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UNCLAS SECTION 01 OF 10 TOKYO 000727 
 
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 02/09/06 
 
 
INDEX: 
 
(1) US rejects civilian aircraft facility inside Iwakuni Air 
Station; Plan to bring them in by fiscal 2009 may be delayed 
 
(2) JDA chief Nukaga indicates plan to set up councils on US 
force realignment in local communities 
 
(3) Scanner column: Japan forced to reshape strategy on abduction 
issue with ending of Japan-DPRK talks 
 
(4) Minshuto suddenly moving away from LDP, New Komeito regarding 
referendum bill, giving priority to drawing clear line with 
ruling camp 
 
(5) Proposals on constitutional revision: Interviews with 
chairmen of constitution commissions of LDP, New Komeito and 
Minshuto 
 
(6) Japanese economy gaining momentum four years after emerging 
from recession; Potential growth once again takes upward turn 
 
(7) Editorial: US defense strategy review - need for improvement 
in efficacy of Japan-US alliance 
 
(8) Tyson Foods demands withdrawal of report by Minshuto 
delegation that points out insufficiency of anti-BSE measures 
 
ARTICLES: 
 
(1) US rejects civilian aircraft facility inside Iwakuni Air 
Station; Plan to bring them in by fiscal 2009 may be delayed 
 
YOMIURI (Page 1) (Full) 
Evening, February 9, 2006 
 
It was learned today that the United States in connection with 
the extending of civilian aircraft services at the US Marine 
Corps Air Station Iwakuni (Yamaguchi Prefecture), as agreed by 
the Japanese and US governments in US force realignment talks, 
the US side has refused to allow the construction of a terminal 
on base for use by civilian aircraft, citing the need to give 
priority to the military facility. If the terminal is built 
outside the base, there is growing concern that the plan to put a 
civilian airport in operation by fiscal 2009, as aimed at by the 
local community, will be delayed. 
 
The Japanese and US governments have agreed to a plan to move 57 
carrier-borne jets and approximately 1,600 military personnel 
from the US Navy's Atsugi Naval Air Station (Kanagawa Prefecture) 
to the Iwakuni base. There also was agreement in October 2005, as 
part of a local package to accompany the relocation of the 
carrier-based jets, to allow civilian aircraft to provide flight 
service of a maximum four takeoffs and landings a day from the 
base runway, as desired by the local community. 
 
The new runway (2,400 meters) being built off the coast of 
Iwakuni Air Station will be completed in fiscal 2008. The 
Japanese side has hoped to see a terminal built for passengers to 
board civilian aircraft on the current runway that will become 
unused space. 
 
However, the US side in senior working-level talks on Feb. 1 
 
TOKYO 00000727  002 OF 010 
 
 
refused to allow construction of a terminal inside the base 
proper, citing the need to build a military facility on a part of 
the current runway for such use as hangers for the carrier-based 
jets to use. 
 
In case the terminal is constructed on civilian land outside the 
base, not only would the timetable for service by civilian 
aircraft be delayed, the following negative aspects have also 
been pointed out: 1) inconvenience for users; and 2) increased 
construction costs. 
 
(2) JDA chief Nukaga indicates plan to set up councils on US 
force realignment in local communities 
 
MAINICHI (Page 1) (Full) 
Evening, February 9, 2006 
 
Defense Agency Director General Fukushiro Nukaga stated in a 
meeting of the House of Representatives Budget Committee this 
morning: "We would like to set up councils that include governors 
and heads of local municipalities" to discuss US force 
realignment plans. The remark was in response to a question by 
Liberal Democratic Party member Kozaburo Nishime. The liaison 
council of the governors of 14 prefectures housing US military 
bases have so far engaged in negotiations on US force realignment 
with the central government. In his Diet reply, Nukaga indicated 
plans to set up new discussion panels that would include local 
government heads. 
 
(3) Scanner column: Japan forced to reshape strategy on abduction 
issue with ending of Japan-DPRK talks 
 
YOMIURI (Page 3) (Full) 
February 9, 2006 
 
Takaharu Yoshiyama, Beijing 
 
Japan and North Korea wound up their official round of talks 
yesterday. The two nations confirmed they would continue the 
dialogue, but this round made it clear that there are the great 
differences in views between the two governments. Especially on 
the abduction issue, a senior Foreign Ministry official 
criticized the results, calling them "not a zero reply but a 
minus reply," meaning worse than no reply. Japan is being forced 
to reshape its strategy. But this time, there is a subtle change 
being felt in Japan, particularly since calls for tough economic 
sanctions, for instance, from the Liberal Democratic Party (LDP), 
are not rising. 
 
Subtle change in government, LDP; More calls for a cool-headed 
response than calls for sanctions 
 
They threw us a curve 
 
"That's out of the question. Are they working in good faith to 
resolve the abduction issue?"  Such was the strong response from 
Kunio Umeda, deputy director-general of the Foreign Ministry's 
Asian and Oceanian Affairs Bureau during the meeting on the 
abduction issue on Feb. 7. This remark came out when the North 
Korean delegates demanded Japan hand over some members of Japan's 
nongovernmental organizations supporting North Korean defectors. 
The demand came in response to Japan's calls for 1) returning 
abductees now living in North Korea to Japan, 2) shedding light 
 
TOKYO 00000727  003 OF 010 
 
 
on the truth of the abductions; and 3) handing over North Korean 
abductors to Japan. 
 
The recent round of talks were held in a way to allow three 
subjects to be discussed in parallel: abductions, security issues 
including nuclear and missile development, and normalization of 
diplomatic ties. A total of 11 hours were devoted to discussions 
on the abduction issue held on Feb. 5 and Feb. 7. But no positive 
responses ever came from the North Korean delegation. 
 
Instead, North Korean delegates threw their Japanese counterparts 
a "curve" at one point by demanding the handover of some of 
Japan's NGO members, and at another, they appeared to be trying 
to admonish Japan. 
 
The North Korean Foreign Ministry's Asian Bureau Deputy Director 
Kim Chol Ho raised doubts about Japan's DNA analysis of the ashes 
North Korea provided to Japan as Megumi Yokota's and quoted a 
Korean saying: "A Korean proverb says, 'Doubts are equivalent to 
illness." He meant, "Doubts know no bounds." 
 
Verbal battle 
 
The negotiations on the normalization of diplomatic relations, 
held for the first time in three years and three months, saw a 
perceptions gap over the 2002 Japan-North Korea Pyongyang 
Declaration come to the fore. 
 
On settling past accounts, the Japanese team offered an economic 
cooperation formula consisting of two approaches: 1) Both sides 
mutually would waive claims on property and agree that claims for 
cash compensation relating to Japan's colonial rule of Korea, 
including military comfort women and Koreans forced to come to 
Japan have been legally settled; and 2) Japan would offer 
economic cooperation. The Japanese team emphasized this economic 
cooperation formula as the only pragmatic way for settlement. 
 
This formula stems from the method Japan and South Korea adopted 
when the two countries normalized relations in 1965. 
 
However, the North Koreans insisted that the "formula is not 
sufficient." They suggested subtly they would still want 
compensation for the military comfort women and forced laborers 
in Japan. 
 
The North apparently wished to resolve the issue with more 
favorable conditions than those South Korea obtained. 
 
Preparations for bills now underway 
 
"A lack of tangible progress on the abduction issue would put the 
Japanese public in an extremely severe mood," warned Ambassador 
for Japan-North Korea Diplomatic Normalization Koichi Haraguchi 
to his North Korean counterpart Song Il Ho during a plenary 
session on Feb. 8. 
 
In fact, some in Japan want to put pressure on North Korea due to 
its "minus reply." 
 
The LDP are preparing two bills to submit to the Diet: one 
specifying the requirements need to impose economic sanctions and 
another on the human rights of the North Korean people that calls 
on Pyongyang to improve such rights. The party's Foreign Affairs 
 
TOKYO 00000727  004 OF 010 
 
 
Division chief Ichita Yamamoto and other party members are 
planning to draft the bills possibly today based on the results 
of the bilateral talks. 
 
On Feb. 2, the Fukuoka High Court decided that reduced tax rates 
and exemption to the fixed property tax of facilities owned by 
the General Association of Korean Residents in Japan (Chongryun) 
is a violation of the law. This ruling is seen as a "kind of 
pressure" on the North, a government source said. 
 
At a press briefing yesterday, Ambassador Song, referring to how 
his country would respond if Japan intensified its pressure on 
his country, hinted at retaliation, noting: "Newton's law of 
motion -- for every action there is a reaction -- would be 
applied." 
 
Yet, it is not safe to say that calls for sanctions are growing 
stronger in Japan as the stalemate continues in the bilateral 
talks. 
 
Many in the government remain cautious. One government official 
remarked: "Even if we get angry, I don't think it is a wise 
policy to close the door to dialogue, because a resolution of the 
abduction issue would then become more remote. A cool-headed 
response is necessary." Many also take the view that if Japan 
imposed sanctions unilaterally, the impact would be small. 
 
At a press briefing yesterday, Chief Cabinet Secretary Abe went 
no further than to say: "We will decide how to pressure that 
country after carefully listening to the results of the 
negotiations." Abe once insisted on imposing economic sanctions 
swiftly, but perhaps because he is a member of the cabinet now, 
he may find it difficult to lead advocates of sanctions. In 
addition, some hawkish members, including former Minister of 
Economy, Trade and Industry Takeo Hiranuma, have left the party, 
placing a damper on the moves of sanctions advocates. 
 
(4) Minshuto suddenly moving away from LDP, New Komeito regarding 
referendum bill, giving priority to drawing clear line with 
ruling camp 
 
ASAHI (Page 4) (Full) 
February 9, 2006 
 
The ruling Liberal Democratic Party (LDP), its coalition partner 
New Komeito, and the main opposition party Minshuto (Democratic 
Party of Japan) decided at the end of last year to aim at 
submitting to the regular Diet session a bill to set up national 
referendum procedures for amending the Constitution. The three 
parties, however, will likely have trouble drafting a bill since 
there is strong reluctance in Minshuto to conduct discussion with 
the ruling camp on drafting a bill since the two camps are 
clashing in the Diet over such issues as the Livedoor scandal. 
The ruling coalition has a scenario that the Diet would start 
debate on a joint referendum bill soon after the fiscal 2006 
budget is approved, but such a scenario will not now be realized. 
 
In a meeting yesterday of their secretaries general and policy 
chiefs, the LDP and New Komeito agreed to set up a deliberative 
body and work on Minshuto. The ruling camp plans to hold a first 
meeting before the end of this week. Since the ruling bloc has 
already drafted a bill, they are waiting for Minshuto to enter 
discussion. 
 
TOKYO 00000727  005 OF 010 
 
 
 
Minshuto Constitutional Research Commission Chairman Yukio Edano 
turned around and said, "We are not happy with the move the 
ruling camp alone is proceeding with. It is difficult for us to 
cooperate with such a move." 
 
The ruling parties envisioned that they along with Minshuto would 
start early this year discussion on their own bill and one 
drafted by Minshuto and then come up with a joint bill around the 
end of March. They expected that the bill would be submitted to 
the Diet and the Diet would initiate in April debate and pass it 
before the end of the current Diet session. 
 
However since the ruling and opposition camps from the outset of 
the current Diet session have been seriously at odds over the 
Livedoor scandal and other issues, they have yet to set up a 
deliberative organ of the three parties. Moreover, some Minshuto 
members have called for bringing the Social Democratic Party 
(SDP) and the Japanese Communist Party (JCP) into the planned 
deliberative body. 
 
One senior LDP Constitutional Research Commission member said 
with a tone of resignation, "Under the present Diet situation, it 
is difficult to move ahead with three-party consultations on the 
issue of drafting a referendum bill." 
 
During hearings of the House of Representatives Special Committee 
on the Constitution in the special Diet session last year, the 
ruling and opposition parties held three free-discussion sessions 
on the issue of drafting a national referendum bill, but they 
have so far made no concrete moves in the current Diet session. 
House of Councillors members of the LDP and Minshuto, who are 
more passive about drafting a referendum bill, have not yet set 
up a deliberative body, which would be equivalent to the special 
constitutional committee in the Lower House. The Minshuto caucus 
in the Upper House, which has many former SDP-affiliated members, 
who call for protection of the Constitution, has finally decided 
to launch a study session on the formulation of its own bill. At 
present, therefore, the ruling coalition and Minshuto cannot 
discuss the contents of their own bills. 
 
A senior LDP member said: "Since amendments to the Constitution 
must be endorsed by a two-thirds majority in both houses, we need 
Minshuto's cooperation. So, we cannot lock horns with it at the 
preparatory stage." 
 
If the present situation continues, some ruling coalition members 
may strengthen their view that since the ruling parties have a 
majority of the Lower House seats, they alone should get their 
own bill passed through the Diet. 
 
(5) Proposals on constitutional revision: Interviews with 
chairmen of constitution commissions of LDP, New Komeito and 
Minshuto 
 
YOMIURI (Page 4) (Full) 
February 9, 2006 
 
Gen Funada of Liberal Democratic Party (LDP) 
 
In a move to revise the Constitution, we aim at having a national 
referendum bill passed by the current Diet session and paving the 
way for government-level talks in the latter half of this year. 
 
TOKYO 00000727  006 OF 010 
 
 
We would like to start full-fledged deliberations next year and 
to ask the prime minister to announce (a specific constitutional 
reform plan) when agreement is reached in outline. I think this 
is the best scenario. 
 
I hope that executive members, including former Justice Minister 
Okiharu Yasuoka, president of the House of Councillors' 
Constitution Research Special Committee, will take the lead in 
promoting constitutional debate. Although it is impossible to 
amend the Constitution if only the LDP makes efforts to that end, 
our party wants to serve as a "sherpa" in the talks. 
 
We would appreciate it if Minshuto (Democratic Party of Japan) 
and the New Komeito could swiftly submit their views in 
preparation for the talks. Particularly, we would like Minshuto 
to unify views in their party as much as possible. The New 
Komeito has insisted on the need to add new provisions or rights 
for the people in the Constitution, but we expect the New Komeito 
will decide what should be added in the Constitution at an early 
date. 
 
Akihiro Ota of New Komeito 
 
The revised constitution drafted by the LDP is similar in form to 
ours calling for adding public rights. All parties, including our 
party, have already come up with their draft proposals on 
revising the Constitution, so we should start discussion on which 
plan should be adopted and what parts in the Constitution should 
be changed. I believe that common views will be found through 
debates among the parties. I think the first referendum will be 
held on items on which each party share the same views. 
 
If the LDP decides to delete Clause 2 (renunciation of war) of 
Article 9, it means that the LDP has recognized the right to 
collective self-defense. Based on the stance of not approving the 
right to collective self-defense, we take the view that clauses 1 
and 2 of Article 9 should be retained. 
 
Debates on the Constitution are heating up to some extent in the 
Diet, but people seem to have no major interest in this issue. It 
is very important to inform the public of the details of 
discussed matters in the Diet in an understandable way and spark 
up a national debate. 
 
Yukio Edano of Minshuto 
 
Progress in constitutional debate depends on public opinion. If a 
majority of the people say, "Make it quick," we will speed up the 
pace. We intend to hold discussion with the people, but future 
development depends on what response the public will make. 
 
Constitutional debate should not be affected by such political 
schedules as a Minshuto or LDP presidential race and a New 
Komeito convention. Those who aim to use the Constitution for 
political bargaining do not understand at all what the 
Constitution should be, because revising it will be impossible 
unless agreement is reached among the three parties. 
 
The Constitution should not be made a campaign issue. If it 
becomes a major election issue, it will become impossible for the 
three parties to reach an agreement and accordingly to amend the 
Constitution for the time being. In my view, the New Komeito now 
understands this point considerably, and half of the LDP members 
 
TOKYO 00000727  007 OF 010 
 
 
are aware of this. But the remaining half do not take a modest 
stance and totally support the current Constitution. I hope the 
members with good sense will continue to stand fast on their 
stance. 
 
(6) Japanese economy gaining momentum four years after emerging 
from recession; Potential growth once again takes upward turn 
 
NIHON KEIZAI (Page 1) (Excerpts) 
February 9, 2006 
 
The recovery of the economy is picking up speed. Companies are 
highly motivated by the desire to increase capital investment, 
boosted by upbeat business showings. Personal consumption, which 
has been slow to recover, is now showing clear signs of recovery. 
The Japanese economy is about to start on a stable growth track, 
though there are some factors causing uncertainty, such as high 
crude oil prices and developments in overseas economies. 
 
Benchmark surpassed 
 
It has been four years since the economy began its upward turn. 
Experiencing two slumps during the course, the pace of the 
recovery has not been smooth. But the uptrend is now picking up 
steam. Index of industrial and mining production (base of 100 for 
2000) set a record high last December at 105.0. The index 
exceeded 104, a mark that was not surpassed even in the bubble 
era. 
 
Companies have strengthened their financial standing over the 
past four years. Though the labor distribution share (the 
proportion of the added value created by a company that is 
distributed to workers) is beginning to stop falling, the ratio 
in the most recent July-September quarter of last year stood at 
63%, down six points over the past four years. In the corporate 
sector, excesses in employment, debt, plant, and facilities have 
been generally resolved. The ratio of operating income to net 
sales, which stood at 2.5% four years ago, went up to 3.9%, 
exceeding the level of the bubble era. 
 
The operating income of listed companies increased by double 
digits in the term ending in Mar. 2005 for the third consecutive 
quarter. It had been estimated that operating income would 
increase only slightly in the term ending in Mar. 2006 due to a 
rise in the prices of raw materials. However, Honda Motors 
achieved record profits due in part to the weak yen, though it 
had projected a fall in profits at the beginning of the term. 
Takashimaya Department Store had projected a decline in income 
and an increase in profits, but now both income and profits are 
expected to increase for the first time in four years. 
 
The upward trend in business showings is spurring companies to 
invest. Kubota will boost investment in the machinery business, 
such as the production of construction and agricultural 
machinery, in fiscal 2006 to 14 billion yen, double the level of 
this fiscal year. This is the first time in eight years for the 
company to make investments exceeding 10 billion yen. 
 
Increase in new investment 
 
Competitive investment in relation to flat-screen television 
sets, led by Sharp, is also spreading. Based on the judgment that 
global demand for polarizing film used in LCD sets will increase 
 
TOKYO 00000727  008 OF 010 
 
 
by 30% a year, Kuraray plans to invest 20 billion yen. 
 
The Cabinet Office has projected that the capital stock of 
manufacturing companies in fiscal 2005 would exceed the previous 
year's level for the first time in eight years with new 
investments topping the depreciation and scrapping of existing 
facilities and equipment. Companies are thus beginning to emerge 
from a mentality of retrenching. 
 
Yasuo Goto, chief researcher at the Mitsubishi Research Center, 
observed: "The potential growth of the Japanese economy, which 
has been firmed by structural adjustment, has increased."  He 
noted that the Japanese economy's potential growth stood over 3% 
in the bubble era and then slipped to 1.3% in fiscal 2000, but it 
has now rebounded to over the 1.5% level. If the economy 
continues to expand while potential growth increases, it will 
likely continue to experience favorable conditions over the long 
term without overheating. 
 
Cause for concern still remains, though. The US economy is 
saddled with high crude oil prices and a speculative bubble in 
the housing sector. The fallout of the Livedoor incident is still 
being felt. Even so, the Japanese economy is "in an excellent 
state of balance," according to Bank of Japan Governor Toshihiko 
Fukui. Chances are that the Japanese economy will maintain 
sustained growth barring an unexpected external shock. 
 
(7) Editorial: US defense strategy review - need for improvement 
in efficacy of Japan-US alliance 
 
SANKEI (Page 2) (Full) 
February 7, 2006 
 
The US Department of Defense unveiled its Quadrennial Defense 
Review (QDR) report recently. The report comes up with guidelines 
to follow, for example, in dealing with the war on terrorism. It 
also raises a fundamental question about the role of the security 
alliance with Japan. 
 
The report positions the war on terrorism as a long-term 
conflict, projecting an image of a US military capable of 
responding swiftly and flexibly to any attacks. 
 
One feature of the report is that in expresses concern about the 
Chinese military, describing China as the country that holds the 
highest potential of becoming a military competitor. The report 
essentially regards China as a threat, explaining that its 
military buildup since 1996 has put the military balance in the 
region in danger. 
 
According to the QDR report, the United States will shift its 
emphasis in naval strength to the Pacific and deploy, for 
instance, six or more aircraft carriers there on a regular basis. 
The aim is presumably to enhance deterrent force in the so-called 
arc of instability extending from the Middle East to the Korean 
Peninsula, including China and a number of other countries. 
 
It is worth noting that the report cites Japan, Australia, and 
South Korea in this order as allies in the Pacific and 
appreciates bilateral ties, such as those with Japan, as 
maintaining world peace and security. Moreover, the report 
stresses that the Pentagon cannot deal with the complex 
challenges of today single-handedly and that it needs to work in 
 
TOKYO 00000727  009 OF 010 
 
 
close cooperation with allies and friends. 
 
How to deal with the arc of instability is a national challenge 
facing Japan, because its own peace and security hang in the 
balance. It is safe to say that the only possible approach is for 
Japan and the US to work together to counter international 
terrorism and defeat groups that threaten peace in the region. 
 
In the Security Consultative Committee (SCC) meeting last 
February, Japan and the US released a joint statement urging 
China to resolve the tensions across the Taiwan Strait in a 
peaceful manner. With this, Japan as well has made clear its 
position that it will not condone the use of force against 
Taiwan. 
 
Japan therefore has a greater responsibility than the US to 
enhance the efficacy of the Japan-US alliance. But joint defense 
is a mirage so long as the government adheres to the present 
constitutional interpretation of the right to collective defense, 
namely that Japan possesses the right but cannot exercise it. 
Even if terrorists attack friendly forces, Japan's Self-Defense 
Forces cannot deal with them. The moment this flaw is exposed, 
the alliance will face a crisis. 
 
There is an agreement between Japan and the US that they will 
come up with a final report in March on the realignment of US 
forces in Japan. In compiling that report, it is imperative to 
have the perspective of strengthening deterrent force. Japan 
should be flexible enough to review its defense capability in 
terms of whether it can counter threats. 
 
(8) Tyson Foods demands withdrawal of report by Minshuto 
delegation that points out insufficiency of anti-BSE measures 
 
NIHON KEIZAI (Page 2) (Full) 
Evening, February 9, 2006 
 
The Democratic Party of Japan (Minshuto) delegation, including 
House of Representatives member Kenji Yamaoka, recently visited a 
plant owned by Tyson Foods and later announced: "Its anti-BSE 
measures are insufficient." The largest meatpacker of the US has 
fiercely reacted to the delegation's report. 
 
The Minshuto delegation visited the meat-processing facility of 
Tyson Foods in Kansas in late January. Later, the delegation 
announced to reporters that the removal of specified risk 
materials (SRM) had been carried out in a sloppy way, for 
instance, broken pieces of the spinal cord had splattered over 
the meat during the slaughtering process. 
 
Tyson Foods President Bond sent a letter dated Feb. 2 to the 
delegation, in which he assailed that the party's announcement 
was inaccurate and "will hurt our company's reputation." The 
company demanded that the delegation "offer an apology and 
retract its statement." The letter stressed that the Minshuto 
delegation had not expressed concern about the safety of removal 
of SRM while visiting the facility and "had indicated even its 
approval and confidence in our operation of the facility." 
 
A spokesman of Tyson in response to an inquiry by the Nihon 
Keizai Shimbun yesterday said: "We have yet to receive any reply 
from the Minshuto delegation." The official was doubtful that 
political motives might lie behind the opposition party's moves. 
 
TOKYO 00000727  010 OF 010 
 
 
 
An LDP delegation of five members will also leave for the US 
today to visit the same facilities the Minshuto delegation had 
visited. 
 
SCHIEFFER