JAPANESE MORNING PRESS HIGHLIGHTS 07/13/07

UNCLAS SECTION 01 OF 12 TOKYO 003205 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 07/13/07 Index: 1) Top headlines 2) Editorials 3) Prime Minister's daily schedule 4) Secretary Rice calls Koike to congratulate her on her appointment as defense minister 5) Assistant Secretary Hill to meet MOFA's Sasae today on upcoming six-party talks 6) Six-party talks to discuss next stage of North Korea's denuclearization when they restart on July 18 7) How will North Korea respond when six-party talks resume? 8) Japan to hold firm to its policy of placing abduction issue at top of own agenda at six-party talks 9) Group supporting House resolution on comfort-women places own advertisement in Washington Post to counter one placed earlier by Japanese opponents 10) Japan, US, Australia, India to engage in joint drill in Bay of Bengal in September 11) Former GSDF officer with amakudari post-retirement position involved in corruption scheme with contractor 12) Poll shows neither Prime Minister ABE nor Minshuto head Ozawa are popular figures with the public 13) Poll shows voters favoring Minshuto (DPJ) outpacing those picking the LDP as party of choice in upcoming election 14) Number of voters registered for Upper House election exceeds 100 million 15) Voter turnout rate could be affected by fact that July 29, election day, is in the summer-vacation season 16) Number of female candidates in the Upper House election less than 100, for second time in row 17) Candidates include 30 who used to be in the Lower House and 7 former postal rebels 18) Eleven additional celebrity candidates running this time for Upper House seats 19) Rural-urban voter disparity at 4.86 ratio, not much change since last election 20) Government to co-develop with private sector an environmentally-friendly nuclear power reactor Articles: 1) TOP HEADLINES Asahi: Kyodo poll: Favorability ratings for Abe, Ozawa somewhat low TOKYO 00003205 002 OF 012 Mainichi: Upper House election: Battle of party heads in urban and rural areas Yomiuri, Sankei & Tokyo Shimbun: Total war between ruling and opposition camps in bid to win majority in Upper House; 377 individuals enter race Nikkei: Government to team up with Toshiba, other private concerns to develop environment-friendly nuclear reactor Akahata: If JCP gains Diet seats, Japan's politics will definitely change 2) EDITORIALS Asahi: (1) Welfare revenue sources: Voters deserve respect (2) Postal privatization: Can Nishikawa implement it? Mainichi: (1) Questions about MIC's high-handed stance of summoning senior TV officials (2) Government bonds to be upgraded: Low interest rates should be returned to normal level Yomiuri: Upper House election calls for bold debate Nikkei: Decentralization, deregulation will revitalize regional economies Sankei: (1) Debate pensions without partisan interests (2) Huge burden on companies and users will weaken effectiveness Tokyo Shimbun: (1) Upper House race: Political parties must talk about unpleasant issues (2) Pakistan: Impatience widened gulf Akahata: Don't walk away from campaign issues 3) Prime Minister's Official Residence (Kantei) Prime Minister's schedule, July 12 NIKKEI (Page 2) (Full) July 13, 2007 10:23: Arrived at LDP headquarters. 10:53: Gave a public speech in front of JR Akihabara Station. 12:28: Gave a public speech in front of Chiba Urban Monorail Chiba Prefectural Government Office Station in Chiba City. 12:58: Had lunch with his secretaries at a Chinese restaurant at Keisei Hotel Miramare. TOKYO 00003205 003 OF 012 15:28: Gave a public speech at the East Exit of JR Kawaguchi Station in Kawaguchi City, Saitama Prefecture. 17:03: Gave a public speech in front of the JR Shibuya Station. 17:53: Arrived at Kantei residence. 18:30: Met with LDP Election Strategy Headquarters Director Yatsu at LDP headquarters. 19:30: Appeared on an NHK program. 20:51: The shooting for a TV program at TBS Broadcasting Center at Akasaka. 22:09: Arrived at Kantei residence. 4) Secretary Rice gives congratulatory call to Defense Minister Koike MAINICHI Page 2) (Full) July 13, 2007 Ryuko Tadokoro Defense Minister Yuriko Koike late yesterday received a congratulatory call on her assumption of office as defense minister from US Secretary of State Condoleezza Rice. It was unusual for Rice to directly contact another country's defense minister. Reportedly, Rice, as a female cabinet member, telephoned Koike, who became the first female defense minister, because Rice "wanted so much to congratulate Koike." Their conversation lasted about 10 minutes. Koike told Rice, "I need a lot of energy to carry out my duties." In response, Rice encouraged Koike, telling her: "You can do it." 5) Japanese, US chief envoys to six-party talks to hold talks today SANKEI (Page 5) (Full) July 13, 2007 US Assistant Secretary of State Christopher Hill will visit Japan today and hold talks with his Japanese counterpart Kenichiro Sasae, the Ministry of Foreign Affairs formally announced yesterday. With an eye on the next round of six-party talks starting on July 18, Hill and Sasae, director general of the Foreign Ministry Asian and Oceanian Affairs Bureau, will exchange views on the state of the initial steps, including the shutdown of North Korean nuclear facilities, agreed on in February. The two chief negotiators will also coordinate Japanese and US responses to be taken in the July 18 meeting. Hill is expected to stay in Tokyo until the 15th and then leave for South Korea. 6) Six-party talks set for July 18-19 ASAHI (Page 7) (Slightly abridged) July 13, 2007 Kenji Minemura, Beijing Chinese Foreign Ministry spokesperson Qin Gang announced in a regular press conference on July 12 that the six-party talks on TOKYO 00003205 004 OF 012 North Korea's nuclear programs would resume on July 18-19 in Beijing. The participants in the meeting are expected to discuss the steps to be taken after the North suspends operations at it nuclear facilities. The session, the first since March, is also likely to focus on the issue of North Korea's suspected highly enriched uranium (HEU) program. A South Korean ship carrying an initial shipment of the 50,000 tons of heavy oil pledged to North Korea will arrive there on July 14. This shipment is premised on the North shutting down and sealing its nuclear facilities as the "initial steps" under a deal in the February six-party talks. On July 14, a team from the International Atomic Energy Agency is also scheduled to arrive in North Korea to monitor the shutdown of the reactor in Yongbyon. Pyongyang may shut down the reactor within the day if all goes smoothly. The participants in the upcoming talks expect to confirm the state of progress in the North's nuclear disarmament process, as well as to discuss the steps beyond the initial phase. As the next steps, North Korea is required to report all its nuclear programs and to nullify existing nuclear facilities. If Pyongyang undertakes these steps, it will receive 950,000 tons of heavy fuel oil in exchange. But no decision has been made on how the burden should be shouldered among the five members of the six-party talks, excluding the North. China perplexed at hasty approach by US, South Korea Among the other five members of the six-party talks, a slight difference is observed in their stances toward the next session. The United States and South Korea are eager to rapidly move North Korea's nuclear issue forward following the settlement of the financial sanction issue involving a Macao bank, but the Japanese government has taken a cautious stance. China, the chair of the six-party talks, is somewhat perplexed at the recent closeness between the US and North Korea. Before the date for the next six-party session was set, the US government already announced a plan for Assistant Secretary of State Christopher Hill to visit Japan, South Korea, and China starting on July 13, showing its desire to resume the six-party talks quickly. North Korea has also indicated a positive stance, since the financial problem was resolved, about resuming the talks, such as its announcement on a plan to suspend operations of its nuclear reactors. Given this, the US is apparently hopeful of ensuring the North's denuclearization. The South Korean government led by President Roh Moo Hyun, who is becoming a lame duck but is still hoping to hold an inter-Korean summit, has positively supported Washington's stance. According to Hill in an interview with the Japanese media on July 11, the participants in the session will set a rough timetable. They also aim to hold a plenary session before a six-party foreign ministerial to be held possibly in September to push ahead with preparatory work, such as drafting a ministerial declaration, in a drive to move ahead the denuclearization process. Meanwhile, the Japanese government has called for "the next six party talks to be held after the North takes all the initial steps," as a senior Foreign Ministry official said. As for results to be TOKYO 00003205 005 OF 012 produced in the talks, as well, Japan is skeptical, with Foreign Minister Aso saying: "We need to watch whether (North Korea) will properly take action." Behind this stance of Japan is its irritation at slow progress on the abduction issue and in talks at the working group on normalization of bilateral diplomatic ties. As if to take advantage of the difference in interest between Japan and the US and South Korea, North Korea has repeatedly questioned Japan's fitness to remain as a member of the six-party talks. China, which has so far played a mediating role between the US and North Korea, seems to have mixed feelings. A diplomatic source in Beijing said: "China was not eager to resume the talks in a hurry." China was calling for the next session to be held after ascertaining North Korea's moves for denuclearization and then the way is paved for specific results to be produced. There is also the view that China has not been given enough information because the US-North Korea meeting was not held in Beijing and also because Hill returned to the US without dropping in Beijing after visiting Pyongyang. 7) How will DPRK respond to second-phase steps, "declaration and disablement of nuclear facilities" MAINICHI (Page 2) (Full) July 13, 2007 Seiji Nishioka, Beijing The focus of the upcoming session of the chief delegates to the six-party talks on the North Korean nuclear issue set to occur on July 18 is on how North Korea will respond to the much tougher second-phase steps, namely, the "full declaration of every nuclear program" and the "disablement of nuclear facilities," than the "first-phase ones" of shutting down and sealing nuclear facilities at such locations as Yongbyon. A centerpiece of the "full declaration" is whether North Korea has developed a highly- enriched uranium (HEU)-type nuclear reactor, although it has denied that to date. According to one official connected with the six-party talks, the "disablement" is viewed as an "irreversible action to make North Korea unable to produce plutonium," but the term "disablement" has not yet been defined in a clear-cut manner. The definition is expected to be discussed among experts at a working group session. North Korea wants to start talks also on the provision of light-water reactors, still a major goal for that country. The United States, however, has made it clear that it will provide light-water reactors to the North only after the North abandons all its nuclear programs and diplomatic relations between the two countries are normalized. Given this, should the North bring up the question of light-water reactors, talks would inevitably stall. The February six-party agreement says 950,000 tons of heavy fuel oil will be provided to the North Koreans if they implement the second-phase steps, but Japan has firmly maintained that it will not take part in the aid plans unless the abduction issue is resolved. North Korea's official media have repeatedly criticized such a Japan recently. For example, Korean Central News Agency reported on July 4: "Japan's participation in the six-party talks is an unstable TOKYO 00003205 006 OF 012 factor from every angle, given its refusal to implement its obligations." By strongly calling for "exclusion of Japan" from the six-party talks, the North is pressuring Japan to shift its attitude. 8) Six-party talks: Government to maintain policy of giving top priority to abduction issue and remaining cautious about extending aid MAINICHI (Page 5) (Full) July 13, 2007/07/13 Top envoys to the six-party talks on North Korea's nuclear ambitions will meet July 18-19. Japan will maintain its basic policy of not extending energy aid without progress on the abduction issue. The talks this time will likely focus on the next stage aimed at disabling North Korea's nuclear facilities. If assistance as compensation for North Korea abandoning its nuclear ambitions becomes an agenda item, Japan will find itself in a difficult position. Foreign Ministry Spokesman Mitsuo Sakaba during a press briefing yesterday stressed the meaning of the meeting of top envoys, noting, "It will be an important opportunity for the six-party talks to enter the next-stage, while confirming the implementation of initial steps by North Korea." However, Japan has been reluctant from the beginning to hold such a meeting at a time when the Upper House campaign is going on. If it is left behind while being unable to switch its tough stance on the abduction issue because of the election, public expectations of the Abe administration, which places top priority to the abduction issue, could weaken. Should that occur, the possibility of the LDP suffering a setback in the election cannot be ruled out. Sakaba stated: "Settling the abduction issue is absolutely necessary. It is necessary to strike a balance between the denuclearization of the Korean Peninsula and improvement of Japan-North Korea relations." However, a path in that direction is not yet in sight. The government is looking into the possibility of extending financial assistance to inspections by the International Atomic Energy Agency (IAEA) with the aim of giving the impression that it is cooperative on the nuclear issue. However, since its stance toward cooperation remains within a secondary area, pressure on Japan could mount. 9) Opinion ad supporting the House "comfort women" resolution appears in US daily MAINICHI (Page 2) (Full) July 13, 2007 Jiji, Washington The Washington Post in its July 12 edition carried an opinion advertisement criticizing the Japanese leadership's response to the wartime "comfort women" issue during World War II and backing the resolution recently adopted by the US House Committee on Foreign Affairs. This one-quarter-page ad was placed by an Asian-American organization. The ad said, "We really feel resentment at the recent moves by Japanese rightists and revisionists," asserting, "It's high time for the Japanese leader to put an end to shameless denial of TOKYO 00003205 007 OF 012 the truth." 10) Japan, US, Australia, India to conduct 1st joint naval training in Sept. NIKKEI (Page 8) (Abridged) July 13, 2007 SYDNEY-Japan, the United States, Australia, and India will conduct their first joint naval training in September. The joint training will be carried out in the Bay of Bengal, India. Australia will dispatch a naval vessel for the joint training exercises, Australian Defense Minister Nelson, now visiting India, clarified in a press conference that was held after the Australian and Indian governments signed an agreement to share security intelligence. "We will send a frigate for the maneuvers. We will continue to join training exercises in various areas," Nelson said. However, he also said, "We do not want any formal four-way strategic dialogue on defense or security." With this, the Australian defense chief showed a negative view about including India in the tripartite strategic dialogue of Japan, the United States, and Australia. 11) GSDF asked briber for amakudari jobs MAINIHCHI (Page 31) (Abridged) July 13, 2007 The Ground Self-Defense Force has asked a contractor involved in bribery to employ retirees for amakudari (golden parachute) post-retirement positions, sources have revealed in connection with a recently exposed bribery case involving the GSDF over its procurement. The contractor in question, Shinsei Corp., is a manufacturer of outdoor cooking ware in Tokyo's Chiyoda Ward. The company still has a 64-year-old retiree from the GSDF as a full-time advisor. This retiree used to procure and manage equipment for GSDF use. The company has delivered more than 90 PERCENT of its products to the GSDF. There is a voice pointing out that their collusive chemistry through amakudari might have been a hotbed for bribery. In the corruption case, GSDF Col. Shingo Nishi, 44, is alleged to have taken bribes, and Tomonori Matsui, also 44, an executive of Shinsei Corp., is charged with doing the bribing. Tokyo's Metropolitan Police Department (MPD) arrested the two for bribery. The Tokyo District Public Prosecutors Office is expected to prosecute the two today, the time limit for their detention. The GSDF retiree, currently in the employ of Shinsei Corp. as a full-time advisor, graduated from the National Defense Academy in the 1960s. Later on, he became education chief at the GSDF Quartermaster School, which researches equipment for GSDF use. As seen from this career, he was consistently tasked with equipment research and management. He retired from the GSDF nine years ago and has since been employed by Shinsei Corp. as a full-time advisor. The GSDF retiree told the Mainichi Shimbun: "The GSDF Ground Staff Office headquarters made the arrangement, and they told me to go to Shinsei Shoji (Shinsei Corp.). At that time, there were five (GSDF) retirees working on a part-time basis." 12) Asahi-University of Tokyo joint poll: Abe, Ozawa struggling to improve their images TOKYO 00003205 008 OF 012 ASAHI (Top play) (Excerpts) July 13, 2007 A battle between Prime Minister SHINZO Abe, who doubles as president of the ruling Liberal Democratic Party, and major opposition Minshuto (Democratic Party of Japan) President Ichiro Ozawa opened yesterday as campaigning for the July 29 House of Councillors election got underway, with a majority of seats at stake. Although winning the race seems to depend on gaining support of unaffiliated voters, a joint Asahi Shimbun-University of Tokyo opinion survey has exposed the two leaders struggling to generate favorable public images. The ongoing campaigning is likely to test the two parties' abilities to make heir policies appealing to the public without relying on their images as leaders. The joint opinion survey was conducted by the Asahi Shimbun and the offices of Ikuo Kabashima and Masaki Taniguchi, professors at the University of Tokyo. Voters were asked to rate Prime Minister SHINZO Abe, Minshuto President Ichiro Ozawa, and former Prime Minister Junichiro Koizumi on their likeability on the scale of 0 to 100, with 0 denoting maximum dislike and 100 maximum like. As a result, both ABE and Ozawa scored minus 8, lower than 0 assigned for the midpoint of 50. Abe's figure was even lower than the LDP's score of minus 5, and Ozawa's also fell below the Minshuto's 0. This means both ABE and Ozawa are more unpopular than their parties. Unaffiliated voters, who once supported Koizumi, gave the especially low score of minus 14 to Abe. It was lower than Ozawa's minus 9, Koizumi's rating this time, minus 6, and even the LDP's minus 12. Although the LDP has selected ABE as its "poster boy" for the election, the survey results showed that he needs to improve his strategy toward swing voters. Although a simple comparison cannot be made because the subject group has changed in this survey, the results sharply contrast with the previous four surveys between 2003 and 2005, in which unaffiliated voters gave Koizumi 2 to 12, higher than the ratings given to the LDP. The liability of the LDP and its president has reversed since Koizumi, who was extremely popular among the public. In the ongoing campaigning, party heads' true abilities will be tested rather than their personalities. 13) Poll: More to vote for DPJ; Cabinet support spirals down to 30.2 percent YOMIURI (Page 1) (Abridged) July 13, 2007 The Yomiuri Shimbun conducted a telephone-based public opinion survey on July 10-12 as the fourth in serial polling to probe public attitudes toward the forthcoming election for the House of Councillors. In the public choice of political parties for proportional representation, the leading opposition Democratic Party of Japan (Minshuto) was ahead of the ruling Liberal Democratic Party, with the DPJ scoring 28 percent, up 3 percentage points from the last survey taken July 3-5, and the LDP at 21 percent, down 2 points. For electoral districts as well, the DPJ outpaced the LDP, respectively marking 27 percent, up 5 points from the last survey, and 22 percent, down 2 points. TOKYO 00003205 009 OF 012 However, in the survey this time as well, the proportion of "undecided" voters was 33 percent for electoral districts and 34 percent for proportional representation. For proportional representation, New Komeito, the LDP's coalition partner, stood at 5 percent, with the Japanese Communist Party at 4 percent and the Social Democratic Party (Shaminto) at 2 percent. The rate of public support for Prime Minister ABE and his cabinet was 30.2 percent, down 1.8 points. The ABE cabinet's support rate further dropped in the survey this time, following its previous decline in the last survey. The nonsupport rate for the ABE cabinet rose 3.8 points to 57.7 percent. 14) Number of eligible voters at 104.55 million NIHON KEIZAI (Page 2) (Full) July 13, 2007 The number of eligible voters in Japan for the July 29 House of Councillors election was 104.44 million as of July 11, up 1.49 million from the previous Upper House election, according to the Internal Affairs and Communications Ministry yesterday. The number of eligible voters overseas was 103,000, up 22,000. In total, the number came to 104.55 million. The biggest disparity in the relative weight of one vote has decreased to 4.85 from 5.16 in the previous election. 15) Upper House election: Mixed motives over voter turnout in ruling and opposition parties MAINICHI (Page 3) (Full) July 13, 2007 The ruling and opposition camps are paying close attention to the likely voter turnout in the upcoming election. They share the view that if there is a high turnout, largely because of the pension record mess, it would give the advantage to the opposition camp. But they also view that the more the election date is delayed, the lower would be the voter turnout because people's interest in the pension issue would wane somewhat. The opposition is concerned that with the election set for July 29, the first Sunday after schools enter the summer holiday period, voter turnout could be low. Looking at past national elections, House of Councilors elections in 1989, 1992, 1995, and 2001 were conducted on July 23, July 26, July 23, and July 29, respectively - all overlapping with the school summer holiday season. The voter turnouts in prefectural electoral districts in the 1992 and 1995 elections were 50.72 percent and 44.52 percent. The turnout in the 2001 race was 56.44 percent, the increase due to the popularity of then Prime Minister Junichiro Koizumi. The Liberal Democratic Party suffered a crashing defeat in the 1989 election, the turnout in which was 65.02 percent. As it stands, the ruling and opposition blocs are focusing on early voting. In the 2004 Upper House election, about 7.17 million people or 12.37 percent cast their (absentee) votes earlier than the voting day. About 8.96 persons or 12.89 percent voted before the due date. 16) Number of female candidates falls below 100 for two elections in row TOKYO 00003205 010 OF 012 SANKEI (Page 5) (Full) July 13, 2007 The number of female candidates marked 91 for the July 29 House of Councillors election. Although it signifies an increase of 25 since the previous election three years ago, the number of female candidates still fell below 100 for two consecutive elections. The female candidates account for 24.1 percent of the total, up 3.5 points. By party, the Japanese Communist Party has 22 female candidates (1 less from the previous race),the Democratic Party of Japan has 19 (6 more),the Liberal Democratic Party 13 (8 more),the People's New Party 7, the Social Democratic Party 6 (2 more),and the New Komeito 4 (1 more). The number of female candidates peaked in 1989. Although the rate of successful candidates topped 50 percent in 1980, the rate has been between 10 percent and 20 percent in the last five elections. 17) 30 former Lower House members running for Upper House election, including seven postal rebels NIKKEI (Page 2) (Full) July 13, 2007 Thirty former House of Representatives members are running as candidates in the upcoming House of Councilors election. They consist of 23 who had lost their seats in the 2005 Lower House election and another seven who failed to get official recognition from the Liberal Democratic Party due to their votes against postal privatization bills. Of such candidates, 19 are running under the proportional representation segment, and 11 in constituencies. Classified by political party, 16, the largest number, are from the Democratic Party of Japan (Minshuto),seven from the People's New Party, two from the LDP and the Japanese Communist Party each, and one from the Social Democratic Party. There are also two independents. Only Hiroyuki Nagahama of Minshuto is an incumbent. Some are critical of candidates who used to be Lower House members, claiming: "They are making light of the identity of the Upper House." 18) 11 celebrity candidates are running in Upper House election NIKKEI (Page 2) (Slightly abridged) July 13, 2007 In the upcoming House of Councillors election, the number of celebrity candidates, including athletes and entertainers, increased by four to 11. The government has adopted a system under which voters choose their proportional representation candidates by name from party lists or will vote for the parties themselves. Given this, the Liberal Democratic Party and the Democratic Party of Japan (Minshuto) have fielded a certain number of such candidates in a bid to grab unaffiliated voters. The LDP has fielded the largest number of celebrity candidates at five, and Minshuto has backed three. 19) Largest disparity in weight of vote comes to 4.86: Slight drop from 2004 MAINICHI (Page 5) (Excerpts) TOKYO 00003205 011 OF 012 July 13, 2007/07/13 The Internal Affairs and Communications Ministry yesterday released the number of voters registered as of July 11, the day before the official announcement of the Upper House election. According to the number of voters per lawmaker worked out, based on that list, Kanagawa Prefecture has the largest reading of 1,205,250, and Tottori Prefecture has the smallest reading of 248,091, making the greatest disparity in the weight of votes between the two prefectures at 4.86. Though a correction has been made to the fixed number of lawmakers in some constituencies by adding two and reducing two for the election this time, the reduction in the disparity from 5.13 votes in the previous Upper House election in 2004 is very small. Since it has become possible for Japanese nationals living abroad to vote starting this election, the total number of voters combining Japanese who live in Japan and those who live abroad comes to 104,550,380 (50,639,474 men and 53,910,906 women),up 1,517,873 from ¶2004. 20) Government plans to develop environment-friendly nuclear reactor with private companies, including Toshiba; Nuclear waste to be reduced by 40 percent Nikkei (Top play) (Excerpts) July 13, 2007 The government will develop in cooperation with private companies, such as Toshiba Corp. and Tokyo Electric Power Co. (TEPCO),a highly environment-friendly next-generation nuclear reactor that has a high output capacity and can reduce spent nuclear fuel by up to 40 percent from conventional types. The project will be launched in fiscal 2008 with the government and the private sector splitting 60 billion yen in the project cost. The goal is commercialization by ¶2025. In view of a sharp increase in demand for nuclear generation as a result of heightened interest in environmental protection, the government will aim at taking the lead in global nuclear power generation competition through joint development with private companies. Sixty billion yen to be invested: Commercialization by 2025 aimed at The project will be joined by utility companies, such as TEPCO, and companies, including Toshiba, Mitsubishi Heavy Industries and Hitachi. Of the total development cost of 60 billion yen, 30 billion yen will be disbursed from the government's special account for energy countermeasures over an eight-year period. The project will develop a light-water reactor using regular water as the cooling agent and the moderator. The major feature of the envisaged nuclear reactor is that it will extensively reduce spent nuclear fuel, so-called nuclear waste, and have high generation capacity. To realize the plan, participants in the project will develop new materials, such as highly durable special stainless steel able to withstand the use of highly enriched uranium. Recycling and storing spent nuclear fuel is a problem, because it costs a huge amount of money. However, the envisaged nuclear reactor is expected to produce 30 percent -40 percent less pent nuclear fuel than conventional reactors. Its output capacity will be 1.8 million TOKYO 00003205 012 OF 012 kilowatts, 30 PERCENT -60 percent more than conventional types. The planned project will be the first joint nuclear generator project between the government and the private sector in about 20 years. Demand for nuclear generators is often determined by the government's nuclear policy. Initial investment costs are also high. For this reason, in foreign countries, such as France and the US, governments often take a hand in such projects through the appropriation of subsidies with the aim of holding down investment risks involving private companies. In France, a state-run company has reportedly launched a project to develop a follow-on light-water reactor. SCHIEFFER