two groups do not intend to provide Nakayama organizational support, allowing only personal support. 14) LDP's Aso faction holds fund-raising party; Aso trying to increase media exposure as candidate to succeed Prime Minister ABE YOMIURI (Page 4) (Slightly abridged) June 6, 2007 Foreign Minister Taro Aso, who chairs a faction in the ruling Liberal Democratic Party, held a fund-raising party for the first time as faction head. Aso also had two books he wrote published in June. He is trying to get a lot of media exposure by responding to interviews by magazines in a positive manner. With an eye on the political situation after the House of Councillors election and the next presidential election of the LDP, he is trying to demonstrate his qualifications to succeed Prime Minister SHINZO Abe. About 2,200 persons -- twice the number of those who participated in a party held last year by the Kono faction, the predecessor of the Aso faction -- took part in yesterday's party in a Tokyo hotel. Aso said in his speech: "With the Upper House election in mind, we will make concerted and united efforts to maintain the political power under the command of Shinzo Abe. We will make politics better." Chief Cabinet Secretary Yasuhisa Shiozaki, a member of the Niwa-Koga faction, who was invited to the party as a guest, called for solidarity, saying to Aso, "I would like to join hands together in the not-so-distant future." TOKYO 00002517 010 OF 011 Aso's strategy of assuming the political reins is to become the most likely candidate to succeed Abe, while serving in a key post in the Abe cabinet. He appears to be steadily carrying out this strategy. In fact members of other LDP factions, including the Tsushima faction, have asked Aso to give campaign speeches for them. Aso intends to positively respond to their requests. Many in the Aso faction expect that if Aso comes across as a man of strong character in the election, he will be able to get the secretary general's post, and then, the 15-member-faction, the smallest in the LDP, could increase its members. However, some in the LDP are reacting coolly. One member said: "He has nestled up too much to Prime Minister Abe." 15) Tax break on pension benefits paid as compensation for record-keeping errors, government, ruling parties decide NIHON KEIZAI (Page 1) (Excerpts) June 6, 2007 The government and the ruling parties yesterday decided to exempt from taxation pension benefits to be paid retroactively to cover a period before the five-year statute of limitations on pension claims as compensation for record-keeping errors. Even when benefits are paid as a lump sum payment, a burden reduction measure to prevent the income tax of recipients from increasing will be taken. Judging that it is heavily responsible for the missed pension benefit payments this time, the government will give consideration to pensioners in tax terms. Public pension benefits subject to taxation are over 1.08 million yen a year for those under 65 and over 1.58 million yen for those over 65. The ruling camp has introduced to the current Diet session a special exemption bill to compensate the full amount of pension benefits going back to a period before the five-year statute of limitations. If this bill is enacted, claimants, if identified, will be entitled to receive benefits going back to more than six years. 16) Ruling camp to carry over three bills -- broadcasting, NSC, pension unification -- to next Diet session TOKYO SHIMBUN (Page 2) (Full) June 6, 2007 With the current Diet session due to close on May 23, the ruling parties yesterday decided to carry over to the next session of the Lower House deliberations on a bill amending to the Broadcast Law, a bill amending the Security Council Establishment Law (to create a National Security Council) and a bill unifying employees' pensions. Deliberations on the bill amending the Broadcast Law, which incorporates a system under which the internal affairs and communications minister seeks broadcasters that put out fabricated programs to submit a plan to prevent a recurrence, started on May ¶22. However, the broadcasting industry is opposing the bill as restricting freedom of expression. Fearing a possible impact of the bill on the July Upper House election, the ruling parties have decided to carry over the bill to the next Diet session. TOKYO 00002517 011 OF 011 The government on April 6 introduced a bill amending the Security Council Establishment Law designed to set up a Japanese equivalent of the US National Security Council. However, since the ruling camp gave priority to deliberations on a bill abolishing the Defense Facility Administration Agency and the Iraq Reconstruction Assistance Special Measures Law, deliberations on the NSC bill have not yet taken place. The ruling bloc will hold an explanation and question-and-answer sessions for the bill at a Lower House plenary meeting before the end of the Diet session on June 23. However, full-fledged deliberations at the Security Committee will be postponed until the Extraordinary Diet session in the fall. The Lower House Health, Labor and Welfare Committee was unable to enter deliberations on the bill unifying employee pensions - welfare annuity and national pension, because it already had a bill reforming the Social Insurance Agency being deliberated. 17) LDP aims to enact civil-service reform bills at the prime minister's order ASAHI (Page 1) (Excerpts) June 5, 2007 The ruling Liberal Democratic Party (LDP) in an executive meeting yesterday confirmed the policy of getting civil service reform-related bills, including a ban on amakudari (practice of retiring bureaucrats getting jobs in the private sector),through the Lower House tomorrow in order to enact them into law during the current Diet session. At one point the LDP gave up on the plan to enact them during the current Diet session, but by Prime Minister Abe's strong order, the party turned around. After the executive meeting, LDP Secretary General Hidenao Nakagawa, asked by reporters about the bills, stressed: "We'll take every possible measure to enact them." Following this move, the LDP and its coalition partner New Komeito confirmed that the bills would be put to the vote at the Lower House Committee on Cabinet today and at a Lower House plenary session tomorrow. They also decided to hold an explanatory session and a question-and-answer session regarding the bills at an Upper House plenary session on June 11, when ABE returns home from the Group of Eight (G-8) summit, and to start the discussion of the bills at the Upper House Committee on the Cabinet from June 12. SCHIEFFER