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FM AMEMBASSY TOKYO
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RUEAWJA/USDOJ WASHDC PRIORITY
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RUAYJAA/COMPATWING ONE KAMI SEYA JA
RUEHNH/AMCONSUL NAHA 6824
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RUEHBJ/AMEMBASSY BEIJING 0151
RUEHUL/AMEMBASSY SEOUL 6336
RUCNDT/USMISSION USUN NEW YORK 8484

UNCLAS SECTION 01 OF 07 TOKYO 000380 
 
SIPDIS 
 
SIPDIS 
 
DEPT FOR E, P, EB, EAP/J, EAP/P, EAP/PD, PA; 
WHITE HOUSE/NSC/NEC; JUSTICE FOR STU CHEMTOB IN ANTI-TRUST 
DIVISION; TREASURY/OASIA/IMI/JAPAN; DEPT PASS USTR/PUBLIC AFFAIRS 
OFFICE; SECDEF FOR JCS-J-5/JAPAN, 
DASD/ISA/EAPR/JAPAN; DEPT PASS ELECTRONICALLY TO USDA 
FAS/ITP FOR SCHROETER; PACOM HONOLULU FOR PUBLIC DIPLOMACY 
ADVISOR; CINCPAC FLT/PA/ COMNAVFORJAPAN/PA. 
 
E.O. 12958: N/A 
TAGS: OIIP KMDR KPAO PGOV PINR ECON ELAB JA
 
SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 01//06 
Part-2 
Index: 
 
 
11) USDA Penn's comparing auto accidents to beef safety rubs 
consumers the wrong way 
 
12) Minshuto head Maehara protests US beef incident in meeting 
with USDA's Penn 
 
13) Japanese food industry, supermarkets stuck with stocks of un- 
sellable beef, seek to return it to US 
 
14) Prime Minister's Diet replies on beef, USFJ realignment, 
diplomacy, Constitution, and ODA 
 
15) Prime Minister Koizumi denies responsibility for backing 
candidate in last election who was arrested for stock scams 
 
16) Prime Minister Koizumi corrects earlier statement about 
responsibility for backing arrested Livedoor president in last 
year's election 
 
17) Opposition's Maehara attacks Minister Takenaka for 
campaigning last year on behalf of Livedoor President Horie, now 
under arrest for stock scams 
 
18) LDP planning to crack down on stock market loopholes leading 
to scams 
 
19) JDA official responsible for USFJ realignment negotiations 
suddenly transferred from post 
 
20) New Naha DFAB chief Sato will tackle USFJ realignment 
coordination 
 
Articles: 
 
11) "BSE risk lower than getting into an auto accident", says US 
Under Secretary of Agriculture Penn, but remark rubs consumers 
wrong way 
 
YOMIURI (Page 2) (Full) 
January 25, 2006 
 
US Under Secretary of Agriculture J.B. Penn, who is in Japan for 
bureau-chief level talks on the issue of the ban on US beef 
imports, made this remark during a press conference at the US 
Embassy: "The risk of catching BSE is far lower than getting into 
an auto accident. I believe that Japanese consumers will make the 
right decision." 
 
Just at the time when sloppy handling of exports of beef with 
attached backbones, a specified risk material, was discovered, 
Under Secretary Penn in his briefing compared BSE to the risk of 
an auto accident, which has nothing to do with food safety. His 
remark is likely to provoke a strong reaction from Japanese 
consumers, whose sensitivities have been rubbed the wrong way. 
 
In the press briefing, Penn said: "I hear that Japan has already 
discovered 22 cows with BSE. There have only been two found in 
the US," explaining that the incidents of infected cattle in the 
US was much less than that in Japan. He stressed the safety of US 
beef by saying, "Although Americans consume a huge volume of 
 
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beef, there have been no incidents of harm to their health." 
 
12) Minshuto Maehara protests to US Under Secretary of 
Agriculture over beef issue 
 
NIHON KEIZAI (Page 2) (Full) 
January 25, 2006 
 
Minshuto (Democratic Party of Japan) head Seiji Maehara met with 
US Under Secretary of Agriculture Penn at party headquarters 
yesterday and criticized the mixture of specified risk materials 
in a US beef shipment as "betraying Japanese people's confidence 
(in US beef)." 
 
13) Food industry annoyed with un-sellable stocks of beef, 
following re-imposition of ban on US beef imports 
 
MAINICHI (Page 8) (Slightly abridged) 
January 25, 2006 
 
Following Japan's re-imposition of a ban on the import of US 
beef, supermarket chains and food processers have been 
overwhelmed with over-stocked US beef. Amid growing distrust 
among consumers, they find it extremely difficult to sell it 
under the current situation. 
 
Supermarkets 
 
CGC Japan Co. (Shinjuku-ku, Tokyo), a cooperative buying company 
joined by 217 supermarket chains and other companies, signed 
contracts with US food processors that have a process line used 
exclusively for cattle bound for Japan, The company has already 
imported about 13 tons of beef and also planned to import about 
13 tons weekly to put such beef on shelves at 25 supermarkets, 
some of which had put on sale on a trial basis. But the company 
retrieved all their inventories. A company member expressed 
concern of consumers turning away from US beef, saying: "Even if 
the ban is lifted, consumers' psychological hurdle is now high." 
 
Marunaka, a food supermarket chain operating 114 outlets in 
Takamatsu and other cities, resumed the sale of US beef starting 
on Dec. 26. The company received 6 tons of US beef late last year 
and 8 tons early this year. Imported beef was in great demand. 
But the product was removed from the shelves on Jan. 21, the day 
after the government's decision to embargo US beef. 
 
Processors 
 
Since Japan lifted its ban on US beef imports last December, 
Nippon Meat Packers Inc. has purchased 70-80 tons of beef from 
the US, some of which it has already delivered to its clients. 
The company is now perplexed, an executive grumbling: "There is 
no way but to wait an instruction from the government." Itoham 
Foods Inc. has purchased 1 ton for testing sale, but a sales 
representative regrettably said: "We will have to dump it." 
 
Beef barbecue restaurants 
 
Zenshoku, a chain operator of about 70 beef barbecue restaurants 
in the Kanto and Kansai districts, is now engaged in negotiations 
 
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so that the 2 tons of imported beef it has purchased will be 
taken back by the US through an importing agent. A spokesman of 
the National Beef Barbecue Restaurant Association joined by 1,500 
restaurants across the nation apparently expressed his anger at 
the US blunder, saying: "The issue concerns the safety and 
security of food. The US must be more serious." 
 
14) Prime Minister Koizumi's answers to questions at plenary 
sessions of both houses 
 
MAINICHI (Page 10) (Excerpts) 
January 25, 2006 
 
The following are main points from Prime Minister Junichiro 
Koizumi's answers to questions posed by each party representative 
at the question-and-answer sessions yesterday of both Diet 
chambers. 
 
US beef issue 
 
We decided on the resumption of US beef imports based on a report 
compiled by the Food Safety Commission after conducting 
exhaustive discussions from the scientific point of view and 
hearing public views. The criticism that the decision was made 
with priority given to Japan-US relations is not true. In order 
to prevent a recurrence of similar incidents as well as to ensure 
the people's food safety and reassure them, we have asked the 
United States to investigate into the cause of the incident and 
take preventive measures against a recurrence. 
 
Realignment of US forces in Japan 
 
On the relocation cost from Japan to Guam, no specific measures 
have yet been decided at this point in time. But in terms of 
maintaining a deterrent force as well as reducing the base burden 
on base-hosting municipalities, I hope to see personnel based at 
the US Marine Corps headquarters in Okinawa transferred to Guam 
as swiftly as possible. To this end, I intend to examine 
financial and other measures in cooperation with the US 
government. 
 
Asia diplomacy 
 
In relations with South Korea, we have been conducting the joint 
research on history in an effort to promote mutual understanding 
about historical facts and perceptions. In relations with China, 
as well, we have been discussing a plan for joint studies of 
history. I will continue my effort to enhance exchanges with 
(South Korea) so as to build a future-oriented relationship based 
on mutual understanding and confidence. 
 
As for relations with China, there are the differences of views 
and clashes over some issues, but from a broad perspective, I 
will strengthen cooperation with that country in order to build a 
future-oriented relationship. I have from the start until now 
indicated that I am ready to meet the top leader of that country 
at anytime. It is strange, from a common-sense viewpoint, that 
that country is reluctant to hold a summit meeting because of 
some issues. 
 
 
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Regarding the suicide of a diplomat at the Consulate in Shanghai, 
following the news reports on the incident, I received reports 
describing the outline of the incident and our country's 
responses through the secretary and other officials. As a result 
of the investigation, it has been confirmed that there were no 
signs of leakage of confidential information. I will take all 
possible measures for the system for preservation of 
confidentiality at our diplomatic missions abroad. 
 
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Prime minister's visits to Yasukuni Shrine 
 
I have paid homage at Yasukuni Shrine so as to pay respect and 
gratitude to all the war dead who in our country's history since 
the Meiji Restoration, died for the nation against their will, as 
well as out of the feeling that we must not fight a war again. 
 
The construction cost for a new memorial facility (for the war 
dead) was not earmarked in the fiscal 2006, but I am looking 
forward to a heated discussion on a plan for the construction of 
such a facility. 
 
I know a variety of views exist in the US. But I have never 
received criticism of my shrine visits from President Bush. I 
think the US government has understood the true meaning of my 
shrine visits. I will make efforts to get other countries' 
understanding toward my shrine visits. 
 
Constitutional revision 
 
Pacifism is the basic philosophy of our Constitution. We must 
firmly maintain it in the future, as well. There are various 
arguments over Article 9 of the Constitution and the existence of 
the Self-Defense Forces (SDF). But it is becoming international 
understanding that based on pacifism, our country has played an 
active part for the peace of the international community as well 
as for the securing of security. On constitutional revision, my 
party, Liberal Democratic Party drafted revisions to the 
Constitution last November. Discussions of constitutional 
revisions are going on at each party as well as in the Diet. 
Through these discussions, I hope to see a national debate 
enlivened and deepened on the question of what is an appropriate 
Constitution in the new age. 
 
ODA reform 
 
International confidence and appreciation of our country stem 
from our contributions of official development assistance (ODA) 
to the international community. It is highly important to offer 
aid in a visible manner. I will endeavor to get a deep 
understanding about the meaning and importance of ODA on a 
bilateral basis. I take your question as hinting that strategic 
thinking is more necessary than ever in examining how to offer 
ODA. I, too, agree with your indication that it is critically 
important to provide assistance effectively by enhancing the 
efficiency of ODA through cost reduction and also using non- 
governmental organizations more often. 
 
15) Prime Minister Koizumi: I don't mind the criticism; Denies 
LDP president's responsibility for supporting suspect Horie in 
Lower House election 
 
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TOKYO SHIMBUN (Page 1) (Full) 
January 25, 2006 
 
When asked by reporters about his view on the question of whether 
the Liberal Democratic Party (LDP) should bear responsibility for 
supporting former Livedoor Co. President Takafumi Horie, who has 
been arrested on suspicion of violating the Securities and 
Exchange Law, Prime Minister Junichiro Koizumi stated yesterday 
evening: "It is difficult to know all personalities of a person. 
I don't mind the criticism of my view." 
 
Koizumi, however, denied again the view that he should take 
responsibility as LDP president. He stated, "I believe that the 
arrest of (suspect Horie) and the Koizumi reform drive are two 
separate matters." 
 
He also said to the press corps: 
 
"What about the fact that media treated him like a hero of the 
times? (Suspect Horie) ran the election as an independent 
candidate and he was not elected. Don't you think the voters were 
calmer than the media?" 
 
16) Prime Minister Koizumi says, "I bear criticism" for 
supporting Horie, correcting his earlier remarks 
 
YOMIURI (Page 2) (Full) 
January 25, 2006 
 
Asked by reporters about the fact that his ruling Liberal 
Democratic Party (LDP) supported former Livedoor Co. President 
Takafumi Horie in last fall's House of Representatives election, 
Prime Minister Junichiro Koizumi stated yesterday: "It is 
difficult to find out whether a candidate has problems or not. I 
will bear criticism if some say what I said was unclear." Koizumi 
had insisted that the LDP bears no moral responsibility, saying, 
"The (scandal) and support of Mr. Horie by senior LDP members are 
separate matters." He, however, corrected his earlier remarks in 
consideration of the growing criticism of the LDP leadership. 
 
Koizumi also stated: "What about the media that treated (suspect 
Horie) as a hero of the times? Minshuto (Democratic Party of 
Japan) candidates, who won Lower House seats, engaged in 
misconduct. One of the party's newcomers was arrested for 
possessing stimulant drugs. I think the arrest of (Horie) and the 
Koizumi reform drive are separate matters." He then denied the 
view that the Horie scandal would adversely affect on the Koizumi 
reform initiative, which places emphasis on a market-driven 
economy. 
 
17) Minshuto to attack Takenaka at Diet session 
 
MAINICHI (Page 5) (Full) 
January 25, 2006 
 
The ruling Liberal Democratic Party (LDP) is now trying to have 
Secretary General Tsutomu Takebe alone take responsibility for 
 
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its support of Takafumi Horie, who has been arrested, in last 
year's House Representatives general election. The main 
 
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opposition party Minshuto (Democratic Party of Japan), therefore, 
intends to pursue thoroughly the LDP's relationship with Horie, 
claiming that they were united as one, while grilling Heizo 
Takenaka, internal affairs and communications minister, at 
question-and-answer sessions regarding a supplementary budget 
bill, which will begin tomorrow. Minshuto sees favorably the 
LDP's decision to take countermeasures against its head Seiji 
Maehara, who recently described the LDP's landslide victory as 
"window-dressing." 
 
Minshuto's taskforce on the Livedoor scandal held its first 
meeting yesterday and the panel decided to grill Prime Minister 
Junichiro Koizumi, Takenaka, Chief Cabinet Secretary Shinzo Abe, 
who was acting secretary general at the time, and Takebe, who 
supported suspect Horie in last September Lower House election, 
at Lower House Budget committee session, which will start on Jan. 
26 and other occasions. 
 
In an attempt to link the scandal not only to the issue of LDP's 
support of Horie but also to "criticism of the Koizumi reform 
drive," the largest opposition party intends to target its attack 
on Takenaka. Maehara stated at a press conference yesterday: 
 
"Mr. Takenaka has played a leading role in stock affairs, 
including liberalization of the securities market, since he was 
minister in charged of financial affairs. Distortion in his 
policy led to the scandal this time." 
 
Maehara indicated the perception that the Livedoor scandal is a 
distortion of the Takenaka policy line. 
 
18) LDP to hurriedly strengthen market-monitoring system 
 
NIHON KEIZAI (Page 2) (Excerpts) 
January 25, 2006 
 
The Liberal Democratic Party (LDP) will hold a meeting of the 
Corporate Governance Committee today to discuss specific measures 
to prevent a recurrence of the Livedoor incident and to 
strengthen the nation's market-monitoring system. The party is 
planning to increase the number of members of the Securities and 
Exchange Surveillance Commission (SESC) and to introduce 
regulations on investment liability partnerships offering bond 
issues privately. 
 
Secretary General Tsutomu Takebe said in an executive liaison 
 
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meeting yesterday: "We should make utmost efforts to set up a 
necessary system to make the market fair and transparent." He 
thus indicated that the task of significantly strengthening the 
function of the surveillance commission would be put on the 
agenda. 
 
In today's meeting, discussion was conducted on whether there are 
not defects in the rules on merger and acquisition (M&A), as well 
as on measures to increase the number of SESC members and future 
options for the monitoring section of the Tokyo Stock Exchange. 
 
The Financial Research Commission will also hold a meeting on 
Jan. 27 to work out regulatory measures for investment liability 
partnerships. 
 
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19) Defense policy bureau deputy chief to be replaced 
 
MAINICHI (Page 2) (Full) 
January 25, 2006 
 
The Defense Agency yesterday announced informally that it would 
transfer Defense Policy Bureau Deputy Director General Chisato 
Yamauchi to the post of National Defense Medical College vice 
president. Yamauchi has been in charge of negotiations with the 
US government over the realignment of US forces in Japan. The 
transfer is seen as a de facto personnel replacement action. 
Press Secretary Hironori Kanazawa will be Sato's successor. 
 
Defense Agency Director General Fukushiro Nukaga had once made up 
his mind to appoint Yamauchi to the post of Defense Facilities 
Administration Agency Naha bureau director general in order to 
push ahead with coordination with US forces and local governments 
hosting US military bases. However, Nukaga took back the decision 
because there is strong dissatisfaction among Defense Agency 
officials over Yamauchi's way of negotiating and communicating. 
 
20) Sato to become DFAA Naha bureau chief 
 
ASAHI (Page 4) (Full) 
January 25, 2006 
 
Tsutomu Sato, a facilities investigation officer of the Defense 
 
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Facilities Administration Agency, will be appointed to the post 
of DFAA Naha bureau director general as the successor to the 
incumbent, Masanori Nishi, officials said yesterday. His 
appointment will shortly be announced. The Japanese and US 
governments are expected to release a final report in March on 
the planned realignment of US forces. With this timetable 
scheduled ahead, the Defense Agency will enter into full-fledged 
coordination with local governments hosting US military bases. 
Sato is a noncareer official and once was long assigned to the 
DFAA Naha bureau. Sato also has a large network of contacts in 
Okinawa Prefecture. The agency therefore judged that he is 
competent enough and is the right person for the post, according 
to a senior official of the agency. 
 
SCHIEFFER