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UNCLAS SECTION 01 OF 13 TOKYO 000693 
 
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:  DAILY SUMMARY OF JAPANESE PRESS 02/08/06 
 
INDEX: 
 
1)   Top headlines 
2)   Editorials 
3)   Prime Minister's daily schedule 
 
North Korea talks: 
4)   No progress on abduction, security issues in Japan-North 
  Korea talks 
5)   Government reconsidering three-track approach to North Korea 
talks that just ended in failure 
 
6)   Prime Minister Koizumi taking flack for not attending annual 
  northern territories day rally 
 
7)   Singapore's senior minister urges Koizumi to stop visiting 
  Yasukuni Shrine, states, "Japan is becoming isolated 
  diplomatically" 
 
8)   Law being amended to require foreigners entering Japan to be 
  fingerprinted as anti-terrorist measure 
 
Defense and security issues: 
9)   New Komeito halting discussion of raising JDA to ministry 
  until DFAA bid-rigging scandal resolved 
10)  USFJ realignment talks restart in Tokyo tomorrow 
11)  Urasoe suggested in USFJ realignment talks as transfer sight 
for Naha military port 
12)  US asks Japan to bear 75% of cost of moving Okinawa Marines 
to Guam 
13)  March 12 set as date for Iwakuni City referendum on transfer 
of US carrier-based jets from Atsugi 
 
Beef brawl: 
14)  Minshuto head Maehara rebuts Tyson Foods, which demanded 
  apology for visiting party delegate publicly slamming company's 
  US beef plant 
15)  Japanese food-safety experts criticize as unscientific OIE's 
proposed easing of international beef-export standard 
16)  Agriculture Minister Nakagawa says Japan may do prior 
inspections of US meat processing plants at time of resumption of 
US beef imports 
17)  US irritated at Japan for "overreacting" to import violation 
and re-imposing ban on US beef 
 
18)  USDA to shrink BSE inspectors drastically, with no funds 
  even requested in budget 
 
19)  Japan to enter FTA negotiations with India 
 
20)  Japan's pluthermal nuclear energy plan being criticized 
 
Diet debate: 
21)  Minshuto steps up attack against Koizumi administration in 
  Lower House budget deliberations 
22)  Former Minshuto (Democratic Party of Japan) head Okada takes 
podium to lead attack against Koizumi administration policies 
23)  Government to consider withdrawing proposed change to 
Imperial Household Law to allow female on the throne 
 
Articles: 
 
1) TOP HEADLINES 
 
TOKYO 00000693  002 OF 013 
 
 
 
Asahi: Mainichi: Yomiuri: Sankei: Tokyo Shimbun 
Princess Kiko pregnant; Expecting birth of third child in fall; 
Boy would be third in line for the throne; Could affect debate on 
revision of Imperial House Law 
 
Nihon Keizai: 
National Development Arterial Expressway Construction Council 
decides on construction of almost all sections of highway 
networks, using tax money; Seven sections added 
 
2) EDITORIALS 
 
Asahi: 
(1)  Princess Kiko pregnant: We want to quietly keep watch 
(2)  Iran's nuclear development program: Stop uranium enrichment 
 
Mainichi: 
(1)  Princess Kiko expecting third child: We pray for safe birth 
(2)  Ten years since SDF dispatch to Golan Heights; We want to 
make more contributions 
 
Yomiuri: 
(1)  Exports of unmanned helicopters: Sounding the alarm against 
business transactions with China 
(2)  Tottori Prefecture Human Rights Ordinance put on hold: Need 
to reconsider human rights bill 
 
Nihon Keizai: 
(1)  Promotion of road construction plan indicates reform being 
stripped of meaning 
(2)  US plan for fiscal reconstruction does not warrant optimism 
 
Sankei: 
(1)  Princess Kiko pregnant: We want to wait for the birth calmly 
(2)  Expressway construction: Show rational reason to the people 
 
Tokyo Shimbun: 
(1)  Charging fees for issuing medical statement not acceptable 
(2)  Internet and broadcasters: Consider viewers' standpoint as 
well 
 
3) Prime Minister's Official Residence (Kantei) 
 
Prime Minister's schedule, February 7 
 
NIHON KEIZAI (Page 2)  (Full) 
February 8, 2006 
 
08:11 
Met at Kantei with Deputy Chief Cabinet Secretary Nagase. 
 
09:00 
Attended a Lower House Budget Committee meeting. 
 
12:05 
Arrived at Kantei. 
 
13:00 
Returned to the Lower House Budget Committee meeting. 
 
17:42 
Met Chief Cabinet Secretary Abe at Kantei. 
 
TOKYO 00000693  003 OF 013 
 
 
 
17:57 
Had a haircut at the barbershop "Muragi" in the Capital Tokyo 
Hotel. 
 
20:25 
Returned to his official residence. 
 
4) Japan-DPRK talks: No progress on abduction and security 
issues; North Korea accuses NGOs supporting North Korean 
defectors 
 
YOMIURI (Page 2) (Full) 
February 8, 2006 
 
Takaharu Yoshiyama, Kyoji Fukushima, Beijing 
 
In the talks yesterday at a Beijing hotel, Japanese and North 
Korean government officials dealt again with the Japanese 
abductees issue in the afternoon meeting. The Japanese 
negotiators strongly demanded that North Korea take action 
quickly to return abductees to Japan, shed light on the truth of 
the abduction issue and hand former North Korean agent Sin Guang 
Su over to Japan. But the North Korean team did not accept these 
requests. 
 
The abduction issue was discussed again yesterday, following the 
session on Feb. 5. Because there was no progress on the issue in 
the previous talks, the Japanese team demanded that the issue be 
discussed again. The talks yesterday was taken part in by 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 director of the North Korean Foreign 
Ministry's Asian Bureau and other officials from the North. 
 
In response to Japan's requests, North Korean officials raised 
doubts about Japan's DNA analysis of the ashes North Korea had 
provided to Japan as Megumi Yokota's and demanded they be 
returned to the North swiftly. 
 
Moreover, the North Korean negotiators accused people concerned 
with non-governmental organizations supporting North Korean 
defectors, arguing, "North Koreans are being kidnapped in areas 
near the China-North Korea border." They named seven NGO members, 
for instance, Hiroshi Kato, secretary general of the Life Funds 
for North Korean Refugees and Kansai University Prof. Lee Young 
Hwa, representative of North Korean People! Urgent Action Network 
(RENK) and demanded that these NGO members be handed over to the 
North. 
 
On the issue of Megumi Yokota's ashes, Japanese officials 
rebutted by citing two factors: 1) The man who handed the ashes 
to Japan identified himself as Megumi's husband, but his identity 
is in doubt; and 2) it is the North Korean officials' job to 
determine the cause of why more than one DNA traces were 
detected. Japan refused to hand the named NGO members to the 
North. After the talks, Japan's chief negotiator Umeda told 
reporters: "With no convincing reply from North Korean officials, 
the gap was not bridged. This is extremely regrettable." Umeda 
criticized North Korea's response. 
 
In the morning session yesterday, both negotiators were engaged 
for the first time in full-fledged discussion on the security 
 
TOKYO 00000693  004 OF 013 
 
 
issues, including nuclear and missile development. 
 
Japan called on North Korea to rejoin the six-party talks on 
North Korea's nuclear issue unconditionally. In the talks on the 
missile issue, too, Japan called for the continuation of the 
missile-launching moratorium as specified in the 2002 Japan-DPRK 
Pyongyang Declaration, demanding that the North stop developing 
missiles and scrap them. The North Korean negotiators agreed on 
the importance of the six-party talks, but insisted; "We won't 
return to the six-party talks unless the United States removes 
economic sanctions now imposed on us." 
 
A plenary meeting is set to occur this morning. Both the 
negotiating teams are expected to assess the results of all the 
negotiations this time. Late yesterday, a high-level Japanese 
official indicated an outlook that this round of negotiations 
would close tomorrow, noting: "Given no progress on the abduction 
issue, continuing talks is of no use." 
 
5) Failure of parallel talks overshadows the future course of 
dialogue 
 
NIHON KEIZAI (Page 2) (Full) 
February 8, 2006 
 
Toyofumi Amano, Beijing 
 
The parallel negotiation formula was introduced into this round 
of the dialogue between the Japanese and North Korean 
governments, but the negotiations did not proceed as Japan 
expected and foundered. 
 
The negotiation formula Japan had initially charted was to 
discuss three subjects simultaneously and on the same day. The 
point in this formula was to put pressure on North Korea to 
concede by linking talks on the abduction issue Japan has 
emphasized to talks on the nuclear and missile issues. 
 
However, in a plenary session on Feb. 4, North Korean officials 
refused to follow this formula. Negotiations came to be held with 
one subject for one day, ending up with each subject detached 
from the others. The dialogue proceeded in a way that was far 
from Japan's initial plan, which was to negotiate flexibly while 
seeing the North's reaction. 
 
With no progress on the abduction issue, calls for economic 
sanctions seem likely to flare up in the Liberal Democratic Party 
(LDP) and other quarters in Japan. The Foreign Ministry is 
cautious about sanctions, thinking that they would not be 
effective without cooperation from other nations, such as China 
and Russia. But it is certain that Japan's dialogue line will be 
affected by the outcome of the negotiations with the North this 
time. 
 
Meeting reporters late yesterday, Prime Minister Junichiro 
Koizumi said: "We are making efforts to resolve the abduction 
issue as well as the nuclear and missile issues, but the gap is 
still wide. It's difficult indeed." At a press conference, Chief 
Cabinet Secretary Shinzo Abe referred to North Korea's rejection 
of Japan's proposal for "the settlement of past accounts" by 
providing economic cooperation and criticized the North's 
response. Abe stated: "That way of thinking is specified in the 
Japan-DPRK Pyongyang Declaration. I want the North Koreans to 
 
TOKYO 00000693  005 OF 013 
 
 
have a clear understanding of that point." 
 
6) Prime minister skips annual Northern Territories rally, 
sparking questions about interest in territorial issue 
 
YOMIURI (Page 4) (Full) 
February 8, 2006 
 
A national rally to demand the return of the northern territories 
was held in Tokyo yesterday under the sponsorship of the 
government and private groups. Prime Minister Koizumi did not 
attend the rally citing ongoing Diet deliberations as the reason. 
There was no reading of the prime minister's speech by proxy, 
either. Seeing this, many participants were heard questioning the 
prime minister's eagerness to resolve the stalled territorial 
issue. The prime minister was also absent from the annual rally 
last year with a cold. According to the Cabinet Office, the prime 
minister's absence from the rally for two consecutive years is 
the first time for a prime minister since 1981, when such 
attendance was started. No reading of the prime minister's speech 
by proxy is also unprecedented. 
 
In the rally, New Komeito House of Councillors meeting Hisashi 
Kazama referred to the fact that there was no progress on the 
northern territorial issue during the Japan-Russia summit last 
November. He said: "The prime minister should have come here and 
said, 'I'm sorry,'" getting applause from the audience. 
Journalist Yoshiko Sakurai also criticized the prime minister: 
"The prime minister's absence for the second straight year might 
give the wrong political message to Russia." 
 
On the Northern Territorial issue, Japan's assertion is that 
Japan and Russia should conclude a peace treaty after resolving 
the issue of claims to the four territories based on the 1993 
Tokyo Declaration. But Russia insists that it returns only the 
Habomai and Shikotan islands to Japan after the two countries 
conclude a peace treaty based on the 1956 Japan-Soviet Union 
Joint Declaration. 
 
7) Singapore's senior minister urges Koizumi to discontinue 
Yasukuni visits, describing Japan as diplomatically isolated 
 
ASAHI (Page 4) (Full) 
February 8, 2006 
 
Izumi Ogura, Singapore 
 
Singapore's Senior Minister Goh Chok Tong, a former prime 
minister, delivering a keynote speech at the Feb. 6 Asia-Pacific 
Roundtable, strongly urged Prime Minister Junichiro Koizumi and 
other Japanese cabinet ministers to stop visiting Yasukuni 
Shrine. He said: 
 
"Japanese leaders should stop visiting the shrine and think of 
other ways to pay respect to the war dead, excluding war 
criminals. As far as this issue in concerned, Japan is 
diplomatically isolated." 
 
8) Government to present a bill amending the Immigration Control 
Law to fingerprint foreigners aged over 16 in principle 
 
MAINICHI (Page 1) (Full) 
February 8, 2006 
 
TOKYO 00000693  006 OF 013 
 
 
 
The government is planning to present to the current Diet session 
a bill to amend the Immigration Control and Refugee Recognition 
Law with the aim of preventing terrorist attacks. The bill is 
designed to obligate foreigners aged over 16 to be fingerprinted 
in principle when going through immigration. In order to block 
terrorists from entering Japan, a provision will also be added to 
the law to allow authorities to deport those who have been 
designated by the justice minister as individuals who might 
commit crimes that threaten public security. 
 
Fingerprinting will be exempted for the following: (1) special 
permanent foreign residents, such as ethnic Korean residents in 
Japan; (2) those under age 16; (3) those visiting Japan on 
diplomatic or official business; and (4) governmental guests and 
others. The Justice Ministry is also considering an ordinance 
requiring the collection of facial images, in addition to 
fingerprinting. Fingerprints and other data will be stored on the 
computer system to allow immigration officers to check them 
against fingerprints of those who have been deported in the past 
in order to prevent them from reentering Japan. Upon request by 
investigative authorities, data will be used in criminal 
investigations. 
 
Authorities will be allowed to deport those who have been 
designated by the justice minister as individuals who might 
commit such crimes as murder and hijacking for the purpose of 
posing a threat to the country that are specified in the 
legislation for punishing those who provide funds to terrorists. 
Those who make preparations for or assist such crimes will also 
be deported. In addition, ships and planes will be required to 
present their lists of passengers before arriving in Japan. 
 
Although the United States has already adopted the immigration 
fingerprinting system, the introduction of the system in Japan is 
likely to spark controversy, as the Japan Federation of Bar 
Associations (JFBA) and other organizations are opposed to it. A 
JFBA source expressed opposition to the use of such data in 
criminal investigations, saying: "Fingerprinting violates the 
Constitution stipulating respect for individuals and the code of 
freedom. Such will violate privacy and disturb the formation of 
our society where Japanese people are living side by side with 
foreigners." 
 
9) New Komeito halts discussion on raising JDA to ministry status 
until investigation of DFAA for bid-rigging is ended 
 
YOMIURI (Page 4) (Excerpt) 
February 8, 2006 
 
The New Komeito yesterday held a meeting of its national security 
department and agreed to an unified position on discussion in the 
Diet on raising the status of the Japan Defense Agency (JDA) to a 
ministry that has been halted since the beginning of the year: 
"The hearings should not be held until the truth and the 
situation about bid-rigging by the Defense Facilities 
Administration Agency (DFAA) is cleared up." After the meeting, 
department chairman Shigeki Sato told the press: "When the 
investigation winds up, we should once more properly discuss in a 
calm atmosphere." He indicated that discussion on the issue of 
raising JDA to a ministry status would be put off. 
 
10) Realignment talks to start tomorrow 
 
TOKYO 00000693  007 OF 013 
 
 
 
MAINICHI (Page 2) (Full) 
February 8, 2006 
 
The government announced yesterday that Japan and the United 
States would hold senior-working-level consultations in Tokyo 
Feb. 9-10 to discuss the planned realignment of US forces in 
Japan. 
 
The realignment talks will take place with the participation of 
the Foreign Ministry's North American Affairs Bureau Deputy 
Director General Kazuyoshi Umemoto, the Defense Agency's Defense 
Policy Bureau Deputy Director General Hironori Kanazawa, and 
other officials on the Japanese side, and Deputy Under Secretary 
of Defense Lawless and others on the US side. 
 
11) Japan, US discuss building alternative in Urasoe for US 
military's Naha port facility 
 
MAINICHI (Page 2) (Full) 
February 8, 2006 
 
The Japanese and US governments are looking into the possibility 
of building an alternative facility in the city of Urasoe, 
Okinawa Prefecture, to take over the functions of a US military 
port facility in the city of Naha in the island prefecture, 
officials said yesterday. The two governments have agreed to 
return the Naha port facility to Japan. 
 
Last October, the Japanese and US governments released an interim 
report on the realignment of US forces in Japan. The interim 
report incorporated a plan to consolidate US military bases 
located in the central and southern parts of Okinawa Prefecture. 
The alternative port facility plan was once scrapped but came up 
again out of consideration for local communities. 
 
12) US to ask Japan to bear 75% of cost required for relocating 
US Marines to Guam 
 
ASAHI (Page 2) (Full) 
February 8, 2006 
 
Yoichi Kato, Washington 
 
The US Defense Department, estimating that the relocation of US 
Marines from Okinawa to Guam as part of the planned realignment 
of US forces in Japan would cost 8 billion dollars (940 billion 
yen) in total, has begun making arrangement to ask Japan to bear 
75% of that cost, a source familiar with the US government 
revealed yesterday. 
 
Although the US government is considering removing 7,000 to 8,000 
troops and the command of the 3rd Marine Expeditionary Force 
(IIIMEF) to Guam, the island lacks facilities to accommodate 
them. The source said that 8 billion dollars is a rough estimate 
required for building such facilities. 
 
According to the source, because the budget for building Marine 
Corps facilities is set about at 100 million dollars annually, it 
would take the US nearly 20 years to complete the planned 
relocation even with some assistance from Japan. "In order to 
realize the relocation more quickly, we will have to ask the 
Japanese government to shoulder a substantial portion of the 
 
TOKYO 00000693  008 OF 013 
 
 
cost," a Pentagon official said. The US aims to complete the 
relocation by 2012. 
 
But because the US did not come up with this estimate by adding 
up individual facilities, Japan is asking for detailed plans and 
estimates. 
 
Tokyo and Washington intend to determine their shares of costs 
for the relocation by the end of March, when they are scheduled 
to produce a final report on US force realignment. 
 
13) Iwakuni poll set for Mar. 12 over US carrier-borne aircraft 
redeployment 
 
YOMIURI (Page 2) (Full) 
February 8, 2006 
 
The city of Iwakuni in Yamaguchi Prefecture will officially 
announce a plebiscite on March 5, with voting and vote counting 
scheduled for March 12, over the planned redeployment of carrier- 
borne fighter jets from the US Navy's Atsugi base to the US 
Marine Corps' Iwakuni base. Iwakuni Mayor Katsusuke Ihara 
initiated the plebiscite yesterday to ask citizens if they will 
accept the redeployment. Meanwhile, the heads of seven 
municipalities, which will consolidate with Iwakuni City on March 
20, presented Ihara with a resolution yesterday afternoon 
opposing the plebiscite. 
 
14) Minshuto head Maehara rebuts US meatpacker's demand for 
apology over party delegation's report citing insufficient safety 
procedures 
 
YOMIURI (Page 4) (Full) 
February 8, 2006 
 
Democratic Party of Japan's (Minshuto) delegation recently 
visited the facility of Tyson Foods, the largest meat processor 
of the US, and reported: "Japan's safety criteria are not being 
observed." In reaction, the American company has demanded an 
apology from the party and a retraction of the view. On this 
issue, party head Maehara refuted Tyson Foods: "I received the 
report and also watched a video tape. It is undeniably true (that 
the company is not observing safety procedures). Tyson's protest 
is way off-base, and we will make a resolute response." 
 
15) Beef trade: OIE proposals for new guidelines come under fire 
at BSE experts' meeting as biased toward exporting countries 
 
MAINICHI (Page 9) (Full) 
February 8, 2006 
 
The Ministry of Agriculture, Forestry and Fisheries (MAFF) and 
the Ministry of Health, Labor and Welfare (MHLW) yesterday held a 
meeting of BSE experts and unveiled new beef trade guidelines, 
which the Office of International des Epizooties (OIE) presented 
to its member nations. It turned out that the set of proposals 
proposed by the world organization for animal health had modified 
the existing guidelines, such as that it removed the condition 
that boneless beef traded without any restriction be limited to 
cattle aged up to 30 months. A number of participants voiced 
criticism of the proposed standards. The OIE will discuss the 
propriety of revising the beef trade guidelines in a plenary 
session to be held in May. 
 
TOKYO 00000693  009 OF 013 
 
 
 
The present beef trade guidelines include a condition that 
tradable boneless beef should be free from any suspicion of BSE 
contamination or any such contamination has not been confirmed. 
But this condition has been replaced with a condition that 
boneless beef can be exported, if it passes inspections, 
including eye inspections, by exporting countries. The adoption 
of new guidelines will mean that there will remain almost no 
trade restrictions, except for the removal of specified risk 
materials (SRM). The surveillance obligation to check 
contamination status has also been eased. The package of new 
guidelines is thus advantageous for beef-exporting countries, 
such as the US. 
 
The package drew a number of critical remarks, some stating that 
the BSE agent can accumulate in meat as well, and others saying 
there is no valid reason to remove the age restriction -- 
previously limited to cattle up to 30 months of age -- from the 
guidelines. Some argued that the new guidelines were not based on 
scientific grounds. 
 
16) Agriculture Minister Nakagawa suggests possibility of prior 
inspections of US meat plants at time of resumption of US beef 
imports 
 
NIHON KEIZAI (Page 5) (Excerpt) 
February 8, 2006 
 
Speaking before the House of Representatives Budget Committee on 
Feb. 7, Minister of Agriculture Shoichi Nakagawa stated that the 
government was considering possibly carrying out prior 
inspections of meat-processing facilities inside the United 
States at the time of the resumption of US beef imports. He was 
asked by Minshuto (Democratic Party of Japan) lawmaker Yorihisa 
Matsuno, "We would like you to think about to restarting imports 
under the condition of first carrying out local inspections to 
see if the situation is all right." Nakagawa answered, "I will 
take your suggestion fully seriously and give it consideration." 
 
17) US irritated at "Japan's overreaction" to import violation 
 
YOMIURI (Page 11) (Full) 
February 8, 2006 
 
Following Japan's second ban on US beef imports, a perception gap 
over food safety between Japan and the US has stood out in bold 
relief. The Japanese government intends to call on the US to 
thoroughly check its inspection system, but people affected by 
the matter in the US are increasingly irritated at Japan's 
response, calling it "excessive." 
 
In a meeting of the House of Representatives Budget Committee 
yesterday, a member of the Democratic Party of Japan (Minshuto) 
said that the government's decision late last year to resume US 
beef imports was too hasty. In response, Health, Labor, and 
Welfare Minister Kawasaki said: "The insufficiency of the safety 
procedures being taken by the US (including the requirement of 
removing specified risk materials) has been pointed out. We will 
discuss such problems with the US." Agriculture, Forestry, and 
Fisheries Minister Nakagawa also reiterated his determination to 
take all possible measures to prevent BSE, saying: "Even if US 
safety measures are judged proper, if there is something more 
that can be done to ensure food safety, we will discuss it." 
 
TOKYO 00000693  010 OF 013 
 
 
 
Just after Japan's reimposition of the ban, the US was at a loss 
regarding Japan's criticism of the US, as seen from the remark 
made by US Agriculture Under Secretary J. B. Penn: "The risk of 
BSE is much lower than that of getting into an auto accident." 
Now that there are signs of the issue being protracted, however, 
such bewilderment is turning into irritation. Tyson Foods, the 
largest meat processor in the US, called for Minshuto's apology 
yesterday for its earlier announcement in which it said the party 
had confirmed that Japan's safety criteria were not being 
observed. A Minshuto executive fiercely reacted to the protest, 
claiming, "It is groundless and way off-base." The move by a 
meatpacker represents growing frustration in the US. Japan will 
not be able to easily resume imports this time, but the US is 
expected to urge Japan to reopen its market at an early date, 
stressing the recent Beef Export Verification violation as a 
technical mistake. Should the current situation persist, 
dissatisfaction in the US with Japan may grow stronger. 
 
18) USDA to shrink BSE inspections to one-tenth of previous 
level, with no request for funds in budget 
 
TOKYO (Page 3) (Excerpt) 
February 8, 2006 
 
Jiji Press, Washington 
 
A spokesman for the US Department of Agriculture (USDA) revealed 
on Feb. 6 that in the Department's portion of the 2007 budget 
request President Bush presented to the Congress, a request for 
funding to continue expanded inspections for BSE was omitted. 
USDA is now considering revising its expanded inspection regime, 
so if the budget stands as is, the US' BSE inspections will 
shrink to a level of one tenth of the annual 40,000 head level 
that it has been until now. 
 
19) FTA talks with India to start 
 
YOMIURI (Page 2) (Full) 
February 8, 2006 
 
The Ministry of Economy, Trade and Industry (METI) yesterday 
revealed its plan to enter free trade agreement (FTA) talks with 
India. Once coordination of views with the Foreign Ministry and 
the Ministry of Agriculture, Forestry and Fisheries is over, the 
leaders of the two countries will aim to reach a formal agreement 
to launch negotiations. For Japan, this is going to be the first 
FTA talks with one of the influential developing countries called 
BRICs, a term that indicates Brazil, Russia, India, and China. 
 
India's economy is continuing to grow, boosted by the information 
and technology (IT) industry. The nation has the second largest 
population, following China. The amount of trade between Japan 
and India, however, has remained small. Japan exports machinery 
parts to that nation and imports iron ore. However, as a trade 
partner India in 2004 ranked 25th in terms of export value and 
29th in terms of import trade value. At work behind Japan's move 
to start FTA talks with India is that it wants to increase trade 
and investment ties with that nation with an eye on its huge 
market. 
 
Japan and India had set up a joint study group consisting of 
those representing industrial, government and academic circles. 
 
TOKYO 00000693  011 OF 013 
 
 
The panel in July 2005 started looking into the possibility of 
the two countries signing an FTA. 
 
20) US sets forth int'l control plan for nuclear fuel recycling: 
Japan may be criticized for "special treatment" 
 
NIHON KEIZAI (Page 3) (Full) 
February 8, 2006 
 
On Feb. 6, the day before Japan restarted its pluthermal program, 
the United States announced a plan to resume the halted nuclear 
fuel cycle reprocessing. With Iran and other countries in mind, 
the United States aims to place nuclear fuel reprocessing for 
plutonium under international control. However, if this 
initiative goes on, special treatment given to Japan, which has 
promoted its own nuclear fuel cycle under the US umbrella, could 
stand out internationally. 
 
Japan has proceeded with its nuclear fuel cycle under the United 
States' agreement. Although Japan is not a nuclear power, it has 
its own nuclear fuel cycle facilities. This is a unique case. 
 
"The United States has explained that Japan is not subject to 
international control," said an official of the Nuclear Energy 
Policy Planning Division of the Agency for Natural Resources and 
Energy. However, the Japanese government wants to push ahead with 
its stagnated pluthermal power plan in order to keep up its 
nuclear fuel recycling policy. Japan envisions working together 
with the United States in developing reprocessing technologies 
that cannot easily be diverted to weapons, as well as in 
developing advanced nuclear reactors. In the future, the 
government will also look into the feasibility of providing 
nuclear power plant fuel to countries that abandon nuclear 
weapons development. 
 
However, developing countries that are eager to have their own 
nuclear fuel cycle may critically wonder why Japan alone is not 
under international control. 
 
21) Minshuto's attack on government fails to score hit at Lower 
House Budget Committee sessions 
 
TOKYO SHIMBUN (Page 2) (Excerpts) 
February 8, 2006 
 
At a House of Representatives Budget Committee session yesterday, 
the incumbent and former presidents of the main opposition party 
Minshuto (Democratic Party of Japan) took the floor as 
questioners. The two representatives from the largest opposition 
party strongly pursued the government on the US beef import 
issue, the earthquake-resistance data falsification scam, and the 
Livedoor scandal. 
 
However, they failed to obtain Diet testimony by Liberal 
Democratic Party (LDP) lawmaker Kosuke Ito. Minshuto has placed a 
high priority on this goal. They were also unable to undermine 
the government's conventional answers to questions about the US 
beef issue. In an attempt to strengthen its defense, the 
government held a regular cabinet meeting one day earlier than 
due. There seems be an increasing sense of frustration in 
Minshuto even though the party now feels like it is riding high. 
 
Incumbent President Seiji Maehara, who took the floor as the 
 
TOKYO 00000693  012 OF 013 
 
 
first questioner, tenaciously pursued the Japanese side's 
responsibility for having made a decision to resume US beef 
imports last December. 
 
Prime Minister Junichiro Koizumi, however, just reiterated: "The 
United States did not observe the bilateral agreement. The 
Japanese government has handled the matter properly." 
 
Maehara then questioned, "Have you raised a protest against 
President Bush?" Koizumi fended him off by responding, "I decide 
on the rank of the official to whom I talk. I don't need any 
advice." 
 
Yorihisa Matsuno, who lured "inconsistent answers" from 
Agriculture, Forestry and Fisheries Minister Shoichi Nakagawa at 
the previous Budget Committee session, attacked again Nakagawa 
and Chief Cabinet Secretary Shinzo Abe. The only answer he 
obtained from them was "The resumption of US beef imports do not 
violate the cabinet decision." 
 
Sumio Mabuchi pursued the earthquake-proof data falsification 
scam, posing alleged financial scandal involving Ito's found 
management organization. Land, Infrastructure and Transport 
Minister Kazuo Kitagawa categorically said, "Mr. Ito has not at 
all interfered in our ministry's business." 
 
22) Former Minshuto Okada takes the floor at Lower House Budget 
Committee, engaging in battle of words with Prime Minister 
Koizumi over Livedoor scandal 
 
TOKYO SHIMBUN (Page 2) (Full) 
February 8, 2006 
 
At a session yesterday of the House of Representatives Budget 
Committee, Katsuya Okada, former president of Minshuto 
(Democratic Party of Japan), engaged in a battle of words with 
Prime Minister Junichiro Koizumi regarding the fact senior 
Liberal Democratic Party (LDP) members supported former Livedoor 
Corp. President Takafumi Horie (who has been arrested on 
suspicion of violating the securities law). Okada took the floor 
as a questioner at the Lower House Budget Committee for the first 
time since he quit the presidency to take responsibility for the 
party having been defeated in last September Lower House 
election. 
 
In the session Okada explained that he had decided not to ask 
Horie to run in the election when he had met him. He said, "He 
was not a person whom Minshuto could back in the election." He 
pressed Koizumi: "Don't you feel responsibility for those who 
bought Livedoor stacks believing Horie, whom the LDP supported 
the election?" 
 
Koizumi responded, saying, "I am forced take criticism that 
Koizumi, who was unable get an insight into the real character of 
the person, was foolish." Regarding the connection between his 
election support for Horie and Livedoor's stock price, he said, 
"They are separate matters. I neither recommended the 
(Livedoor's) shares nor said the stock price would jump." 
 
23) Government mulling postponement of submitting to current Diet 
session bill revising Imperial House Law 
 
NIHON KEIZAI (Page 1) (Excerpts) 
 
TOKYO 00000693  013 OF 013 
 
 
February 8, 2006 
 
Following the news that Princess Kiko, the wife of Emperor 
Akihito's second son, is pregnant, the government yesterday 
started looking into the possibility of giving up submitting to 
the ongoing Diet session a bill to revise the Imperial House Law 
to allow female imperial family members and their descendants to 
ascend to the imperial throne. If the expected baby is male, he 
will be third in line to the throne (after Crown Prince Naruhito, 
45, and Prince Akishino, 40, under the current succession rule). 
The move follows growing opinion in the ruling Liberal Democratic 
Party favoring caution regarding the revision bill. 
 
Prime Minister Junichiro Koizumi discussed how to handle the bill 
yesterday with Chief Cabinet Secretary Shinzo Abe. They confirmed 
that preparations for submitting the bill should be moved ahead 
as planed and that the prime minister would make a final decision 
on whether to submit the bill or not while giving consideration 
to debate on the bill in the LDP, as well as to the trends of 
public opinion. 
 
Abe stated in a press conference last night, "I think various 
views will be raised regarding a report drafted by a group of 
experts on the Imperial House Law and this good news." He 
indicated in his remarks that the government would make a 
judgment on whether to submit the bill to the current Diet 
session after seeing the development of discussions in the LDP. 
 
Abe had emphasized the government's policy of presenting the bill 
to the ongoing regular Diet session. If the government does so, 
he stressed that the LDP should bind party members to vote 
according to its decision. The government is now taking a 
cautious stance toward the submission of the bill. 
 
SCHIEFFER