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UNCLAS SECTION 01 OF 12 TOKYO 000622 
 
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 02/06/06 
 
 
Index: 
 
1)   Top headlines 
2)   Editorials 
Prime Minister's weekend schedule: None 
 
Opinion poll: 
3)   Affected by Livedoor scandal, BSE issue, Koizumi Cabinet 
  support rate plummets 14 points to 45% in Nikkei poll 
4)   Nikkei poll shows rising public support for Yasuo Fukuda as 
Koizumi successor, though Shinzo Abe retains lead 
 
5)   Japan to invite Iran's foreign minister in attempt to 
  persuade Iran to cooperate on nuclear program issue 
 
6)   Second day of Japan-North Korea talks focused on abduction 
  issue for nine hours to no avail 
 
7)   Japan-South Korea talks on FTA may be put off 
 
Foreign Minister Aso speaks: 
8)   Foreign Minister Aso's latest remark riles China again 
9)   Former foreign minister Machimura chides Aso for remark on 
Emperor visiting Yasukuni Shrine 
 
10)  Government considering sending PKO mission to Congo Republic 
  to observe presidential election 
 
Defense issues: 
11)  Nago mayor refuses to discuss Camp Schwab coastal relocation 
  plan for Futenma base with government 
12)  JDA chief Nukaga says current DFAA bid-rigging scandal means 
JDA did not learn lesson from problems eight years ago 
 
Beef issue: 
13)  Ban on US beef imports could remain for a long time 
14)  Agriculture Minister Nakagawa on Fuji TV indicates distrust 
of US anti-BSE inspection system 
15)  Nakagawa on NHK TV says Japan may have to inspect US beef on 
its own 
 
16)  Consumer groups told by senior Agriculture Ministry 
  officials last November that prior inspection of US beef would be 
  done 
 
17)  Sparks to fly between ruling and opposition camps in Diet 
  today over BSE, Livedoor scandal and other hot issues as budget 
  hearings start 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi: 
DFAA-linked public corporation subcontracted research works 
ordered by defense agency to private firms 
 
Mainichi: 
Livedoor window-dresses books by entering profits from sale of 
own shares 
 
Yomiuri: 
 
TOKYO 00000622  002 OF 012 
 
 
Senior DFAA officials endorse lists of potential bidders for 
projects ordered by agency 
 
Nihon Keizai: 
Cellular phone service providers expect to boost capital 
investment by 20% to more than 1.6 trillion yen 
 
Sankei & Tokyo Shimbun: 
Japan-North Korea talks end with no agreement, underscoring 
difference in views on abduction issue 
 
2) EDITORIALS 
 
Asahi: 
(1)  Widening gap in society: Let's think of it in the context of 
reform 
(2)  GM crisis: Technical cooperation should also be taken into 
consideration 
 
Mainichi: 
(1)  Medical services for the elderly: Reform of health 
facilities for repercussion is trend of the times 
(2)  Review of US Defense Department: Dialogue between Japan, US, 
China indispensable 
 
Yomiuri: 
(1)  DFAA should be integrated into a "defense ministry" 
(2)  Allegations of Iran nuclear development programs: Strengthen 
international encircling net! 
 
Nihon Keizai: 
(1) Iran should take UN resolution against it seriously 
(2) Questions raised over proposed establishment of third-party 
organ for confirmation of building construction 
 
Sankei: 
(1)  Strengthen function to check if securities transactions are 
fair! 
(2)  Day of Northern Territories: Establish international 
encircling net against Russia 
 
Tokyo Shimbun: 
(1)  Iran should follow international opinion on issue of its 
nuclear ambitions 
(2)  Average temperatures: Listen to weather forecast 
 
3) OPINION 
 
Poll: Cabinet support nosedives to 45%, nonsupport up to 43% 
 
NIHON KEIZAI (Page 1) (Abridged) 
February 6, 2006 
 
In a public opinion survey conducted by the Nihon Keizai Shimbun 
on Feb. 2-5, the Koizumi cabinet's support rate decreased 14 
percentage points from the last survey in December last year to 
45%. The disapproval rating rose 9 points to 43%. As seen from 
these figures, the Koizumi cabinet sustained a substantial drop 
in public support. This seems to have reflected a recent string 
of issues and scandals, such as Livedoor Co.'s stock trading 
scam, Japan's re-imposition of its once-lifted ban on US beef, a 
certified architect's falsification of earthquake resistance data 
 
TOKYO 00000622  003 OF 012 
 
 
for hotels and many other buildings, and the Defense Facilities 
Administration Agency's bid-rigging. 
 
The approval rating for the Koizumi cabinet is now the lowest 
since July last year when the political situation was in turmoil 
over a package of postal privatization bills. It was on an upward 
trend after Koizumi's dissolution of the House of Representatives 
in August last year. In the latest survey, however, it plummeted. 
The margin between approval and disapproval has narrowed down to 
2 points from 25 points in the last survey. The support rate is 
now almost back to the level before last year's lower house 
election. 
 
Among those in support of the ruling Liberal Democratic Party, 
79% supported the Koizumi cabinet. However, the figure is down 9 
points from the last survey. Among those having no party to 
support or the so-called unaffiliated voter, the support rate for 
the Koizumi cabinet plummeted from 40% to 17%. 
 
The survey was taken by Nikkei Research Inc. over the telephone 
on a random digit dialing (RDD) basis. For the survey, samples 
were chosen from among males and females, aged 20 and over, 
across the nation. A total of 1,533 households with one or more 
voters were sampled, and answers were obtained from 925 persons 
(60.3%). 
 
4) Poll: LDP faces public backlash 
 
NIHON KEIZAI (Page 2) (Abridged) 
February 6, 2006 
 
48% blame LDP for jumping on Horiemon's bandwagon in election 
campaign 
 
The ruling Liberal Democratic Party's leadership faced critical 
voices from within the party itself after the arrest of former 
Livedoor Co. President Takafumi Horie, known as Horiemon for 
short, on suspicion of violating the Securities Exchange Law. In 
a public opinion survey this time, respondents were asked if they 
thought the LDP was to blame for its backing of Horie in last 
year's House of Representatives election. In response to this 
question, "yes" accounted for 48%, with "no" at 40%. 
 
Post-Koizumi race: Abe slightly down to 38%, Fukuda doubles to 
13% 
 
In the latest survey, respondents were also asked who they 
thought would be appropriate as Prime Minister Junichiro 
Koizumi's successor. In this popularity polling, Chief Cabinet 
Secretary Shinzo Abe marked 38%, topping all others. However, 
 
SIPDIS 
Abe's popularity dropped 5 percentage points from the last 
survey. Former Chief Cabinet Secretary Yasuo Fukuda came in next, 
standing at 13%. Fukuda almost doubled his score from the last 
survey. Meanwhile, Japan and China have been unable to find a 
clue to repairing their soured relations. Fukuda is regarded as a 
pro-China politician, so he seems to be becoming an object of 
public attention. 
 
In the two previous polls, Abe was at 41% and 43%. In the latest 
survey as well, Abe was found evenly popular among male and 
female respondents, irrespective of age and job brackets. Fukuda 
has risen in popularity among males and those in their 40-60s. 
 
TOKYO 00000622  004 OF 012 
 
 
 
5) Iran's nuclear development issue: Japan to invite foreign 
minister to tr4y to dissuade Iran from uranium enrichment program 
 
YOMIURI (Page 2) (Full) 
February 5, 2006 
 
Following the adoption of the referral of Iran's nuclear issue to 
the United Nations Security Council at the emergency board 
meeting of the International Atomic Energy Agency (IAEA), the 
government on Feb. 4 decided to invite Iranian Foreign Minister 
Mottaki to come to Japan, possibly in late February, in order to 
directly urge him to respond to an international call for an 
early suspension of its uranium enrichment-related activities. 
 
Iran is the supplier of 15% of Japan's crude oil imports. Japan 
is also developing Iran's Azadegan oil field, one of the largest 
reserves in the world. It has judged that if Iran becomes further 
isolated in the international community and sanctions are imposed 
on that country, Japan might suffer another oil crisis, as a 
government source revealed. 
 
Having served as ambassador to Japan, Mottaki is considered to be 
pro-Japanese, so the government is now making final coordination 
with Teheran aiming at holding a bilateral meeting of foreign 
ministers. Foreign Minister Aso during the envisaged foreign 
ministerial meeting intends to work on Mottaki to respond to a 
call for another round of nuclear-issue talks with Britain, 
France and Germany and cooperate with the IAEA on inspections. He 
is also expected to convey that if Iran continues uranium 
enrichment activities, sanctions will be imposed on it, which 
will further isolate that country. Aso held a telephone dialogue 
with Mottaki on Jan. 18. During the conversation, he called for 
the suspension of its uranium enrichment activities, but his 
efforts were not successful. 
 
6) Japan, DPRK fail to reach agreement on abduction issue; 
Negotiations likely to occur again on Feb. 8 or later 
 
ASAHI (Page 1) (Full) 
February 6, 2006 
 
By Nanae Kurashige in Beijing 
 
In the second day of talks yesterday at a hotel in Beijing, Japan 
and North Korea discussed the abduction issue. The Japanese 
negotiators called for: 1) the return of all Japanese abductees 
now living in North Korea; 2) a full account of the abductions; 
and 3) the handover of former North Korean agent and suspected 
abductor Sin Guang Su. The North Korean negotiators argued 
against Japan's DNA analysis indicating that the ashes of Megumi 
Yokota provided by North Korea have been found to be someone 
else's. The negotiations failed to achieve any results. Both 
teams, though, agreed on the need to negotiate the abduction 
issue again while they are in Beijing, so they have decided to 
set a new schedule for talks. 
 
Joining the talks were Kunio Umeda, deputy director-general of 
the Foreign Ministry's Asian and Oceanian Affairs Bureau, and 
other officials from Japan and Kim Chol Ho, deputy chief of the 
North Korean Foreign Ministry's Asian Bureau and other officials 
from North Korea. The talks lasted for nearly nine hours starting 
 
TOKYO 00000622  005 OF 012 
 
 
at 9:30 a.m. (10:30 a.m., Japan time) and closing around 9:00 
p.m. (10:00 p.m., Japan time) with intermissions. 
 
In the negotiations, Deputy Director-General Umeda re-emphasized 
Japan's position that diplomatic relations would not be 
normalized until the abduction issue is resolved, telling his 
North Korean counterpart Kim: "Resolving the abduction issue is 
extremely important to normalizing diplomatic ties." 
 
On the other hand, Kim said after the talks: "There is still a 
wide gap in views and positions on resolving the abduction 
issue." "We explained our position about the DNA analysis of 
Megumi Yokota's ashes," he continued, revealing he had argued 
against Japan's assertion. 
 
In the talks, Japan called on North Korea to return 11 abductees, 
including Megumi Yokota and Keiko Arimoto, as quickly as possible 
and provide a full account of why and how abductions were carried 
out. 
 
Japan demanded the handover of Sin and suspect Kimihiro Uomoto, a 
hijacker of the JAL Yodo-go airplane. There is the testimony that 
Sin was behind the abductions of Yasushi Chimura and his wife 
Fukie and Megumi Yokota. Kim is also suspected of having been 
involved in the abduction of Hiroshi Kume, and Suspect Uomoto is 
suspected of having taking part in the abduction of Arimoto. 
 
Japan also called for the handover of three suspects who hijacked 
the Yodo-go: Takahiro Konichi, Moriaki Wakabayashi and Shiro 
Akagi. In addition to them, Japan seems to have called on North 
Korea to hand over suspect Sakiko Wakabayashi (maiden name 
Kuroda), wife of Wakabayashi, and suspect Junko Mori, wife of the 
late senior Yodo-go hijacker group member Takamaro Tamiya, 
thinking they might have known about how and why Toru Ishioka and 
Kaoru Matsuki went missing in Europe in 1980. 
 
Referring to these requests from Japan after the talks, Kim said, 
"We also have criminals to be handed over from Japan." But he 
stopped short of naming them. 
 
Japan demanded North Korea provide information about whereabouts 
of 40 or so missing Japanese who are not on the government's list 
of abductees but are strongly suspected of having been abducted. 
 
Today, the Japanese and North Korea governments will hold talks 
on diplomatic normalization, and tomorrow, they will discuss the 
security issue. The abduction issue is likely to be negotiated 
again on Feb. 8 or later. 
 
7) Will Japan, ROK delay the concluding of FTA with start of US- 
ROK FTA talks? Japan likely to be forced to review its FTA 
strategy centering on Asia 
 
YOMIURI (Page 9) (Excerpts) 
February 6, 2006 
 
The United States and South Korea have decided to set in motion 
talks on the concluding of a free trade agreement (FTA). This 
move is certain to force Japan and South Korea to further delay 
the concluding of their FTA, negotiations on which have been 
suspended since November 2004. The aim of the US in launching FTA 
talks with a country in Northeast Asia is apparently to maintain 
 
TOKYO 00000622  006 OF 012 
 
 
its influence in the region, as well as to check China. Japan 
could end up being isolated, given its chilly relations with 
China and South Korea. 
 
Japan and South Korea began FTA talks in December 2003, but they 
failed to reach a general agreement at the end of 2005 as they 
initially aimed at in part because of a wide gap in views over 
the issue of opening the agriculture market and also because of 
the strained relationship on the political front in the wake of 
such events as Prime Minister Koizumi's visits to Yasukuni 
Shrine. Now that the US and South Korea are moving to launch FTA 
talks, there is a growing prospect that "South Korea will place 
emphasis on talks with the US; as a result, Japan-ROK talks seem 
increasingly unable to make progress," a negotiating source said. 
 
If the US-South Korea FTA went into effect before Japan concludes 
the talks on FTA with South Korea, that nation could have an 
advantage over Japan, for instance, in the motor truck sector, 
where the US levies a 25-percent high tariff. South Korea's major 
exported goods include automobiles, home electric appliances and 
electronic components like Japan's. So, there is the concern that 
Japan's goods would be affected. 
 
On the other hand, however, there is a deep-seated view that "the 
impact would be limited," according to a member of the Japan 
Business Federation (Nippon Keidanren), basis of the view 
stemming from the observation that the opening of markets, for 
instance, for agriculture and services as called for by the US., 
would not make progress so easily. 
 
With South Korea going ahead in America's trade strategy, Japan 
is likely to face a strong call at home to review its FTA 
strategy that has so far focused on Asia. 
 
8) Foreign Minister Aso's latest remark riles China 
 
MAINICHI (Page 3) (Full) 
February 6, 2006 
 
Mayumi Otani, Beijing 
 
Foreign Minister Taro Aso delivered a speech in Fukuoka on Feb. 
4, in which he ascribed Taiwan's high educational level to 
compulsory education implemented by Japan during its colonization 
of the island. Following Aso's comment, Chinese Foreign Ministry 
spokesman Kong Quan released a statement yesterday saying, "We 
were surprised and outraged at the Japanese foreign minister's 
statement openly prettifying the country's military aggression in 
the past." 
 
Touching on Japan's colonial rule of Taiwan, Aso said in his 
speech, "Our predecessors did the proper thing." Aso also 
indicated that thanks to compulsory education implemented by 
Japan during the colonization to improve literacy, Taiwan is now 
a country with a very high education level. 
 
9) Machimura criticizes Aso's Yasukuni statement 
 
MAINICHI (Page 3) (Full) 
February 6, 2006 
 
Former Foreign Minister Nobutaka Machimura criticized yesterday 
 
TOKYO 00000622  007 OF 012 
 
 
Foreign Minister Taro Aso's statement calling for a visit to 
Yasukuni Shrine by the Emperor, saying, "I honestly don't think 
it is appropriate to bring up the relationship with the Emperor." 
Machimura made the comment on a Fuji-TV talk show yesterday. 
 
10) Government considering sending election monitoring team to 
Congo 
 
MAINICHI (Page 1) (Full) 
February 6, 2006 
 
The government began yesterday considering sending an election 
monitoring team to the Republic of Congo (formerly Zaire), which 
will have presidential and parliamentary elections in April, 
based on the UN Peacekeeping Activities Cooperation Law. The step 
is part of Japan's effort to strengthen its policy toward Africa 
with a view to winning a permanent seat on the UN Security 
Council. 
 
The team, composed of about ten experts from the Foreign 
Ministry, Cabinet Office, and private sector, will make the 
rounds of polling stations to keep a close watch on 
irregularities. Although Japan contributed 7.5 million dollars in 
election assistance through the UN Development Program (UNDP) 
last year, the government has acknowledged the need to make human 
contributions as well. Conflict in Congo between 1997 and 2002 
following the collapse of the dictatorial government under 
President Mobutu claimed millions of lives. A peace agreement was 
concluded in 2002. Congo will have its first democratic elections 
in April. 
 
11) Nago mayor refuses to discuss Camp Schwab plan with 
government 
 
MAINICHI (Page 2) (Full) 
February 5, 2006 
 
Nago Mayor Tateo Kishimoto released a comment on Feb. 4 saying 
that he would not discuss with the government a plan to relocate 
US Marine Corps Futenma Air Station from Ginowa, Okinawa 
Prefecture, to the coast of Camp Schwab in Nago in the 
prefecture. The comment followed the government's negative 
reaction to Nago's call for major changes to the coastal plan in 
a meeting held on the morning of Feb. 4 for the government to 
brief the city on flight routes of the coastal plan. 
 
Mayor Kishimoto is scheduled to step down from the post on Feb. 
¶7. His successor, Yoshikazu Shimabukuro, 59, an opponent of the 
coastal plan, is expected to continue with Kishimoto's policy. 
 
12) Lesson not utilized by JDA: Nukaga 
 
SANKEI (Page 4) (Full) 
February 6, 2006 
 
Following are main points from Defense Agency Director General 
Fukushiro Nukaga's remarks on the Defense Facilities 
Administration Agency's bid-rigging scandal during his appearance 
on Fuji TV's talk show, Hodo 2001, aired yesterday: 
 
-- Why do you think the Defense Agency has been involved in such 
a scandal again? 
 
TOKYO 00000622  008 OF 012 
 
 
 
Nukaga: Eight years ago, officials of the Central Procurement 
Office (CPA) (a now-defunct external body of the Defense Agency) 
were found to have been involved in a misappropriation case. At 
the time, we broke up the CPA. (TN: Nukaga was a first-time 
defense chief when the CPA scandal was bought to light in 1998. 
He was eventually driven to resign his cabinet portfolio to take 
responsibility.) The Defense Agency reformed its organization in 
order to make that case a lesson. However, the lesson has not 
been utilized. We should also dismantle the Defense Facilities 
Administration Agency, as well, to establish checking functions 
and make a fresh start. It's outrageous that public service 
personnel serve the convenience of industrial circles in an aim 
to protect their jobs or move into private businesses after 
retirement. 
 
-- In some cases, the estimated price for a DFAA-ordered 
construction project was the same as the contract price. 
 
Nukaga: The principle of market mechanisms didn't work. I can't 
but conclude that the estimated price had been leaked or 
contractors otherwise had held talks before bidding and they had 
manipulated unfair bidding. 
 
-- To prevent such irregularities, there is now an antigraft law 
enacted for the prevention of collusive bidding. 
 
Nukaga: The Ministry of Land, Infrastructure, and Transport has 
its own self-imposed rule, under which its bureaucrats are not to 
get a job for five years after retirement. I will take action 
while keeping this in mind. I'd like to speed up our study of a 
new organization, including the option of breaking up the DFAA, 
before we submit our budget estimate for fiscal 2007. 
 
13) Mounting criticism of US beef inspection system following 
USDA report could prolong Japan's ban on imports 
 
YOMIURI (Page 9) (Full) 
February 4, 2006 
 
An internal inspection report on BSE prevention measures released 
by the US Department of Agriculture on Feb. 2 revealed sloppiness 
in the United States' meat inspection system, resulting in a 
rising chorus of criticism in the Japanese government. The 
likelihood has grown that the ban on imports of US beef could 
become prolonged. 
 
According to the report, nine of the 12 meat-processing plants 
inspected had no records of specified risk materials having been 
removed from beef. The Japanese government is trying to confirm 
if any of the nine plants processed beef for shipment to Japan. A 
senior Agriculture Ministry officials indicated, "We have no 
choice but to handle this even more cautiously." 
 
Agriculture Minister Nakagawa on Feb. 3 during concentrated 
deliberations on US beef at a meeting of the House of Councilors 
Agriculture and Fisheries Committee stated that he had informed 
the US: "Pressure for an early resumption of could be 
counterproductive among Japanese consumers. There is an old 
saying about haste makes waste which I think should be the common 
perception of both Japan and the United States." 
 
 
TOKYO 00000622  009 OF 012 
 
 
A senior Foreign Ministry official took this view: "The US, too, 
seems to have shifted to a policy stance of first thoroughly 
carrying out an investigation of the cause (of the import 
violation)." 
 
Although the Japanese government has decided that the question of 
whether to end the ban on beef imports would depend on the US 
report that will include the cause and steps to improve 
procedures, the US has not clearly stated when the report would 
be presented. "Rather than focusing on the timing, we are waiting 
for clear-cur contents in the report," Nakagawa added. 
 
14) Agriculture Minister expresses distrust in US safety 
procedures, saying: "Japan's safety criteria have not been 
observed." 
 
ASAHI (Page 2) (Full) 
February 6, 2006 
 
On a Fuji TV program yesterday, Agriculture, Forestry and 
Fisheries Minister Nakagawa referred to an inspection report 
announced by the Office of Inspector General of the US Department 
of Agriculture pointing out the sloppiness of the cattle- 
processing procedures being taken in US facilities and expressed 
a strong sense of distrust. He said: "If the actual situation is 
as noted in the report, we will have to reach the judgment that 
the credibility of its procedures to remove specified risk 
materials is low." 
 
The agriculture minister added that if US facilities have taken 
sloppy procedures, "it means that (Japan's) safety criteria have 
not been observed." He indicated that Japan would not resume US 
beef imports until the US takes measures to improve the 
situation. 
 
15) Agriculture Minister Nakagawa indicates possibility of 
Japan's independent inspections as condition for resumption of US 
beef imports 
 
TOKYO SHIMBUN (Page 2) (Full) 
February 6, 2006 
 
Appearing on three TV programs yesterday, Agriculture, Forestry 
and Fisheries Minister Shoichi Nakagawa indicated the possibility 
of the Japanese government making its own inspection of 
authorized meat-processing facilities (in the US) as a condition 
for resuming US beef imports. Nakagawa said: "Japan may have to 
take its own procedures, including inspection of US facilities." 
 
Speaking to reporters after appearing on the TV discussion 
programs, Nakagawa said in reference to the outlook that the US 
government would soon present Japan with a report on the issue of 
a specified risk material found in a US beef shipment bound for 
Japan: "I have said to US Agriculture Secretary Mike Johanns that 
hasty action should be avoided." 
 
Asked about the inspection report compiled by inspectors in the 
US Agriculture Department that noted, "We cannot definitely say 
that (meat-processing facilities) have perfectly observed Japan's 
safety criteria," Nakagawa replied, "The Japanese government will 
use the report as a major factor (to decide on whether to resume 
US beef imports)." 
 
TOKYO 00000622  010 OF 012 
 
 
 
16) US beef; Senior MOFA official last November pledged prior 
inspection to consumer organizations 
 
TOKYO SHIMBUN (Page 3 (Full) 
February 4, 2006 
 
Over the issue of resuming US beef imports, the Cabinet Office's 
Food Safety Commission held an open meeting in mid-November last 
year, inviting members of consumer organizations. In this 
connection, it was learned on Feb. 3 that a senior official of 
the Ministry of Agriculture, Forestry and Fisheries (MAF) during 
the meeting categorically said that the ministry would conduct US 
on-site inspections before resuming imports for a last-minute 
check to ensure import conditions, including the removal of 
specified risk materials (SRM), are observed. The opposition camp 
pursued the government in Diet sessions that it had adopted at a 
cabinet meeting a written reply that mentioned the need to 
conduct a prior inspection, and yet it failed to do so. The 
revelation this time also confirmed that the government broke the 
pledge with consumers, as well. 
 
The statement in question was made during an opinion exchange 
meeting held in Sapporo on Nov. 14. The purpose of the meeting 
was to hear views of consumers on the panel's recommendation 
report, which noted that difference in the potential danger of 
BSE contamination between US beef and domestic products would 
become much smaller if US beef is imported under Japan-set 
conditions, such as that SRM should be removed. 
 
According to the panel's minutes of the meeting, a number of 
participants expressed concern over whether the import conditions 
would be observed without fail. In response, a MAFF councilor 
explained: "We will send officials to the US in order to do once 
again a last-minute check of the US export program. We will check 
whether the program is being carried out as pledged." 
 
Responding to an interview by a Kyodo News Agency reporter, this 
councilor explained: "I never mentioned the words prior or ex 
post facto. I did not have such an intention, either. The 
operation of the program can only be checked after it has gotten 
under way, cannot it?" However, a representative of a certain 
consumer organization who asked a question during the meeting 
pointed out: "I understood that by last-minute check, that 
official meant that the Japanese side will conduct a solid check 
of US facilities before imports are resumed, and in this way, 
dubious products would not be shipped to Japan." 
 
Although the government stated its intention to conduct a prior 
inspection, whose major aim was to ensure that import conditions 
set by Japan were observed, it failed to do so, further fueling a 
backlash the Democratic Party of Japan (Minshuto) and other 
opposition parties. 
 
17) Diet to start deliberations on FY2006 budget, with fierce 
battle expected between ruling, opposition camps over set of four 
issues -- plus alpha 
 
TOKYO SHIMBUN (Page 2) (Full) 
February 6, 2006 
 
The Diet will start deliberations today on the fiscal 2006 budget 
 
TOKYO 00000622  011 OF 012 
 
 
at the House of Representatives' Budget Committee. This newspaper 
probes the points at issue in upcoming Diet debate, while looking 
back on deliberations on the fiscal 2005 extra budget. 
 
Livedoor scandal 
 
Opposition parties pursued Prime Minister Junichiro Koizumi's 
"moral responsibility" for having supported former Livedoor Corp. 
President Takafumi Horie (who has been arrested on suspicion of 
violating the securities law) in last year's Lower House general 
election. Koizumi at first spurned the opposition's charges, but 
he later reluctantly admitted that he bore a certain level of 
responsibility, noting, "I am willing to take responsibility if 
it is said I must do so." 
 
The opposition intends to pursue the government's financial 
policy that allowed Livedoor to engage in opaque transactions. 
 
US beef import issue 
 
It was learned on Jan. 30 at a Lower House Budget Committee 
session that the government, ignoring a cabinet decision, decided 
to resume US beef imports prior to sending inspectors to the US. 
Because of inconsistent answers by Agriculture, Forestry and 
Fisheries Minister Shoichi Nakagawa, the session was interrupted 
many times. As a result, the Japanese government was criticized 
for ignoring its responsibility. 
 
The opposition, now feeling like it is riding high, made the 
government recognize its responsibility (for failing to implement 
the cabinet decision) even though Koizumi said, "The 
responsibility lies with the United States." 
 
Earthquake-resistance data falsification scam 
 
In the session, the focus was on the relationship between a 
secretary to Chief Cabinet Secretary Shinzo Abe and Huser Co. 
 
SIPDIS 
President Susumu Ojima. Although Abe denied the allegation that 
his secretary introduced Ojima to the Ministry of Land, 
Infrastructure and Transport, his image of being the most 
promising candidate to succeed Koizumi was damaged as the 
opposition intended. 
 
The opposition bloc is expected to pursue suspicions that Abe's 
secretary and Kosuke Ito, a Liberal Democratic Party member and 
 
SIPDIS 
former National Land Agency director general acted as 
intermediaries. 
 
Bid-rigging involving DFAA 
 
At the final stage of the debate on the FY 2005 budget, the bid- 
rigging scandal involving Defense Facilities Administration 
Agency (DFAA) was added to a set of three issues -- the Livedoor 
scandal, the US beef import issue, and the quake-proof data 
falsification scam -- making a set of four issues. 
 
Defense Agency Director General Fukushiro Nukaga announced that 
his agency would dismantle the DFAA. He is desperate to put a cap 
on the rumor that he would resign to take the responsibility for 
the scandal. The opposition, however, is waiting to grill him on 
the scandal, with Minshuto (Democratic Party of Japan) President 
Seiji Maehara saying, "The bid-rigging scandal is indication that 
 
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the Koizumi government has preserved the structure of stealing 
the nation's tax money." 
 
Social gap growing 
 
Prime Minister Koizumi's reform initiative has raised a chorus of 
complaints not only from the opposition but also from the ruling 
camp. Takenori Kanzaki, who heads the New Komeito, the LDP's 
coalition partner, commented: "The distortion of income disparity 
has spread across the country." 
 
Koizumi, however, strongly reacted, arguing: 
 
 "I don't think it is bad that income gaps are created. I would 
like to create a society, which will provide people with another 
chance for losers to become winners." 
 
With the ending of the prime minister's tenure in September in 
mind, the Diet has fastened on the issue of income and social 
disparities as a significant theme in summing up the Koizumi 
reform drive. The indications are that this issue will lead to a 
national debate, surpassing the Diet debate. 
 
SCHIEFFER