JAPANESE MORNING PRESS HIGHLIGHTS 02/08/07

UNCLAS SECTION 01 OF 10 TOKYO 000560

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 02/08/07

Index:

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

North Korea problem:
4) Six-party talks restart today, finding Japan sandwiched between
own hard-line abduction issue and cooperative mood at the talks
5) US reached compromise with North Korea in Berlin talks, as
revealed by memo obtained by Asahi

6) Japan to strengthen resource management in its EEZ waters

7) Prime Minister Abe determined to resolve northern territories
issue with Russia, attends rally that predecessor ignored

8) South Korean plans rocket launch in 2008 but Japan concerned
about trajectory

Defense and security issues:
9) USFJ Commander Wright in interview stresses that USFJ realignment
has been settled
10) Gen. Wright in interview says F-22 deployment to Kadena proves
importance of alliance
11) Defense Ministry plans to expand PKO by sending individual
experts abroad to teach or train

Political agenda:
12) Prime Minister Abe in Diet session vows to put every policy
effort into population-decline issue, with Health Minister
Yanagisawa remaining at his post
13) Minshuto (Democratic Party of Japan) to continue pursuing
Yanagisawa on "baby-making" issue
14) Minshuto's Ozawa absents himself from Diet, travels to election
districts to plan stage for Upper House race
15) Former Minshuto lawmaker Shingo Nishimura convicted for
violating lawyer's law but plans to remain a member of the Diet

Articles:

1) TOP HEADLINES

Asahi:
US, DPRK found to have exchanged memorandum in Berlin talks in
January with Washington's concessions to Pyongyang; Economic
assistance concurrent with halting reactor

Mainichi:
Kansai TV does not make public the results of its investigation into
fabricated data for TV program; MIC: "The survey is insufficient"

Yomiuri:
Two Kanagawa police arrested on charges of using of handicapped
persons' names to borrow money

Nihon Keizai:
Poll of leading firms: 28% will hire more people next year; 10%
consider hiking starting salary

Sankei:
House of Representatives member Nishimura Shingo convicted of

TOKYO 00000560 002 OF 010


lending his name as a lawyer

Tokyo Shimbun:
Environment Ministry to step up measures against AIR pollution in
Tokyo, Nagoya, Osaka, by applying emissions measures even to
department stores

Akahata:
Diet returns to normal owing to JCP proposal

2) EDITORIALS

Asahi:
(1) Debate on falling birthrate: Good and bad aspects of
Yanagisawa's remark
(2) 6-party talks: Breakthrough needed

Mainichi:
(1) Provisional estimate of pension benefits: System fuels anxiety
(2) Why are "manifestoes" not allowed in local elections?

Yomiuri:
(1) 6-party talks: Easy agreement on nuclear issue unwise
(2) Reconstruction of JAL: Priority must be given to safety

Nihon Keizai:
(1) Basic principles of North Korea policy must be upheld
(2) Public needs peace of mind about pension benefits

Sankei:
(1) Diet returns to normal: Serious debates needed
(2) 6-party talks: Don't make easy agreement for the sake of
"success"

Tokyo Shimbun:
(1) China's maritime survey: Where has the spirit of "harmony"
gone?
(2) Green measures: Hope for the future

Akahata:
Diet returns to normal: Principles of parliamentary democracy must
be kept

3) Prime Minister's Official Residence (Kantei)

Prime Minister's schedule, February 7

NIHON KEIZAI (Page 2) (Full)
February 8, 2007

07:33
Arrived at Kantei.

08:11
Met Deputy Chief Cabinet Secretary Shimomura.

09:00
Attended a Lower House Budget Committee session.

12:06
Met Shimomura in the Diet building.


TOKYO 00000560 003 OF 010


12:39
Attended a national convention demanding the return of the Northern
Territories, held at Kudan Kaikan Hall.

13:00
Attended the Lower House Budget Committee session.

17:22
Met Deputy Chief Cabinet Secretary Matoba at Kantei.

19:16
Dined at a Hotel Okura Japanese restaurant with Internal Affairs and
Communications Minister Suga, Taimei Yamaguchi, and Yoshitaka
Sakurada, both Lower House members.

21:00
Returned to his official residence.

4) Six-party talks to resume today with aim of forming action
program on North Korea's nuclear dismantlement; Japan sandwiched
between abduction issue and cooperation

YOMIURI (Page 2) (Full)
February 8, 2007

Foreign Ministry's Asian and Oceanian Affairs Bureau Director
General Kenichiro Sasae, chief negotiator in the six-party talks on
North Korea's nuclear weapons ambitions, arrived in Beijing on the
afternoon of Feb. 7 and met separately with the top nuclear
negotiators of China and Russia. Sasae told reporters at a Beijing
hotel later that day: "This round will form the watershed of the
talks. We would like to reach an agreement on a framework to
implement the joint statement (in September 2005, in which the North
promised to dismantle its nuclear weapons ambitions)." Sasae
indicated a willingness to map out an "action program," according to
a Foreign Ministry source, specifying what response each nation
should make and when.

US Assistant Secretary of State Christopher Hill said regarding the
planned formation of an action program, "It is very important to set
an overall time-wise framework." He, though, added, "It is to be
seen if the North agrees to the plan," thus indicating that the
resumed talks would produce an agreement to start implementing the
agreement as "the first stage."

Prime Minister Abe has expressed his determination to set forth
progress in the abduction issue as the precondition for offering
energy aid to Pyongyang. However, in the event that the North takes
concrete steps to renounce nuclear arms, many government officials
anticipate that "Japan may have to take some measures, because if
Japan falls out of step with the other five countries, North Korea
would take advantage of it." The Japanese government intends to call
on the countries concerned to fully reflect Japan's stand on the
abduction issue in it if an agreement is reached on an action
program. Sasae said yesterday, "It is vital to take up the abduction
issue and move it forward in the talks."

5) US, North Korea signed memorandum in January with US providing
assistance and DPRK suspending nuclear reactor at same time; US made
concessions during Berlin talks

ASAHI (Top play) (Excerpts)

TOKYO 00000560 004 OF 010


February 8, 2007

Nobuyoshi Sakajiri, Beijing

When US Assistant Secretary of State Christopher Hill held talks in
Berlin in January with North Korean Vice Foreign Minister Kim Gye
Gwan, they reached a broad agreement on initial steps for the
denuclearization of the Korean Peninsula and signed a memorandum,
sources said. The memorandum includes a promise to provide energy
and humanitarian assistance to North Korea in return for suspending
the operation of a nuclear reactor in Yongbyon within several weeks,
according to the sources. The six-party talks set to resume today in
Beijing are expected to proceed based on this agreement.

This was revealed by some US-DPRK relations sources. It was
apparently the first case for a senior US official to have exchanged
documents within the six-party talks framework. Immediately after
the Berlin talks, a North Korean Foreign Ministry official said: "A
certain level of agreement was reached (through the talks)."

The memorandum notes that North Korea will suspend the operation of
its 5-megawatt graphite-moderated reactor in Yongbyon and allows
International Atomic Energy Agency (IAEA) inspectors, who were
expelled from the nuclear plant in December, to return to the site,
and that the United States will provide energy and humanitarian
assistance to the North. Specifics, such as the quantity and the
types of assistance, are not specified in the memorandum. They are
expected to become a major topic in the six-party talks.

Earlier this month, Vice Minister Kim in Pyongyang asked visiting
former US government officials for a supply of over 500,000 tons of
heavy oil annually or electric power equivalent to that until
light-water reactors are completed.

The South Korean government is considering resuming rice and
fertilizer assistance, which has been suspended since North Korean
missile tests last July. Pyongyang is likely to seek more aid.

In the memorandum, suspension of the operation of the nuclear
reactor coincides with the timing for resuming assistance, according
to the sources. In Tokyo yesterday, Hill highlighted the need to
take action for implementing initial measures "within single-digit
weeks." Chinese authorities also expressed eagerness to implement
initial measures mentioned in the joint statement in two months'
time. They seem to have 60 days in mind.

According to the sources, Chinese Vice Foreign Minister Wu Dawei,
the chair of the six-party talks, has received a copy of the
memorandum from Hill and has been briefed by Kim Gye Gwan, as well.

6) Outline of fisheries basic plan: Establish catch quota for each
fishing boat to step up control of resources in EEZ

YOMIURI (Page 2) (Full)
February 8, 2008

The outline of a fisheries' basic plan starting in fiscal 2007,
which will become basic guidelines for fisheries policy, was
revealed yesterday. In order to strengthen the control of resources
in Japan's 200 nautical mile exclusive economic zone (EEZ),the
outline stipulates that the introduction of an individual quota (IQ)
system to decide a catch quota for each fishery operator and fishing

TOKYO 00000560 005 OF 010


boat should be looked for.

The present fishing control system is called the Olympic method,
which allows fishing operators to compete freely. Fishing operators
are requested to stop their operations when their operations reach
the total allowable catch (TAC) by fish species. However, there have
been many cases in which the operations exceed the TAC. The IQ
system is designed to prevent such "a loophole." Major fishing
countries, such as the United States and Norway, have already
introduced this system.

The Fisheries Agency will have its Fisheries Policy Council discuss
the outline to formulate a plan within the year. According to the
outline, the self-sufficient rate of fish and seafood for eating
would be increased from the 57% in fiscal 2006 to 65% in fiscal
2017, postponing from fiscal 2012 stipulated in the present
fisheries basic plan. In an attempt to promote structural reforms in
fishing villages, the outline proposes introducing in fiscal 2008
measures, such as subsidies for fishing operators who meet fixed
conditions.

7) Prime minister attends convention calling for return of Northern
Territories, showing eagerness to resolve the issue

YOMIURI (Page 4) (Full)
February 8, 2007

Prime Minister Abe attended the National Convention for the Return
of the Northern Territories held by the government and
private-sector groups in Tokyo yesterday marking Northern
Territories Day. Delivering a speech in the rally, Abe expressed his
determination to work hard to resolve the deadlocked issue, saying:

"Improvement in Japan-Russia relations will certainly benefit the
two countries. I will persistently address the Northern Territories
issue in an effort to reach a settlement."

It has become customary for the prime minister to attend the annual
convention, but former Prime Minister Koizumi did not attend it for
two consecutive years for such reasons as a cold and the Diet
schedule. Given this, some had questioned the government's interest
in the issue.

In the convention yesterday, one participant criticized Foreign
Minister Aso for the idea he presented last December to set a border
by splitting the four islands in half by area.

8) Japan gets no info from S. Korea about rocket plan

YOMIURI (Page 1) (Abridged)
February 8, 2007

South Korea has plans to launch a rocket in 2008 at a site currently
under construction on the southern tip of the Korean Peninsula.
Meanwhile, the Japanese and South Korean governments' informal
consultations on this issue have been delayed, sources revealed. In
addition, South Korea has not disclosed information about the rocket
plan, including its flight path and safety measures. Since the
rocket's flight path is unknown, the Fisheries Agency remains unable
to give explanations to Japanese fishermen operating near the launch
site. Tokyo will work on Seoul to hold the next round of
consultations by this summer at the latest.

TOKYO 00000560 006 OF 010



South Korea is now building a large-scale launch site on an island
situated about 150 km west of Tsushima, Nagasaki Prefecture, and
about 200 km northwest of Fukuejima, one of the Goto Islands in the
prefecture. South Korea will start next year to operate the KSLV-1,
a rocket designed to deliver a 100-kg miniature scientific satellite
to a low orbit at an altitude of 300-1,500 km.

9) Agreement already reached between Japanese, US governments on
Futenma plan: USFJ commander

MAINICHI (Page 2) (Full)
February 8, 2007

US Forces Japan (USFJ) Commander Wright, meeting the press
yesterday, underscored his negative view of revising the plan to
relocate the US Marine Corps' Futenma AIR Station in Okinawa
Prefecture to the coastal area of Camp Schwab in the northern
Okinawa city of Nago as part of USFJ realignment. Defense Minister
Fumio Kyuma has suggested a revision of the coastal relocation plan.
"The Japanese and US governments have agreed on the entire picture,"
Wright said. Meanwhile, Kyuma has said Japan would do what concerns
Japan. Asked about this stance, Wright stressed the importance of
bilateral consultations between Japan and the United States,
suggesting the need for Japan and the United States to talk with
each other constantly at intergovernmental and all other levels.

In addition, Kyuma and Foreign Minister Taro Aso have also voiced
their criticism of the United States' Iraq policy. Wright, however,
indicated that their critical remarks would have little impact on
bilateral relations, saying, "Secretary of Defense Gates will
continue every possible effort to maintain our strong alliance."

10) F-22 deployment to Kadena proves importance of alliance: USFJ
chief

YOMIURI (Page 2) (Full)
February 8, 2007

US Forces Japan (USFJ) will temporarily deploy the F-22 Raptor, a
state-of-the-art stealth fighter jet, to the US Kadena AIR Base in
Okinawa Prefecture from Feb. 10. This deployment proves that the US
government regards the Japan-US alliance as "very important," USFJ
Commander Bruce Wright told the Yomiuri Shimbun and other news media
in Tokyo yesterday. Wright stressed that the planned F-22 deployment
to Kadena is aimed at showing the United States' intention to be
deeply engaged in East Asia, given such instabilities as North
Korea's nuclear test. The US AIR FORCE plans to deploy a total of 12
F-22 jets to Kadena for about three months. Wright explained that
their first long-range flight from the US mainland to Japan is also
a part of their training.

Meanwhile, China recently test-destroyed a satellite in outer space
with a ballistic missile. "This is new cause for concern about
China's forces," Wright said. The commander added: "We will
carefully remain on the alert in cooperation with Japan, South
Korea, and Russia. We'd like to grasp China's intentions toward East
Asia and the world, while constructively engaged with that
country."

11) PKO: Defense Ministry to expand dispatches of individuals;
Training of experts to be started

TOKYO 00000560 007 OF 010



SANKEI (Page 5) (Slightly Abridged)
February 5, 2007

The Defense Ministry yesterday decided to expand dispatches of
individuals, such as truce monitors and headquarters personnel, to
United Nations peacekeeping operations (PKO) and started making
preparations to set up a training system for experts. The decision
is based on the decision that in order for Japan to aim at securing
a permanent seat on the United Nations Security Council (UNSC),it
must dispatch personnel who can fulfill the role of advisers, as one
senior Defense Ministry official put it. The readiness command to be
launched in March will start personnel training.

The government plans to dispatch in March eight Self-Defense Forces
personnel to the UN Political Mission in Nepal (UNMIN) for
monitoring the ceasefire between the Nepal government and the Maoist
Nepal Communist Party, former insurgents. The dispatch of ceasefire
monitoring personnel by Japan will be the first since the 1992-93
dispatch of personnel to the UN Transitional Authority in Cambodia
(UNTAC) for reconciliation.

The UN has sounded out Japan about the possibility of dispatching
5-10 personnel who have served as ceasefire monitors. However, most
of those who were dispatched to UNTAC are now in the position of
commanding troops. It is not possible to dispatch them easily. As
such, the Defense Ministry has decided to dispatch personnel mainly
from among lieutenant colonels and majors who have served in
overseas operations, such as Iraq, even though they have not yet
served as ceasefire monitors.

Since UNTC, only 65 personnel from among approximately 5,500 SDF
personnel who have taken part in PKO have been dispatched as
ceasefire monitors and personnel attached to headquarters. In an
interview with the Sankei Shimbun, former commander Sharma of the UN
Disengagement Observer FORCE (UNDOF),to which the SDF dispatches
transportation unit personnel, pointed out: "The extent to which
Japan is cooperating on PKOs cannot be seen if it only provides
logistical support. It should exercise leadership by dispatching
personnel at the rank of generals and officers."

12) Prime minister to make all-out effort to deal with falling
birthrate: Health Minister Yanagisawa refuses to withdraw "healthy"
statement

YOMIURI (Page 1) (Full)
February 8, 2007

Regarding measures to deal with the nation's falling birthrate,
Prime Minister Abe during a Lower House Budget Committee session
expressed his determination to have the cabinet tackle the issue as
a body. He noted, "We are responsible for creating an environment
where people can have babies and raise them, feeling at ease. We
will do our utmost in order to create a society in which young
people who want to get married and have children can realize their
dreams.

Commenting on his statement made on Feb. 6 that "young people want
to get married and have two or more children," and that this is a
"very healthy situation," Health, Labor and Welfare Minister
Yanagisawa stressed that he has no intention of taking back his
statement. He noted, "I do not understand why I have to retract my

TOKYO 00000560 008 OF 010


statement." He then said, "Although young people may have such
aspirations, there is a reality blocking their desires from being
realized. Our challenge in tackling the declining birthrate is to
fill that gap."

13) Minshuto to continue to pursue Health Minister Yanagisawa

YOMIURI (Page 2) (Excerpts)
February 8, 2007

Yesterday a full-fledged debate started over Health, Labor and
Welfare Minister Hakuo Yanagisawa's controversial remarks at the
House of Representatives Budget Committee as Diet proceedings
returned to normal after one week. The main opposition party
Minshuto (Democratic Party of Japan) developed a strategy of
pointing out the government's defective measures for narrowing the
social and income disparity and to help the socially weak, It will
also take up the issue Yanagisawa's controversial remarks. The
government, meanwhile, will strive to defend its position by taking
a low posture.

Minshuto's Yukio Edano, whose wife underwent fertility treatment,
and female lawmakers, familiar with the low birthrate issue, joined
the debate to stress the seriousness of Yanagisawa's comments.

"(The health, labor and welfare minister) has repeatedly apologized
for his remarks. Do you really think your comments were
inappropriate? You cannot be forgiven by just offering apologies,"
Yoko Komiya of Minshuto questioned Yanagisawa's true feelings.

The reason why Minshuto is thoroughly pursuing Yanagisawa's remarks
is the thinking that "his comments that shows his low view of women
symbolically describes the Abe cabinet's views and policy," said a
senior party member. Komiya also stressed: "The prime minister is
blame to for appointing him to the post. I assume that the prime
minister cannot sack him because (his remarks) are similar to the
cabinet's basic stance." The questioners brought about such social
disparities as the expansion of non-regulatory employment, the
shortage of obstetricians and gynecologists, and the existence of
the working poor. Hiroshi Kawakami questioned: "Do you think Japan
has an environment under which people can raise children with an
easy mind?"

Yanagisawa repeatedly bowed deeply in apology, responding, "I
apologize again for making inappropriate remarks."

14) DPJ President Ozawa's "slow but steady strategy"

MAINICHI (Page 5) (Full)
February 8, 2007

Daihaku Kasai

The opposition Democratic Party of Japan's (DPJ or Minshuto)
President Ichiro Ozawa has resumed "canvassing one-seat
constituencies," which he had suspended since the start of the year.
Ozawa played a leading part in the recent tactic of boycotting Diet
deliberations aimed at calling for Health Minister's resignation
from his post, but now he intends to put Diet affairs into Acting
Vice President Naoto Kan's hands and devote all his energies to
preparations for the Upper House election. Although attention is now
again focused on the moves of unaffiliated voters, Ozawa places

TOKYO 00000560 009 OF 010


importance on "grassroots" campaigning strategy to go out to meet as
many people as possible to garner votes. He plans to hold a
mini-gathering with farmers and owners of small businesses in
various places across the country.

"Most Japanese are unaffiliated voters, aren't they? Someone says
the ruling Liberal Democratic Party (LDP) has a monopoly on one-seat
constituencies, but my analysis is that we have yet to make a good
approach to them," Ozawa told a press conference at the Japan
National Press Club yesterday and stressed that slow but steady
campaigning by going out to various places to meet people will be a
good measure to attract unaffiliated voters. He refrained from
campaigning in January because of the party convention and
preparations for a representative interpellation in the Diet, but he
now declared: "I will spend more than half of this month and next
month to visit local places." Starting with his visit to Fukui
Prefecture on Feb. 2, Ozawa went to Ehime Prefecture on Feb. 5 and
entered Yamagata Prefecture on Feb. 6. He is energetically moving to
back up and support candidates.

The key to whether Ozawa can achieve the goal of upsetting the
positions of the ruling and opposition parties in this summer's
Upper House election is how many wins his party will have in the 29
one-seat constituencies up for the election across the country. So
far Minshuto has determined candidates to run for 22 such
constituencies, including those in Akita Prefecture, Toyama
Prefecture, and Okinawa Prefecture, where joint candidates will be
put up in cooperation with other opposition parties, such as the
Social Democratic Party (SDP). Ozawa has a strong interest in the
Tohoku bloc, his home turn. He stressed, "The Tohoku area has four
one-seat constituencies and it is an area that has most suffered the
negative impact of politics discarding the weak." Early next week,
he will go to Aomori Prefecture and Akita Prefecture.

15) Lawmaker Nishimura ruled guilty over lending name

ASAHI (Page 1) (Excerpts)
February 8, 2007

The Osaka District Court yesterday gave a suspended two-year prison
sentence to House of Representatives lawmaker Shingo Nishimura, 58,
for receiving illegal kickbacks in return for allowing an
unqualified person to use his name and perform legal work. Presiding
Judge Hiroyuki Nakagawa said, "He eroded public trust in the law
profession and his deed is irresponsible." But the judge acquitted
Nishimura on charges of violating the law to prevent organized
crime.

Nishimura: I will continue to serve in Diet seat

At a press conference after he was handed the verdict, Nishimura
said: "I want to apologize from the bottom of my hart to the
public." He expressed, however, his intention to continue his
parliamentary activities, saying, "There is no change in my position
to work on the North Korea's abduction issue in order to fulfill my
duty as a Diet member."

Minshuto (Democratic Party of Japan),to which he belonged, has
already dismissed him from membership and adopted a resolution
calling on him to give up on his Lower House seat. According to the
Public Offices Election Law and the Diet Law, if he violated the
Attorney Law, he will lose his Diet seat when his jail sentence is

TOKYO 00000560 010 OF 010


decided.

SCHIEFFER