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RUCNDT/USMISSION USUN NEW YORK 8801

UNCLAS SECTION 01 OF 11 TOKYO 000761 
 
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 02/13/06 
 
 
INDEX: 
 
(1) Yokota airbase: Mizuho mayor accepts USFJ-SDF joint use 
 
(2) USFJ realignment: US shows estimated costs for Marine 
relocation to Guam, Japan again calls for detailed breakdown 
 
(3) Japan may fund Marine relocation 
 
(4) US nuclear vessels make 1,200 port calls 
 
(5) Government faced with three obstacles -- DFAA bid-rigging 
scandal, Iwakuni referendum, and stiffened Nago mayor's stance -- 
under US pressure for early realization of US force realignment 
 
(6) US Under Secretary of Agriculture to visit Japan next week to 
submit BSE report 
 
(7) US to cut back on number of diplomats to Japan, US daily 
reports 
 
(8) US trade deficit with Japan reaches record high of 82.6 
billion dollars; Congress likely to intensify criticism 
 
(9) No progress in Japan-China dialogue, but the two nations 
confirm continuation of talks on gas field development, other 
issues 
 
(10) Gov't to gear up pressure policy toward North Korea 
 
(11) Japan-DPRK talks: North Korea demands for compensation for 
8.4 million Koreans forced to come to Japan and 200,000 military 
comfort women, ignoring Pyongyang Declaration 
 
(12) Interview with political commentator Taro Yayama: Four 
points for considering Yasukuni issue 
 
(13) ODA reform: Do not allow efforts to end as mere show 
 
ARTICLES: 
 
(1) Yokota airbase: Mizuho mayor accepts USFJ-SDF joint use 
 
TOKYO SHIMBUN (Page 30) (Full) 
February 12, 2006 
 
The town of Mizuho in Tokyo will accept the planned bilateral 
'military-military' joint use of the US Air Force's Yokota Base 
located in Mizuho and some other municipalities in Tokyo, the 
town's mayor, Koemon Ishizuka, said yesterday. The Japanese and 
US governments have released an interim report on the planned 
realignment of US forces in Japan, incorporating an agreement to 
relocate the Air Self-Defense Force's Air Defense Command from 
the city of Fuchu to Yokota. 
 
The town yesterday held a plenary meeting of its municipal 
assembly, in which the mayor stated that he would like to 
consider world peace and Japan's defense policy. "I'd like to 
accept their joint use of the airbase if that does not 
deteriorate the town's living environment," the mayor said. 
 
The interim report was released Oct. 29 last year. Regarding 
Yokota Base, the two governments have also agreed to return some 
 
TOKYO 00000761  002 OF 011 
 
 
US-controlled airspace to Japan and study the feasibility of 
joint military-civilian use. However, the town is opposed to this 
out of fear of possible increased noise pollution. 
 
(2) USFJ realignment: US shows estimated costs for Marine 
relocation to Guam, Japan again calls for detailed breakdown 
 
ASAHI (Page 2) (Full) 
February 12, 2006 
 
Japan and the United States held intergovernmental consultations 
in Tokyo for three days up until yesterday over the planned 
realignment of US forces, with senior officials for foreign 
affairs and defense from both sides attending. The US government 
there presented a breakdown of costs estimated for building 
facilities and other actions needed for a plan to relocate about 
6,000 personnel from the US Marines in Okinawa to Guam. However, 
the Japanese side asked the US side to come up with an even more 
detailed breakdown of the relocation costs, asserting that the 
estimate is insufficient for coordination with the Finance 
Ministry. 
 
The US Department of Defense estimates the relocation costs at 
approximately 8 billion dollars (or about 940 billion yen) in 
total and will ask Japan to pay 75%. The Japanese government will 
need a new law in order for Japan to pay for the construction of 
facilities for US forces overseas. The government therefore asked 
the US side to show its basis for the estimate. 
 
Japan wanted to relocate air tankers from Futenma airfield in the 
city of Ginowan, Okinawa Prefecture, to the Maritime Self-Defense 
Force's Kanoya base in Kagoshima Prefecture. However, the US side 
insisted on their redeployment to Iwakuni base in Yamaguchi 
Prefecture. Neither government made concessions. 
 
(3) Japan may fund Marine relocation 
 
NIHON KEIZAI (Page 2) (Full) 
February 11, 2006 
 
Defense Agency Director General Fukushiro Nukaga met with US 
Deputy Under Secretary of Defense Lawless yesterday at the 
Defense Agency. In the meeting, Nukaga and Lawless, who is in 
charge of the planned realignment of US forces in Japan, 
discussed Japan's possible share in costs for relocating US 
Marines from Japan to Guam. "If we need to take legal measures or 
budget measures, then we will have to work out basic details 
immediately," Nukaga told Lawless. With this, Nukaga indicated 
that the Defense Agency would devise a new framework for its 
financial backing of US military redeployment overseas before 
March when the Japanese and US governments are scheduled to 
release their final report on the US military realignment. 
 
"Considering the political schedule, we will have to resolve the 
various problems in February, or it will be difficult to adhere 
to the schedule through this March," Nukaga noted. Lawless said, 
"We must not change the basic principles written in our joint 
document (interim report)." With this, the visiting Pentagon 
official warned that there could be no changes to the interim 
report's specifics, such as the relocation site of Futenma 
airfield. 
 
(4) US nuclear vessels make 1,200 port calls 
 
TOKYO 00000761  003 OF 011 
 
 
 
NIHON KEIZAI (Page 2) (Full) 
February 11, 2006 
 
Nuclear-powered US warships, including submarines and aircraft 
carriers, have made a total of about 1,200 port calls in Japan, 
Foreign Minister Taro Aso stated before the House of 
Representatives Budget Committee in its meeting yesterday. Aso 
stressed their safety, saying, "We've never had any abnormal 
radiation readouts." He was replying to a question asked by 
Tomoko Abe, a member of the opposition Social Democratic Party 
(SDP or Shaminto). 
 
(5) Government faced with three obstacles -- DFAA bid-rigging 
scandal, Iwakuni referendum, and stiffened Nago mayor's stance -- 
under US pressure for early realization of US force realignment 
 
TOKYO SHIMBUN (Page 2) ( Full) 
February 12, 2006 
 
More turbulence is expected for the government's efforts to 
coordinate views within the country for the planned US force 
realignment. The mayor of Nago, the relocation site for US 
Marines Futenma Air Station, has hardened his stance since his 
election in January. The municipal government of Iwakuni, 
Yamaguchi Prefecture, has decided to carry out a referendum on 
the propriety of transferring some 60 carrier-borne aircraft from 
Atsugi Naval Air Facility in Kanagawa Prefecture to Iwakuni Air 
Station in Yamaguchi. In addition, the Defense Facilities 
Administration Agency (DFAA), which has been playing a central 
role in making arrangements for the planned US force realignment, 
has become embroiled in a bid-rigging scandal. The government is 
now faced with three obstacles. 
 
To the government's relief, Yoshikazu Shimabukuro, who seemed 
willing to discuss the realignment issue with Tokyo, won the Nago 
mayoral election in January. But when senior Defense Agency and 
DFAA officials visited Nago earlier this month, a municipal 
government official curtly told them: "If you are not going to 
make any changes to the relocation plan, you don't have to come 
here anymore." 
 
Through bilateral talks last year, Japan and the United States 
decided to adopt a coastal plan, but it has drawn a backlash from 
Nago for fear of serious adverse effects on local residents. 
Shimabukuro is also reluctant to discuss the plan with the 
central government and Okinawa Prefecture. 
 
Shimabukuro called on ruling party executives in Tokyo on Feb. 9, 
but he did not visit the Foreign Ministry or the Defense Agency, 
suggesting a deep fissure between Nago and the central 
government. 
 
In addition, Iwakuni is scheduled to conduct a plebiscite on 
March 12 on US force realignment. 
 
Local residents are reacting fiercely to the plan to relocate 
carrier-based aircraft from Atsugi to Iwakuni, regarding it as a 
move to strengthen the functions of the Iwakuni base. 
 
With a view to producing a final report by the end of March, 
Tokyo and Washington are finalizing the US force realignment 
plan. If a majority of Iwakuni citizens were to vote against the 
 
TOKYO 00000761  004 OF 011 
 
 
relocation plan in the plebiscite, it would deal a serious blow 
to Japan-US talks. 
 
The government is also troubled by a bid-rigging scandal 
involving the DFAA, which has been serving an intermediary 
between the government and base-hosting localities. The scandal 
has undermined the credibility of the DFAA. It might also 
escalate into the resignation of Defense Agency Director General 
Fukushiro Nukaga or the punishment of DFAA officials, depending 
on how investigations proceed. A DFAA official noted, "The 
scandal may have spillover effects on personnel affairs of 
regional bureaus and thus may eventually have an impact on the 
government's effort to make arrangements with local areas." 
 
The government has been slow in holding talks with municipal 
governments. It has also been pressed by Washington to implement 
what had been agreed upon with the US. With Washington unwilling 
to make any changes to the framework despite strong calls from 
Japanese municipalities, Tokyo's headache is unlikely to go away. 
 
(6) US Under Secretary of Agriculture to visit Japan next week to 
submit BSE report 
 
YOMIURI (Page 2) (Full) 
February 11, 2006 
 
Japan has re-imposed a ban on US beef imports in the wake of the 
discovery of beef with vertebral material, designated as a 
specified risk material that could transmit BSE, in a shipment to 
Japan. In this connection, the US will submit to Japan mid-next 
week a report that spells out the result of its investigation of 
the cause and includes preventive measures. Under Secretary of 
Agriculture J. B. Penn and other officials are expected to visit 
Japan to brief Japanese officials on the contents of the report. 
The Japanese government will look into them and then ask the US 
to take specific measures to prevent any recurrence. 
 
(7) US to cut back on number of diplomats to Japan, US daily 
reports 
 
TOKYO SHIMBUN (Page 6) (Full) 
February 11, 2006 
 
The US Department of State is now taking a second look at the 
assignments of diplomats worldwide. According to the Feb. 10 
edition of the Washington Post, it will cut 61 posts, mainly in 
Russia and Japan. It will instead increase the number assigned to 
countries with a rising presence, such as China and India, and to 
countries with dispute-related fears, by 74. 
 
There will be increases of 15 to China, 12 to India, 5 to 
Indonesia, and 4 each to Bolivia and Venezuela. Diplomats to 
newly emerging countries, Latin America, Central Asia, and Middle 
Eastern countries that are making efforts for democratization are 
thus to be increased. 
 
The US, on the other hands, plans to cut the number of those to 
Russia by 10, to Germany by 7, and to Japan by 3. 
 
(8) US trade deficit with Japan reaches record high of 82.6 
billion dollars; Congress likely to intensify criticism 
 
NIHON KEIZAI (Page 7) (Full) 
 
TOKYO 00000761  005 OF 011 
 
 
February 11, 2006 
 
The US trade deficit with Japan in terms of goods marked a record 
high of 82.682 billion dollars (customs clearance basis) in 2005, 
setting a new record for the first time in five years. Though the 
US trade deficit with Japan has been overshadowed by its deficit 
with China, there has now appeared the possibility of US Congress 
turning a harsh eye to Japan. 
 
A major reason for the growing deficit with Japan is that 
Japanese car imports far exceed US auto exports to Japan. 
According to by-country trade statistics released by the 
Department of Commerce, deficits with Japan in auto and auto 
parts trade accounted for the largest portion, totaling 
approximately 50.6 billion yen. The Japan Automobile 
Manufacturers Association said that auto exports to the US in 
2005 reached 1.66 million units, up 6.6% over the previous year. 
 
General Motors and Ford are suffering financial difficulties. The 
prevailing view in the US government and Congress over this issue 
is, however, that they should solve their problems themselves. 
Since the US has given credit to Japanese automakers for 
contributing to the job market through expanded production in 
North America, the increased trade deficit with Japan will not 
directly lead to criticism of Japan. 
 
However, congressional sentiment toward Japan is swiftly becoming 
harsh following Japan's second ban on US beef imports. Some 
government officials take the view that there may be calls 
seeking protectionist measures against both Japan and China, as a 
senior Foreign Ministry official noted. 
 
(9) No progress in Japan-China dialogue, but the two nations 
confirm continuation of talks on gas field development, other 
issues 
 
NIHON KEIZAI (Page 2) (Full) 
February 12, 2006 
 
The Japanese and Chinese governments yesterday wound up a vice- 
ministerial-level policy dialogue, completing the two-day talks. 
On the issue of gas field development in the East China Sea, no 
specific progress emerged, with no response from China to Japan's 
proposal for joint development on both sides of the exclusive 
economic zone (EEZ). What was achieved is that both nations 
confirmed the continuation of working-level dialogue. 
 
The morning session held in Tokyo saw a business-like discussion. 
In the afternoon session, both the vice ministers moved to a hot- 
spring resort in Shibata City, Niigata Prefecture, and exchanged 
views in a casual fashion. Japan's Administrative Vice Foreign 
Minister Shotaro Yachi proposed a joint study of history in an 
effort to break the impasse in the currently strained Japan-China 
relations due to Prime Minister Junichiro Koizumi's continued 
visits to Yasukuni Shrine. 
 
His Chinese counterpart, Dai Bingguo, who looks at the prime 
minister's shrine visits as an issue concerning political 
principles, expressed a cautious view about the proposed joint 
study. There were no compromises, either, on Japan's bid for 
permanent membership on the United Nations Security Council and 
the suicide of a Japanese diplomat at the Shanghai Consulate 
General. 
 
TOKYO 00000761  006 OF 011 
 
 
 
Japan urged China to respond to holding a foreign ministerial 
meeting and resuming reciprocal visits by the two nations' 
leaders at an early date, but no clear-cut answer came from 
China. China instead asked for an explanation about Foreign 
Minister Taro Aso's remarks calling for the Emperor to visit 
Yasukuni Shrine. 
 
(10) Gov't to gear up pressure policy toward North Korea 
 
NIHON KEIZAI (Page 2) (Full) 
February 11, 2006 
 
The government will gear up its legal framework for pressure on 
North Korea since there was no progress in a recent 
intergovernmental dialogue between Japan and North Korea over the 
abduction of Japanese nationals. For the time being, the 
government will forego invoking economic sanction laws and will 
retain dialogue channels. However, the government will strengthen 
Japan's tough stance toward North Korea in order to urge that 
country to make concessions. 
 
"It's true that there is a plan within my office," Foreign 
Minister Taro Aso told a news conference yesterday. With this, 
Aso clarified that the Foreign Ministry has begun to study 
specific pressure measures. The Foreign Ministry's Asian and 
Oceanian Affairs Bureau Deputy Director General Kunio Umeda has 
also suggested the necessity of applying stronger pressure. 
"North Korea is concerned about public opinion in Japan," Umeda 
told an anti-abduction task force of the leading opposition 
Democratic Party of Japan (DPJ or Minshuto). 
 
Chief Cabinet Secretary Shinzo Abe has directed relevant 
government ministries and agencies to study specific measures. 
There are now plans being floated from within the government, 
such as: 1) hiking taxes on the pro-Pyongyang General Association 
of Korean Residents in Japan (Chongryun); 2) inspecting North 
Korean vessels even more strictly for safety; and 3) tightening 
controls over drug smuggling from North Korea. 
 
The ruling Liberal Democratic Party on Feb. 9 outlined a North 
Korea human rights bill. The bill's outline, created by an LDP 
team simulating economic sanctions against North Korea, requires 
the government to invoke economic sanctions against North Korea 
if the abduction issue sees no progress. In addition, the DPJ 
anti-abduction task force also confirmed yesterday that the DPJ 
would present a North Korea human rights violation relief bill 
again to the Diet during the current session, featuring relief 
measures for North Korean defectors. 
 
 (11) Japan-DPRK talks: North Korea demands for compensation for 
8.4 million Koreans forced to come to Japan and 200,000 military 
comfort women, ignoring Pyongyang Declaration 
 
SANKEI (Page 2) (Full) 
February 12, 2006 
 
In the recent parallel talks between Japan and North Korea, held 
in Beijing on Feb. 4-8, North Korea demanded, aside from economic 
cooperation, compensation from Japan for damage suffered by 8.4 
million Koreans forced to come to Japan, as well as 200,000 
military comfort women, thus indicating specific figures, the 
Sankei Shimbun revealed yesterday. The Japan-DPRK Pyongyang 
 
TOKYO 00000761  007 OF 011 
 
 
Declaration, signed in September 2002 by the Japanese and North 
Korean leaders, confirms that in the process of normalizing 
diplomatic ties, both countries will relinquish property rights 
and claims. Despite this, North Korea rocked Japan by ignoring 
the declaration. 
 
According to more than one source familiar with the negotiations, 
Japan's chief negotiator for diplomatic normalization, Koichi 
Haraguchi, offered a plan to settle past accounts relating to 
Japan's colonial rule of Korea via a package of economic 
cooperation measures. 
 
In response, North Korea Ambassador for Diplomatic Normalization 
Song Il Ho indicated that compensation for damage 8.4 million 
Koreans forced to come to Japan and 200,000 military comfort 
women had suffered should be paid separately from economic 
cooperation. 
 
Referring to North Korea's recent demand for compensation to 
Koreans forced to come to Japan and to military comfort women by 
citing unsubstantiated figures, a Japanese Foreign Ministry 
source commented: "Aren't they trying to check us and establish 
for themselves a more favorable position in the negotiations on 
economic cooperation?" 
 
Last August, the South Korean government declassified diplomatic 
files related to normalization of Japan-South Korea diplomatic 
ties, indicating that Japan has a legal responsibility for 
military comfort women, an issue excluded from the process of 
diplomatic normalization talks at the time. Citing the stance of 
South Korea, some are pointing out that North Korea's refusal in 
the recent parallel talks to settle past accounts via a package 
of economic cooperation measures might have been aimed at staying 
in line with public opinion in South Korea. 
 
A Japanese negotiating source responded by arguing that the 
number of victims provided by North Korea was not substantiated 
at all. According to this source, the burden of proof lies with 
the North Koreans, so if they indefinitely insist on 
(compensation) for Koreans forced to come to Japan and military 
comfort women, negotiations for diplomatic normalization will 
become impossible. 
 
Japan attended the recent parallel talks with North Korea, 
determining the Japan-DPRK Pyongyang Declaration agreed on by 
Prime Minister Junichiro Koizumi and General Secretary Kim Jong 
Il as an important political document to promote negotiations on 
such issues as the Japanese abductees, normalization of 
diplomatic relations, and nuclear and missile development. 
 
Following the revelation that North Korea declared it would end 
the moratorium on missile launches specified in the Pyongyang 
Declaration, many are beginning to speculate that the North is 
aiming to effectively invalidate the Pyongyang Declaration, 
though it has been Japan's guide so far. 
 
(12) Interview with political commentator Taro Yayama: Four 
points for considering Yasukuni issue 
 
SANKEI (Page 15) (Full) 
February 10, 2006 
 
Define principles for interpretation first 
 
TOKYO 00000761  008 OF 011 
 
 
 
The Yasukuni Shrine issue, which had been sealed off for 20 
years, gushed out in the wake of Prime Minister Junichiro 
Koizumi's visits to the shrine. (Japan's strained relations with 
China and South Korea over the issue) now seem unrecoverable, but 
the issue should not be left untouched forever. Taking advantage 
of the issue coming to the surface, Japan should define 
principles that could lead to a settlement of the issue. 
 
In considering the Yasukuni issue, we should focus our attention 
on these four points: (1) the propriety of Yasukuni enshrining 
class-A war criminals; (2) reactions from China and South Korea; 
(3) the separation of politics and religion; and (4) the 
possibility of creating a secular war memorial. 
 
Those responsible for causing World War II were designated as 
class-A war criminals under the Charter of the International 
Military Tribunal for the Far East, an ordinance laid out by the 
victor nations. But when the San Francisco Peace Treaty was 
signed in 1951, Justice Minister Takeo Ohashi stated: "They are 
not criminals under domestic law." When signing the treaty, Japan 
accepted the "judgments" under Article 11, and not the military 
tribunal itself. 
 
Because an international accord had been reached on this 
interpretation, a national movement took place calling on the 
government to release the war criminals after the San Francisco 
Peace Treaty was enforced in 1952, and a resolution calling for 
acquitting the war criminals was unanimously adopted in 1953. 
Some 40 million signatures, though Japan had a population of only 
70 million at that time, were collected. 
 
Of the seven who had been sentenced to life, Okinori Kaya became 
justice minister afterward, and Mamoru Shigemitsu, who had been 
sentenced to seven years imprisonment, served as United Nations 
ambassador and foreign minister. He was awarded the first class 
medal. Later, leftwing groups in the Japanese Communist Party and 
the Socialist Party began to bring up this issue, with a focus on 
historical views of the Tokyo Trials. Following this, a sense of 
guilt also began to be instilled in even conservative groups. 
 
In discussing the Yasukuni issue, some persons compare Prime 
Minister Hideki Tojo to Hitler, but both cases are utterly 
different. Hitler took action to eliminate the Jewish race from 
the earth, but Prime Minister Tojo performed his duty of 
conducting the war. Germans therefore called themselves the 
victims of Hitler, while 100 million Japanese all felt 
responsibility for the war.  Other countries regarded the class-A 
war criminals as sinners, but the ancient view of life and death 
in Japan is that after persons die, their crimes disappear and 
they turn into purified souls. In contrast, it is said to be 
common in China to speak ill of a dead person. Japan should not 
be drawn into such a world of deep-seated hatred. 
 
Other countries' interference 
 
The Asahi Shimbun takes the view that the Emperor has refrained 
from paying homage at Yasukuni Shrine because the shrine also 
houses class-A criminals. As said by Foreign Minister Aso, 
though, the reason is probably that Prime Minister Miki specified 
that his own shrine visit was made in the capacity of a private 
citizen. His remarks supposedly resulted in putting restraints on 
a visit by the Emperor, who holds an official position. The last 
 
TOKYO 00000761  009 OF 011 
 
 
imperial visit to Yasukuni Shrine was on Oct. 21, two months 
after Prime Minister Miki's private visit to the shrine (on Aug. 
15 1975). On the day prior to the Emperor's visit, the Socialist 
Party took up the issue, and that day, Prime Minister Miki said 
in his Diet reply: "The Emperor visited the shrine in the 
capacity of a private individual." Since this is a tortured 
interpretation of Article 20 in the Constitution, which 
stipulates the separation of politics and religion, the Emperor 
finds it difficult to pay homage at the shrine. 
 
With the aim of making the principle of separation of politics 
and religion definite, Yasuhiro Nakasone visited Yasukuni Shrine 
in his official capacity as prime minister on Aug. 15 in 1985. If 
this policy had been established, the way would have been paved 
for a visit by the Emperor. In the face of pressure from China, 
however, Nakasone forwent an official visit to the shrine on Aug. 
15 in 1986. Chief Cabinet Secretary Masaharu Gotoda issued the 
following statement on the previous day, August 14: 
 
"In part because Yasukuni Shrine enshrines class-A war criminals, 
(the prime minister's visit to the shrine) comes under fire from 
neighboring countries and might generate misunderstandings about 
Japan's determination to establish a peaceful and friendly 
relationship with them and even distrust in Japan." 
 
In an effort to resolve the difficult issue of separation of 
politics and religion, Prime Minister Nakasone essentially 
accepted the interference of neighboring countries in Japan's 
internal affairs and also mistakenly used the words "class-A war 
criminals," which the Japanese government has never recognized. 
Although the issue of class-A war criminals is very sensitive, 
Gotoda placed Yasukuni's enshrinement of these people in the same 
context as interference into Japan's domestic affairs from China 
and South Korea. 
 
Go back to the basics of treaty 
 
When diplomatic problems occur, the countries concerned should 
consider them while going back to the basics of the relevant 
treaty. The conclusion of a treaty represents the resolution of 
issues and sets a new starting line. Japan and China issued a 
joint statement in 1972 and concluded their Peace and Friendship 
Treaty in 1978. But Article 3 of this treaty provides for "peace, 
mutual benefits, and non-interference in the other side's 
domestic affairs." When the treaty was signed, there was no 
reference at all to the International Military Tribunal or the 
judgments. 
 
China has no right to refer to the (Yasukuni) issue, but it has 
brought it up in an attempt to manipulate Japanese political and 
business circles, as well as the mass media. This is tantamount 
to interference in another country's domestic affairs. Some 
persons in political and business circles have echoed China's 
view. I wonder if such persons are unaware that China is using 
them. The creation of a national secular war memorial would only 
convince the Chinese that they succeeded in having Japanese 
people give in to pressure. 
 
(13) ODA reform: Do not allow efforts to end as mere show 
 
ASAHI (Page 3) (Full) 
February 10, 2006 
 
 
TOKYO 00000761  010 OF 011 
 
 
The Study Council on Overseas Economic Cooperation, a panel 
tasked with considering the proper form of the official 
development assistance (ODA) system, is now discussing who should 
set the government's ODA strategy and which organization should 
implement it. The panel is a private advisory council reporting 
to Chief Cabinet Secretary Abe. It is expected to compile a draft 
possibly at the end of this month. 
 
Panel members have floated a reform plan after repeated 
discussions. According to that, a cabinet-minister-level council 
will be newly established in order to strengthen ODA control. The 
Ministry of Foreign Affairs (MOFA) will be in charge of planning 
specific projects. An implementing organization will be 
established, by integrating the Japan International Cooperation 
Agency (JICA) and the Japan Bank for International Cooperation 
(JBIC). However, what we want the panel to do first is to discuss 
how Japan can drastically reform the ODA system, keeping problems 
with it in mind. 
 
In reforming the ODA system, it is necessary to address such 
issues as creating an entity that can harmonize two aspects of 
ODA -- the implementation of humanitarianism and the pursuit of 
national interests -- in actually providing aid to developing 
countries. At the same time, aid-implementing organizations 
should be streamlined, because two separate organizations are 
currently separately providing aid because of bureaucratic 
sectionalism: the Finance Ministry has jurisdiction over JBIC and 
MOFA over JICA. 
 
To address this issue, the envisaged ODA strategy council, which 
is to act as a control tower, should involve people from private 
companies and nongovernmental organizations who have rich 
experience in overseas activities, in order to make use of their 
resourcefulness. Japan's ODA will be left behind in the global 
trend for aid to developing countries if it adopts an approach of 
having only a limited number of cabinet ministers direct the 
endeavor out of the need to guard diplomatic secrets. 
 
The proposal for integrating JICA and JBIC as an ODA implementing 
organization is a breakthrough. However, efficiency and fairness 
cannot be ensured unless the new entity covers grant aid 
cooperation that now involves 13 agencies, centered on MOFA. It 
is more effective to provide aid to developing countries by 
combining yen loans, grant aid, and technical cooperation. This 
method can also eliminate waste stemming from bureaucratic 
sectionalism. 
 
MOFA said that it would look into the possibility of transferring 
grant aid cooperation under its jurisdiction to the planned 
implementing organization. In order to unify the organizations, 
the panel should propose the integration of grant aid cooperation 
functions under the jurisdiction of other agencies as well. 
 
ODA reform efforts will end up as a mere show if an insular 
control mechanism is established over existing implementing 
organizations, which are attached to government offices. 
 
JBIC has an international financing section for trade finance and 
a loan system for the development of natural resources, as well 
as a yen loans function. These functions may be necessary. But 
they can be maintained, by transferring an export L/C issuance 
function to Nippon Export and Investment Insurance, an 
independent administrative agency, and aid for the development of 
 
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natural resources to the Japan Oil, Gas, and Metals National 
Corporation, an independent administrative agency, or they can be 
placed under the jurisdiction of a government-affiliated 
financial institution to be created anew. 
 
From an international perspective, it is better to separate yen 
loans, which are aid, from international finance, which is aid 
for business operations, because placing the two functions under 
a single entity could lead to a misunderstanding that Japan is 
using aid for business. 
 
We want the panel to draft a reform plan from an overall 
perspective so that Japan's ODA can reflect the nation's ideals 
and national interests. 
 
SCHIEFFER