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UNCLAS SECTION 01 OF 18 TOKYO 000882 
 
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 02/21/06 
 
 
Index: 
 
1)   Top headlines 
2)   Editorials 
3)   Prime Minister's daily schedule 
 
USDA report on ineligible beef shipment: 
4)   USDA report: human error the cause of ineligible beef 
  shipment, incident was unique 
5)   US Ambassador Schieffer seeks consumer understanding that US 
resolved to honor beef agreement 
6)   Schieffer at news conference seeks early resumption of US 
beef imports, rules out blanket testing 
7)   Japanese company ordered veal with backbones from US 
supplier and got exactly what was ordered: USDA report 
8)   USDA report states that cause of cases of cattle unable to 
walk was injury 
9)   Resumption of US beef imports may not come until summer or 
later due to deep distrust of US safety procedures 
10)  US report on beef import incident not likely to allay 
Japan's distrust of US system 
11)  Government to go slow on US beef import resumption, 
sandwiched between US and domestic opinion 
12)  Government plans to make detailed inspections of all Japan- 
bound meat plants before considering resumption of beef imports 
13)  Prime Minister Koizumi says it will be "difficult" to 
restart beef imports soon 
14)  Koizumi taking cautious approach to beef issue, mindful of 
strong public views toward food safety 
15)  Minshuto Secretary General Hatoyama, citing cross 
contamination of BSE-tainted meat-and-bone feed, says "US beef 
imports must be avoided" 
16)  Chief Cabinet Secretary Abe, unsatisfied with USDA report, 
wants Japan to make detailed investigation 
17)  US Senators unhappy with new beef ban, see retaliation as 
option 
18)  USDA system to inform meat industry of Japan export 
standards is flawed 
 
Defense issues: 
19)  Yokosuka sailor nabbed after curfew by local police for 
  running off without paying hefty cab fare 
20)  Yokosuka sailor nabbed by local police for beating up and 
injuring game center clerk after losing game 
21)  Government to seek loan formula to pay for relocating US 
Marines to Guam 
22)  GSDF to leave personnel in Baghdad for liaison and 
coordination after main troops withdrawn 
 
23)  LDP policy research chief Hidenao Nakagawa, leading 
  delegation to Beijing, gets official tongue-lashing for Koizumi's 
  Yasukuni Shrine visits 
 
24)  Hoping to avoid UN sanctions against Iran, Tokyo urge 
  Teheran to accept Russia's plan to resolve nuclear dispute 
 
Political merry-go-round: 
25)  Koizumi cabinet support rate slips 2 points to 43%, non- 
  support gaining with 41% in Asahi poll; 71% feel pangs of "income 
  disparity" 
26)  Prime Minister Koizumi rebuts poll findings about popular 
perception of income disparity 
 
TOKYO 00000882  002 OF 018 
 
 
27)  Minshuto charges in Diet of alleged smoking-gun e-mail from 
Livedoor's Horie promising 30 million yen to LDP Takebe's son has 
run out of steam, but evidence promised at party heads' debate on 
Feb. 23 
28)  Takebe wants bank accounts opened to clear up charges 
against his son 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi: 
Investigation over bid rigging shocks contractors 
 
Mainichi: 
Contractors accepting retired officials won 82% of Defense 
Facilities Administration Agency's project orders 
 
Yomiuri: 
Home sellers face mandatory liability insurance 
 
Nihon Keizai: 
Real estate firms to raise office rents for first time in five 
years 
 
Sankei: 
China's intrusions into Japan's air space rapidly increasing 
 
Tokyo Shimbun: 
Poll of US senators: If Japan's ban on US beef imports is 
prolonged, US should impose retaliatory measures 
 
2) EDITORIALS 
 
Asahi: 
(1)  DFAA bid-rigging scandal: Eliminate amakudari 
(2)  Diagnosis of fertile eggs: Strict rules necessary 
 
Mainichi: 
(1)  Landslide on Leyte Island 
(2)  Sell-off of government assets: Effective, but not a silver 
bullet 
 
Yomiuri: 
(1)  Grand realignment of steel makers: Time to consider measures 
against takeover bids 
(2)  Japanese boom: We should appreciate sensitivity to language 
 
Nihon Keizai: 
(1)  Privatization of government-run services should be 
accelerated via market testing bills 
(2)  Israel should aim for co-existence with Hamas government 
 
Sankei: 
(1)  Do not allow Asahara trial to be delayed further 
(2)  Bureaucrat-orchestrated bid-rigging: Severe punishments 
needed 
 
Tokyo Shimbun: 
(1)  Landslide on Leyte Island: Sharing disaster prevention 
information 
(2)  US BSE report: It is too early to resume US beef imports 
 
TOKYO 00000882  003 OF 018 
 
 
 
3) Prime Minister's Official Residence (Kantei) 
 
Prime Minister's schedule, February 20 
 
NIHON KEIZAI (Page 2)  (Full) 
February 21, 2006 
 
11:02 
Arrived at the Prime Minister's Official Residence (Kantei) 
 
15:08 
Met with Agriculture Minister Nakagawa. Chief Cabinet Secretary 
Abe was present. 
 
16:28 
Met with Economy, Trade, and Industry Minister Nikai. 
 
17:02 
LDP executive meeting in the Diet building. 
 
17:23 
Arrived at the Kantei. 
 
18:09 
Wedding ceremony for Lower House member Yoshitaka Shindo held at 
Imperial Hotel. 
 
19:04 
Had a haircut at Barber Muragi at Capitol Tokyu Hotel. 
 
20:07 
Arrived at official residence. 
 
4) USDA report on beef issue concludes human error mixed 
backbones with beef shipment to Japan; Seen as unique incident 
 
ASAHI (Top play) (Abridged) 
February 18, 2006 
 
The US Department of Agriculture on Feb. 17 issued an 
investigative report, which was presented to the Japanese 
government, regarding a shipment of US beef exported from the US 
to Japan discovered to contain backbones, a specified risk 
material (SRM) in which BSE prions can easily accumulate. The 
report in referring to the cause of the contaminated shipment, 
stated: "Neither the meat company nor the meat inspector was 
fully familiar with special products," characterizing the 
incident as human error. It was revealed that the problem 
facility had shipped internal organs with the beef that it did 
not have an export license for. Although 15 measures for 
preventing a re-occurrence were incorporated in the report, such 
previously announced ones as retraining inspectors stood out. But 
the clarification of the cause and the countermeasures were 
lacking in new contents that would lead to rebuilding consumer 
confidence. 
 
Internal organs shipped without permission 
 
The Japanese government issued a comment that having received the 
report, Agriculture Minister Nakagawa and Health Minister 
Kawasaki would now both carefully study its contents with an eye 
 
TOKYO 00000882  004 OF 018 
 
 
on how deliberations would go in the Diet on the fiscal 2006 
budget draft. The thinking is to continue to study the report, 
taking time regarding setting a timetable for resumption of 
imports 
 
The Japanese government, upon discovering the contaminated 
shipment on Jan. 20 re-imposed the ban on imported US beef. At a 
news conference, USDA Secretary Johanns said, "I hope it will not 
be too long before beef trade is resumed," indicating his 
expectation for an early lifting of the ban. 
 
5) US Ambassador seeks understanding of consumers that US 
resolved to honor beef agreement 
 
ASAHI (Page 1) (Full) 
February 18, 2006 
 
US Ambassador to Japan Schieffer held a news conference at the US 
Embassy on the evening of Feb. 17 to explain the US Department of 
Agriculture (USDA) report, just released, on the cause of a 
shipment of US beef bound for Japan containing backbones, which 
are required to be removed. The report also contained measures to 
prevent a reoccurrence of such incidents.  He made this 
statement: "We take seriously the anxiety of Japanese consumers, 
and we hope to be able to obtain their understanding of our 
resolve to honor the US-Japan agreement when exports of beef to 
Japan resume." 
 
6) US Ambassador to Japan Schieffer at news conference seeks 
early resumption of US beef imports; US will not respond to 
blanket cattle inspections 
 
NIHON KEIZAI (Page 5) (Full) 
February 18, 2006 
 
US Ambassador to Japan Schieffer last evening met with the press 
after presenting the report on the BSE issue to the Japanese 
government, and he expressed once more his regret that specified 
risk material (SRM) was found in a shipment of US beef bound for 
Japan. 
 
However, he again stressed that the US would not respond to the 
Japanese side's request for blanket inspections of US cattle. He 
sought an early resumption of beef imports, stating, 
"Scientifically-based inspections are being carried out." 
 
The Ambassador apologized, stating, "I am extremely sorry." He 
then said, "We have introduced 15 measures, based on scientific 
research, to prevent a reoccurrence." Regarding the cause of the 
problem, he pointed out that the US inspector and the supplier 
"did not have sufficient understanding of export items bound for 
Japan." He admitted that within the government, "there was 
confusion, stemming from a misunderstanding, and a lack of 
communication." 
 
7) Beef with backbones ordered by Japanese importer, who did not 
realize such was a violation of Japan-US beef trade agreement, 
according to USDA report 
 
ASAHI (Page 1) (Full) 
February 19, 2006 
 
 
TOKYO 00000882  005 OF 018 
 
 
By Yuichi Hirose in Washington 
 
In the case of backbones, a specified risk material (SRA) having 
been included in a US beef shipment to Japan, it was learned from 
an investigative report released by the US Department of 
Agriculture (USDA) on Feb. 17 that the meat was shipped as 
ordered by a Japanese importer. Although this incident exposed 
sloppiness in the US inspection system, it also showed a lack of 
awareness of the agreement on the Japanese side, as well. 
 
According to the report, the Japanese company ordered veal that 
included backbones and tongues, etc., on Dec. 27, just after the 
import ban was lifted. After that, it cancelled the order of veal 
bones previously ordered "in order to avoid confusion during 
customs clearance." 
 
In his news conference on Feb. 17, USDA Secretary Johanns made 
this remark about the exported beef having been ordered by the 
Japanese company: "We are not saying that we are complaining 
about who (should bear responsibility). It was our responsibility 
to confirm that what was being shipped conformed to the US-Japan 
agreement." 
 
8) USDA in report presented to Japan states that cause of cases 
of cattle unable to walk was injury 
 
MAINICHI (Page 2) (Full) 
February 18, 2006 
 
By Shun Kimura in Washington 
 
The US Department of Agriculture in a report presented to the 
Japanese government addressed the cases of downer cattle (animals 
unable to walk), which is seen as a sign of BSE infection, having 
been slaughtered without the cause being determined, as well as 
countermeasures to prevent reoccurrences of violations of the 
requirement to remove specified risk materials (SRM) (from 
carcasses). The Japanese government asked for the report to 
include that in addition to the issue of SRM mixed in with the 
beef shipment. The report explains, "We have already dealt with 
that issue," and, "The cause of the downer cattle was injury," 
and, "Inspection reached the conclusion that there was no proof 
that risk materials were released into the food chain." But 
although USDA stressed the safety of US beef, there was no change 
made to the slipshod system, and so it will not be so simple to 
dissolve the distrust of Japanese consumers. 
 
The report explained, "All 29 downer cattle processed for food 
(including 20 whose cause was unknown) were suddenly injured 
badly after having passed inspection." These cows were specially 
tagged, it was revealed. 
 
9) Resumption of US beef imports may not come until the summer or 
later as Japanese government implements study filled with deep 
distrust toward America 
 
NIHON KEIZAI (Page 5) (Full) 
February 18, 2006 
 
The government, having received the inspection report from the US 
Department of Agriculture will not implement its own study of 
conditions for the resumption of US beef imports and other 
 
TOKYO 00000882  006 OF 018 
 
 
factors. However, there remains deep-seated distrust of the US- 
side's slipshod export controls, and the likelihood has arisen of 
a major clash between the ruling and opposition parties occurring 
over this in the Diet. The view has also emerged that "resumption 
of imports will probably not come until the summer or later after 
the Diet session ends," according to an informed source, brought 
about by a high-level political decision that weighs such factors 
as Japan-US relations and public opinion. 
 
The government, after carefully studying the report from the US, 
will start negotiating with the US on import conditions and 
working on such efforts as prior inspections by the Japanese 
side. There are 37 meat-processing plants in the US that are 
allowed to export beef to Japan. Among them, 11 were inspected 
last December after the import ban was lifted. There is a view in 
the ruling camp that only the facilities that were inspected 
should be allowed to export to Japan. The ministries of health 
and agriculture will soon dispatch a fact-finding mission 
composed of several experts. They apparently will need about a 
month or so to negotiate with the US side and physically inspect 
the procedures, such as meat inspection. 
 
However, within the ruling camp, the overwhelming view, according 
to one senior official, is that "although the US government's 
measures to prevent a reoccurrence are set, it is not that simple 
a situation that this will serve to restart imports." The 
opposition camp is set to pursue the responsibility of the 
government for resuming imports last year, and the likelihood is 
that the beef issue will continue to fester in the Diet session. 
 
Junko Takaya, representative of the civic group "BSE Network," 
issued this request: "Consumers will never get rid of their 
anxiety by stopgap preventive measures. We do not want the 
government to compromise on its requests of the US; they must 
place the safety of the nation first." Since it is feared that an 
early removal of the import ban will bring about consumer 
criticism, the government, too, has judged that it needs to 
carefully study the situation. 
 
On the other hand, the US seems to be about to step up its 
pressure on Japan for an early resumption of imports, using the 
report just presented as the opportunity. The view that is strong 
in the US is that the Japanese government overreacted to a 
mistake at one facility by stopping all imports. 
 
The US trade deficit with Japan in goods set a new record high in 
2005, after five years of moderation. It is conceivable that the 
beef issue will set off voices calling for protectionist 
measures. If the Japanese government drags out a political 
decision, negative reactions can be expected from the US, and the 
Japanese government would find coordinating a resolution 
difficult. 
 
One aide to the Prime Minister warned: "There is good reason to 
worry about the issue of resuming US beef imports setting off a 
new trade dispute with the US." With the Prime Minister 
coordinating a visit to the US this spring of so, there is a 
possibility of the timing of his trip to the US and the like 
having a delicate impact of the issue. 
 
10) US presents report on beef import incident but Japan's 
distrust of US system only increases; New error raises doubts 
 
TOKYO 00000882  007 OF 018 
 
 
about early resumption of beef imports 
 
YOMIURI (Page 9) (Abridged) 
February 20, 2006 
 
The report on BSE countermeasures issued by the US Department of 
Agriculture (USDA) on Feb. 17 completely admitted the US erred in 
shipping beef to Japan containing specified risk materials (SRM) 
and it included 15 measures to prevent a reoccurrence. The 
report's contents aim to spur the Japanese government to take 
procedures to resume imports of US beef. However, the report also 
reveals a new incident of miscellaneous meats including internal 
organs that might have contained SRM having been exported to 
Japan. Many of the measures to prevent a reoccurrence have been 
previously issued, so it is extremely unclear whether the report 
will lead to an early resumption of imports or not. 
 
By Eiji Hirose and Tetsuya Watanabe in Washington 
 
USDA has public released a report of a thorough investigation 
into the cause of the incident that led to Japan's ban on imports 
of US beef on Jan. 20. It also contains a list of measures to 
prevent a reoccurrence. The report was made based on the judgment 
that a full investigation was needed in order to regain the trust 
of the Japanese consumer, which was lost when a beef violation 
was discovered only a month after imports had been restarted. 
Ambassador to the US Thomas Schieffer in a press conference at 
the US Embassy on the evening of the 17th expressed confidence in 
the contents, saying: "The report has a high level of clarity, 
and it includes details about how the incident occurred, as well 
as various steps to prevent a reoccurrence. I think it will be 
able to put the fears of the Japanese consumers at rest to some 
extent." 
 
However, the report reveals that the New York meatpacker that 
exported to Japan and the supplier in Ohio of the beef both had 
shipped and exported miscellaneous meats that they had no 
licenses to send. 
 
The licenses to ship and export meat (to Japan) held by the 
companies have been revoked, and USDA considers this action as an 
evidence of a measure preventing a reoccurrence. Included in the 
measures to prevent a reoccurrence is a review of the procedures 
used by inspectors and their retraining. But such steps as spot 
checks at meat processing facilities by USDA have already been 
announced and lack freshness. 
 
It was revealed on the 16th that a USDA-approved quality control 
program had committed a violation, and a meat processing facility 
in Nebraska lost its license to export to Japan. This action, 
too, has further heightened distrust in Japan of the US system. 
 
While this has been going one, voices are being raised in the US, 
such as Senator Max Baucus saying, "It was a miss by only one 
company, so to ban all imports of US beef was an overreaction." 
The report, it can be said, overlooks the differences in 
perceptions of the problem between Japan and the US, and as such 
it lacks persuasiveness to push for a resumption of imports. 
 
Agriculture Minister Nakagawa, on hearing Ambassador Schieffer's 
outline of the report on the 17th, stated: "We must first read 
(the report) carefully, and then explain it to the nation. We 
 
TOKYO 00000882  008 OF 018 
 
 
have no intention of hastily (resuming imports)." 
 
11) US report on beef issue: Pressure seeking resumption of 
imports inevitable, but government sandwiched between US and 
domestic opinion 
 
ASAHI (Page 2) (Excerpts) 
February 18, 2004 
 
With the presentation of a report giving the cause of the 
inclusion of backbones in a beef shipment to Japan and listing 
measures to prevent a reoccurrence, the US government now is 
certain to increase pressure on Japan to resume beef imports 
quickly. Thinking in the Japanese government now is to carefully 
set the timing for removal of the ban, while gauging public 
opinion that remains cautious about restarting such imports and 
foreign pressure (gaiatsu) for quick action. 
 
On the evening of Feb. 17, immediately after the report was 
issued, US Ambassador to Japan Schieffer visited Agriculture 
Minister Nakagawa  to explain the contents of the report. 
Minister Nakagawa after the meeting expressed this view; "The 
report is not something we can read in a day or two. We won't 
take any more time than necessary, but we will give it our 
careful consideration." 
 
Regarding the report, Tokyo Medical University Professor 
Kiyotoshi Kaneko, deputy chair of the prion experts panel of the 
Food Safety Commission was critical: "All they did was explain 
the problem of what they would do next and indicate their policy 
measures from now on. But there is no proof as to how much they 
will improve the system qualitatively." He went on: "If the US 
properly responses, a feeling of assurance would be transmitted, 
but if they neglect to do so, there will probably be a chain of 
negative reactions, prolonging the situation." 
 
12) Government plans to make full detailed inspection of US meat 
processing 
 
NIHON KEIZAI (Page 1) (Full) 
Evening, February 18, 2006 
 
Having received the US Department of Agriculture's (USDA) 
investigative report on the BSE issue, the Japanese government 
today started a full-scale analysis of its contents and 
discussion of response measures. A source in the government said, 
"The point is whether the incident of backbones having been 
included in the shipment was structural problem in the US meat 
processing system." The government will now severely scrutinize 
to ascertain if the mistake by Atlantic Veal Co. was an exception 
or a structural problem endemic to the US inspection system. If 
there is a strong sense of there being a structural problem, the 
path to resuming beef imports will be even more difficult. 
 
The same afternoon, relevant ministries including agriculture, 
health, and foreign affairs convened a meeting to discuss 
response measures. In the report, the US characterized the 
incident of mixing backbones into the shipment as a special 
problem at one facility. It did not see the other processing 
facilities as having problems. However, USDA on Feb. 14 had a 
meat processing facility in Nebraska with a license to ship to 
Japan removed from the authorized list over a procedural issue. 
 
TOKYO 00000882  009 OF 018 
 
 
Some officials have expressed distrust, with one health and labor 
ministry official saying, "The example can only create more 
distrust (toward the entire safety-ensuring process)." The 
government now plans to carefully investigate all meat-processing 
facilities in the US to see whether any have problems. 
 
The reason why the US rapidly drafted and presented the report at 
an early stage reflects its intent to have the problem resolved 
quickly and an agreement cobbled together to resume imports. 
However, the Japanese government, as seen in this remark by 
Agriculture Minister Nakagawa. "has no intention of hastily 
responding to the US." An official in the Agriculture Ministry 
pointed out, "The problem is that the US in presenting the report 
thinks that imports can be resumed right away." So already there 
is a perception gap growing between Japan and the US. 
 
13) Koizumi: Immediately resuming US beef imports "quite 
difficult"; Agriculture Minister Nakagawa: US report 
"insufficient" 
 
MAINICHI (Page 1) (Full) 
February 21, 2006 
 
Prime Minister Junichiro Koizumi told reporters at the Prime 
Minister's Official Residence (Kantei) last evening that "it will 
be quite difficult" for Japan to lift its import ban on US beef 
quickly, citing a "perception gap between Japan and the US over 
food safety." Agriculture, Forestry, and Fisheries Minister 
Shoichi Nakagawa also said that the report compiled by the US 
Agriculture Department on the issue of meat with vertebral 
material found in a shipment to Japan "is insufficient for Japan 
(in content). By submitting the report, the US is urging Japan to 
swiftly resume imports, but the Japanese government's stance is 
to take time to obtain understanding from Japanese consumers." 
 
Nakagawa briefed Koizumi on the contents of the US report at the 
Kantei yesterday afternoon. Later, Nakagawa told reporters: 
"There are many question marks in the report," implying that 
Japan would ask the US to provide additional explanations. 
Koizumi instructed Nakagawa to "cooperate with relevant cabinet 
ministers in deciding on Japan's response." 
 
The report pointed out that the responsible inspector from the 
Agriculture Department was unaware of the requirement of removing 
vertebral material but regarded the case as "exceptional." Citing 
this point, some government officials have said that it is 
irrational to blame one company for the violation case, adding 
that Nakagawa supposedly had this in mind when he called the 
report "insufficient" but stopped short of explaining why. 
Nakagawa also indicated that it would take several days to 
complete the government's examination of the report. 
 
14) Prime Minister cautious about resumption of US beef imports, 
giving consideration to public opinion 
 
YOMIURI (Page 2) (Excerpts) 
February 21, 2006 
 
Meeting with Agriculture, Forestry, and Fisheries Minister 
Nakagawa and Chief Cabinet Secretary Abe over a resumption of US 
beef imports yesterday, Prime Minister Koizumi said that he would 
closely look into the measures worked out by Washington to 
 
TOKYO 00000882  010 OF 018 
 
 
prevent a recurrence of Beef Export Verification (BEV) 
violations. The prime minister's stance reflects his 
consideration of domestic public opinion giving priority to the 
safety of food. Now that the beef embargo is likely to be 
protracted, some government officials are expressing apprehension 
about the negative effect of the measure on Japan-US relations. 
 
In the meeting yesterday, the prime minister instructed Nakagawa 
and Abe to examine the contents of the US report on measures to 
prevent BEV violations. After the meeting, Koizumi stressed the 
need to look into the details of the report before determining 
what response Japan should make. 
 
The prime minister is keeping in mind Japanese consumers' deep- 
rooted distrust in the safety of US beef. And with the discovery 
of meat with vertebral material in a shipment immediately after 
Japan finally resumed imports after a lengthy debate, the prime 
minister apparently takes the view that it is premature to 
discuss with the US conditions for resuming imports. 
 
Even among ruling party members, some are of the opinion that if 
the government takes a lenient response to the US over this 
issue, the opposition camp might take advantage of this in 
attacking the ruling camp in Diet deliberations. They feel that 
Japan should not resume US beef imports at least until late 
March, when arrangements are expected to be made for the fiscal 
2006 budget bill to pass in the Diet. 
 
After making inquiries to Washington about questionable points in 
the report, Tokyo intends to send a survey mission to the US and 
inspect the state of how the US preventive measures have been 
implemented. A senior Foreign Ministry official said yesterday: 
"We will take steps to find the cause of the violation from 
expert and technical perspectives and prevent a recurrence in an 
effort to win public understanding. It is still a long way before 
we will make a political decision on resuming imports." 
 
15) Hatoyama: US beef imports must be prevented 
 
YOMIURI (Page 4) (Full) 
February 21, 2006 
 
Minshuto (Democratic Party of Japan) Secretary General Yukio 
Hatoyama made the following comment on the question of US beef 
imports at a meeting held in Shizuoka City yesterday: 
 
"Minshuto also sent (a fact-finding team to the United States). 
In the US, meat-and-bone meal, a cause of BSE, is still being 
indirectly used for livestock. Given the situation, we must 
prevent US beef from entering Japan at all costs." 
 
16) Abe denies alleged order by Japanese trader for beef with 
vertebral material, reiterates need to closely examine US report 
 
YOMIURI (Page 6) (Full) 
Evening, Feb. 20, 2006 
 
In reference to the issue of vertebral material found in a veal 
shipment to Japan, Chief Cabinet Secretary Abe said in a press 
briefing today: "We need to closely examine the report (compiled 
by) the US Agriculture Department (on its probe into the issue), 
and we will ask for a further explanation if there are 
 
TOKYO 00000882  011 OF 018 
 
 
insufficient parts." Agriculture, Forestry, and Fisheries 
Minister Nakagawa will brief Prime Minister Koizumi on the 
contents of the report this afternoon. 
 
It has been disclosed that Nihon Siber-Hegner K.K., a foreign- 
financed trading house based in Tokyo, had ordered beef with 
vertebral material, which led to Japan's second ban on US beef 
imports. 
 
According to the Agriculture Ministry, although the said company 
placed an order with Atlantic Veal and Lamb, a meatpacker in New 
York, on Dec. 27 of last year for more than 40 boxes of beef, 
including veal, meat with bone, tongues, and the like. It had 
ordered the so-called hotel racks, which area ribs, and not 
specified risk materials. 
 
17) Tokyo Shimbun survey of US senators about Japan's beef import 
ban: "If the ban becomes protracted, retaliatory action will be 
an option," "Japan's measure is wrong" 
 
TOKYO SHIMBUN (Top Play) (Full) 
February 21, 2006 
 
Japan has placed a second ban on US beef imports in the wake of 
the finding of specified risk materials (SRM) in US beef shipment 
to Japan. The Tokyo Shimbun yesterday compiled the results of a 
survey that targeted 100 US senators to find out their views on 
the beef issue. Many respondents noted that the responsibility 
for the inclusion of SRM rested with the US side, such as the 
Department of Agriculture (USDA), but the prevalent view was that 
the ban on US beef imports by Japan was wrong. A majority of the 
respondents said that US retaliatory action would be one option 
if the ban becomes protracted. 
 
The survey was conducted from Feb. 7 through 15, and queried the 
senators in writing and by phone on five items: (1) the propriety 
of the second ban on US beef imports by Japan; (2) the locus of 
the responsibility; (3) a timeline to resume beef trade; (4) 
possible measures in the event of the ban becoming protracted; 
and (5) a possible impact of the ban on Japan-US relations. 
Thirty-one senators, including those who only made comments on 
the issue, replied to the questionnaires. No reply came from 20. 
As a reason for not being able to reply to the questionnaires, 
the remaining 49 cited, "It is a key diplomatic issue," "I 
support the government's position," or "There is no livestock 
industry (in my constituency)." 
 
To a question about the propriety of the reimposition of the 
embargo, 11 replied, in the of US Congress, which takes the view 
that US beef is safe and that Japan is overreacting to the issue. 
 
As to the inclusion of SRM, 15 out of 18, who replied to this 
question, admitted that the responsibility rested with the US 
side. Six said that the USDA was responsible, five cited meat- 
processing facilities and the USDE and four cited meat-processing 
facilities. 
 
To a question about a timeline for restarting beef trade, 19 out 
of 20 respondents said, "As soon as possible." 
 
As a possible measure in the event of the ban becoming 
protracted, seven out of 13, who responded to this question, 
 
TOKYO 00000882  012 OF 018 
 
 
cited, "Economic sanctions." One noted that the filing of a 
complaint with the World Trade Organization (WTO) should be 
looked into. Thus eight senators hinted at some form of sanctions 
against Japan, attaching a hard-line comment that they would not 
let Japan prolong the ban. 
 
18) US report on inclusion of SRM in US beef shipment points out 
failure to make export conditions known; Lack of communication in 
both government, private sector 
 
MAINICHI (Page 11) (Full) 
February 21, 2006 
 
The Department of Agriculture (USDA) has issued a report on the 
inclusion of specified risk materials (SRM) in a US beef shipment 
to Japan. The report noted that one reason was that the USDA and 
meatpackers did not have a far-reaching system to ensure that 
guidelines for beef exports to Japan be known. The report has 
brought out into the open the sloppiness of the checking system 
in the US. 
 
According to the report, the Ohio-based slaughterhouse that 
processed the carcass in question belonged to the same corporate 
group as the meat-processing plant in New York that applied for a 
license to export beef products to Japan to the USDA on Dec. 15 
last year. The USDA bureau responsible for export guidelines 
explained to it that backbones should be removed from Japan-bound 
products. However, the slaughterhouse shipped beef with 
backbones, and the processing plant in New York did not notice 
it, either. The person in charge of the shipment at the 
slaughterhouse said, "I was not fully aware of export 
guidelines," a comment that revealed that the guidelines were not 
well known. 
 
A USDA inspector and a veterinarian were stationed at the 
processing plant. The inspector authorized the export of the 
products in question just by carrying out an external inspection, 
such as whether the number of boxes matched that of the export 
application form. The veterinarian said: "I was not aware of the 
export conditions. There was a lack of communication between the 
USDA bureau to which I belong and the bureau in charge of export 
conditions." Thus, it also became clear that the USDA's 
vertically divided system has led to violations being overlooked. 
 
19) US sailor from Kitty Hawk arrested during curfew hours in 
Yokohama on suspicion of fraud after fleeing taxi without paying 
 
MAINICHI (Page 31) (Full) 
February 20, 2006 
 
The police in Kaga-cho on Feb. 19 arrested on the spot US seaman 
first class Abdul-Rahman Erick (TN: phonetic) (22), who is 
assigned to the US carrier Kitty Hawk, for failure to pay a taxi 
cab fare from the city of Yokosuka in Kanagawa Prefecture to 
Yokohama City. According to the police investigation, the suspect 
accompanies by another foreign male, about 1:35 am that morning, 
boarded a taxi at Shioire-cho in Yokosuka City near the US Navy 
base and ordered the driver to head toward Chuo-ku in Yokohama 
City. The suspect is charged with running off with without paying 
the cab fare of 13,800 yen, for when the taxi stopped at the 
Yamashita-cho crossing near their destination, the suspect 
suddenly opened the door himself and ran off. 
 
TOKYO 00000882  013 OF 018 
 
 
 
Since the robbery-murder incident by a sailor in January, the US 
Navy Command in Japan has forbidden the drinking of alcoholic 
beverages between 11:00 pm (1:00 am on weekends) and 6:00 the 
next morning. Seaman assigned to the carrier and Aegis ships are 
forbidden from leaving the base late at night except to return 
home or permission to visit a friend. The police is investigating 
to see whether the incident involved a curfew violation. 
 
20) US sailor arrested by Yokosuka police for beating and 
injuring sales clerk 
 
MAINICHI (Page 31) (Full) 
February 20, 2006 
 
The Yokosuka Police Department in Kanagawa Prefecture arrested at 
the scene Harris Watkins (phonetic), a seaman first class 
assigned to the US Navy Base at Yokosuka on the charge of 
committing bodily injury. According to the police investigation, 
the suspect went to a game center in Motomachi close to the base 
a little past 4:00 pm on Feb. 19. Becoming angry when he lost an 
electronic war game, the suspect began to beat a male store clerk 
(29). He was charged with inflicting injuries on the clerk 
requiring approximately 10 days (of medical treatment). 
 
The police arrested the seaman after receiving a call from the 
store. The suspect reportedly worked on the base premises, and he 
had not been drinking. 
 
21) Government to sound out US on loan formula to pay for cost of 
relocating US Marines from Okinawa to Guam 
 
NIHON KEIZAI (Page 2) (Full) 
February 19, 2006 
 
On the question of how in the world to pay for a portion of the 
cost of relocating to Guam US Marines now stationed in Okinawa, 
the government will sound out the United States regarding 
adopting a loan formula that would allow repayment of the 
expenditures in the future. In order to obtain the understanding 
of Japanese citizens toward the appropriation of fiscal 
expenditures for facilities outside of Japan that are not covered 
under the Japan-US Status of Forces Agreement (SOFA), the 
judgment has been made that Japan's share of the burden would 
need to be constrained. Since the reduction would come in the 
unusual form of the US borrowing money from Japan, it is unclear 
whether the US would agree or not. The suggestion is likely to 
become subject to major debate between the two governments. 
 
As a link in the US force realignment chain, the US has promised 
to relocate 7,000 Marines from Okinawa. Of that number, 6,000 
would be moved to Guam. The US has presented an estimate of 
approximate 7.6 billion dollars (approximately 900 billion yen) 
in costs. The cost of constructing housing and other facilities 
for families would run approximately 4.7 billion dollars 
(approximately 560 billion yen), and the headquarters and health 
facility would cost another 2.6 billion dollars (approximately 
310 billion yen). 
 
The government will announce a set amount of fiscal assistance 
"leading to the reduction of Okinawa's burden, but the portion of 
both countries shared burden was not boiled down in senior 
 
TOKYO 00000882  014 OF 018 
 
 
working-level talks that were held in Tokyo on Feb. 18. There 
will be working-level talks in Hawaii on Feb. 21, but the US side 
apparently will seek Japan to assume a share above 50%. 
 
22) GSDF in Iraq: Government proposal to leave personnel behind 
in Baghdad for liaison and coordination after troops withdrawn 
 
YOMIURI (Page 1) (Full) 
February 20, 2006 
 
A plan is being floated in the government to leave some Ground 
Self-Defense Force (GSDF) personnel in Baghdad, Iraq, for liaison 
and coordination with the multinational force after the main GSDF 
troops now carrying out reconstruction assistance in Samawah in 
southern Iraq are withdrawn. The US has asked that some personnel 
be left behind in order to make it easy to gather information in 
case fiscal reconstruction assistance is carried out. The plan is 
to make a final decision on this when the GSDF begin to pull out, 
possibly at the end of March. The government even after the GSDF 
are pulled out from Samawah, plans to continue a contribution to 
Iraq's reconstruction through official development assistance 
(ODA) or yen loans. 
 
Although coordination with other countries will be carried out by 
the Foreign Ministry mainly, from the perspective of 
"coordination with the military of other countries, the GSDF 
would be more appropriate in that case," noted a senior 
government official. The plan being considered is to dispatch 
several officers, including field officer class, to the 
multinational force command in Baghdad. In that case, the basic 
plan of the special measures law for Iraq reconstruction 
assistance would have to be changed. 
 
In connection with the Iraq withdrawal, the US has asked the GSDF 
to dispatch personnel to serve on a PRT (provincial 
reconstruction team) that has as its aim the improvement of the 
capability of local Iraqi government's control and public 
security capabilities. The government has transmitted that it 
does not intend to participate in a PRT, but in case there needs 
to be fiscal support for a PRT, there is seen to be a possibility 
of smooth coordination on Japan's part. After the GSDF withdraws, 
the government plans to continue to have the Air Self-Defense 
Force stay behind and continue air cargo transport for the 
multinational force. The US request of Japan to let the GSDF 
remain in some form in Iraq is seen, according to a government 
source, as "having symbolic meaning" that priority is being given 
to the Japan-US alliance. 
 
23) China's Standing Committee member again criticizes Prime 
Minister Koizumi's Yasukuni Shrine visits, expressing hopes for 
post-Koizumi leader 
 
NIHON KEIZAI (Page 2) (Full) 
February 21, 2006 
 
Hiroshi Yomo, Beijing 
 
Hidenao Nakagawa, chair of the ruling Liberal Democratic Party's 
(LDP) Policy Research Council, yesterday met with the Chinese 
Communist Party's Political Bureau Standing Committee member Li 
Zhangchun at the Great Hall of the People in Beijing. Li 
criticized Prime Minister Junichiro Koizumi's continued visits to 
 
TOKYO 00000882  015 OF 018 
 
 
Yasukuni Shrine: "The two nations have faced the most serious 
difficulty since the normalization of diplomatic ties, and (the 
shrine issue) has been affecting various areas." "We don't think 
this difficulty would last long. It's important for Japanese 
leaders to come up with sincerity and action," Li added, 
indicating the hope for a policy switch under the next 
administration after Koizumi. 
 
Nakagawa stressed, "(Such visits) are not something to destroy 
the political base of Japan and China," adding, "Dialogue needs 
to continue." He then called on China to work together to realize 
a Japan-China summit meeting that has not occurred since last 
April, as well as to conduct joint research on the history issue. 
 
Li made mention of fiver assertions presented by President Hu 
Jintao, and accused Japan: "No positive reaction has come from 
Japan." "If the Yasukuni issue were handled properly, the current 
impasse would be broken," he continued. Nakagawa explained about 
Koizumi's shrine visits in this way: "The Prime Minister has made 
it clear that his shrine visit is a private one. So it's 
incorrect to think he visits the shrine to pay homage to Class-A 
war criminals." 
 
24) Iranian nuclear development: Tokyo intends to urge Tehran to 
accept Russia's proposal in effort to avoid sanctions 
 
ASAHI (Page 1) (Full) 
February 21, 2006 
 
By Shuki Yamashita 
 
In an effort to resolve the Iran nuclear development issue, the 
government yesterday decided to urge Iran to accept Russia's 
proposal to transfer the location of uranium enrichment activity 
from Iran to Russia. Given its oil exploration rights in Iran's 
Azadegan oil field, Japan wants to somehow avoid a major 
confrontation with that country, such as economic sanctions. 
Prime Minister Junichiro Koizumi and Foreign Minister Taro Aso 
intend to urge Iranian Foreign Minister Mottaki, who is slated to 
come to Japan on Feb. 27, to concede. 
 
In an emergency board meeting early this month of the 
International Atomic Energy Agency (IAEA), the government 
endorsed a resolution to refer the Iranian nuclear issue to the 
United Nations Security Council (UNSC). Meanwhile, Japan has 
repeated its call for Iran to halt its nuclear activities. 
However, Iran has hardened its attitude, following the submission 
of the resolution to the UNSC. In fact, Iran restarted its 
uranium enrichment activity. If discussion begins in the UNSC, it 
is highly likely that calls for sanctions on Iran will gain 
momentum. To avoid that, Japan thinks a pragmatic compromise at 
this point would be for Iran to accept Russia's proposal. 
 
According to the Russian proposal, Iran is allowed to use nuclear 
energy for peaceful purposes, but in order to prevent 
proliferation of nuclear-related technology, Iran would be 
required to transfer the location of its uranium enrichment 
activity to Russia. In this regard, Foreign Minister Aso will 
today meet with visiting German Foreign Minister Steinmeier, and 
tomorrow the Foreign Ministry's (MOFA) Disarmament, Non- 
Proliferation, and Science Department's Deputy Director-General 
Takeshi Nakane will exchange views with Russian officials in 
 
TOKYO 00000882  016 OF 018 
 
 
Moscow. Deputy Director-General Tsuneo Nishida of MOFA will on 
the same day meet with IAEA Director General ElBaradei in Vienna. 
Japan is thus planning to set a net to encircle Iran to pressure 
it to accept the Russia proposal. 
 
25) Poll: Cabinet support rate drops to 43%; 71% say social 
divide has widened 
 
ASAHI (Page 1) (Full) 
February 21, 2006 
 
According to a (telephone-based) nationwide opinion poll the 
Asahi Shimbun conducted on Feb. 18-19, the approval rate for the 
cabinet of Prime Minister Junichiro Koizumi was 43%, a drop from 
45% of the result of January's survey, while the disapproval rate 
was 41%, an increase from the previous month's 37%. A majority of 
those who though social disparity had widened said that the 
widening social gap is related to the prime minister's policies. 
They seemed to be expressing their unhappiness with Koizumi's 
political moves. 
 
At the poll conducted immediately after last year's September 
election, the support rate for the Koizumi Cabinet was 55%. 
However, support ratings for the cabinet have continued to 
decline since November. Separating the responses by age, the 
disapproval rate of those who are in their forties through 
sixties exceeded the approval rate. 
 
Of the respondents, 71% said that they felt that the income 
disparity has widened. Of the 71%, 49% (35% of the whole 
respondents) said that the widening social gap is "related to" 
the prime minister's policies. Twenty-four percent of them 
supported the Koizumi Cabinet, while 66% did not support the 
policies. 
 
Koizumi has moved ahead with a policy of creating "small 
government," under which he has tried to allow private sector 
companies to take over public services. Toward a question that do 
you want the next prime minister to continue the same policy, 28% 
said that the policy should be continued, 47% replied that the 
policy line is good but the way of carrying out the policy should 
be reviewed, and 14% said that the policy line should be changed. 
 
Regarding a question about Koizumi's responses to the Livedoor 
scandal and the issue of US beef imports; 60% did "not 
appreciate," while only 22% "highly valued" them. 
 
26) Prime Minister Koizumi rejects poll showing that his policy 
has widened social divide 
 
ASAHI (Page 2) (Full) 
February 21, 2006 
 
Commenting on the results of a poll conducted by the Asahi 
Shimbun that revealed more than 70% of respondents said that they 
felt social disparities while a majority attributed this to his 
policies, Prime Minister Junichiro Koizumi yesterday told 
reporters: "I think people are being too quick to link them. 
That's simplistic thinking." 
 
He stated at a Diet session in January, "There is not that much 
of a social divide in Japan." He, however, stated yesterday: 
 
TOKYO 00000882  017 OF 018 
 
 
"There is a social divide in any country at any time. A social 
divide is not necessarily bad thing." He stressed that there was 
no problem with social disparity. 
 
Chief Cabinet Secretary Shinzo Abe stated last night: "If an 
income disparity is the result of one's efforts, many people take 
it to be positive." 
 
New Komeito Diet Affairs Committee Chairman Junji Higashi, 
however, made this comment: "A safety net is needed for 
implementing structural reform. The poll is a reflection of this 
view of the public." Minshuto (Democratic Party of Japan) 
Secretary General Yukio Hatoyama remarked: "The prime minister 
 
SIPDIS 
has stressed that (there is no social divide in Japan). But the 
people who say that there is a widening social gap are right." 
 
27) E-mail allegation: Discord visible in Minshuto, with one 
member saying, "The party must disclose more information" 
 
YOMIURI (Page 4) (Full) 
February 21, 2006 
 
The main opposition Minshuto (Democratic Party of Japan) 
continued to dig its heels in against the ruling coalition 
yesterday, demanding the Diet exercise its authority to invoke 
special investigative powers to verity the authenticity of a 
controversial e-mail allegedly sent by former Livedoor Co. 
President Takafumi Horie instructing his company to send money 
(to the second son of Liberal Democratic Party Secretary General 
Tsutomu Takebe). But some Minshuto members have raised questions 
 
SIPDIS 
about the party leadership's decision not to disclose further 
information, such as the bank account in question. Discord is now 
visible in Minshuto. 
 
Speaking to the press in Tsu City yesterday, Minshuto President 
Seiji Maehara emphatically said: 
 
"I am confident that (the information) is highly credible. As 
party president, there is every reason for me to put full trust 
in the effort being made by our colleagues." 
 
Maehara also made it clear that the ultimate responsibility lies 
with him. 
 
A senior Minshuto Diet Affairs Committee member noted with 
confidence, "We have obtained the name of the bank from which the 
money was sent, the name of the account, and the account number. 
Only a handful of people know them because the account is 
secret." But another senior Minshuto lawmaker complained about 
 
SIPDIS 
the party's reluctance to reveal detailed information, saying, 
"Unless the Diet exercises its special investigative powers, how 
can we prove the allegation?" 
 
Diet Affairs Committee Chairman Noda in a press conference 
yesterday indicated that the party has been trying to persuade 
the informant to reveal more information. At the same time, Noda 
exhibited a cautious stance, saying, "If the party fails to 
protect the informant, we will not be able to obtain additional 
information." 
 
Former Minshuto Diet Affairs Committee Chairman Yoshio Hachiro 
held a press conference in Sapporo yesterday, in which he posed 
 
TOKYO 00000882  018 OF 018 
 
 
questions about the party leadership's stance, noting, "As the 
party that has revealed the e-mail, Minshuto is responsible for 
presenting additional objective evidence to the public." 
 
"It was a mistake to confront the LDP based on information of 
that level," a mid-level Minshuto member said in a critical tone. 
 
In his party head debate with Prime Minister Koizumi tomorrow, 
Maehara is considering obtaining assurances from the premier that 
he will allow the Diet to exercise its investigative authority. 
Both weak and bullish tones intermingle in Minshuto, with one 
member saying, "If there is nothing more to it even after 
national investigative powers are exercised, Minshuto's image 
will be gravely damaged. But we should take our chances on it." 
 
28) Takebe: Disclosing bank account will settle everything 
 
YOMIURI (Page 4) (Excerpts) 
February 21, 2006 
 
Holding a press conference after a party executive meeting 
yesterday, Liberal Democratic Party Secretary General Tsutomu 
Takebe reiterated that Minshuto (Democratic Party of Japan) 
should disclose the bank account in question with the opposition 
party's insistence on protecting the informant in mind, saying, 
"There is no need to disclose the name (of the informant). Things 
will be settled with the disclosure of the account number." 
Takebe also said of a call for exercising the Diet's 
investigative powers, "Investigative powers must be exercised as 
necessary, but everything will be settled with the disclosure of 
additional information, such as the bank account." 
 
New Komeito Diet Affairs Committee Chairman Junji Higashi also 
indicated in his talks with LDP counterpart Hiroyuki Hosoda that 
they should deal with the matter cautiously, saying, "We should 
not set a bad example by abusing the Diet's investigative 
powers." 
 
SCHIEFFER