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UNCLAS SECTION 01 OF 11 TOKYO 000911 
 
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 02/22/06 
 
 
Index: 
 
1)   Top headlines 
2)   Editorials 
3)   Prime Minister's daily schedule 
 
Defense issues: 
4)   USFJ realignment hits bump over changes in Futenma 
  relocation plan sought by Okinawa lawmakers and argument over 
  share of relocating Marines to Guam 
5)   Gulf widens more between Tokyo, Okinawa Prefecture over 
Futenma relocation plan 
 
6)   Foreign Minister Aso, German counterpart confirm need to 
  further consult on UNSC reform 
 
China connection: 
7)   METI Minister Nikai to meet Chinese premier Wen in possible 
  fence-mending visit 
8)   LDP's Hidenao Nakagawa in Beijing discusses possible 
trilateral study of historical issues as effort to repair 
strained relations 
9)   Japan-China trade in 2005 set new record for 7th year in row 
 
Foreign aid intrigues: 
10)  Foreign Ministry, Finance Ministry reached backroom deal to 
  protect mutual vested interests in running parts of ODA program, 
  centered on JICA's jurisdiction 
11)  New JICA to be under Foreign Ministry's control, with yen 
loans now administered by three ministries 
 
12)  Takenaka forum envisions possible breakup of still 
  monolithic-like NTT 
 
Political showdown in Diet today: 
13)  Minshuto head Maehara, Prime Minister Koizumi to slug it out 
  verbally in Diet today, focusing on Livedoor scandal 
14)  Unable to prove authenticity, Minshuto to withdraw e-mail 
that allegedly proved illegal money funneled from Livedoor's 
Horie to son of LDP's Takebe 
 
15)  Another natural drop in population in 2005 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi: 
Financial Services Agency to revise legislation to abolish "gray- 
zone interest rates" for moneylenders to relieve debtors 
 
Mainichi: 
Foreign Ministry, Finance Ministry reached secret agreement on 
JICA's jurisdiction to continue keeping vested interests even 
after ODA reform 
 
Yomiuri, Tokyo Shimbun: 
Livedoor window-dressed financial statements by 5 billion yen; 
Representative director Kumagai admits to investigators that he 
was involved in creative accounting worth 1.4 billion yen; 
Prosecutors preparing to re-arrest Horie 
 
 
TOKYO 00000911  002 OF 011 
 
 
Nihon Keizai: 
Honda to install hybrid engine to 1-million-yen-level Fit 
 
Sankei: 
Takenaka's advisory panel decides to review NTT's market control 
with its dismantlement as one option 
 
2) EDITORIALS 
 
Asahi: 
(1)  Making houses earthquake-resistant essential to save lives 
(2)  Taking care of the aged is everybody's business 
 
Mainichi: 
(1)  There are more than pessimistic stories on the Kyoto 
Protocol that took effect a year ago 
(2)  Insurance must cover dependency on tobacco, a serious 
illness 
 
Yomiuri: 
(1)  DFAA officials rearrested for bid rigging: General 
contractors also surfaced 
(2)  Government should take lead in raising patriotism 
 
Nihon Keizai: 
(1)  Accounting and audit systems need further reform 
(2)  Put an end to a gap in views between Japan and Germany 
 
Sankei: 
(1)  A cap must not be put on elementary schools in teaching 
Kanji characters 
(2)  Takeshima Day: Japan's inherent territory should be 
remembered 
 
Tokyo Shimbun: 
(1)  Fiscal reconstruction: Have new targets been set? 
(2)  JAL crisis: Anxiety and distrust must be dispelled 
 
3) Prime Minister's Official Residence (Kantei) 
 
Prime Minister's schedule, February 21 
 
NIHON KEIZAI (Page 2)  (Full) 
February 22, 2006 
 
08:31 
Attended cabinet meeting in the Diet building. After the meeting, 
met with Foreign Minister Aso, followed by Internal Affairs and 
Communications Minister Takenaka. 
 
09:16 
Arrived at Kantei. 
 
10:51 
Met Yuzo Seto, advisor to Asahi Breweries, who chairs the Japan- 
Korea Economic Association. 
 
17:01 
Met with German Foreign Minister Steinmeier, joined by the 
Foreign Ministry's Deputy Foreign Vice-Minister for Foreign 
Policy Kono. 
 
 
TOKYO 00000911  003 OF 011 
 
 
19:02 
Met commentator Naoki Tanaka, Toyota Motor Chairman Hiroshi 
Okuda, and Canon President Fujio Miterai at Garden Court in Hotel 
New Otani. 
 
20:50 
Returned to his official residence. 
 
4) Future of Futenma relocation plan still murky; LDP lawmakers 
from Okinawa call for changes to relocation plan; Japan may be 
asked to bear cost for building power plant in Guam 
 
SANKEI (Page 5) (Abridged slightly) 
February 22, 2006 
 
Based on the concurrence of Nago, the relocation site for the US 
Marine Corps' Futenma Air Station, a group of Liberal Democratic 
Party (LDP) lawmakers from Okinawa urged the government yesterday 
to make changes to a plan to relocate the Futenma Air Station in 
Ginowan, Okinawa Prefecture, as part of the planned realignment 
of US forces in Japan. The government also pins hopes on the 
lawmakers to serve as mediators between the central government 
and local areas to restart talks. It is unknown however if 
revision talks will become reality. Japan might end up bearing 
the cost for building a power plant in relocating the US Marines 
from Okinawa to Guam. The future of the planned Futenma 
relocation is still unpredictable. 
 
Five LDP lawmakers, including Chiken Kakazu, visited yesterday 
the Prime Minister's Official Residence, Defense Agency, and 
Foreign Ministry, to urge them to revise the plan to relocate 
Futenma Air Station to the coastline of Camp Schwab in Nago and 
other municipalities. Specifically, they are believed to have 
asked the government to move the planned runway 1 kilometer 
further offshore to remove it from Nago's residential areas, 
based on the city's consent. 
 
As seen in the Futenma relocation plan, the government's effort 
centering on the Defense Agency to persuade local areas has hit 
rocky ground. Nago Mayor Yoshikazu Shimabukuro remains adamant 
not to discuss the Futenma relocation issue with the government 
unless it makes changes to the plan. The Defense Agency remains 
at odds with Nago. "In order to deal properly with the issue, we 
need to learn of (local views)," Defense Agency Administrative 
Vice Minister Takemasa Moriya said. 
 
The group of LDP lawmakers, including Kakazu, fears that if the 
government launches relocation construction work without local 
consent, they would be forced to oppose the relocation. This 
prompted them to take action. "If we supported the relocation 
plan, that would conflict with Nago's consensus," Kakazu noted. 
 
The Defense Agency is reluctant to make any changes to the 
relocation plan. But because the coastal plan is designed to 
allow aircraft to fly over residential areas, some Foreign 
Ministry officials think a revision is worth considering. US 
Ambassador to Japan Thomas Schieffer has also revealed a flexible 
stance about making changes, saying, "If there are better plans, 
we are obliged to lend an ear to them." 
 
But even if the plan was revised, there is no knowing if Okinawa 
Gov. Keiichi Inamine would accept it. His stance remains the 
 
TOKYO 00000911  004 OF 011 
 
 
largest variable for the government. 
 
In addition, the government will be soon pressed for a political 
decision on Japan's share of the expenses for the planned 
relocation of the US Marines from Okinawa to Guam, the focus in 
Japan-US deputy director-level talks. 
 
The US has presented to Japan an estimate of 7.6 billion dollars 
(900 billion yen) for the planned relocation. The US has also 
asked Japan to bear over 50% of that amount. The US may also ask 
Japan to bear the cost for building a power plant in Guam, citing 
aging US base facilities and a chronic shortage of power there. 
The government is being pressed to fathom the security 
significance that strengthening base functions in Guam will 
contribute to Japan's deterrence and limits to the understanding 
of the public. 
 
5) Gulf between government, Okinawa over Futenma relocation 
remains wide, as Diet members hailing from prefecture seek 
revisions in plan; Consideration of development package also 
broached 
 
YOMIURI (Page 4) (Excerpt) 
February 22, 2006 
 
The gulf is further widening between the central government and 
Okinawa Prefecture over the issue of relocating the US Marine 
Corps' Futenma Air Station (Ginowan City) to the coastal portion 
of Camp Schwab -- a key element in the realignment of US forces 
in Japan. With the prefecture and local governments on Okinawa 
heightening their opposition to the plan, the central government 
has refused to consider any alteration of it. The government also 
is not moving ahead with its study of a new package of economic 
vitalization measures, as well. 
 
On Feb. 21, a delegation of Liberal Democratic Party (LDP) 
lawmakers hailing from Okinawa and led by Masaji Nakamura visited 
the Prime Minister's Official Residence, paying a call of Chief 
Cabinet Secretary Shinzo Abe. They sought his concurrence for a 
revision of coastal plan at Camp Schwab, saying, "We cannot 
approve it." After the meeting, Abe told the press corps he had 
rejected their request, stating, "We must brief and persuade the 
local communities based on the interim report (of the Japanese 
and US governments that states the relocation will be to the 
coastal portion)." 
 
6) Japanese, German foreign ministers confirm continuation of 
talks on UNSC reform 
 
NIHON KEIZAI (Page 2) (Full) 
February 22, 2006 
 
Foreign Minister Taro Aso met yesterday with his German 
counterpart Frank-Walter Steinmeier in Tokyo. The two foreign 
ministers confirmed that Japan and Germany would continue talks 
on reform of the United Nations Security Council with the aim of 
realizing such by September, although there are differences in 
their policies, with Japan having come up with its own reform 
proposals. 
 
The foreign ministers agreed to strengthen the solidarity of the 
international community for a peaceful settlement of Iran's 
 
TOKYO 00000911  005 OF 011 
 
 
nuclear issue. They also agreed to step up a government-private 
sector dialogue, which discusses such common issues as the 
falling birthrate and the graying society. 
 
At a joint press conference, Aso stated, "We shared the view that 
UNSC reform is an urgent issue." The German foreign minister said 
categorically, "I would like to continue the talks in order also 
to resolve gaps in views (of the two countries)." Steinmeier also 
stated in a meeting with Prime Minister Junichiro Koizumi, which 
was held prior to the foreign ministerial, "Based on Japan's 
thinking, I hope that our countries will cooperate with each 
other." 
 
7) METI Minister Nikai to hold talks with Chinese Premier Wen 
 
ASAHI (Page 3) (Full) 
February 22, 2006 
 
Takashi Kamikuri, Beijing 
 
The governments of Japan and China revealed yesterday that 
Japan's Economy, Trade and Industry Minister Toshihiro Nikai 
would meet with Chinese Premier Wen Jiabao in Beijing. It will be 
the first time for a Chinese leader to meet with a Japanese 
cabinet minister since Prime Minister Junichiro Koizumi visited 
Yasukuni Shrine last October. 
 
Nikai, who arrived in Beijing last night, told reporters: "Japan 
and China have not only the Yasukuni issue but also other issues 
that must be overcome. I would like to hold a frank exchange of 
views on those issues." 
 
During his stay in Beijing until Feb. 23, Nikai is expected to 
meet also with Chinese State Councilor Tang Jiaxuan, as well as 
Commerce Minister Bo Xilai to discuss on the issue of gas 
exploration in the East China Sea and trade issues. 
 
8) LDP policy chief Nakagawa proposes probe into Sino-Japanese 
war with participation of other countries 
 
ASAHI (Page 3) (Full) 
February 22, 2006 
 
Shinya Minamijima, Beijing 
 
Liberal Democratic Party (LDP) Policy Research Council Chairman 
Hidenao Nakagawa, who is now visiting China, proposed a study of 
the Sino-Japanese war, letting other countries participate. He 
stated in a first meeting on Feb. 21 of the exchange council of 
the ruling parties of Japan and China: "I propose Japan and China 
initiate a joint study of the Sino-Japanese war. I welcome 
participation of historians from third countries if necessary." 
 
Nakagawa also proposed: A conclusion of bilateral economic 
cooperation accord; promotion of cooperation on reform of the 
United Nations and North Korea issue; and active exchanges of 
young people of the two countries. 
 
9) Trade with China in 2005 resets highest record for 7th 
straight year, but growth slows down 
 
TOKYO SHIMBUN (Page 8) (Full) 
 
TOKYO 00000911  006 OF 011 
 
 
February 22, 2006 
 
The value of trade between Japan and China in 2005 reset its 
highest level for the 7th consecutive year of rise, recording 
189.3 billion dollars or approximately 22,337.4 billion yen, 
according to an estimate released yesterday by the Japan External 
Trade Organization (JETRO). Trade growth, though, slowed down to 
a 12.7% pace, compared with 30.4% in 2003 and 26.9% in 2002. 
Japan's trade deficit with China also hit a record high of 28.7 
billion dollars or approximately 3,386.6 billion yen. 
 
Exports to China increased 8.9% to 80.3 billion dollars or about 
9,475.4 billion yen, given strong demand for image equipment 
parts, meanwhile exports of electronic components dropped, 
affected by inventory adjustment. Imports from China grew 15.7% 
to 109 billion dollars or about 12,862 billion yen, topping 100 
billion dollars for the first time ever. The increase is 
attributable to brisk orders for personal computers and digital 
portable music equipment in the nation. 
 
The anti-Japan demonstrations in China in 2005 and the about 2% 
cut in the value of the yuan "had no effect on trade between 
Japan and China," according to an official of the JETRO Overseas 
Research Department. JETRO expects trade between the two 
countries in 2006 will hit a record high for eight years in a row 
and exceed 200 billion dollars. 
 
10) Foreign Ministry, Finance Ministry reached backroom deal to 
maintain vested interests in ODA reform 
 
MAINICHI (Top Play) (Full) 
February 22, 2006 
 
The government has decided to unify the sections responsible for 
implementing the nation's official development assistance (ODA) 
policy into the Japan International Cooperation Agency (JICA) in 
its ODA reform plan. In this connection, the Ministry of Foreign 
Affairs (MOFA) and the Ministry of Finance (MOF) have reached a 
backroom deal for MOFA to have jurisdiction over JICA and for MOF 
to take charge of yen loans, the Mainichi Shimbun learned 
yesterday from a copy of the consensus document of the two 
ministries. Despite the government's decision to unify ODA 
functions under the control of MOFA, MOF will keep its authority 
over ODA policy. 
 
Regarding the jurisdiction of JICA, into which the three ODA 
sections - yen loans, technical cooperation, and grant aid - will 
be integrated, the consensus document specifies: "The MOFA 
minister will continue to serve as competent minister, but the 
MOF minister will be in charge of financial affairs and 
accounting linked to yen loans." On lending for yen loans, too, 
the document suggests keeping the current system under which the 
MOFA, MOF and Economy, Trade and Industry Ministry (METI) 
ministers hold a discussion and make a decision, noting: "There 
will be no change in the current relations of authority set among 
the competent ministers under the Japan Bank of International 
Cooperation (JBIC) Law." 
 
At present, MOF has control over JBIC, which takes charge of yen 
loans. The government has decided to abolish JBIC, but even after 
the yen-loan section is integrated into JICA, the Finance 
Ministry will continue to keep its authority over ODA yen-loan 
 
TOKYO 00000911  007 OF 011 
 
 
policy. 
 
According to informed sources, Chief Cabinet Secretary Shinzo Abe 
discussed with the three relevant ministers on the morning of 
Feb. 17 and confirmed that their authority will be kept intact 
even after the three section are unified into JICA, in accordance 
with progress made in discussions at the government's "Study 
Group on Overseas Economic Cooperation." 
 
Following this, MOFA and MOF administrative officials drafted a 
document. On the evening of Feb. 20, MOFA Administrative Vice 
Minister Shotaro Yachi and MOF Administrative Vice Minister 
Koichi Hosokawa confirmed it by the phone and then officially 
adopted it, according to the informed sources. 
 
Given that the agreement was reached behind the scenes, MOFA 
Minister Taro Aso denied in a press conference yesterday the 
possibility that the ministry will continue to take control over 
ODA policy. 
 
In ODA reforms, MOF and business leaders strongly resisted to the 
plan to dissolve JBIC, one official remarking: "A reduction in 
financing will inevitably undermine Japanese firms' 
competitiveness on the international stage." Prime Minister 
Junichiro Koizumi was also overheard telling his aid: "The 
Finance Ministry has made a strong reaction. Government offices 
are very eager to protect their vested interests." Some observers 
point out that the intention of MOF has been reflected, in the 
end. 
 
11) New JICA to come under MOFA's jurisdiction; Three ministries 
to supervise yen loans 
 
ASAHI (Page 2) (Full) 
February 22, 2006 
 
The government and the ruling camp have decided to place the main 
body of the Japan International Cooperation Agency (JICA), which 
is to be reorganized, under the jurisdiction of the Ministry of 
Foreign Affairs (MOFA), and to have the Finance Ministry (MOF), 
MOFA and the Ministry of Economy, Trade and Industry (METI) 
jointly supervise yen loans to be integrated into JICA. As a 
result of the reorganization, JICA will become a comprehensive 
official development assistance (ODA) implementing organ in 
charge of yen loans which are to be transferred from the Japan 
Bank for International Cooperation (JBIC), now destined to be 
disbanded, and grant aid cooperation, currently under MOFA's 
jurisdiction, as well as technical cooperation, its original 
responsibility. 
 
A plan to place JICA as a whole under the jurisdiction of the 
three ministries had been floated, but the Liberal Democratic 
Party (LDP) and members of other parties pointed out the need to 
maintain the efficacy of the integration of ODA functions. A 
settlement was, therefore, reached on the plan to place part of 
JICA's functions under the three ministries' jurisdiction. 
 
MOFA has thus far been responsible for yen loans, acting as a 
vehicle for negotiations with the government regarding budget 
compilation and personnel changes, and made decisions in 
consultation with the MOF and METI. Vice Foreign Minister Shotaro 
Yachi and Administrative Vice Finance Minister Koichi Hosokawa 
 
TOKYO 00000911  008 OF 011 
 
 
yesterday discussed the issue and agreed that the two ministries 
should maintain their current authority over the yen loan 
function. A senor MOF official said, "The current mechanism will 
be maintained after the yen loan function has been integrated 
into JICA." A senior MOFA official noted, "The current authority 
system and structure will be shifted to the new JICA as is." 
 
A plan to place the main body of the new JICA has been floated, 
because MOF has been a main government agency with jurisdiction 
over JBIC. However, the LDP, in a plan mapped out on Feb. 16, 
proposed that MOFA should be responsible for yen loans. The 
agreement reached by the vice ministers of MOFA and MOF are 
presumably aimed to avoid the confrontation of views between the 
government and the LDP. 
 
The government will incorporate the establishment of the new JICA 
in an administrative reform promotion bill, which it intends to 
introduce during the current Diet session. The allocation of 
jurisdictions over detailed duties will be worked out in a 
businesslike manner, by revising the International Cooperation 
Organization Law, as Chief Cabinet Abe put it. 
 
Various government agencies have been in charge of ODA functions. 
The aim of the reform of the ODA system is to integrate those ODA 
functions into an efficient single entity. Some government 
officials and members of the ruling parties are concerned that if 
the joint jurisdiction system covers as far as JICA"s 
organization and personnel affairs, the meaning of the 
integration of ODA functions will be undermined." 
 
12) Private panel reporting to Minister of Internal Affairs and 
Communications Takenaka unanimously agrees to review NTT Group 
with disbandment in mind; Aim is to constrain giant company's 
market control 
 
SANKEI (Top Play) (Excerpts) 
February 22, 2006 
 
The Panel to Discuss the Proper Form of Communications and 
Broadcasting Businesses (chaired by Toyo University Professor 
Satoshi Matsubara), a private panel reporting to Minister of 
Internal Affairs and Communications Takenaka, during yesterday's 
meeting discussed the proper form of the communications industry. 
Panel members agreed to drastically review the organization of 
the NTT Group and its management system. The panel hopes to 
create a level playing field by constraining the group's 
overwhelming control of the market with a second reorganization 
of NTT through a revision of the NTT Law in mind. The development 
is extremely harsh for the NTT Group, which is now determined to 
further integrate the management of group firms. 
 
The meeting suggested the possibility of separating NTT's R&D 
section and releasing its patents. Speaking to the press after 
the meeting, Matsubara categorically said, "It would be rational 
to place NTT's basic research section outside the group so that 
its achievements can be utilized by other industries as well." 
 
Regarding a possible review of NTT's duty to provide universal 
landline service, a number of panel members noted that it was 
questionable whether universal service via copper wires will 
still be necessary by 2010, when a broadband-based communications 
system is expected to be mostly completed. 
 
TOKYO 00000911  009 OF 011 
 
 
 
Referring to the organization of NTT and its management, 
Matsubara stressed that panel members were unanimous in their 
belief that NTT should undergo a second reorganization, saying 
that when members were asked whether any of them thought the NTT 
Law should be kept in place as is, everyone was silent. 
 
Members also expressed concern over the fact that the NTT Group 
continues to dominate the market, as can be seen by the fact that 
it holds more than 50% of shares in all communications areas, 
including landlines, cellular phones, and fiber-optic 
communications, despite new entrants into the market following 
liberalization in 1985. 
 
Takenaka pointed out, "The primary issue is to promote 
competition policy and competition itself." 
 
The panel appears to have doubts about the group's current setup 
in which NTT East and NTT West, regional providers, long-distance 
service NTT Communications, and cell-phone provider NTT DoCoMo 
all exist under a holding company, and the panel will likely 
consider completely separating the capital of the group companies 
or disbanding the group. 
 
13) Minshuto (Democratic Party of Japan) President Maehara's 
responsibility now called into questioned over controversial 
"Horie e-mail"; Debate of party leaders today 
 
SANKEI (Page 2) (Full) 
February 22, 2006 
 
Political maneuvering is continuing over the authenticity of the 
controversial "Horie e-mail" and is likely to enter a crucial 
stage with today's debate of party heads between Prime Minister 
Junichiro Koizumi and Minshuto head Seiji Maehara. Minshuto finds 
itself on the hot seat, coming under attack by the ruling 
coalition, which has insisted that the burden of proof lies with 
Minshuto. Some in Minshuto are beginning to blame Maehara. Can 
Minshuto dispel criticism emerging inside and outside of the 
party by presenting new information? Maehara's words and deeds 
will draw attention. 
 
Yesterday afternoon, Maehara remained defiant, telling reporters 
in the Diet: "I believe (the e-mail) is highly credible. You can 
look forward to tomorrow's (Feb. 22) developments." He then 
indicated he would again demand that the ruling parties invoke 
the investigative powers that he thinks are necessary to provide 
information on a bank that might have been used for the transfer 
of money. 
 
These remarks hint at the possibility that Maehara will reveal 
new information during the party-head debate. Indeed, he has 
expressed his enthusiasm in this way: "There will be a 
significant impact on the Koizumi administration" and "I'll shed 
light on the shady relations (between the LDP and Takafumi 
Horie)." But in contrast to his enthusiasm, a mood of disquiet is 
growing in Minshuto. 
 
Minshuto Upper House Diet Affairs Committee Chairperson Kenji 
Hirata said that if Maehara failed to prove the authenticity of 
the e-mail, he should take responsibility, noting: "It will be 
difficult to leave the matter blurry. I think it's only natural 
 
TOKYO 00000911  010 OF 011 
 
 
for the person who raised this to take responsibility. This is 
not a child's game." Many in Minshuto from the beginning have 
insisted that it would be difficult to prove the authenticity of 
the e-mail unless special investigative powers were invoked, 
according to a senior party member. Only a few party members, 
including Maehara, Diet Affairs Committee Chairperson Yoshihiko 
Noda, and Hisayasu Nagata, have been privy to the information, 
leaving other party members out of the loop. This situation is in 
part helping to intensify other party members' irritation. In 
fact, a conservative lawmaker who keeps his distance from Maehara 
said flatly: "I'd like to help him, but I can't, as no 
information is available to me." 
 
Meanwhile, the LDP is stepping up its offensive against Minshuto. 
Secretary General Tsutomu Takebe criticized Minshuto at a press 
 
SIPDIS 
briefing yesterday: "Once Minshuto reveals the bank account's 
name and the account number, it will instantly become clear who 
is wrong. Why can't they do so?" Upper House Caucus Secretary 
General Toranosuke Katayama also said: "Minshuto should 
demonstrate that what it is saying is not simply slander or 
defamation before calling for special investigative powers to be 
invoked." These two veteran lawmakers strongly insisted that 
Minshuto has the responsibility to explain itself. 
 
Prime Minister Koizumi recently challenged Minshuto by referring 
to "bogus information." When asked by reporters about the party- 
head debate, Koizumi said calmly: "I wonder what Mr. Maehara will 
say. After hearing his views, I'll answer." 
 
14) Minshuto (Democratic Party of Japan) abandons plan to prove 
authenticity of controversial e-mail; Party leadership's 
responsibility now being questioned 
 
YOMIURI (Page 2) (Full) 
February 22, 2006 
 
Minshuto yesterday in effect gave up pursuing the controversial e- 
mail that allegedly had been sent by former Livedoor President 
Takafumi Horie to the second son of Liberal Democratic Party 
(LDP) Secretary General Tsutomu Takebe, judging it difficult to 
prove its authenticity.  Amid increasing criticism of Minshuto, 
party members are questioning the responsibility of its 
leadership, including President Seiji Maehara and Diet Affairs 
Committee Chairperson Yoshihiko Noda. 
 
The LDP has come up with materials enough to cast doubts on the 
authenticity of the e-mail, for example, when the e-mail arrived, 
defendant Horie was on streets for Lower House election 
campaigning, but Minshuto remains unable to cite anything to 
rebut this. Given this, Minshuto has decided to focus its 
energies on pursuing the truth of the alleged financial 
assistance to Takebe's second son in the days ahead. A senior 
party member explained: "The question is not the authenticity of 
the email, but whether money was actually transferred to the 
second son's bank account." Party head Maehara said firmly to 
reporters yesterday: "I'd like to continue our call to invoke 
special investigative powers in national politics." 
 
Meanwhile, some in the party are beginning to openly question the 
responsibility of the party executives. Meeting the press, Kenji 
Hirata, chair of the party's Upper House Diet Affairs Committee, 
referred to Maehara's attitude of placing full confidence in 
 
TOKYO 00000911  011 OF 011 
 
 
House of Representatives member Hisayasu Nagata who raised the 
controversial e-mail issue and touched on Maehara's 
responsibility, noting: "It's only natural that the person who 
has left the matter to someone, saying, 'I'll leave it in your 
hands,' should take responsibility." Satsuki Eda, chair of the 
party's Upper House Caucus, also implied at a party executive 
meeting yesterday that Noda was responsible, saying: "I'd like to 
see Noda take the leadership in tiding over this issue." 
 
15) Declining population confirmed; Decrease of 4,361 in 2005, 
according to preliminary estimate 
 
ASAHI (Page 2) (Abridged) 
February 22, 2006 
 
According to the Population and Vital Statistics of Japan for 
Dec. 2005, released yesterday by the Ministry of Health, Labor, 
and Welfare (MHLW), the nation's population in 2005, determined 
by subtracting the number of deaths from the number of births, 
dropped by 4,361. It has been confirmed that the population has 
moved into the negative column for the first time since the 
statistics were taken in the present form in 1899. The 
preliminary figure includes foreigners who live in Japan and 
Japanese who live abroad. Regarding Japanese who live in Japan, 
MHLW released an annual projection late last year, which forecast 
a fall of 10,000. It is now known that the margin of this fall 
will likely expand to around 20,000. 
 
The number of births registered with municipalities throughout 
the country from Jan. through Dec. last year was 1,090,231 (down 
4.2% from the previous year). The number of deaths registered was 
1,094,598 (up 5.4% from the preceding year). Both the rates of 
decline and the decrease in the number of births and the increase 
in deaths for the year were larger than the ratios registered 
from Jan. through Oct., the base period for the annual 
projection. An official from MHLW said, "There is a possibility 
the severe winter has affected the statistics." 
 
SCHIEFFER