VZCZCXRO0348
PP RUEHFK RUEHKSO RUEHNAG RUEHNH
DE RUEHKO #0864/01 0480114
ZNR UUUUU ZZH
P 170114Z FEB 06
FM AMEMBASSY TOKYO
TO RUEHC/SECSTATE WASHDC PRIORITY 8766
INFO RUEKJCS/SECDEF WASHDC PRIORITY
RHEHAAA/THE WHITE HOUSE WASHINGTON DC PRIORITY
RUEAWJA/USDOJ WASHDC PRIORITY
RULSDMK/USDOT WASHDC PRIORITY
RUCPDOC/USDOC WASHDC PRIORITY
RUEAIIA/CIA WASHDC PRIORITY
RUEKJCS/JOINT STAFF WASHDC//J5//
RHHMUNA/HQ USPACOM HONOLULU HI
RHHMHBA/COMPACFLT PEARL HARBOR HI
RHMFIUU/HQ PACAF HICKAM AFB HI//CC/PA//
RHMFIUU/COMUSJAPAN YOKOTA AB JA//J5/JO21//
RUYNAAC/COMNAVFORJAPAN YOKOSUKA JA
RUAYJAA/COMPATWING ONE KAMI SEYA JA
RUEHNH/AMCONSUL NAHA 7320
RUEHFK/AMCONSUL FUKUOKA 4674
RUEHOK/AMCONSUL OSAKA KOBE 7761
RUEHNAG/AMCONSUL NAGOYA 4744
RUEHKSO/AMCONSUL SAPPORO 5873
RUEHBJ/AMEMBASSY BEIJING 0658
RUEHUL/AMEMBASSY SEOUL 6852
RUCNDT/USMISSION USUN NEW YORK 8901

UNCLAS SECTION 01 OF 13 TOKYO 000864 
 
SIPDIS 
 
SIPDIS 
 
DEPT FOR E, P, EB, EAP/J, EAP/P, EAP/PD, PA; 
WHITE HOUSE/NSC/NEC; JUSTICE FOR STU CHEMTOB IN ANTI-TRUST 
DIVISION; TREASURY/OASIA/IMI/JAPAN; DEPT PASS USTR/PUBLIC AFFAIRS 
OFFICE; SECDEF FOR JCS-J-5/JAPAN, 
DASD/ISA/EAPR/JAPAN; DEPT PASS ELECTRONICALLY TO USDA 
FAS/ITP FOR SCHROETER; PACOM HONOLULU FOR PUBLIC DIPLOMACY 
ADVISOR; CINCPAC FLT/PA/ COMNAVFORJAPAN/PA. 
 
E.O. 12958: N/A 
TAGS: OIIP KMDR KPAO PGOV PINR ECON ELAB JA
 
SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 02/17/06 
 
 
Index: 
 
1)   Top headlines 
2)   Editorials 
3)   Prime Minister's daily schedule 
 
4)   Prime Minister Koizumi positive about accepting President 
  Bush's invitation to visit US, relayed by Ambassador Schieffer 
 
Diet uproar: 
5)   Furor in Diet over Minshuto allegation that LDP Secretary 
  General Takebe's son took 30 million yen last August from 
  Livedoor's Horie, now under arrest 
6)   Prime Minister calls the charges against Takebe's son a sham 
7)   Livedoor money poured into company at one time from Swiss 
holdings 
8)   Opposition plans all out attack in Diet today on allegations 
against Takebe's son of taking Horie money 
9)   Abe, Aso in yesterday's day are cautious in replying to 
questions about war responsibility 
 
China policy: 
10)  Foreign Ministry to establish in April a China strategy body 
11)  Minshuto (Democratic Party of Japan) struggling internally 
to coordinate a unified China policy, given party head Maehara's 
labeling China a threat 
 
12)  Government, ruling parties want tough line toward North 
  Korea but Koizumi would cut it some slack 
 
Defense issues: 
13)  GSDF in final coordination of withdrawal from Iraq starting 
  next month 
14)  Japanese troops desire to withdraw from Iraq before new 
administration there fully in place 
15)  Okinawa LDP lawmakers object to US-Japan agreement on Henoko 
relocation plan 
 
16)  Plan to cut public works in terms of GDP to levels in US, 
  Europe 
 
17)  US removes approval to one beef export company that failed 
  to meet standard for shipping to Japan 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi: 
Employees of general contractors tell prosecutors Defense 
Facilities Administration Agency official leaked project price 
over runway construction at US Iwakuni base 
 
Mainichi: 
Former DFAA officials admit agency changed methods to facilitate 
bid-rigging ahead of 2002 law 
 
Yomiuri: 
Shoddy construction of highway in Toyama Prefecture; smaller-than- 
normal piles built to support two piers of the expressway bridge 
 
Nihon Keizai: 
 
TOKYO 00000864  002 OF 013 
 
 
Finance Ministry mulling GDP-based target to slash public works 
spending 
 
Sankei: 
Classified government document reveals government's informal 
panel proposed two years ago that females and their descendants 
be allowed to ascend to the Chrysanthemum Throne 
 
Tokyo Shimbun: 
Livedoor Co. sent 12 billion yen from account in another person's 
name at bank in Switzerland to its affiliate's account at major 
bank in Japan the day it was raided 
 
2) EDITORIALS 
 
Asahi: 
(1)  Government should provide peaceful life for Japanese women 
left behind in China as children during the war 
(2)  Challenge of FRB Chairman Bernake 
 
Mainichi: 
(1)  SDF mission in Samawah should be pulled out before summer 
(2)  Kobe Airport is not just a business model for airport 
construction 
 
Yomiuri: 
(1)  Government must come up with strategy for maritime policy 
(2)  Is latest export scandal tied to nuclear black market? 
 
Nihon Keizai: 
(1)  New FRB chairman stresses "continuity" of monetary policy 
(2)  Internet providers should not forget free and open Internet 
principle 
 
Sankei: 
(1)  National debate should be begun with clean state on the 
question of whether to revise the Imperial House Law 
(2)  China's Internet restrictions: We see information censorship 
 
Tokyo Shimbun: 
(1)  Solicitation for unlisted shares: We should be careful about 
such 
(2)  Revival of Nihonbashi: Let's have dream to build a new 
Nihonbashi 
 
3) Prime Minister's Official Residence (Kantei) 
 
Prime Minister's schedule, February 16 
 
NIHON KEIZAI (Page 2)  (Full) 
February 17, 2006 
 
10:01 
Arrived at the Prime Minister's Official Residence (Kantei). 
 
14:05 
Met with LDP Public Relations Headquarters Chairman Kimura and 
Public Relations Division chief Ishizaki. Then met with American 
Ambassador to Japan Schieffer. 
 
15:15 
Met with LDP Secretary General Takebe. 
 
TOKYO 00000864  003 OF 013 
 
 
 
16:04 
Met with Deputy Chief Cabinet Secretary Futahashi. 
 
17:26 
Met with State Minister in charge of Economic, Fiscal, and 
Financial Policy Yosano. 
 
18:31 
Met with five LDP senior officers, including Takebe, and members 
of the Executive Council at Hotel Okura. Chief Cabinet Secretary 
Abe was present. 
 
19:57 
Arrived at official residence. 
 
4) Koizumi willing to visit US 
 
TOKYO SHIMBUN (Page 2) (Full) 
February 17, 2006 
 
Prime Minister Koizumi met with US Ambassador to Japan Schieffer 
at his office yesterday afternoon. In the meeting, Schieffer 
invited Koizumi to visit the United States. "I'd like to, if 
circumstances permit," Koizumi told reporters yesterday evening. 
"I appreciate it," he added. With this, the premier was willing 
to visit the United States before he steps down in September. He 
avoided clarifying when to visit the United States because of 
parliamentary schedules and other circumstances. 
 
In the meeting, they did not talk about US military realignment 
issues, such as the relocation of Futenma airfield, or the issue 
of resuming US beef imports. 
 
5) On alleged transfer of money by Horie to Takebe's son, 
Minshuto member releases no copy of e-mail in question but 
indicates confidence of authenticity 
 
MAINICHI (Page 2) (Excerpts) 
February 18, 2006 
 
In a House of Representatives Budget Committee meeting on Feb. 
16, Democratic Party of Japan (Minshuto) member Hisayasu Nagata 
said: "Former Livedoor President Takafumi Horie, 33, instructed a 
company employee last August to transfer 30 million yen to the 
second son of Liberal Democratic Party Secretary General Tsutomu 
Takebe." The instruction was given by e-mail, according to 
Nagata. He claimed that he had a copy of the e-mail in question. 
If the allegation is proved true, the issue will unavoidably have 
a great effect on whether Takebe would have to resign. As of now, 
Nagata has not released the copy of the e-mail itself, citing the 
need to protect the identity of the information source. Over the 
authenticity of the e-mail, heated debate is going on between the 
ruling and opposition parties in the Diet. 
 
In pursuing this issue, Minshuto has focused its attention on the 
linkage of Takebe's support of independent candidate Horie, who 
has been indicted for a violation of the Security and Exchange 
Law, in the Lower House election last year to the alleged 
transfer of 30 million yen to Takebe's second son. The e-mail, 
according to Nagata, also said that the 30 million yen should be 
listed in the company's account book as "consulting fee for 
 
TOKYO 00000864  004 OF 013 
 
 
election campaigning." 
 
However, it has yet to be fully confirmed whether the e-mail 
actually contained Horie's instruction. Although Nagata has not 
released any material evidence, Nagata is confident about the 
authenticity of the information. 
 
Nagata released to reporters a reproduction of the e-mail's 
contents that include neither the e-mail address nor the sender. 
Nagata said that "the e-mail was sent out at 15:21,35 on Aug. 26 
in 2005," adding that he has confirmed who had sent the e-mail 
and who had received it. 
 
Nagata read in the meeting on Feb. 16 the following contents of 
the e-mail from Horie: 
 
Make arrangements to transfer 30 million yen into a bank account 
(the same account as in the previous case) for Mr. A (the name of 
Takebe's second son) by Aug. 29, if possible, but by Aug. 31 at 
the latest. 
 
The money should be listed in the company's account book as 
"consulting fee for campaigning." 
 
Mr. B, ask for Mr. Miyauchi's instruction. I will convey this to 
Mr. C. 
 
Horie 
 
Takebe's second son remains mum on alleged recipient of Horie 
money 
 
Although the Mainichi Shimbun has asked the second son of Liberal 
Democratic Party Secretary General Tsutomu Takebe to respond to 
its interview three times since Jan. 25, he remains unresponsive. 
On Feb. 16, about 20 reporters swarmed in front of the 
condominium that houses the company "Lifelong" operated by the 
son of Takebe, located in Minami-Aoyama, Tokyo. A male staff 
member told reporters: "He is now in Europe on business. He will 
not be back until next week." 
 
Takebe office: There is no transfer record in account 
 
Members of Liberal Democratic Party (LDP) Secretary General 
Tsutomu Takebe's office yesterday explained that although they 
 
SIPDIS 
checked the bank accounts related to Takebe's second son, they 
found no record of transfer from former Livedoor President 
Takafumi Horie. Takebe intends to present the LDP president of 
the House of Representatives Budget Committee with the records of 
the bank accounts and refute the Democratic Party of Japan's 
allegation. 
 
Tokyo prosecutors' office issues unprecedented comment: "We 
haven't gotten facts" 
 
On the allegation that the second son of Liberal Democratic Party 
Secretary General Tsutomu Takebe would have received money from 
 
SIPDIS 
former Livedoor President Takafumi Horie, Tetsuo Ito, assistant 
public prosecutor of the Tokyo District Public Prosecutors 
Office, issued a written comment yesterday noting: "Regarding the 
question of whether the e-mail in question actually exists and 
what was pointed out is true, our office has not received any 
 
TOKYO 00000864  005 OF 013 
 
 
facts." It is unprecedented for prosecutors' office to issue this 
kind of comment while an investigation still going on. 
 
6) Prime Minister Koizumi: Allegation that LDP's Takebe's son 
received 30 million yen from Livedoor "is false information" 
 
TOKYO SHIMBUN (Page 1) (Full) 
February 17, 2006 
 
At a House of Representatives Budget Committee session yesterday, 
a lawmaker from the main opposition party Minshuto (Democratic 
Party of Japan) revealed that former Livedoor President Takafumi 
Horie instructed his subordinate to transfer 30 million yen as a 
consulting fee to the bank account of the second son of Liberal 
Democratic Party (LDP) Secretary General Tsutomu Takebe. With 
this regard, Prime Minister Junichiro Koizumi last night told 
reporters at the Prime Minister's Official Residence, "I think 
it's wrong to bring a groundless matter to a committee session." 
 
Koizumi met yesterday afternoon with Takebe at his office. In the 
meeting, Takebe told the prime minister: 
 
"What a Minshuto member pointed out was totally groundless. I 
cannot understand why the Minshuto lawmaker brought up a complete 
fabrication. Time will tell that what he pointed out was 
groundless." 
 
7) Livedoor Co. when searched sent 12 billion yen from account in 
another person's name at foreign bank to Livedoor-affiliated 
account at major bank in Japan 
 
TOKYO SHIMBUN (Top Play) (Lead Para.) 
February 17, 2006 
 
It has been learned that Livedoor Corp. sent about 12 billion yen 
from its account in another person's name at a bank in 
Switzerland to its affiliate's account at a leading Japanese bank 
on Jan. 16 when the company was searched by the special 
investigation squad of the Tokyo Public Prosecutors Office on 
suspicion of violating the Securities and Exchange Law. The 
existence of the account in another person's of the Swiss bank 
has been known since it was used by former Livedoor President 
Takafumi Horie, 33, and other company's executives, who have been 
indicted for violating the securities law, when they sent to it 
profit on sale of the company's own stocks conducted the behind 
scenes of corporate acquisition. Tokyo prosecutors along with the 
Securities and Exchange Surveillance Commission seem to be 
investigating the flow of huge remittances and where such money 
belongs 
 
8) Lower House to intensively deliberate Livedoor scandal today; 
Minshuto determined to continue pursuing money remittance by e- 
mail 
 
ASAHI (Page 1) (Full) 
February 17, 2006 
 
The House of Representatives Budget Committee will conduct 
intensive deliberations on the Livedoor scandal today. In 
yesterday's session, Minshuto (Democratic Party of Japan) 
lawmaker Yasuhisa Nagata charged that former Livedoor Co. 
President Takafumi Horie had instructed his company to send 30 
 
TOKYO 00000864  006 OF 013 
 
 
million yen to the second son of Liberal Democratic Party 
Secretary General Tsutomu Takebe prior to the official campaign 
 
SIPDIS 
began for the Sept. 11, 2005 Lower House election. Horie has been 
indicted for alleged violation of the Security and Exchanges Law. 
Takebe denied the allegation. Minshuto plans to continue pursuing 
the relationship between Takebe and Horie and demand Takebe and 
his son be summoned to the Diet as unsworn witnesses. 
 
Minshuto President Seiji Maehara said before the party's Lower 
House members yesterday: 
 
"As soon as we obtained (the information), we judged it to be 
highly credible. We are going to pursue the aptitude of Mr. 
Takebe as secretary general and the responsibility of Prime 
Minister Koizumi, who has appointed Takebe as secretary general." 
 
According to Minshuto, the party has conducted a follow-up 
investigation into the information obtained by Nagata about 10 
days ago. Nagata told a press conference yesterday: 
 
"Ethically speaking, if a family member extremely close (to Mr. 
Takebe) had received black money from Horie, that would be 
extremely grave politically." 
 
Meanwhile, an LDP Budget Committee director presented to a 
Minshuto director seven questions urging Nagata to verify facts. 
Takebe is considering responses, such as submitting to the Budget 
Committee board of directors a letter denying the alleged 
transfer of the money. 
 
Diet Affairs Committee Chairman Hiroyuki Hosoda emphatically said 
to reporters: "Secretary General Takebe has expressly denied the 
allegation. Mr. Nagata must prove the authenticity of the e- 
mail." 
 
Another committee member said, "Libel deserves more than a light 
punishment." 
 
But some LDP members expressed concern. General Council Chairman 
Fumio Kyuma said, "The whole thing seems too sophisticated for a 
lie." A mid-level member noted, "If the information was 
authentic, it would turn the LDP upside down." 
 
Koizumi: Minshuto's allegation groundless 
 
Prime Minister Koizumi refuted yesterday Minshuto member Yasuhisa 
Nagata's allegation, saying: "It is not proper for a Minshuto 
lawmaker to bring up a groundless matter at a public venue. It is 
also absurd for a committee to take up a matter based on bogus 
information." Koizumi was responding to a question from a 
reporter at his official residence. 
 
Tokyo District Public Prosecutors Office does not know the 
existence of the e-mail 
 
Tokyo District Public Prosecutors Office Deputy Chief Prosecutor 
Tetsuo Ito released a statement yesterday saying, "This office 
does not know if such an e-mail exists or the allegations are 
true." 
 
9) Abe, Aso cautious about making replies at Diet committee 
session; Questions focused on historical views 
 
TOKYO 00000864  007 OF 013 
 
 
 
YOMIURI (Page 4) (Excerpts) 
February 17, 2006 
 
Chief Cabinet Secretary Abe and Foreign Minister Aso, both viewed 
as post-Koizumi candidates, have come under a heavy questioning 
about their historical perceptions of World War II at the Lower 
House Budget Committee. They yesterday remained cautious in their 
answers without departing from government views, but subtle 
differences are detectable in the nuances. 
 
In yesterday's committee session, following former party head 
Katsuya Okada on Feb. 14, Ryuzo Sasaki of the Democratic Party of 
Japan (Minshuto) took the floor and grilled Abe and Aso on their 
historical perceptions. 
 
Their answers to the question of whether the war was one of 
aggression drew much attention. 
 
The so-called Murayama statement released (by the Murayama 
government) in August 1995 used the word "aggression" to describe 
the war. Since then the government, including the current one led 
by Koizumi, has used the same historical perception. But there is 
a deep-seated criticism in the Liberal Democratic Party (LDP) of 
using the word, aggression. 
 
Yesterday, Abe and Aso quoted the Murayama statement and 
underlined that as a cabinet member, they sided with the 
government view. 
 
In answering the question, Abe did not use the word "aggression." 
He stated: "How to define the war is not the government's job. 
Isn't it a wise policy to wait for historians to judge it?" Aso 
pointed out, "Even (General Headquarters General) McArthur once 
acknowledged that it's difficult to describe the war as one of 
aggression in every aspect," indicating that there are various 
views of the war. 
 
Both cabinet members appeared to be trying in their respective 
expressions to highlight the LDP's identity as post-Koizumi 
candidates. 
 
Besides answering questions about the Tokyo War Crimes Tribunal 
(Tokyo Trials), Abe and Aso presented their respective views, 
keeping in mind Japan's position of having accepted the decisions 
by Tokyo Trials. 
 
Aso cited former Foreign Minister Mamoru Shigemitsu, one of the 
Class-A war criminals, who, after the war, was awarded the first 
class medal, to unfold his pet argument, noting: "They were not 
punished in accordance with Japan's domestic laws. Under Japanese 
law, they were not viewed as war criminals." Meanwhile, Abe 
stated: "They were punished by the Allies. Weren't they forced to 
take responsibilities?" 
 
Replies by Chief Cabinet Secretary Abe and Foreign Minister Aso 
at yesterday's Lower House Budget Committee session 
 
  ¶1.   Perception of the war 
¶2.   Tokyo Trials/war criminals 
¶3.   War responsibility 
 
 
TOKYO 00000864  008 OF 013 
 
 
Abe 
  ¶1.   How to define a war of aggression is an academic question. 
     It's not appropriate for politicians or administration officials 
     to play the role of judge and offer a judgment. 
¶2.   War criminals were classified into Class A, Class B and 
Class C categories and punished. Some 1,000 persons were 
sentenced to death. Even Class-A war criminals were not found 
guilty for crimes against humanity. 
¶3.   The leaders were responsible for the war. But Class-B and 
Class-C war criminals were not responsible to the nation. 
 
Aso 
  ¶1.   On the question of aggression or self-defense, (GHQ General) 
     McArthur, too, acknowledged that it's difficult to call the war 
     one of aggression. 
¶2.   (Lawyer) Ichiro Kiyose said the validity were questionable. 
It's true Japan accepted the court decisions, but under Japanese 
law, they were not war criminals. 
¶3.   Those who decided to go to war ought to take responsibility. 
It's not easy to single out someone as a person to blame. 
 
10) MOFA plans strategic organization to deal with China; Japan- 
China Economic Affairs Office to be established in April; 
Strengthening measures on intellectual property rights eyed 
 
NIHON KEIZAI (Page 1) (Full) 
February 17, 2006 
 
The Ministry of Foreign Affairs (MOFA) has decided to set up a 
Japan-China Economic Affairs Office within the ministry in April, 
a special organization that will be responsible for economic 
talks with China and mapping out an economic strategy toward it. 
In view of the present situation, in which bilateral economic 
exchanges are deepening, as can be seen in the fact that China in 
2004 became Japan's largest trade partner, overtaking the US, 
MOFA will strengthen its macroeconomic analysis of the Chinese 
economy and handle intellectual property rights issues, starting 
with the sales of pirated or fake products by that nation. 
 
The planned office will be established within the Asia-Oceania 
Affairs Bureau with about five officials assigned to it. At 
present, about 30 officials of the Chinese Affairs Division of 
that bureau are responsible for both economic and political 
issues with China. However, with an eye on the future of the fast- 
growing Chinese economy, MOFA will make this group an independent 
entity responsible for economic affairs with that nation, by 
involving officials of the Economic Affairs Bureau, which is in 
charge of trade affairs. 
 
A budgetary measure for the planned reorganization has already 
been earmarked in the fiscal 2006 draft budget. The plan is to 
upgrade the office to a division like the North American Affairs 
Bureau, where the First North America Division and the Second 
North America Division are respectively responsible for political 
and economic issues with the US. 
 
Because of Prime Minister Junichiro Koizumi's visits to Yasukuni 
Shrine, relations with China remain strained, as can be seen in 
the suspension of mutual visits by the leaders of the two 
countries. 
 
It has been said that bilateral relations had been cold 
 
TOKYO 00000864  009 OF 013 
 
 
politically but hot economically, but now there is widespread 
concern that the relations might become cold politically and cool 
economically. The Japan-China Economic Affairs Office is also 
intended to hold the impact of political issues on the economy to 
a minimum, by separating politics from economic issues. 
 
Japan's trade with China, combining both imports and exports, 
totaled approximately 24.9 trillion yen in 2005. China remained 
Japan's largest trade partner, as it was in 2004. 
 
Japan mainly exports electric equipment and machine tools to 
China and imports mechanical components and textiles. The 
government aims to sign a free trade agreement with that nation 
in 2010. If realized, trade with China will further increase. 
 
Pirated CDs and fake products are commonplace in China. Japanese 
companies are suffering serious damage from the infringement of 
intellectual property rights by China. The number of such cases 
reached about 1,800 in 2005, up about 50% from the preceding 
year. 
 
11) Minshuto finding it difficult to coordinate internal party 
position on "China as threat" due to strong objections to use of 
such an expression 
 
SANKEI (Page 5) (Excerpt) 
February 17, 2006 
 
In a meeting yesterday of Minshuto (Democratic Party of Japan) 
foreign and security affairs council, Akihisa Nagashima, who is 
the defense minister in the party's shadow cabinet, orally 
presented the party's draft views on China: "The rapid 
modernization of it military power has made the (Japanese) public 
feel its is a practical threat." He reached the judgment that 
position China as a "threat" in issuing pragmatic policies in the 
foreign and security affairs areas was unavoidable. However, 
there is a deep-seated objection to that view in the party, so it 
is not clear whether party head Maehara can bring views together. 
 
12) Government, ruling coalition pressuring North Korea via 
monitoring of dealings and preparing bill for human rights; Prime 
minister still cautious 
 
YOMIURI (Page 4) (Excerpts) 
February 17, 2006 
 
The move to pressure North Korea is growing in the government and 
the ruling parties given that there appears to be little 
prospects of resolving the abduction issue via dialogue with that 
country. Prime Minister Koizumi, however, remains cautious about 
taking tough steps, so the government and the ruling coalition 
have yet to chart a strategy toward North Korea. 
 
Meeting the press yesterday, Chief Cabinet Secretary Abe urged 
North Korea to concede, noting: "The only way for North Korea to 
be accepted by the international community is to return to the 
six-party talks unconditionally and resolve the Japanese 
abductees issue." 
 
When asked by reporters to come up with a message for North 
Korean leader Kim Jong who has just turned 64, Abe said 
sarcastically: "Well, it's his birthday, so 'Happy birthday Mr. 
 
TOKYO 00000864  010 OF 013 
 
 
Kim Jong Il.'" 
 
In reference to the lack of progress on the abduction issue in 
the recent round of Japan-North Korea talks on Feb. 4-8, Abe has 
noted: "It has become clear that pressure is necessary to resolve 
the issue." He already instructed ministries and agencies to step 
up such measures as monitoring financial transactions with North 
Korea and reviewing tax breaks now applied to the fixed-asset tax 
on facilities affiliated with the pro-Pyongyang General 
Association of Korean Residents in Japan (Chosen Soren or 
Chongryun). 
 
The Experts Council on the Abduction Issue, chaired by Deputy 
Chief Cabinet Secretary Suzuki, met yesterday and confirmed that 
it would discuss "pressure" measures. 
 
The United States has imposed financial sanctions on North Korea 
over its money laundering. Abe and other government officials 
have judged it necessary for Japan and the US to work together to 
pressure the North to compromise. 
 
Behind their judgment is perhaps the growing call from family 
members of abductees urging the government to take a resolute 
attitude toward North Korea. 
 
Meanwhile, the Liberal Democratic Party's task force on the 
abduction issue yesterday gave approval to an outline of a bill 
on human rights in North Korea. According to the bill, if Japan 
decides that human rights abuses are not improved in North Korea, 
the government is obligated to impose economic sanctions on that 
country. This bill is aimed at boosting Abe's popularity. 
 
However, Prime Minister Koizumi continues to prioritize dialogue 
over pressure. Some are therefore pointing out a "split" between 
Koizumi and Abe over North Korea policy. 
 
13) Japan to begin Iraq troop pullout in late March 
 
YOMIURI (Page 1) (Full) 
February 17, 2006 
 
The government yesterday revealed a plan to withdraw Ground Self- 
Defense Force troops currently deployed in the southern Iraqi 
city of Samawah where they have been engaged in reconstruction 
assistance activities. According to the plan, the GSDF will begin 
to withdraw its Samawah-based detachment of about 600 troops in 
late March. They will move to Kuwait in May and will return home 
in July. In late March, the GSDF will send a support group of 
about 100 troops to Kuwait and about 10 to Samawah. The Air Self- 
Defense Force will remain on airlift missions for the 
multinational force after the GSDF's pullout. 
 
The government has sent Foreign Ministry and Defense Agency 
officials to the United States, Britain, and Australia to explain 
the withdrawal plan. Working-level officials from Japan, the 
United States, Britain, and Australia will meet in London around 
Feb. 24 for final coordination. 
 
The GSDF will take about two months to complete its pullout and 
enter Kuwait to join the support group. In Kuwait, the GSDF will 
take two more months or so to pack and wash equipment, including 
vehicles, to be quarantined. 
 
TOKYO 00000864  011 OF 013 
 
 
 
14) Commentary: GSDF Iraq pullout likely even before new gov't 
starts 
 
YOMIUIRI (Page 4) (Abridged) 
February 17, 2006 
 
The government has now decided to withdraw Ground Self-Defense 
Force troops currently deployed in the southern Iraqi city of 
Samawah. Meanwhile, however, there is still no knowing when Iraq 
will launch a permanent government. This remains a fluid factor 
regarding the pullout of the GSDF contingent. The government 
wants to begin a withdrawal after obtaining the new government's 
consent. But in case the new government's inauguration is 
substantially delayed, Japan is also looking into the possibility 
of beginning a withdrawal before that from the perspective of 
ensuring the safety of GSDF members. 
 
"We still don't know whether the GSDF will pull out before a new 
government is launched or whether the new government will be 
launched first," a senior official of the Foreign Ministry said 
yesterday. "But they could come under terrorist attack when 
pulling out, so we can't ignore the British military's moves," 
the official added. 
 
British and Australian forces have been tasked with public 
security in Samawah. The British government has already told 
other countries that the British military would begin to pull out 
in March and would like to complete its pullout in May. Australia 
has implied the possibility of extending its troop deployment. 
However, the Foreign Ministry official's remarks suggest that it 
would be better to withdraw the GSDF troops along with the 
British military's scheduled pullout, when considering their 
safety. 
 
15) Okinawa lawmakers opposed to Japan-US agreement on Futenma 
relocation, call for changes to Henoko plan 
 
TOKYO SHIMBUN (Page 2) (Full) 
February 17, 2006 
 
The ruling Liberal Democratic Party yesterday held a joint 
meeting of its panels on Japan-US security affairs and base 
realignment issues, with Taku Yamasaki presiding. In the meeting, 
LDP lawmakers elected from Okinawa Prefecture raised objections 
to the recent agreement between Japan and the United States to 
relocate the US military's Futenma airfield to a coastal area of 
Henoko in the island prefecture's northern coastal city of Nago, 
and they called for changes to the plan. 
 
The Okinawa lawmakers called for the government to build an 
alternative base in an area south of the shore of Henoko. "Even 
if the government tries to push ahead with the Futenma relocation 
to the coastal area, local communities won't agree," Kozaburo 
Nishime, a member of the House of Representatives, said. Chiken 
Kakazu, a member of the House of Representatives, also stressed, 
"If the government pushes for it, we will be driven into a 
corner." 
 
In the meeting, Kazuo Ofuru, director general of the Defense 
Policy Bureau at the Defense Agency, explained that the Japanese 
and US governments agreed on the coastal plan in view of various 
 
TOKYO 00000864  012 OF 013 
 
 
factors, such as possible impacts on the living environment and 
nature. The defense official clarified that the agency would not 
alter the agreed plan. However, Okinawa lawmakers voiced their 
anger, with one of them implying that all of Okinawa's population 
would cry out against the coastal plan. 
 
16) Public works; Finance Ministry considering cutback in ratio 
to GDP to constrain amount to level on par with European and 
American nations 
 
NIHON KEIZAI (Top Play) (Excerpts) 
February 17, 2006 
 
In an effort to constrain public works spending, the Ministry of 
Finance (MOF) has started looking into the possibility of setting 
a new numerical target, using gross domestic product (GDP) as a 
benchmark. Allocations for government-sponsored public works in 
the fiscal 2006 general-account draft budget stand at 
approximately 7.2 trillion yen, achieving the Koizumi 
administration's target of reducing the amount of such works to 
the fiscal 1990 level. MOF views that a further constraint on 
public works, also including those carried out by local 
governments, would be imperative to bring about sound finances. A 
plan to constrain public works to about 1% of GDP, one-third of 
the present level and on a par with the other industrialized 
countries, has been floated. 
 
Proposal for cutting public works to one-third of present level 
also made 
 
MOF wants to include the new numerical target in a roadmap for a 
package reform of expenditures and revenues, which the government 
will compile in June. Coordination of views with other government 
agencies, including the Ministry of Land, Infrastructure, and 
Transport, has started. 
 
Government-sponsored public works spending in the fiscal 2002 
budget, the first budget compiled under the Koizumi 
administration, was cut 10% from the previous year's level and 
then continued to drop 3 % -4% a year after that. Allocations in 
the fiscal 2006 budget were reduced to half of the amount of 
fiscal 1998 - 14.9 trillion yen. Public works spending peaked in 
fiscal 1998. 
 
The government has, however, set a target of moving the primary 
balance into the black by early 2010. Private-sector members of 
the Council on Economic and Fiscal Policy have calculated that in 
order to achieve that target without hiking taxes, it would be 
necessary to cut combined expenditures by the national and local 
governments by 20 trillion yen. MOF is of the opinion that 
cutbacks on public works expenditures, the second largest 
spending item following social security, will be unavoidable, as 
a senior official put it. 
 
17) US revokes permit of yet another meatpacking facility due to 
Beef Export Verification violations 
 
ASAHI (Page 12) (Full) 
February 17, 2006 
 
The US government has revoked its permit of one of the 38 
meatpacking facilities authorized to handle Japan-bound beef, the 
 
TOKYO 00000864  013 OF 013 
 
 
Agriculture, Forestry and Fisheries Ministry announced yesterday. 
The facility in question is a plant in Nebraska belonging to 
Swift and Company, a major meatpacker. The US government's step 
followed the revelation of Beef Export Verification violations by 
the facility. 
 
Shortly after Japan decided to lift its ban on US beef in 
December, the US government authorized 40 facilities to export 
beef to Japan. But the US government has already delisted two 
facilities that had shipped beef to Japan without removing the 
vertebral column, an SRM. A series of revocations of license by 
the US government is likely to increase Japanese consumers' 
distrust in the safety of US beef. 
 
SCHIEFFER