JAPANESE MORNING PRESS HIGHLIGHTS 03/11/09

UNCLAS SECTION 01 OF 11 TOKYO 000541

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 03/11/09

Index:

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

Defense and security affairs:
4) Government ready to extend existing sanctions and add new ones in
preparation for North Korean missile launch (Nikkei)
5) Cabinet adopts new bill outlaying cluster munitions, ready to
have Japan ratify new international treaty (Mainichi)
6) Liberal Democratic Party (LDP),New Komeito approve anti-piracy
bill (Mainichi)

Ozawa scandal:
7) Democratic Party of Japan (DPJ) President Ichiro Ozawa says his
course of action at party head will depend on election (Yomiuri)
8) DPJ lawmaker and former Ozawa aided Ishikawa being questioned by
prosecutors in connection with the Nishimatsu donation case
(Sankei)
9) Nishimatsu construction used political payoffs to land 33 public
works projects over ten years worth a total of 66.8 billion yen
(Mainichi)
10) Shady donations from general contractors were funneled to the
Ozawa side through subcontractors (Asahi)

Aso shunning:
11) LDP politicians are even replacing campaign posters showing them
and Prime Minister Aso with ones showing them alone (Yomiuri)
12) Junior LDP lawmakers worried that the "old LDP nature" may be
returning, as seen in the Nishimatsu political-donations scandal
(Tokyo Shimbun)

Trade and economy:
13) LDP preparing emergency economic package centered on education
and the environment (Yomiuri)
14) Government considering using even pension savings to help out
companies in a pinch (Nikkei)
15) Local governments are opting to continue scientifically-useless
blanket inspections of cows for BSE believing that satisfying
consumer fears is important (Mainichi)

Articles:

1) TOP HEADLINES

Asahi:
Four general contractors suspected of funneling donations to Ozawa's
fund management organization via subcontractors, other entities

Mainichi:
Nishimatsu Construction Co. won 66.8 billion yen worth public works
in 7 prefectures in past 10 years

Yomiuri:
Ozawa to consider impact on election in determining whether to say
on or resign as DPJ leader

Nikkei:
Government eyes fund to handle critical funding shortage of
businesses


TOKYO 00000541 002 OF 011


Sankei:
Prosecutors request Lower House member Ishikawa, ex-secretary to
Ozawa, to appear for questioning

Tokyo Shimbun:
Agriculture ministry-affiliated corporation uses subsidies to buy
bonds worth 9.5 billion yen

Akahata:
JCP Chairman Shii urges people to put up fight against firing of
dispatched workers

2) EDITORIALS

Asahi:
(1) Participation of victims: Lawyers' support necessary
(2) Cell phone addicts: Let us face friends

Mainichi:
(1) Hepatocyte research: Keep international competitiveness by using
diverse strategies
(2) Copyright issue: Flexible response needed for advances in
technology

Yomiuri:
(1) Japan's current account falls into the red
(2) Ruling and opposition camps must cooperate to pass anti-piracy
bill

Nikkei:
(1) Stimulate economy by boldly introducing natural energies
(2) 50 years of Tibet without human rights

Sankei:
(1) Push forward with postal privatization
(2) Manned space exploration -- Japan should realize its "dream"

Tokyo Shimbun:
(1) 50 anniversary of Tibet: We lament China's uncompromising
stance
(2) Current-account deficit: Nurturing of new businesses
indispensable

Akahata:
(1) Agricultural Land Law revision bill: Government should give
bright future for farmers

3) Prime Minister's Official Residence (Kantei)

Prime Minister's schedule, March 10

NIKKEI (Page 2) (Full)
March 11, 2009

09:01
Cabinet meeting in the Diet building.

09:15
Met with Chief Cabinet Secretary Kawamura at the Kantei. Then met
with State Minister in charge of Economic and Fiscal Policy Yosano
and Assistant Deputy Chief Cabinet Secretary Fukuda.


TOKYO 00000541 003 OF 011


10:04
Met with New Komeito head Ota.

12:39
Lower House plenary session.

14:01
Met with LDP Youth Bureau chief Inoue at the Kantei, followed by
Vice Finance Minister Sugimoto, Vice Finance Minister for
International Financial Affairs Shinohara, Vice Foreign Minister
Yabunaka, Deputy Foreign Minister Otabe and Assistant Deputy Chief
Cabinet Secretary Hayashi.

15:14
Met with Upper House Diet Affairs Committee Vice Chairman Shiina.

17:32
Council on Economic and Fiscal Policy meeting.

19:33
Dined with his secretary at Chinese restaurant "Toryu" in Kojimachi.


21:11
Met with Deputy Chief Cabinet Secretary Matsumoto at Kato's Dining
and Bar at Hotel New Ohtani.

22:58
Arrived at the official residence.

4) Gov't to extend N. Korea sanctions

NIKKEI (Page 2) (Full)
March 11, 2009

The government has decided to extend Japan's economic sanctions
against North Korea for six months. The current sanctions are due to
expire April 13. The government judged that Japan should continue
its pressure on North Korea since there is no progress on the
nuclear and abduction issues. Given that there are signs indicating
North Korea's readiness to launch a missile, the government will
also study additional measures in preparation for an actual missile
launch.

Japan invoked its own economic sanctions against North Korea in the
wake of North Korea's announcement of its nuclear test in October

2006. This is the fifth time for Japan to extend its North Korea
sanctions. The sanction measures include prohibiting the
Mangyongbong, a North Korean passenger-cargo ship, and all other
North Korean ships from entering port in Japan, prohibiting Japan
from importing any items from North Korea, and prohibiting North
Korean nationals from entering Japan. The government will make a
cabinet decision in early April to adopt these sanction measures.

The government will invoke additional sanction measures against
North Korea if a missile actually launched by North Korea lands in
Japan's territorial soil or waters or otherwise lands in Japan's
exclusive economic zones. "Even in the case of landing on the high
seas, we will make a judgment while seeing public opinion and other
countries' reactions," a senior official of the Cabinet Secretariat
said. Prime Minister Taro Aso will make a final judgment.


TOKYO 00000541 004 OF 011


In concrete terms, the government is planning to continue
prohibiting Japan from exporting luxuries to North Korea in
conformity with a 2006 United Nations resolution. In addition, the
government is considering such steps as expanding the scope of its
financial sanction measures. The government is also expected to
coordinate with the United States and other countries on sanctions
through the United Nations Security Council, depending on North
Korea's response.

5) Cabinet adopts bill banning cluster munitions

MAINICHI (Page 2) (Abridged)
March 11, 2009

The government made a cabinet decision yesterday to adopt a
legislative measure banning cluster munitions that will prohibit
Japan from producing and possessing cluster munitions since
unexploded bombs have produced civilian casualties. The legislation
is to shape a cluster ban treaty Japan signed in December 2008. The
government wants to have the treaty ratified during the current Diet
session and will also aim to have the bill enacted into law. Among
advanced nations, Japan is ONE of the first countries making efforts
to ban cluster munitions. In the international community, Japan has
shown its strong intention to restrict inhumane weapons.

The draft treaty was adopted in the Oslo process pushed by a group
of interested countries and nongovernmental organizations for
disarmament talks. However, the government was negative about the
treaty at first. The government later worked on this process in
order to recover Japan's reputation and make an appeal on its
presence. "It was at an unusually fast speed," a senior Foreign
Ministry official said. The treaty and the cluster bill are expected
to be separately discussed at Diet committees in the lower and upper
chambers.

6) LDP, Komeito approve antipiracy bill

MAINICHI (Page 2) (Full)
March 11, 2009

The ruling Liberal Democratic Party's General Council met yesterday
and approved an antipiracy bill for measures against pirates in
waters off the eastern African coast of Somalia. The LDP's coalition
partner, the New Komeito, also approved the bill. The two parties
will hold a meeting of their policy chiefs today to reach a final
agreement.

The government will make a cabinet decision on March 13 to adopt the
bill and will present it to the Diet. At the same time, Defense
Minister Yasukazu Hamada will issue orders for maritime security
operations in conformity with the Self-Defense Forces Law's Article

82. In response to the orders, two Maritime Self-Defense Force
destroyers will set sail on March 14 for Somalia waters.

The defense minister, with the prime minister's approval, will also
issue orders for antipiracy counteractions, as well as maritime
security operations, to send out the Self-Defense Forces.

7) Ozawa to consider impact on election in determining whether to
stay or resign as DPJ leader

YOMIURI (Top Play) (Abridged slightly)

TOKYO 00000541 005 OF 011


March 11, 2009

Democratic Party of Japan (DPJ) President Ichiro Ozawa yesterday
held a press conference at DPJ headquarters, in which he apologized
for the first time for the scandal violating the Political Funds
Control Law, involving second-tier general contractor Nishimatsu
Construction Co. and his fund management organization. He said that
he had no intention of resigning from his post for the time being,
but he would make a decision on his course of action in
consideration of how the case would turn out, as well as what impact
it would have on the next House of Representatives election.

At the outset of the press conference, Ozawa said: "I would like to
apologize to the public." He stressed: "At the moment, I am not
thinking at all about quitting my post before the final conclusion
(on the case) comes out." He added: "We have to win the general
election. I would like to make judgments on what I'm going to do in
the future by using that point as a yardstick."

When asked about whether his state-funded secretary's possible
indictment would affect his decision on his course of action, Ozawa
indicated his intention that the charge against his secretary was
not worth resigning. He said:

"This is more about the contents of the case, rather than whether my
secretary is indicted. (The charge) was simply brought about by
differences in perception regarding how to handle the income and
expenditure reports (on political funds)."

It has already been revealed that Nishimatsu donated totaling about
300 million yen to Ozawa's political fund management organization.

Asked about the dummy political groups the construction firm used to
funnel the donations to Ozawa's organization, Ozawa said: "I did not
even know that I received donations from such groups." In connection
with alleged requests for donations from his secretary, he said: "I
have no idea about it, and I don't think I have ever met the top
management of the company."

8) Lower House member and Ozawa's former secretary Ishikawa asked to
appear for questioning over Nishimatsu donation scandal

SANKEI (Top play) (Full)
March 11, 2009

The special investigation team of the Tokyo District Public
Prosecutors Office seems to have asked Democratic Party of Japan
House of Representatives member Tomohiro Ishikawa, 35, to appear for
questioning as a reference witness in connection with alleged
donations to the DPJ President Ichiro Ozawa's fund-management
organization, Rikuzan-kai, in violation of the Political Funds
Control Law. Ishikawa is Ozawa's former secretary and was in charge
of Rikuzan-kai's accounting.

While serving as Ozawa's secretary, Ishikawa was in a position to
assist his first state-paid secretary Takanori Okubo, 47, who is
already under arrest on suspicion of violating the Political Funds
Control Law.

For this reason, the investigation team is believed to have
recognized the need to seek explanations on whether or not (the
Ozawa side) was aware of the illegality of corporate donations from

TOKYO 00000541 006 OF 011


Nishimatsu Construction Co., a second-tier general contractor, via
dummy political organization, the method of filing donations,
Rikuzan-kai's clerical procedures, and other matters.

Ishikawa served as Ozawa's secretary between 1996 and 2004. He was
in charge of Rikuzan-kai's accounting between 2000 and 2004.

Ishikawa ran for the first time in the Lower House election held in
September 2005 from Hokkaido Constituency No. 11. Although he did
not win the race, Ishikawa, who ended up as the runner-up in the
DPJ's proportional representation list, filled the DPJ Low House
seat in March 2007 that was vacated by another DPJ member who ran
for the Hokkaido gubernatorial race.

Ishikawa is planning to run in the next Lower House election from
the same constituency on the DPJ ticket.

Ishikawa said through his office: "The investigation is still
underway, so I would like to abstain from making any comment."

9) Nishimatsu received orders worth 66.8 billion yen over 10 years
for public works projects in seven prefectures in which Ozawa, Nikai
have influence

MAINICHI (Top Play) (Full)
March 11, 2009

Nishimatsu Construction Co., a second-tier general contractor,
received orders worth approximately 66.8 billion yen for 33 public
works projects in the Tohoku District, Wakayama Prefecture, and
Osaka Prefecture over the last 10 years, according to informed
sources. The Tohoku District contains the electoral district of
Democratic Party of Japan President Ichiro Ozawa, whose top aide was
arrested for receiving illegal donations from Nishimatsu. Minister
of Economy, Trade and Industry Toshihiro Nikai, whose faction was
found to have received huge amounts of money paid by the company by
purchases of party tickets, has held enormous sway over Wakayama and
Osaka. This amount is equivalent to one-fourth of the total value of
orders Nishimura received in public works projects. A company
executive said. "Our receiving those orders was due to our company's
donations." The special investigation squad of the Tokyo District
Public Prosecutors Office is investigating what maneuvers the
company used to curry political favor.

According to paper Nishimatsu submitted to the Land, Infrastructure,
Transport and Tourism Ministry, the company received approximately
35.1 billion yen worth of orders in Iwate, Ozawa's constituency,
Aomori, Akita, Yamagata, and Miyagi in the Tohoku District.

In the first and second phase of construction in the second
Moriyoshizan dam construction project (in Kita Akita City) ordered
by the said ministry's Tohoku District Development Bureau, the
company received about 10.3 billion yen, the largest order. In
Iwate, the company won contracts worth about 7.57 billion yen
covering three projects, including construction of facilities
related to Izawa Dam, ordered by the same bureau.

In Wakayama, in which Nikai's constituency is located, and Osaka,
Nishimura took on contracts worth approximately 31.7 billion yen for
17 public works projects starting in 1999. The company won a
contract worth about 1.05 billion yen to strengthen the Kino River
bank ordered by the ministry's Kinki District Development Bureau in

TOKYO 00000541 007 OF 011


Wakayama. In Osaka, the general contractor took on a contract for a
reclamation-related project ordered by Osaka Land Development Co.

Nishimatsu won contracts for 174 public works projects worth about
265.2 billion yen since 1999. The total value of orders received by
the company in the seven prefectures listed above accounts for 25.2
PERCENT of the total.

10) Four general contractors suspected of funneling donations to
Ozawa side via subcontractors, other entities

ASAHI (Top play) (Excerpts)
March 11, 2009

In connection with alleged illegal donations from Nishimatsu
Construction Co., a second-tier general contractor, to Rikuzan-kai,
the fund-management organization of Democratic Party of Japan
President Ichiro Ozawa, an additional four construction companies --
three major general contractors and ONE second-tier company --
allegedly made "roundabout donations" to the Ozawa side, according
to an informed source. The five companies allegedly contributed a
total of about 100 million yen annually.

The major general contractors are Shimizu Corp., Obayashi Corp., and
Taisei Corp., and the second-tier contractor is Toda Corp. There
were allegedly a list of annual donations to the Ozawa side from
each company, along with Nishimatsu, and documents specifying the
method of making donations via subcontractors.

The special investigation team of the Tokyo District Public
Prosecutors Office is believed to have gained access to the
document. The investigation team seems to believe strongly that the
four companies, along with Nishimatsu, intended to make donations to
the Ozawa side without revealing their names. The team appears to be
conducting the investigation, believing that persons connected with
the Ozawa office, including Ozawa's first secretary and
Rikuzan-kai's chief accountant Takanori Okubo, 47, who is already
under arrest on suspicion of violating the Political Funds Control
Law, were involved in drawing up the document.

According to the concerned source, in the document, donations from
the five general contractors were classified into three items:
subcontractors, party tickets, and etc. The five companies' total
amounts that combined the three items ranged between 10 million to
25 million yen.

There were certain figures under the items of subcontractors and
party tickets in the documents of the four companies except for
Nishimatsu. The document was accompanied by a list of companies that
appeared to be the general contractors' subcontractors. Many of them
were based in the Tohoku region. The money from the subcontractors
is believed to have been donated to Ozawa's party branches.

There were entries under all the three items in Nishimatsu's
document and there was also an entry under the item etc. indicating
that the money was a donation via a dummy political organization
headed by a retired Nishimatsu employee, according to the source. It
has already become clear that as ONE of the methods to make
"roundabout donations" to the Ozawa side, Nishimatsu made inflated
payments to its subcontractors to have them donate the excess
amounts to DPJ party branches. Given the situation, the entries
under the item subcontractors are suspected to signify their

TOKYO 00000541 008 OF 011


donations under a similar method used by the four general
contractors.

11) Lawmakers distancing themselves from Aso even in their campaign
posters, with only 14 PERCENT of those of LDP candidates showing
poses with the prime minister, in contrast to DPJ, which features
Ozawa on 70 PERCENT of posters

YOMIURI (Page 2) (Excerpts)
March 11, 2009

As of March 10, it will be a half-year until the terms of lawmakers
in the House of Representatives end, and under the provisions of the
Public Election Law, it is prohibited for campaign posters of
potential candidates to feature only their photograph. As the other
person in the poster, the number ONE choice for the Liberal
Democratic Party (LDP) has been Prime Minister Aso, followed by
Health and Labor Minister Masuzoe. For the Democratic Party of Japan
(DPJ),it has been President Ozawa, followed by Lower House lawmaker
Akira Nagatsuma. The Yomiuri Shimbun sent out a survey with the
question, "Who will be the second figure on your campaign poster?"
As a result, only 14 PERCENT of LDP candidates were choosing Prime
Minister Aso, showing clearly the reality that the trend of
distancing oneself from Aso is progressing in the LDP.

Of 293 LDP potential candidates surveyed, only 41 had prepared
posters featuring photos with Prime Minister Aso. A move has spread
of avoiding the prime minister, whose ratings in the polls has been
low, and instead, the posters are featuring the photos of other LDP
lawmakers who are popular, such as Masuzoe (on 28 posters),Deputy
Secretary General Nobuteru Ishihara (21),and Minister for Declining
Birthrate Obuchi (12).

In the DPJ, which has lined up 263 candidates to run, 176 or 70
PERCENT responded that their posters had Ozawa's picture on them.
Prior to the arrest of Ozawa's public secretary on the charge of
violating the Political Funds Control Law, 189 candidates had
prepared posters with Ozawa's picture on them. Only 13 candidates
had changed the poster after the arrest, indicating trust in Ozawa
in the party is strong.

12) Junior members fear image of "old-type LDP politics," with
investigation into Nishimatsu scandal extending to LDP members

TOKYO SHIMBUN (Page 2) (Excerpts)
March 11, 2009

Set off by the revelation of huge donations made by Nishimatsu
Construction Co. to lawmakers, Liberal Democratic Party (LDP)
members who were calling for Prime Minister Taro Aso's resignation
have begun to keep their silence. Veteran lawmakers who insisted on
Aso's resignation are also carefully watching for now how the
investigation by prosecutors will develop. Junior members who have
made "dump-Aso" moves, however, are increasingly becoming nervous
over the investigation that has spread to LDP members.

Several study groups of junior lawmakers held their meetings at LDP
headquarters yesterday. The association to innovate the LDP and
regenerate Japan, composed of first-to-third termers, confirmed the
need to reform the party. House of Representatives member Isshu
Sugawara remarked: "Public support ratings for our party have not
risen despite the revelation of the fund-raising scandal involving

TOKYO 00000541 009 OF 011


Mr. Ozawa. Let us put an end to old-style LDP politics."

In a meeting of the group to realize people-oriented politics,
composed mainly of first-term members, Lower House member Masaaki
Taira said: "Unless we step into the question of the quality of our
leaders, it will be impossible to hold back public distrust in
politics."

Although calls for Aso's resignation have also toned down in
meetings of junior members' groups since the Nishimatsu scandal came
to light, junior lawmakers are now showing signs of impatience,
fearing that the public may have regained a strong image of the LDP
as having returned to its old ways of doing business.

Tsutomu Takebe and Hidenao Nakagawa, both of whom called on Aso to
step down after the fiscal 2009 budget bill clears the Lower House,
have become silent since the investigation was extended to LDP
members. They find it difficult to take action before ascertaining
how the investigation will develop.

13) LDP to announce emergency economic measures focusing on
education, environment, by later this month

YOMIURI (Page 4) (Full)
March 11, 2009

A panel set up by the Liberal Democratic Party to charter an
economic growth strategy covering about three years from now started
work yesterday. The Strategic Council to Revitalize the Japanese
Economy, chaired by former Chief Cabinet Secretary Nobutaka
Machimura, will come up with emergency measures later this month and
have them reflected in the additional economic stimulus package of
the government and the ruling camp.

The panel intends to work out measures, focusing on the environment,
education and social welfare areas. In the environment area, it
plans to look into assistance in starting up businesses, as well as
research and development that will lead to promoting energy saving
and spreading new energy sources. The panel also expects to discuss
measures to promote access to the nursing business and improve
vocational training.

The new body will take the initiative for economic study groups and
special committees in the party to draw up mid-term economic policy
measures.

The panel intends to cooperate with an expert conference to be set
up by the government to look into economic measures and the Council
on Economic and Fiscal Policy.

14) Governments eyes fund to handle critical funding shortages of
businesses, using postal savings: Plan to purchase stocks also
surfaced

NIKKEI (Top Play) (Excerpts)
March 11, 2009

The government on March 7 started looking into establishing a fund
designed to handle crises, such as extending assistance to companies
to manage their cash flows. The planned fund would be drawn from
such sources as the Japan Post Bank and private financial
institutions. The idea of establishing such a fund is to assist

TOKYO 00000541 010 OF 011


emergency financing by the Development Bank of Japan (DBJ),which
taps the fiscal investment and loan program to finance its lending.
Since operating funds of low-interest and stable postal savings are
to be used, possible losses would be covered by government
guarantees. As a measure to deal with stock prices, a plan to
purchase stocks from the market with money drawn from the new fund
has also surfaced. There has now appeared a possibility of a
cooperative measure between government and the private sector
intended to stabilize the financial system and the economy getting
under way.

The envisioned plan will be characterized as the showcase of an
additional stimulus package to be compiled after the enactment of
the fiscal 2009 budget. Under the proposed arrangement, the DBJ
would launch the fund. The government and the DBJ would supply their
money to the fund, which would also take out government-guaranteed
low-interest loans from Japan Post Holdings' unit, Japan Post Bank.
The DBJ then extends loans to leading and mid-ranking cash-strapped
companies, using those funds.

The terms of these loans have yet to be decided, but they are likely
to last for about five years and carry interest rates lower than the
yields offered by DBJ bonds.

The DBJ procures funds needed to handle crises from the government's
fiscal investment and loan program. However, it is now pressed to
boost its funds procurement means with a number of government
measures adopted to assist cash management by companies.

The government guarantees would make it easier for Japan Post Bank
and private-sector banks to lend to the fund, because these
institutions would not have to classify the loans in risk categories
that might lower their capital ratios. At the same time, the DBJ
would be able to diversify means to secure long-term funding without
having to negotiate with individual financial institutions.

15) All municipalities to continue blanket cattle testing next
fiscal year: 40 PERCENT decided without discussion

MAINICHI (Top Play) (Full)
Evening, March 10, 2009

A poll conducted by Mainichi Shimbun has found that as a measure to
prevent BSE, all municipalities that have meat inspection facilities
will continue cattle inspections targeting animals, including those
up to 20 months of age after April this year, despite the fact that
the state does not require such. They will use their own budgetary
funds. The central government terminated subsidies worth roughly 200
million yen in the middle of the current fiscal ear. However,
conducting blanket cattle testing is beginning to be established as
a fixed policy line among municipalities.

Japan is the only country in the world that carries out blanket
cattle inspections. The Ministry of Health, Labor and Welfare
limited cattle subject to inspection to those aged 21 months or
older. The reason is because there have been no infection cases
found among cattle born after January 2002, and even if such cattle
might be infected with BSE, there is little chance of such being
spotted through inspection. The government provided subsidies for
the inspection to municipalities that continued to inspection of
cattle aged up to 20 months as a temporary measure valid only for
three years. However, it ended the measure in July last year.

TOKYO 00000541 011 OF 011



At present, 77 local governments, such as local prefectural
governments and government ordinance cities that have inspection
facilities, are continuing blanket cattle inspection. The poll asked
officials in charge in those municipalities about their future
policy. All pollees replied that they will continue the inspection.
The main reason for that is demand from consumers and the needs to
maintain the brand name of local beef products and to avoid causing
confusion in the distribution process. To a question whether they
held discussion before they decided to continue the inspection, 30
municipalities or about 40 PERCENT of respondents replied that they
had held no such discussions.

There is a strong lock-step mentality among municipalities. Akita
Prefecture said that it takes courage to stop the inspections, while
other prefectures are continuing to do so. Miyagi Prefecture replied
that though it wants to end the inspection, once it obtains
understanding from consumers, there is no such possibility at
present. Yokohama City noted that it considered beef to be safe in
terms of the mechanisms in place, even if there is no inspection. It
said that it wanted the government to disseminate information on the
safety of beef on its own responsibility, noting that in a poll it
had conducted on local residents, many replied that they wanted to
see the inspections continue. Toyohashi City, Aichi Prefecture also
expected the government to take the initiative in ending blanket
cattle inspection, saying that since meat is distributed nationwide,
it would be meaningless unless (a call to end the blanket
inspection) is made nationwide.

The government in December last year applied the World Organization
for Animal HEALTH (OIE) to upgrade the classification of Japan's BSE
measures from "undetermined risk of BSE country to "controlled risk
of BSE." The action is based on the prospect that there will be no
facilities that carry out pithing, a method banned by the OIE, by
the end of this fiscal year. It thinks that the application will be
granted at the OIE's plenary meeting to be held in May this year.

An official of the MHLW Inspection and Safety Division said, "Once
OIE approval is granted, the government will have the Food Safety
Commission reevaluate Japan's BSE preventive measures. We want to
use this opportunity as an occasion to urge local governments to
take a second look at their blanket cattle inspections."

ZUMWALT