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Viewing cable 06TOKYO658, JAPANESE MORNING PRESS HIGHLIGHTS 02/07/06

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Reference ID Created Released Classification Origin
06TOKYO658 2006-02-07 01:18 2011-08-30 01:44 UNCLASSIFIED Embassy Tokyo
VZCZCXRO7691
PP RUEHFK RUEHKSO RUEHNAG RUEHNH
DE RUEHKO #0658/01 0380118
ZNR UUUUU ZZH
P 070118Z FEB 06
FM AMEMBASSY TOKYO
TO RUEHC/SECSTATE WASHDC PRIORITY 8324
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 7092
RUEHFK/AMCONSUL FUKUOKA 4447
RUEHOK/AMCONSUL OSAKA KOBE 7509
RUEHNAG/AMCONSUL NAGOYA 4539
RUEHKSO/AMCONSUL SAPPORO 5651
RUEHBJ/AMEMBASSY BEIJING 0436
RUEHUL/AMEMBASSY SEOUL 6619
RUCNDT/USMISSION USUN NEW YORK 8708
UNCLAS SECTION 01 OF 11 TOKYO 000658 
 
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 02/07/06 
 
Index: 
 
1)   Top headlines 
2)   Editorials 
3)   Prime Minister's daily schedule 
 
North Korea problem: 
4)   Talks between Japan, North Korea on settlement of past 
  issues go nowhere, with DPRK refusing Japan's formula for 
  economic cooperation 
5)   Nikkei poll finds 71% of public favoring economic sanctions 
against North Korea 
 
6)   Prime Minister Koizumi in Diet says Japan will work directly 
  on Iran to convince it to constrain nuclear development program 
 
7)   Foreign Minister Aso blasted by China for praising Japanese 
  colonial rule in Taiwan, denies calling Taiwan a "country" 
 
Defense issues: 
8)   Minshuto head Maehara leads opposition attack on JDA chief 
  Nukaga for DFAA bid-rigging scandal 
9)   USFJ realignment process hit by triple whammy: JDA's 
isolation, DFAA scandal, and Iwakuni city referendum 
10)  Iwakuni mayor to proclaim city referendum in a day or two on 
propriety of transferring US Navy jets from Atsugi 
11)  JDA chief Nukaga in Diet reaffirms Henoko Point plan for 
Futenma relocation site but is conciliatory toward local concerns 
about runway, aircraft noise 
12)  Cabinet approves USFJ realignment-related changes in JDA 
facilities law 
 
13)  Opposition centers attack on ruling camp in the Diet on four 
  issues, including new DFAA scandal 
 
Economic agenda: 
14)  LDP members in Diet exchanges split on issue of impact of 
  Koizumi economic reforms on income disparity 
15)  LDP policy chief Nakagawa upbeat about economy, sees "rising 
tide" that could lead to 4% growth, income growth 
 
Beef issue: 
16)  Criticism of Japanese and US governments' handling of US 
  beef issue escalates in Diet 
17)  Agriculture Ministry raises doubts about OIE's scientific 
basis for allowing unrestricted export of boneless beef 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi: 
Livedoor subsidiaries trying to dissociate themselves from parent 
company; MEX asking for review of capital tie-up; Livedoor Auto 
plans to change name of company 
 
Mainichi: 
Horie suspected of insider trading, selling 6 million shares last 
December, seeing raid coming; Four billion yen in profits 
 
Yomiuri: 
Toyoko Inn Hotel Chain violates law at 60 hotels; Illegal 
 
TOKYO 00000658  002 OF 011 
 
 
renovations made at 77 facilities, according to MLIT 
 
Nihon Keizai: 
Justice Ministry ordinance under Corporate Law obligates 
disclosure of measures to guard against takeovers, explanation to 
shareholders on selection of outside directors 
 
Sankei: 
China shuts down 76 websites; Aim is to strengthen control? 
 
Tokyo Shimbun: 
Japan, North Korea fail to agree on "settlement of past 
accounts"; Pyongyang rejects Tokyo's proposal for economic 
cooperation formula 
 
2) EDITORIALS 
 
Asahi: 
(1)  Cartoons of Mohammed: Be temperate and broad-minded 
(2)  Kim Dae Jung abduction: We want to know the truth 
 
Mainichi: 
(1)  Kim Dae Jung abduction: What has become of the core elements 
of the incident? 
(2)  Bureaucrat-orchestrated bid-rigging: Revealing full picture 
of amakurari practices (golden parachute) is needed 
 
Yomiuri: 
(1)  Iwakuni referendum: Security policy cannot become subject to 
referendum 
(2)  Defeat in recycling trial raises question 
 
Nihon Keizai: 
(1)  Careful Diet discussions needed from the people's 
perspective 
(2)  US strategy keenly aware of China 
 
Sankei: 
(1)  Revision of US defense plan: Increase efficacy of Japan-US 
alliance 
(2)  Iran's nuclear development at a key phase 
 
Tokyo Shimbun: 
(1)  Debate over economic growth rate: Show broader range of 
options 
(2)  Drs. Yukawa and Tomonaga: There is still a foundation for 
teaching kids to love science 
 
3) Prime Minister's Official Residence (Kantei) 
 
Prime Minister's schedule, Feb. 6 
 
NIHON KEIZAI (Page 2)  (Full) 
February 7, 2006 
 
08:12 
Met Deputy Chief Cabinet Secretary Nagase at Kantei. 
 
09:00 
Attended a meeting of the Lower House Budget Committee. 
 
12:06 
 
TOKYO 00000658  003 OF 011 
 
 
Arrived at Kantei. 
 
13:00 
Returned to the Lower House Budget Committee. 
 
17:03 
Attended a party executive meeting. 
 
17:31 
Attended a cabinet meeting. Later, met Foreign Minister Aso. 
 
17:54 
Arrived at Kantei. 
 
18:41 
Returned to his official residence. 
 
4) Japan, North Korea fail to reach agreement on comprehensive 
"settlement of past accounts"; North Korea frowns on Japan- 
proposed economic cooperation formula 
 
TOKYO SHIMBUN (Top play) (Full) 
February 7, 2006 
 
Takaharu Watanabe, Beijing 
 
The Japanese and North Korean governments yesterday held 
negotiations on diplomatic normalization at a Beijing hotel. 
Responding to the North's request for a "settlement of past 
accounts," Japan revealed an economic cooperation formula so as 
to resolve all issues across the board. But the North Korean team 
argued against Japan's proposal, saying that a single approach is 
inadequate. The two nations thus failed to reach agreement. 
 
Taking part in the talks were Japanese Ambassador for Diplomatic 
Normalization Koichi Haraguchi and his North Korean counterpart, 
Song Il Ho. 
 
In the talks, Haraguchi pointed out that the Japan-North Korea 
Pyongyang Declaration, signed by Prime Minister Junichiro Koizumi 
and General Secretary Kim Jong Il, specifies that North Korea 
will waive all claims on Japan's colonial rule, while Japan will 
provide North Korea with economic cooperation. Elaborating on the 
mechanisms of Japan's official development assistance (ODA) and 
its results, Haraguchi sought the North Korean team's agreement 
on a Japanese plan to offer an economic cooperation package. 
 
Song, however, frowned on Japan's plan, and both sides failed to 
reach agreement. 
 
The North Korean negotiators called for improvement of the social 
status of North Korean residents in Japan, as well as a proper 
response to the action taken by the Resolution and Collection 
Corporation (RCC) toward North Korean-affiliated credit unions. 
On the issue of cultural assets from the colonial era, the North 
Korean negotiators demanded that Japan provide compensation for 
the assets it destroyed or took home. 
 
The Japanese negotiators called on North Korea to pay for such 
costs as the cleanup of oil leaked from a North Korean ship that 
had foundered off Hitachi Port in Ibaraki Prefecture in 2002 and 
interest on rice aid. 
 
TOKYO 00000658  004 OF 011 
 
 
 
So far, negotiations on normalization of diplomatic ties have 
been held 13 times. This round was the first since October 2002. 
 
5) Poll: 71% urge tough stance toward North Korea, including 
sanctions 
 
NIHON KEIZAI (Page 2) (Full) 
February 7, 2006 
 
In a recent public opinion survey conducted by the Nihon Keizai 
Shimbun on Feb. 2-5, a total of 71% said Japan should take a 
strong stance, including economic sanctions, in negotiating with 
North Korea. The figure was up 4 percentage points from the last 
survey taken in December 2005. The public now is even more 
insistent on a hard-line stance toward North Korea. The 
proportion of those insisting Japan should urge North Korea to 
soften its attitude through dialogue and humanitarian aid was 
18%, down 2 points from the last survey. 
 
6) Prime Minister to call on Iran to halt nuclear development 
 
YOMIURI (Page 4) (Full) 
February 7, 2006 
 
In a meeting of the House of Representatives Budget Committee 
yesterday, Prime Minister Koizumi said in reference to the 
International Atomic Energy Agency's (IAEA) adoption of a 
resolution calling for the Iranian nuclear issue to be referred 
to the United Nations Security Council: 
 
"We need to work on Iran (to have it reflect on its activities) 
so that the nation will not be isolated in the international 
community. Ranking officials of the Iranian government may visit 
Japan." 
 
He indicated that he would directly work on Iran to swiftly 
suspend activities linked to uranium enrichment. This remark was 
in response to a question by New Komeito Policy Research Council 
Chairman Inoue. 
 
7) Aso denies he called Taiwan a country 
 
MAINICHI (Page 2) (Full) 
February 7, 2006 
 
Foreign Minister Taro Aso called Taiwan a country time and again 
in his speech delivered on Feb. 4. In addition, Aso also said 
Japan contributed to improvements in Taiwan's compulsory 
education. But Aso denied his remarks. "I've never said Taiwan is 
a country," Aso told a news conference yesterday. "I know it's 
problematical to say Taiwan is a country, and I'm not that 
stupid," Aso added. 
 
In his Feb. 4 speech, Aso remarked: "The literacy rate and other 
factors have now improved, so Taiwan is a country whose 
educational level is extremely high. That's why Taiwan is able to 
catch up with the modern age." 
 
Taiwan does not want dispute 
 
Taipei, Tetsuya Shoji 
 
TOKYO 00000658  005 OF 011 
 
 
 
In his recent remarks, Foreign Minister Taro Aso linked Taiwan's 
high level of education to Japan's one-time colonial rule over 
Taiwan. In this regard, Taiwan's Foreign Minister Huang Zhi-fang 
said yesterday, "I hope he will not bring about any dispute with 
Taiwan as well." 
 
8) DPJ head Maehara concentrates fire on DFAA big-rigging scandal 
 
YOMIURI (Page 4) (Full) 
February 7, 2006 
 
In a meeting of the House of Representatives Budget Committee 
yesterday, Democratic Party of Japan (Minshuto) head Maehara took 
the floor as the first questioner from the opposition camp and 
focused his attack on the bid-rigging scandals involving the 
Defense Facilities Administration Agency (DFAA). Minshuto is 
poised to grill the government at the Budget Committee over the 
DFAA scandals, the beef issue, the Livedoor incident, and the 
quake-resistance data falsification scam as a set. Maehara first 
took aim at the DFAA scandals, for which Defense Agency Director 
General Nukaga has been pressed to take responsibility. In 
questioning, Maehara pursued the responsibility of Nukaga as 
supervisor, arguing, "Taxpayers' money has been wasted (as a 
result of the bid-rigging practices)." He added: "The entire 
picture should be shown, including what jobs have been done (at 
contractors) and how retired DFAA officials have landed on posts 
there. This is the condition for starting deliberations (on the 
budget)." 
 
Prime Minister Koizumi only replied: "Such debates should be 
fully conducted in discussion on the budget. We will submit 
necessary data through debates." 
 
After the questioning session, Maehara told reporters: "We are 
determined to thoroughly pursue the government over the four 
issues and also to present countermeasures." 
 
9) USFJ realignment: Gov't in trouble with Defense Agency's 
isolation, DFAA's bid-rigging scandal, Iwakuni plebiscite 
 
MAINICHI (Page 2) (Full) 
February 7, 2006 
 
The government is now in a bind over the realignment of US forces 
in Japan. For one thing, the Defense Agency's lack of 
coordination has brought a note of discord into the government. 
For another, the Defense Facilities Administration Agency's bid- 
rigging scandal has been brought to light. Furthermore, there is 
a backlash from municipalities against US military realignment 
plans. In this move, the city of Iwakuni in Yamaguchi Prefecture 
has clarified that it will conduct a plebiscite. All are 
concerned with the Defense Agency's responsibility. Meanwhile, 
Japan has promised the United States to work out a final report 
on the US military realignment in March. This timetable, however, 
is becoming increasingly difficult to keep. 
 
"Citizens should be provided with an opportunity to express their 
will." With this, Yamaguchi Prefecture's Iwakuni Mayor Katsusuke 
Ihara clarified a plan on Feb. 2 to poll his city's population in 
March over whether to accept the planned redeployment of US 
carrier-borne fighter jets to Iwakuni base. Late last year, the 
 
TOKYO 00000658  006 OF 011 
 
 
Japanese and US governments released an interim report naming 
Iwakuni for the redeployment of US fighters. The mayor was 
apparently feeling that he could not shoulder the responsibility 
alone. In Iwakuni, local business communities were in favor of 
the redeployment plan. The government was therefore optimistic, 
with an official saying Iwakuni is easier than other 
municipalities to coordinate with. That is why the government is 
growing impatient and nervous about a possible spread of those 
moves to Okinawa and other base-hosting localities. What if 
Iwakuni votes down the redeployment in its referendum? In that 
case, a government official presumes that it will be impossible 
to obtain a local consensus before the final report. 
 
Another focus is Futenma airfield in Okinawa Prefecture. The 
Japanese and US governments have agreed to relocate the heliport 
functions of Futenma to a site in the island prefecture's 
northern coastal city of Nago. However, Nago Mayor Tateo 
Kishimoto has refused to sit down with the government. The 
government has been unable to find a way out of the impasse. 
 
In addition, the DFAA has been involved in a bid-rigging scandal. 
In this case, a number of DFAA officials were arrested. The 
scandal is likely to involve even more. The opposition is 
pursuing Defense Agency Director-General Fukushiro Nukaga's 
responsibility. Defense Agency officials have their hands full 
with the scandal. 
 
The interim report is now facing a backlash from within the 
government. "The Defense Agency didn't undertake prior 
consultation and decided with the US side on its own," one 
official said. There also has been no progress in discussions on 
the advisability of sharing costs for the planned relocation of 
Okinawa-based US Marines to Guam. "The Defense Agency said it 
would pay for building a base overseas for a foreign country, but 
we've never heard of such a thing," a Finance Ministry official 
said. 
 
On Jan. 31, Chief Cabinet Secretary Shinzo Abe expanded a cabinet 
ministerial meeting at the Defense Agency's request to talk about 
the US military redeployment. The Defense Agency asked for 
cooperation in that meeting. However, other government ministries 
and agencies are growing distrustful of the Defense Agency, with 
one official saying that the Defense Agency is trying to spread 
the responsibility in case it fails. The Defense Agency's 
isolation has yet to be dissolved. 
 
10) Iwakuni mayor to propose referendum in a day or two on plan 
to relocate carrier-borne aircraft to Iwakuni base 
 
YOMIURI (Page 2) (Full) 
February 7, 2006 
 
Iwakuni Mayor Katsusuke Ihara has decided to propose a municipal 
referendum in a day or two on a plan to relocate carrier-borne 
aircraft to US Marine Corps Iwakuni Air Station in Yamaguchi 
Prefecture. Ihara has also notified Iwakuni Assembly Chairman 
Toshiyuki Kuwahara and other groups that are opposed to a 
referendum that he will not withdraw the plan. The referendum is 
expected to take place on March 12. 
 
11) Defense chief suggests giving consideration to locals while 
affirming Cape Henoko plan 
 
TOKYO 00000658  007 OF 011 
 
 
 
ASAHI (Page 4) (Full) 
February 7, 2006 
 
In connection with the fact that Mayor Tateo Kishimoto of Nago, a 
relocation site for US Marine Corps Futenma Air Station, released 
a statement the other day rejecting separate talks with the 
government, Defense Agency Director General Fukushiro Nukaga told 
a press conference yesterday: 
 
"Talks are underway between Japan and the United States based on 
principles in an interim report. We have been working hard to 
minimize the local burden." 
 
Nukaga thus indicated that the government would give 
consideration to flight routes and noise while suggesting 
maintaining a Cape Henoko plan, as agreed upon between Japan and 
the US. 
 
Defense Agency Administrative Vice Minister Takemasa Moriya also 
stressed in the press conference yesterday that the government 
would keep working on Nago to persuade the city to accept the 
Cape Henoko plan. 
 
12) Defense Agency Establishment Law revision bill adopted in 
cabinet meeting 
 
MAINICHI (Page 2) (Full) 
February 7, 2006 
 
The government yesterday held a cabinet meeting, in which it 
adopted a bill to revise the Defense Agency Establishment Law in 
order to restructure the Defense Agency with a number of steps, 
such as establishing a defense facilities division for the 
realignment of US forces in Japan. The bill will be presented to 
the Diet today. The government will implement it this summer. 
 
The Defense Facilities Administration Agency is in charge of 
administrative affairs regarding US military facilities. In the 
case of US military realignment, however, there are many plans 
that are linked to defense policies. The government will set up a 
defense facilities division in the Defense Agency's Defense 
Policy Bureau. 
 
13) LDP weakened in Diet battle due to set of four issues; LDP 
lawmakers praise Koizumi reform drive, willing to change "tidal 
flow"; Nakagawa takes offensive with eye on atmosphere in the 
party 
 
TOKYO SHIMBUN (Page 2) (Full) 
February 7, 2006 
 
The ruling Liberal Democratic Party (LDP) struggled yesterday to 
create a "Diet session focused on administrative reforms" during 
debate on the fiscal 2006 budget in the Budget Committee of the 
House of Representatives. The government and ruling parties have 
only defended so far against the attacks by opposition parties, 
which have secured a "set of four weapons" to attack the 
government and ruling camp. During the Diet battle yesterday, the 
LDP seemed to have wanted to change the tidal flow. 
 
Four LDP lawmakers, including Policy Research Council Chairman 
 
TOKYO 00000658  008 OF 011 
 
 
Hidenao Nakagawa, who took the floor at first, praised the 
Koizumi reform initiative, spending four hours and 15 minutes. 
 
Nakagawa stated: 
 
"Opposition parties are trying to apply the brakes on our reform 
efforts under the name of 'Diet on safety.' I feel danger that 
would drag the Japanese economy back into darkness and change 
Japan back into a loser in the world." 
 
Nakagawa sought to check the main opposition party Minshuto 
(Democratic Party of Japan, which characterizes the current Diet 
session as a "session to debate safety affairs." 
 
Following Nakagawa, former labor minister Bunmei Ibuki expressed 
indignation on behalf of Prime Minister Junichiro Koizumi, 
arguing, 
 
"I think it is extremely regrettable that the opposition parties 
say that the Koizumi reform drive is to blame for the Livedoor 
scandal and the earthquake-prevention data falsification scan." 
 
Akira Amari, acting chairman of the Policy Research Council, 
also, praised the Koizumi reform drive, saying, "The reform drive 
has certainly produced achievements," enumerating the data 
showing an increase in foreign investment in Japan and other 
factors. 
Koizumi, who received supportive statements, expressed again his 
enthusiasm to continue to carry out his reform drive. He stated, 
"I take the criticism humbly, but I cannot implement the reforms 
while maintaining the status quo." 
 
Not only Koizumi but also especially Nakagawa probably do not 
want to see a Diet session where debate is focused only on the 
"negative aspects" of the reforms. 
 
Nakagawa in concert with Internal Affairs and Communications 
Minister Heizo Takenaka has had the leadership in working out a 
series of reform measures, including the integration of 
government-affiliated financial institutions. With the revelation 
of the Livedoor scandal, however, Takenaka, who 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, has come under fire. As a result, anti- 
Koizumi feelings are erupting again in the LDP and Nakagawa's 
influence in the party has declined. Nakagawa's questions at 
yesterday's session seem likely to be his declaration of the 
offensive. 
 
"You made good questions. You did a good job," Koizumi told 
Nakagawa in a board meeting of the LDP yesterday evening. The 
question is whether Koizumi can bring back the trend of 
"administrative Diet." The opposition will shift gears upward for 
questions on a full-scale from today. 
 
14) LDP split over issue of impact of Koizumi reforms on income 
gap 
 
YOMIURI (Page 4) (Excerpts) 
February 7, 2006 
 
The impact of the Koizumi administration's ongoing structural 
 
TOKYO 00000658  009 OF 011 
 
 
reforms on the widening wealth gap took center stage in a meeting 
of the House of Representatives Budget Committee yesterday. Four 
questioners from the Liberal Democratic Party (LDP) stressed the 
positive results achieved through the reforms and the need for 
continued reform efforts. But the meeting underscored the fact 
that views are not unified among LDP members on specific ways of 
promoting reforms. 
 
Among the four LDP members, Policy Research Council Chairman 
Nakagawa, a close aide to Prime Minister Koizumi, took the floor 
as the first questioner. Nakagawa denounced the opposition camp's 
criticism of the negative aspects of the Koizumi reform 
initiative. Nakagawa said: 
 
"Thanks to the Koizumi reform drive, we can finally see light in 
the Japanese economy. But (if reforms are discontinued,) we will 
put the economy back in darkness again and make Japan one of the 
losers in the international community. It is utterly foolish to 
stop the reforms from the viewpoint of narrowing the wealth gap 
and retrace our steps backward." 
 
Other questioners also emphasized: "The result of the reforms is 
a separate matter from the widening gap in the society." 
 
However, former Labor Minister Fumiaki Ibuki, chairman of the 
Ibuki faction, expressed apprehension about reforms going too far 
through deregulation. Ibuki made the following remarks: 
 
"It is necessary for the ruling parties, which are responsible 
for the cabinet, to promote reforms. But when they are headed the 
wrong way, the brakes must be applied. . . . Unless (market and 
competitive principles) are used consciously and modestly, 
problems like the wealth gap will unavoidably emerge. . . . I 
hope the prime minister will also grapple with constitutional 
revision, a revision of the Basic Education Law, and a 
resuscitation of local communities and families with earnest, as 
was done for the postal privatization issue." 
 
Meanwhile, LDP cabinet ministers also indicated slightly 
different stances in their Diet replies on future structural 
reforms. Minister of Economy, Trade, and Industry Nikai 
reiterated the need for efforts to dissolve economic 
discrepancies between cities and farming villages, saying: 
"Reform is a wonderful word, but regional gaps are now apparent. 
We would like to work out (official aid measures) and present 
bright prospects for the Japanese economy." 
 
15) Policy Research Council Chairman Nakagawa comes up with 
rising-tide policy; Aimed to double income through 4% growth in 
GDP 
 
MAINICHI (Page 5) (Excerpts) 
February 7, 2006 
 
Hidenao Nakagawa, chairman of the Liberal Democratic Party (LDP) 
Policy Research Council during yesterday's Lower House Budget 
Committee session in the Diet came up with a rising-tide policy 
of aiming for an annual growth rate of 4% for nominal gross 
domestic product (GDP). He has thus taken the offensive on a 
mounting argument denying the Koizumi reform initiative, by 
advocating an economic policy, premised on progress in the 
government's reform efforts. He stressed that under the proposed 
 
TOKYO 00000658  010 OF 011 
 
 
policy, national income will double over less than two decades, a 
policy that sounds like a second coming of the Ikeda cabinet's 
income doubling plan. This policy is, however, already drawing 
criticism as being pie in the sky. 
 
Policy proposed to counter denial of reform efforts; Criticism 
being heard from fellow LDP lawmakers 
 
Nakagawa is motivated by the desire to take the lead on economic 
policy, by helping to bring about a premiership under Shinzo Abe 
through a rising-tide policy. This policy will likely become a 
main contentious issue in the race to choose a successor to Prime 
Minister Koizumi. 
 
The rising-tide policy consists of two growth strategies and five 
policy items intended to materialize them. The policy aims to 
attain 4% growth, by strengthening the nation's international 
competitive edge and combining various financial policies, on the 
basis of progress in the structural reforms. Nakagawa also 
referred to a possible introduction of an inflation target, 
noting, "It is a common practice throughout the world to aim for 
an inflation of 2 - 3 % ." 
 
16) Defense chief suggests giving consideration to locals while 
affirming Cape Henoko plan 
 
ASAHI (Page 4) (Full) 
February 7, 2006 
 
In connection with the fact that Mayor Tateo Kishimoto of Nago, a 
relocation site for US Marine Corps Futenma Air Station, released 
a statement the other day rejecting separate talks with the 
government, Defense Agency Director General Fukushiro Nukaga told 
a press conference yesterday: 
 
"Talks are underway between Japan and the United States based on 
principles in an interim report. We have been working hard to 
minimize the local burden." 
 
Nukaga thus indicated that the government would give 
consideration to flight routes and noise while suggesting 
maintaining a Cape Henoko plan, as agreed upon between Japan and 
the US. 
 
Defense Agency Administrative Vice Minister Takemasa Moriya also 
stressed in the press conference yesterday that the government 
would keep working on Nago to persuade the city to accept the 
Cape Henoko plan. 
 
17) Global ban on boneless beef exports likely to be lifted with 
OIE's proposal for easing the current guideline allowing exports 
of cattle aged at 30 months or younger; MAFF skeptical, saying, 
"It's questionable from scientific point of view" 
 
YOMIURI (Page 2) (Full) 
February 7, 2006 
 
The OIE, a Paris-based world organization for animal health that 
sets the international guidelines against BSE, has indicated to 
its member nations a proposal for revision to the guidelines 
against BSE, the Yomiuri Shimbun learned yesterday. According to 
the proposal, the present requirement of beef trade allowing free 
 
TOKYO 00000658  011 OF 011 
 
 
trade of boneless beef from cattle aged 30 months or younger will 
be eased to allow exports of boneless beef from cattle of all 
ages. Japan's Ministry of Agriculture, Forestry and Fisheries 
(MAFF) and other government agencies are critical of the revision 
proposal, arguing: "That is questionable from a scientific point 
of view." The revision proposal will be put on agenda for 
discussion at the OIE general assembly slated for May. 
 
MAFF and the Ministry of Health, Labor and Welfare (MHLW) will 
hold an expert meeting today and discuss the OIE's proposal. 
Based on views indicated at that meeting and other opinions, the 
government is expected to determine its attitude. Japan has 
stated that the condition for the second resumption of US beef 
imports is to remove the specified risk materials, such as 
brains, from cattle younger than 20 months. If the OIE revision 
is approved, the United States is likely to increasingly pressure 
Japan. 
 
SCHIEFFER