Identifier
Created
Classification
Origin
07TOKYO402
2007-01-30 07:27:00
UNCLASSIFIED
Embassy Tokyo
Cable title:  

JAPANESE MORNING PRESS HIGHLIGHTS 01/30/07

Tags:  OIIP KMDR KPAO PGOV PINR ECON ELAB JA 
pdf how-to read a cable
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PP RUEHFK RUEHKSO RUEHNAG RUEHNH
DE RUEHKO #0402/01 0300727
ZNR UUUUU ZZH
P 300727Z JAN 07
FM AMEMBASSY TOKYO
TO RUEHC/SECSTATE WASHDC PRIORITY 0178
INFO RUEKJCS/SECDEF WASHDC PRIORITY
RHEHAAA/THE WHITE HOUSE WASHINGTON DC PRIORITY
RUEAWJA/USDOJ WASHDC PRIORITY
RULSDMK/USDOT WASHDC PRIORITY
RUCPDOC/USDOC WASHDC PRIORITY
RUEAIIA/CIA WASHDC PRIORITY
RUEKJCS/JOINT STAFF WASHDC//J5//
RHHMUNA/HQ USPACOM HONOLULU HI
RHHMHBA/COMPACFLT PEARL HARBOR HI
RHMFIUU/HQ PACAF HICKAM AFB HI//CC/PA//
RHMFIUU/COMUSJAPAN YOKOTA AB JA//J5/JO21//
RUYNAAC/COMNAVFORJAPAN YOKOSUKA JA
RUAYJAA/COMPATWING ONE KAMI SEYA JA
RUEHNH/AMCONSUL NAHA 2175
RUEHFK/AMCONSUL FUKUOKA 9704
RUEHOK/AMCONSUL OSAKA KOBE 3168
RUEHNAG/AMCONSUL NAGOYA 9160
RUEHKSO/AMCONSUL SAPPORO 0709
RUEHBJ/AMEMBASSY BEIJING 5640
RUEHUL/AMEMBASSY SEOUL 1725
RUCNDT/USMISSION USUN NEW YORK 3135
UNCLAS SECTION 01 OF 11 TOKYO 000402 

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 01/30/07


Index:
UNCLAS SECTION 01 OF 11 TOKYO 000402

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 01/30/07


Index:

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

4) Vice President Cheney scheduled to arrive in Japan Feb. 20

Diet interpellations, Jan. 29:
5) Prime Minister Abe on national security
Defense Minister Kyuma on Iraq statements
Shoichi Nakagawa on North Korea issues, defense policy
6) Minshuto head Ozawa focuses on social-gap issue, Prime Minister
Abe on constitutional reform in Diet sparring, but both avoid
"politics and money" issue

7) Voters in this summer's election will have choice between two
issues: LDP's constitutional reform, Minshuto's income disparity

Yanagisawa gaffe:
8) Minister of Health, Labor, Welfare Yanagisawa apologizes in Diet
for "inappropriate" remark about women being "baby-bearing machines"

9) Female lawmakers confront Yanagisawa, demand his resignation for
comment about women being "baby-bearing machines"

Abe's political woes:
10) Abe Cabinet non-support rate jumps 13 points to 40.9%, now
exceeding support rate of 39.1% in Fuji-Sankei poll
11) Cabinet ministers' remarks and gaffes destroying image of Abe
administration

Political agenda:
12) LDP readies bill amending political contribution law but
coordination with other parties to be difficult
13) LDP to back postal rebel Takashi Fujii, who lost Lower House
seat, in this summer's Upper House race in Gifu
14) Minshuto selects Imaizumi to replace Tsunoda as Upper House vice
speaker

Articles:

1) TOP HEADLINES

Asahi: Mainichi: Tokyo Shimbun: Akahata:
Tokyo High Court orders NHK to pay compensation in lawsuit over
changing contents of TV program on comfort women, recognizing

political interference

Yomiuri:
"Discover! Aru aru Encyclopedia" broadcast also fabricated programs
on health effects of wasabi and lemons

Nihon Keizai:
Government to obligate repayment of concealed borrowings worth 18
trillion yen to make up for shortage in state subsidies over 60
years; 1.7 trillion yen to be paid in fiscal 2007

Sankei:
FNN poll: Nonapproval rating for Abe cabinet tops 40%, up 13 points,
exceeding approval


TOKYO 00000402 002 OF 011


2) EDITORIALS

Asahi:
(1) NHK: Vulnerability to political pressure revealed
(2) Proposals by DPJ head Ozawa: Lead by example

Mainichi:
(1) Questions asked by DPJ head Ozawa clarify points at issue
(2) Yanagisawa's "baby-making machines" remark: PM should reprimand
him

Yomiuri:
(1) Interpellations: DPJ should come up with more convincing
counterproposals
(2) Lawsuit over NHK TV program: Impact on reporting worrying

Nihon Keizai:
(1) Both ruling and opposition parties should fulfill accountability
by clarifying points at issue
(2) Too many improper statements made by cabinet ministers

Sankei:
(1) Interpellation: "Politics and money" issue has yet to be fully
corrected
(2) Six-party talks: Tokyo, Washington should further solidify
alliance

Tokyo Shimbun:
(1) Office expense issue: Prime minister's reply is not sufficient
(2) Altered contents of TV program: NHK should distance itself from
politics

Akahata:
(1) Spring wage struggle: Labor unions should display their
organizational power

3) Prime Minister's Official Residence (Kantei)

Prime Minister's schedule, January 29

NIHON KEIZAI (Page 2) (Full)
January 30, 2007

10:01
Met with Deputy Chief Cabinet Secretary Shimomura at Kantei.

11:25
Met with Vice Foreign Minister Yachi.

12:10
Met with LDP Secretary General Nakagawa.

13:03
Attended the Lower House plenary session.

16:03
Arrived at Kantei.

17:02
Attended the LDP executives' meeting in the Diet.

17:32

TOKYO 00000402 003 OF 011


Attended a meeting at Kantei of the Special Zone Promotion
Headquarters on a Regional System.

18:01
Attended a meeting of the Council on Economic and Fiscal Policy.

20:12
Dined with critic Naoki Tanaka and others at the Chinese restaurant
in Hotel Okura with Chief Cabinet Secretary Shiozaki present.

22:31
Arrived at residence in Kantei.

4) US Vice President Cheney to visit Japan Feb. 20

NIHON KEIZAI (Page 2) (Full)
January 30, 2007

A government source revealed it has been firmed up that US Vice
President Cheney will visit Japan for three days next month,
starting on Feb. 20. He is scheduled to meet with Prime Minister
Shinzo Abe, Foreign Minister Taro Aso and other principle figures,
and seek Japan's support for President Bush's new Iraq policy, as
well as discuss such issues needing urgent cooperation as the North
Korea nuclear weapons programs and the realignment of US forces in
Japan.

This will be the Vice President's second trip to Japan since April

2004. He will also exchange views about the prime minister's plan to
visit the US during the consecutive holidays that start at the end
of April and into early May. Since Defense Minister Fumio Kyuma has
made a series of remarks expressing his doubts about the US decision
to go to war with Iraq, the Japanese government is likely to use
this opportunity to reconfirm its support for the US' Iraq policy.

5) Nakagawa: Pressure N. Korea with int'l community

ASAHI (Page 4) (Abridged)
January 30, 2007

The following is a gist of Diet interpellations in yesterday's
plenary sitting of the House of Representatives:

Shoichi Nakagawa (Liberal Democratic Party):
It's desirable that the Diet should pass the bill for procedures to
revise the Constitution (national referendum bill) at the earliest
possible date. It's my understanding that the constitutional review
panel, which will be set up in both houses of the Diet after the
bill is passed, will fully deliberate on the way the Constitution
should be. When it comes to foreign relations, our primary concern
is North Korea. We must resolve the abduction, nuclear, and missile
issues as early as possible. The abduction issue is an abnormality
on a global scale. The government's basic policy stance toward North
Korea is to go ahead with "dialogue and pressure." However, North
Korea has closed dialogue itself. As it stands, we will have to
pressure North Korea with the international community. The
government should address this issue for Japan's prestige as one of
Japan's most important policies. Now is the time we should establish
a real alliance between Japan and the United States with collective
defense and missile defense. We should hurry to deal with the issue
of realigning US forces in Japan, and Japan should deepen its
alliance with the United States while sharing intelligence, holding

TOKYO 00000402 004 OF 011


talks, and acting in concert. China is posing a threat with its
unclear policies as seen from its recent expansion of military
activities in space and naval activities in the East China Sea.

Prime Minister Abe:
The Japan-US alliance is the keystone of Japan's national security.
The government will cooperate with the United States and endeavor to
deploy a system that will defend Japan against ballistic missiles.
In order to contribute further to world peace and stability, we need
to meet the times and rebuild a legal foundation for Japan's
national security. We will study what falls under the
constitutionally prohibited act of exercising the right to
collective self-defense. US President Bush has shown the United
States' resolve for Iraq's stabilization and reconstruction. Japan
will continue to work together with the international community to
help with Iraq's nation-rebuilding efforts.

Kyuma: US made "wrong decision" over Iraq war

Defense Minister Kyuma: I made that remark as my impression that I
felt when I was outside the cabinet in those days. The government
supports the United States and other countries in their use of armed
force against Iraq. I also support and follow the government's
position as defense minister.

6) Lower House interpellation: Ozawa, prime minister at odds over
pensions, social disparity; Ozawa offers specific proposals for
attaching importance to public's living standard; Prime minister
says he would pursue both economic growth and constitutional
revision

NIHON KEIZAI (Page 3) (Excerpts)
January 30, 2007

Democratic Party of Japan (DPJ or Minshuto) head Ichiro Ozawa
confronted Prime Minister Shinzo Abe, taking the podium first during
the interpellations at a Lower House plenary session yesterday.
Ozawa, who prioritizes improving the public's living standard,
proposed specific plans for pensions and other areas. He then
criticized the government and ruling camp for lacking a policy. The
prime minister offered counterarguments from a realistic viewpoint
and underscored his determination to pursue economic growth as well
as political issues, such as educational revitalization and
constitutional revision. Debate on the key "politics and money"
issue did not come out since both the Liberal Democratic Party (LDP)
and the DPJ are saddled with money scandals.

"Politics and money" issue fails to generate brisk debate with both
LDP, DPJ strapped with money scandals

Regarding the politics and money issue, Ozawa himself has the issue
of his fund management organization having acquired a massive sum of
real estate. He proposed that politicians in responsible posts
should at least reveal the details of their office expenses. He
claimed that he has no problem about his own money transactions,
noting, "I am ready to release all receipts and related papers for
my office expenses.

However, he did not give any account of his own matters. Regarding
the resignation over a political fund scandal of Upper House Vice
Chairman Giichi Tsunoda, who had temporarily left the party to serve
in that post, Ozawa indicated his intention to bring an end to the

TOKYO 00000402 005 OF 011


issue, saying, "He took political responsibility for being unable to
give a full account on the issue, since he lost the data." He then
questioned the office expense issue involving Agriculture Minister
Toshikatsu Matsuoka.

The prime minister brushed aside Ozawa's pursuit, noting, "I have
received a report noting that the matter is being handled in
compliance with relevant laws." Abe responded to his proposal for
obligating politicians to reveal their office expenses, "The LDP
Reform Implementation Headquarters is already discussing such a
possibility." He thus responded to Ozawa in a manner of not making
any commitment.

Ozawa during a press conference after the interpellation indicated a
sense of displeasure, saying, "The prime minister hardly responded
to my questions." Commenting on Ozawa's issue, the prime minister
said, "He is bound to be asked to give accounts."

7) Diet battle between LDP, Minshuto; Constitutional reform or
narrowing social gap? Abe: "No need to choose between the two";
Ozawa: "First thing to do is pension reform, not hike the
consumption tax"

ASAHI (Page 1) (Excerpts)
January 30, 2007

A question-and-answer session in connection with Prime Minister
Shinzo Abe's policy speech began yesterday at the plenary session of
the House of Representatives. Ichiro Ozawa, president of the largest
opposition party Minshuto (Democratic Party of Japan),urged the
prime minister to place more emphasis on restoring people's
livelihoods than constitutional reform. Abe rebutted, however,
saying, "I have no intention of choosing between the two." He
argued, "I will squarely undertake" employment, education and
constitutional issues "with the utmost energy." With the Upper House
election coming up in July after the current regular Diet session,
heated debate will likely occur over what should be the major issue
for Diet deliberations -- narrowing the income gap in society,
education reform, or constitutional amendments.

Ozawa stated: "Japan has become the country with the widest income
disparity in the world over the past six years of the Koizumi and
Abe governments." He asked Abe: "What you think politicians should
do now, amend the Constitution or improve standards of living?" He
intended to make clear a confrontation between his party, which
advocates narrowing social disparities, and Abe, who wishes to set
constitutional reform as a main campaign issue for the Upper House
election.

In response, Abe stated, "I'm ready to squarely address debate,"
citing the need for a review of the postwar regime, including ways
people work, improvement in livelihoods, education reform, and
constitutional amendments.

Abe revealed again his intention to submit a set of bills related to
education reform, stating, "I will make efforts to revise relevant
laws in order to build a reliable educational administration,
clarifying where responsibility lies."

Ozawa, meanwhile, explained his party's pension system reform plan.
He asserted that the plan was designed to realize a minimum pension
security by using all consumption tax revenues for that purpose

TOKYO 00000402 006 OF 011


without hiking the rate. He said that a shortage of other financial
resources could be covered by 11 trillion yen that would be secured
by administrative reform and other measures. Abe, however, severely
criticized Ozawa, saying: "You are just laying items out, and I
can't see any specific ideas. I doubt the feasibility."

8) Health Minister Yanagisawa apologizes for his remark referring to
women as "baby-making machines," noting "It was inappropriate"

TOKYO SHIMBUN (Page 1) (Full)
January 30, 2007

Health Minister Hakuo Yanagisawa apologized for his remark calling
women "baby-making machines" during the Lower House plenary session
yesterday afternoon: "I employed an inappropriate term that hurt
women. I offered an apology to the nation, particularly women."
Prime Minister Shinzo Abe, too, stated: "I also deemed it as
inappropriate, and strongly reprimanded (Yanagisawa) not to cause
any misunderstanding."

Later in the day, when asked about the opposition camp's call for
Yanagisawa's resignation at the Prime Minister's Official Residence,
Abe rejected it: "He withdrew his remark and apologized. I expect
him to regain public trust by doing his duty."

During the Lower House plenary session, Abe referred to Defense
Minister Fumio Kyuma's remark casting doubts on the Japanese
government's support for America's opening of the war against Iraq
and stated, "I've confirmed that Mr. Kyuma also supports the
government's position," rejecting the criticism of discord in the
cabinet. Kyuma, too, stated: "At the time, I stated what I felt in
the capacity of a non-cabinet member. I support the government's
position."

9) Criticism growing of Health Minister Yanagisawa's "baby-making
machines" remark, casting doubt on his qualifications for the post;
Female lawmakers calling for his resignation

MAINICHI (Page 5) (Almost full)
January 30, 2007

Keishi Yoshida

The government is trying to draw a curtain on the case of Health
Minister Hakuo Yanagisawa's provocative remark that referred to
women as "baby-making machines" by Prime Minister Shinzo Abe's
strong reprimand of Yanagisawa that was followed by Yanagisawa's
apology and withdrawal of the remark. But the criticism is not going
to stop, causing wide repercussions. Even officials in his ministry
are baffled. Yanagisawa has rejected the idea of resigning, but his
qualifications to be the minister in charge of the falling birthrate
are now being questioned.

Yanagisawa stated in a speech given in Matsue City on Jan. 27: "The
number of child-bearing machines or devices is fixed. Each should do
her best." The implication is that because the number of women who
will reach childbearing age in the near future is fixed, the
declining birthrate will not stop unless each woman gives birth to
more babies. This provocative remark came out when Yanagisawa gave
an account of a new population estimate that the total fertility
rate (indicating the average number of babies one woman will give
birth to in her lifetime) would stay at the same 1.25 as in 2005.

TOKYO 00000402 007 OF 011



Meeting the press yesterday, Yanagisawa explained: "I then felt my
words were not fully understood by my audience in the hall. So I
thought from my experience of being engaged in economic affairs that
it might be (easier) to understand if I used a metaphor by citing
goods." In the Lower House plenary session, Yanagisawa denied the
possibility of his stepping down from the post, stating: "I'll put
all my efforts into working out measures against the falling
birthrate." The government and the ruling parties, as well, intend
to defend Yanagisawa on the ground that he corrected his problem
remark right after making it in his speech.

The government will shortly establish a strategic council on the
declining birthrate. Turning around the previous measures centering
on economic support, such as child allowances, the government
instead intends to shed light on lifestyles, such as working
patterns, and come up with measures that will make it possible for
women to balance work and child-rearing.

Yanagisawa is among the members of that council, but the problem
occurred just before the council was set up. The opposition parties
are raising objections to Yanagisawa, with one member arguing, "What
he said is the same as forcing women to give birth to babies for the
sake of the state." Social Democratic Party (SDP) President Mizuho
Fukushima and other lawmakers met with Yanagisawa in the Diet last
evening and handed him a letter of request for his resignation made
by 28 female lawmakers of the opposition Democratic Party of Japan
(Minshuto or DPJ),the Japanese Communist Party, and the SDP.

However, when he met with them, Yanagisawa commented, "I had my
daughters take the same education as men did." This comment was
frowned upon by them. Later in the day, Yanagisawa told reporters,
"I have encouraged women to take part in society."

A senior Health Ministry official lamented: "He was born in 1935
(and is 71 years old). So he unintentionally used the word
'machines,' but that term must be avoided by all means when we
describe women." Yanagisawa had to admit that there would be some
impact on deliberations on relevant laws, saying: "Of course there
will be."

10) Poll: Nonsupport rate for Abe over 40%, up 13 points;
Disapproval tops approval

SANKEI (Top play) (Abridged)
January 30, 2007

The approval and disapproval ratings for the cabinet of Prime
Minister Shinzo Abe have traded places, the Sankei Shimbun
discovered from a recent public opinion survey. In the poll, which
was conducted by Fuji News Network (FNN) on Jan. 27-28 to probe
public attitudes toward politics, the Abe cabinet recorded a support
rate of 39.1%, and a nonsupport rate of 40.9%. The last time the
cabinet disapproval rate exceeded the approval rating was in July
2004 during the Koizumi administration. The current slide can be
taken as resulting from scandals involving cabinet ministers, such
as their unclear handling of political funds for their electoral
offices. However, educational reform topped all other tasks when
respondents were asked what the Abe cabinet should pursue first in
the current Diet session. This shows that the public has a better
understanding of the prime minister's educational reform
initiative.

TOKYO 00000402 008 OF 011



The support rate for the Abe cabinet was down 8.6%age points from
the 47.7% rating in a Fuji-Sankei survey conducted from November
last year through December. The nonsupport rate was up 13.2 points
from 27.7%. The lowest support rate for the Koizumi cabinet was
40.7% in July 2004. The approval rating last fell below 40% in
February 2001 when the Mori cabinet was in office. Among women, the
support rate for the Abe cabinet was 39.6%, with the nonsupport rate
at 36.9%. As seen from these figures, the approval rating was higher
than the disapproval rating among women. Among men, however, the
disapproval rating reached 48.7%, with the approval rating at
38.5%.

In the survey, respondents were also asked whether they appreciated
the Abe cabinet's job performance. In response to this question,
negative answers outnumbered affirmative ones for job performance,
excluding the prime minister's personal character. In particular,
63.4% were negative about Abe's way of dealing with scandals and
allegations involving his cabinet ministers.

However, the public was split over the Abe cabinet's educational
reform initiative that tops its agenda, with 37.2% affirmative and
39.1% negative. Among those who support the ruling Liberal
Democratic Party, affirmative answers accounted for 55.4%.

11) Controversial remarks by cabinet ministers undermine image of
Abe administration

NIHON KEIZAI (Page 2) (Excerpts)
January 30, 2007

The fallout of a succession of controversial remarks by cabinet
ministers has influenced the management of the Abe administration.
Defense Minister Fumio Kyuma made statements criticizing the United
States, and Health, Labor and Welfare Minister Hakuo Yanagisawa
compared women to baby-making machines. In addition, Deputy Chief
Cabinet Secretary Hirofumi Shimomura indicated that he would not
insist on the idea of having three education reform bills passed in
the current Diet session. These statements are expected to undermine
the image of the Abe administration.

Intensifying reactions

Yanagisawa offered an apology in a House of Representatives plenary
session yesterday over his controversial remark. Prior to this, the
prime minister had admonished him, but the furor is only escalating.
State Minister in Charge of the Declining Birthrate Sanae Takaichi
said before reporters: "Since it is almost impossible for me to have
a child, I am branded as defective, according to his view."

The government announced yesterday that it would establish a new
body for relevant cabinet ministers and experts to map out
countermeasures to the falling birthrate. But the statement by the
health minister blurs the government's eagerness to tackle the
issue. After the Lower House plenary session yesterday, 16 female
lawmakers from Minshuto (Democratic Party of Japan),the Japanese
Communist Party, and the Social Democratic Party (SDP) called on
Yanagisawa to withdraw the remark and resign. Minshuto, the SDP, and
the People's New Party will jointly demand Yanagisawa's resignation
today.

Despair in the Defense Ministry

TOKYO 00000402 009 OF 011



The defense minister has repeatedly criticized the United States
over the Iraq war and US force realignment. In response, Policy
Research Council Chairman Shoichi Nakagawa expressed a sense of
alarm, saying, "The current relationship of trust between Japan and
the US might be impaired." The defense minister said in the Lower
House plenary session yesterday: "I have made a stir, but there is
no need to worry. On the issue of US force realignment, too, we have
come near to a settlement."

Since last year, Kyuma has repeatedly made unusual remarks and
offered apologies. Should he continue criticizing the US, he might
be pressed to resign. Defense Ministry officials have thrown their
hands up in despair over Kyuma's series of controversial remarks. A
government source admitted yesterday that the US government had
unofficially expressed its displeasure with the criticisms by the
defense minister.

Deputy Chief Cabinet Secretary Shimomura made a statement indicating
that he would not insist on the idea of having three education
reform bills passed in the current Diet session, despite the prime
minister's eagerness to rebuild the education system. His remark has
also caused a stir.

Politics and money issue as double-edged sword

Prime Minister Abe told LDP Secretary General Hidenao Nakagawa
yesterday, "The issue should be discussed in the party, with a focus
on the revision of the Political Funds Control Law." In the party,
though, some members are calling for strengthening the party rules
instead of revising the law. If the party fails to revise the law,
criticism may come its way. The legal revision issue is a
double-edged sword.

12) LDP aims to submit bill amending Political Funds Control Law to
current Diet session

YOMIURI (Page 2) (Excerpts)
January 30, 2007

The Liberal Democratic Party (LDP) decided yesterday to revise the
Political Funds Control Law in the current Diet session in light of
large sums of money reported as office expenses by the political
fund organizations of cabinet ministers and senior ruling party
members. Prime Minister Abe called in Secretary General Hidenao
Nakagawa to the Kantei last night and told him, "I want discussion
to be conducted in the party, with an eye on revising the law,"
falling in step with Minshuto (Democratic Party of Japan) and the
New Komeito, which are also calling for amending the law. In the
process of working out revision bills, however, negotiations are
unlikely to go smoothly.

The prime minister told reporters last night: "I have instructed
(Secretary General Nakagawa) to correct what must be corrected in
order to regain public trust."

Regarding office expenses, the current law requires politicians to
report only their total amounts in mandatory annual political fund
reports, and not to attach receipts or detail what the expenses were
spent for. Seeing office-expense scandals involving Agriculture
Minister Matsuoka, Education Minister and other lawmakers cropping
up in succession, many are calling for revising the Political Funds

TOKYO 00000402 010 OF 011


Control Law.

13) LDP to recommend Fujii as candidate for Gifu district in Upper
House election, though it will officially endorse Ono as its
candidate for the district

ASAHI (Page 4) (Slightly abridged)
January 30, 2007

The ruling Liberal Democratic Party (LDP) has decided to offer
"party headquarters' recommendation" to Takao Fujii, who has
announced his candidacy for the Gifu prefectural district (two seats
up for reelection) in the House of Councillors election in the
summer. Fujii bolted the LDP after opposing the government's
sponsored postal-privatization legislation and was defeated in the
2005 House of Representatives election. In consideration of dropping
support for the Abe cabinet, the LDP leadership has decided not to
allow former party members who lost their Diet seats to rejoin the
party, but Fujii will become a candidate on the LDP ticket.

Party headquarters will likely officially endorse incumbent Upper
House member Tsuyako Ono. Although the LDP has decided to field one
candidate in principle even in the two-seats district like Gifu, it
has judged that it will be no problem to recommend Fujii, since the
party's Gifu prefectural chapter has called for giving its
recommendation to him.

The party's decision to recommend Fujii has already been approved by
senior members of the party's Upper and Lower Houses. The LDP has
reportedly conveyed its decision to Fujii. A senior LDP member
stressed: "Our party will officially endorse him but will not
recognize him or allow him back into the party." However, giving
Fujii the party's recommendation will likely mean that the LDP will
allow him to return.

14) Akira Imaizumi to be tabbed Upper House vice president

ASAHI (Page 1) (Full)
January 30, 2007

Minshuto (Democratic Party of Japan) yesterday picked Akira Imaizumi
as vice president of the House of Councillors, replacing Giichi
Tsunoda, who is stepping down to take responsibility for an alleged

SIPDIS
fund scandal. Imaizumi is now serving as secretary general of
Minshuto's Upper House caucus. The expectation is that the ruling
Liberal Democratic Party (LDP) and its coalition partner New Komeito
will agree to Minshuto's recommendation. Imaizumi will be named
today at the Upper House plenary session and Tsunoda's resignation
will be approved there. Minshuto also decided to pick Acting Upper
House Secretary General Toshio Ogawa, 58, as Imaizumi's
replacement.

It has been the practice that the Upper House vice presidential post
is held by a lawmaker of the largest opposition party. Minshuto
usually recommends its Upper House chairman to the post, but
following Tsunoda's sudden resignation, Imaizumi will be serving in
the post until July when Tsunoda's term as vice president expires.

Imaizumi represents the Chiba prefectural district. He graduated
from Waseda University. He has served in such posts as acting
chairman of Zenkinrengo, chairman of Yu-i-kai, Minshuto Upper House
Diet Affairs Committee chairman, and Upper House National Basic

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Policy Committee chairman. He was elected twice to the Upper House.
He is 72 years old.

DONOVAN