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UNCLAS SECTION 01 OF 12 TOKYO 001126 
 
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 03/03/06 
 
 
Index: 
 
1)   Top headlines 
2)   Editorials 
3)   Prime Minister's daily schedule 
 
Minshuto (Democratic Party of Japan) in disarray: 
4)   Yomiuri poll: 70% of public critical of Minshuto's e-mail 
  caper in the Diet; 60% want lawmaker Nagata to resign 
5)   To save the day, Minshuto appoints elderly lawmaker, known 
as the "living dictionary," to manage party's Diet affairs 
6)   Minshuto head Maehara seems to have completely surrendered 
his leadership in the party 
7)   Many in LDP, unconvinced by Minshuto apologies, punishment 
of Nagata, still want to "attack" party 
 
8)   Vacuum created in the Diet due to the Minshuto brawl 
  ironically allowed the budget to pass the lower house with little 
  debate 
 
Defense and security issues: 
9)   Foreign Ministry in annual arms control white paper finally 
  tackles issue of China's military buildup 
10)  JDA chief Nukaga appeals to eight local heads around Iwakuni 
base to accept transfer of carrier jets from Atsugi 
11)  JDA issues stern warning to Mitsubishi Electric, halts new 
defense contracts 
 
12)  Government planning to release oil stockpile if sanctions 
  imposed on Iran, embargoing oil flow to Japan 
 
13)  Administrative reform plan targets policy-related financial 
  institutions by halving their balance of funds by end of FY08 in 
  GDP terms 
 
14)  Important bills left to pass in last half of Diet 
 
Beef ban: 
15)  USDA Secretary Johanns hardens stance toward resolving US 
  beef import issue 
16)  Japan's white paper on agriculture for FY05 spotlights the 
US beef issue 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi: 
Hollowing out of Diet: Budget bill gets through Lower House 
without questioning; All Minshuto (DPJ) did is to make apology 
 
Mainichi: 
DFAA-involved bid-rigging scandal: Tokyo District Public 
Prosecutors Office questioning all general contractors 
 
Yomiuri: 
Poll: 70% are "not convinced" about Minshuto's response to e-mail 
fiasco; 60% call for resignation of lawmaker Nagata 
 
Nihon Keizai: 
Toyota accepts labor union's 1,000-yen wage hike request; Leading 
electric manufacturers also grant wage hikes for first time in 
 
TOKYO 00001126  002 OF 012 
 
 
five years 
 
Sankei: 
US-India summit: US will extend cooperation to India in nuclear 
development, removing restrictions on technology exports 
 
Tokyo Shimbun: 
Overcrowded juvenile facilities in Tokyo; Number of children in 
need of urgent care rising due to surge in child-abuse cases 
 
2) EDITORIALS 
 
Asahi: 
(1)  Reconstruction of JAL: No future for sick organization 
(2)  India's nuclear program: The danger of US recognition 
 
Mainichi: 
(1)  Inactive Diet: Taxpayers' money is wasted 
(2)  Health insurance lawsuit: Continuing the work of Mr. Sugio 
 
Yomiuri: 
(1)  JAL's fresh start: Share sense of crisis needed 
(2)  Diet debate: Go back to basics 
 
Nihon Keizai: 
(1)  World powers should unite to avoid an Iranian nuclear crisis 
(2) Questions about President Roh's speech 
 
Sankei: 
(1)  Budget passes Lower House; We hope Koizumi will complete his 
reform 
(2)  North Korea: Tighten the net 
 
Tokyo Shimbun: 
(1)  Passage of budget: Diet debate needs to return to normal 
(2)  Spring wage increase offensive: Labor unions should make 
good use of this robust economy 
 
3) Prime Minister's Official Residence (Kantei) 
 
Prime Minister's schedule, March 2 
 
NIHON KEIZAI (Page 2) (Full) 
March 3, 2006 
 
09:02 
Arrived at Kantei. 
 
09:59 
Attended a Lower House Budget Committee meeting. 
 
12:06 
Returned to Kantei. 
 
13:01 
Attended the Lower House Budget Committee meeting. 
 
15:48 
Met at Kantei with Public Affairs Headquarters deputy chief Seko. 
 
16:40 
Attended a Lower House plenary session. 
 
TOKYO 00001126  003 OF 012 
 
 
 
18:26 
Met Lower House Speaker Kono and his deputy Yokomichi and other 
ruling party executives. 
 
18:45 
Returned to Kantei. 
 
19:23 
Returned to his residence. 
 
4) Poll on DPJ email fiasco: 70% see DPJ action as unconvincing; 
60% urge Nagata to resign 
 
YOMIURI (Top play) (Abridged) 
March 3, 2006 
 
The leading opposition Democratic Party of Japan (DPJ or 
Minshuto), in a recent parliamentary session, took up the issue 
of the former Livedoor Co. president's alleged email directive to 
send money to a ruling Liberal Democratic Party (LDP) executive's 
son. In response, the Yomiuri Shimbun conducted a telephone-based 
spot nationwide public opinion survey on March 1-2. DPJ Diet 
Affairs Committee Chairman Yoshihiko Noda has resigned from his 
party post to take responsibility. In the Diet, Hisayasu Nagata, 
a House of Representatives member with the DPJ, took up the email 
(later found to be a fake) and asked questions about its content. 
On this issue, the DPJ went no further than to suspend Nagata's 
party membership for six months. Asked about this way of taking 
responsibility, 70% of respondents answered that it was 
"unconvincing." Respondents were also asked if they thought 
Nagata should resign from his Diet post. In reply to this 
question, 60% answered "yes," with 32% saying "no." Respondents 
were further asked if they thought DPJ President Maehara should 
resign as his party's head. In response, "yes" and "no" were even 
at 45%. 
 
In the meantime, the approval rating for the Koizumi cabinet was 
35.0%, with the disapproval rating at 35.0%. The support rate was 
up 2.8 percentage points from a telephone-based spot survey 
conducted in January after the Livedoor scandal, and the 
nonsupport rate was down 1.1 points. In the breakdown of public 
support for political parties, the LDP stood at 42.9%, up 4.0 
points from this January's spot survey. The DPJ was at 15.1%, 
down 2.1 points. 
 
5) Kozo Watanabe becomes Minshuto's Diet Affairs Committee 
chairman 
 
MAINICHI (Page 5) (Slightly abridged) 
March 3, 2006 
 
Former House of Representatives Vice Speaker Kozo Watanabe 
assumed yesterday the post of Minshuto's (Democratic Party of 
Japan) Diet Affairs Committee chairman. The 73-year-old veteran 
lawmaker was first elected to the Diet when he was 37. He served 
in such cabinet posts as health and welfare minister, home 
affairs minister, and trade minister. He has experience as one of 
the seven prefects of the former Takeshita faction in the Liberal 
Democratic Party (LDP). 
 
He took part in the formation of the now defunct Shinseito (Japan 
 
TOKYO 00001126  004 OF 012 
 
 
Renewal Party) in 1993, and that of the now defunct Shinshinto 
(New Frontier Party) in 1994. He served as Lower House vice 
speaker from 1996 to 2003. He severed as the LDP's Diet affairs 
chief in 1987 and as Shinshinto's Diet Steering Committee 
chairman. He is well versed in Diet affairs. The main opposition 
party now relies on a professional. 
 
He has a desire to leave his name in history as one of the 
persons who formed a two party system. He belonged to the debate 
club of Waseda University. He enjoys great prestige among young 
lawmakers. 
 
Both Watanabe and Ichiro Ozawa, former Minshuto vice president, 
have been serving in the Diet for the same length of time. He 
calls Prime Minister Junichiro Koizumi "Koizumi-kun," just like 
the premier were his junior. When Watanabe was LDP Diet affairs 
chief, Koizumi was his deputy. 
 
He initially turned down the request, but he said after accepting 
the post, "If nobody takes the post, our party will go down." 
However some party members are critical about the appointment of 
Watanabe, saying that it seems to be a move to turn the clock 
back. 
 
While Minshuto is having a difficult time, Watanabe's political 
caliber will be tested. 
 
6) Minshuto's Maehara totally surrenders in e-mail fiasco; 
Leadership falls decisively 
 
SANKEI (Page 2) (Excerpts) 
March 3, 2006 
 
Minshuto (Democratic Party of Japan) President Seiji Maehara and 
fellow lawmaker Hisayasu Nagata offered yesterday their separate 
apologies to Prime Minister Junichiro Koizumi and Liberal 
Democratic Party (LDP) Secretary General Tsutomu Takebe. After a 
big fuss, the largest opposition party was able to install former 
House of Representatives Vice Speaker Kozo Watanabe in the 
party's Diet Affairs Committee chairman post. Watanabe, a supreme 
advisor to the party, is 73 years old, 30 years senior to 
Maehara. With Maehara's "total surrender," the party was able to 
prevent itself from flying apart. Given the situation, Watanabe's 
role this time is to try to keep the sinking Maehara ship afloat. 
Maehara is losing completely his grip on the party. 
 
Prime Minister told reporters last night at the Prime Minister's 
Official residence, wearing an expression of relief: 
 
"I think Mr. Maehara has been experiencing a lot of hardships, 
but the public has high hopes for the largest opposition party. I 
want him to learn a lesson from the incident and control the 
party so as not to repeat the same mistake. I would like him to 
take it a lesson to develop as a politician." 
 
Secretary General Yukio Hatoyama also apologized to Takebe at the 
 
SIPDIS 
Diet chamber. Takebe, referring to the LDP's second set of 
questioners to Minshuto, responded by saying, "If you give us 
clear answers, we will put an end to the matter." 
 
7) Livedoor e-mail uproar: LDP still dissatisfied with Minshuto's 
response 
 
TOKYO 00001126  005 OF 012 
 
 
 
MAINICHI (Page 5) (Excerpts) 
March 3, 2006 
 
The ruling Liberal Democratic Party (LDP) has put off a 
settlement of the e-mail fiasco. The reason is because it has 
judged that giving the main opposition party Minshuto (Democratic 
Party of Japan) detailed requests will be useful material to 
constrain Minshuto. The LDP has been severely criticizing 
lawmaker Hisayasu Nagata at the House of Representatives' plenary 
session, which approved a decision (by the Lower House Steering 
Committee) to refer a motion calling for punishment against 
Nagata to the Committee on Discipline. Some in the ruling 
coalition have called for refraining excessive pressure on the 
main opposition party, with senior New Komeito remarking, "If we 
press the opposition too hard, the public mood might change." The 
ruling camp has begun considering what would be a good timing for 
putting an end to the matter, while using flexible tactics. 
 
In response to the open letter of questionnaires the LDP 
presented on March 1, Nagata and the LDP leadership admitted that 
the basis of the accusation concerning the e-mail message had 
vanished and that the e-mail was a fake. 
 
The LDP, however, is not satisfied with Minshuto's responses. LDP 
Acting Secretary General Ichiro Aisawa stated: "I wonder why they 
can't come out and say it was a fake e-mail and a complete 
fabrication that 30 million yen was paid (to LDP Secretary 
General Takebe's son)." 
 
Aisawa, presenting the second set of questions, which contained 
an example of an apology, pressed Minshuto to respond again. 
 
The e-mail issue is the best tool for the LDP to attack Minshuto. 
A senior LDP member commented: "As long as this matter is 
unresolved, Minshuto cannot take tough stances in Diet debate." 
The LDP lawmaker's remark suggests that the Diet management will 
go smoothly as long as settlement of the e-mail issue is delayed. 
 
8) Remaining half of Diet session may lack substance; Minshuto 
members make apologies; Budget bill passes Lower House without 
heated debate; Koizumi expected to renew his vow to accomplish 
reform drive 
 
ASAHI (Top play) (Almost full) 
March 3, 2006 
 
The tide has turned in favor of the ruling bloc because of the e- 
mail hullabaloo. The fiscal 2006 budget bill cleared the Lower 
House in its plenary session last evening. At the Diet, the major 
opposition party Minshuto (Democratic Party of Japan) was 
supposed to demonstrate its political presence by relentlessly 
attacking the Koizumi reform drive. Instead, Minshuto lawmakers 
who took the floor as questioners had to bow deeply in apology 
for the e-mail in question that has turned out to be bogus. Now 
that the opposition bloc has lost its momentum to pursue the 
Koizumi administration's policies because the largest opposition 
party has followed a self-destructive course because of the e- 
mail flap, the remaining Diet session may become devoid of 
substance. Prime Minister Junichiro Koizumi, who once seemed to 
have lost his grip on his party after the Livedoor incident, is 
expected to re-solidify his reform drive once again by taking 
 
TOKYO 00001126  006 OF 012 
 
 
advantage of this situation. With the Liberal Democratic Party 
presidential election coming up in the fall, the focus is also 
shifting to how prospective post-Koizumi candidates, who have 
been keeping their distances from the premier over the Imperial 
House Law issue and other issue, will respond now. 
 
Yesterday, one of the highlights in the current Diet session, 
Minshuto lawmakers were busy bowing to ruling party members in 
apology and finding a new Diet affairs chief. Kazuhiro Haraguchi, 
who took the floor as questioner in yesterday's Lower House 
Budget Committee session, was forced to make an apology along 
with Yorihisa Matsuno. Haraguchi said, "We are determined to 
improve our party on this occasion to conduct Diet debate with 
dignity." 
 
The following conversation reportedly took place at the Lower 
House plenary session between Prime Minister Koizumi and 
Minshuto's Maehara while the former tapping the shoulder of the 
latter: 
 
Koizumi: Don't be too discouraged. Keep your spirit high. 
 
Maehara: We caused you trouble. 
 
Koizumi is looking ahead beyond the e-mail mess. He told 
reporters about the remaining Diet session: 
 
"I have characterized the current Diet session as administrative 
reform promotion Diet, so I think the Diet will return to that 
line. All cabinet ministers are required to devote themselves to 
their jobs." 
 
Koizumi is expected to work hard to keep his momentum through 
reform debates with the aim of an early passage of administrative 
reform promotion legislation, including a bill to reduce the 
number of public servants. Koizumi's mind is clearly set to 
incorporate the reform promotion legislation in the "big-boned 
policy" to be produced in June to hand his reform drive down to 
his successor. 
 
Although his last goal is to break away with deflation, how the 
public will react to the Livedoor-triggered growing income 
disparity is unknown. 
 
On the diplomatic front, the outlook is dim for resolution of 
issues between Japan and the US, such as the realignment of US 
forces in Japan, the planned withdrawal of the SDF from Iraq, and 
the resumption of US beef imports. What to do with Japan's Asia 
diplomacy, which has stalled due to the Yasukuni Shrine issue, 
remains a weighty challenge. 
 
A key also lies in how post-Koizumi candidates, such as Chief 
Cabinet Secretary Shinzo Abe, Finance Minister Sadakazu Tanigaki, 
Foreign Minister Taro Aso, and former Chief Cabinet Secretary 
Yasuo Fukuda, will deal with Koizumi's efforts to revamp his 
reform policy, given the changes in the environment surrounding 
the Koizumi administration. 
 
9) Foreign Ministry's white paper on disarmament expresses strong 
concern about China's military buildup for first time 
 
TOKYO SHIMBUN (Page 3) (Excerpts) 
 
TOKYO 00001126  007 OF 012 
 
 
March 3, 2006 
 
The Foreign Ministry will incorporate in its annual report a 
passage expressing strong concern about China's arms buildup for 
the first time, according to informed sources yesterday. Although 
it does not identify the country as China, the ministry will 
include in the 2006 white paper on Japan's disarmament and 
nonproliferation diplomacy the passage noting "the arms buildup 
is a challenge that will directly affect Japan's national 
security." 
 
In the 2005 version, the Foreign Ministry just stated: "Each 
nation will carefully watch China's moves in the military area." 
The tone of Japan's sense of alarm is stronger in the 2006 paper 
than in the previous one. Foreign Minister Taro Aso stated last 
December that China's military expansion is posing a 
"considerable threat." The report falls in line with this remark 
and is expected to draw a strong reaction from China again. 
 
The Foreign Ministry will brief its draft in a meeting of the 
Liberal Democratic Party's Foreign Affairs Division today and 
then release the white paper in the middle of March. 
 
The white paper will state: "In Asia, there is a country that has 
been expanding armaments and has not fully uncovered its arms 
strength, constituting a matter of concern in the neighboring 
region." China's defense budget increased annually in the double- 
digit range for the 17th consecutive year until last year. In 
addition, the US Defense Department criticizing in its annual 
report last year the non-transparency of China's defense budget, 
noting: "Its actual defense budget is two to three times higher 
than the announced amount," A senior Foreign Ministry official 
said: "It is apparent that the identity of the nation in question 
is China." 
 
10) Defense chief seeks local heads understanding on Iwakuni 
redeployment 
 
TOKYO SHIMBUN (Page 2) (Full) 
March 3, 2006 
 
Defense Agency Director General Fukushiro Nukaga met with the 
heads of eight municipalities neighboring the US Marine Corps' 
Iwakuni base in Yamaguchi Prefecture, including Yu Town Mayor 
Toshimitsu Makimoto, and sought their understanding on a plan to 
redeploy US carrier-borne aircraft from the US Navy's Atsugi base 
to the Iwakuni base. 
 
In the meeting, the local heads asked Nukaga to detail the 
redeployment plan. "The government will appropriately respond to 
the neighboring municipalities from an overall perspective," 
Nukaga said. With this, Nukaga stressed that the government has 
been considering measures, such as subsidization. 
 
Meanwhile, the city of Iwakuni will poll its residents on March 
12 to ask its residents whether to accept the planned 
redeployment of fighter jets to Iwakuni. In the meeting, Nukaga 
and the municipal heads exchanged views on this matter. 
 
11) Defense Agency suspends new contacts, warns Mitsubishi 
Electric 
 
 
TOKYO 00001126  008 OF 012 
 
 
SANKEI (Page 3) (Abridged) 
March 3, 2006 
 
The Defense Agency decided yesterday to suspend its entry into 
new contracts with Mitsubishi Electric Corp. (MELCO) and 
Mitsubishi Research Institute, Inc. (MRI) until the agency can 
confirm their steps to prevent info leakage from recurring. The 
two firms are alleged to have been involved in the outflow of 
missile data to an entity affiliated with the pro-Pyongyang 
General Association of Korean Residents in Japan (Chongryun). The 
leaked materials were about the Ground Self-Defense Force's 
surface-to-air missiles (SAM). The government is now studying an 
information security agreement with the United States as a step 
to strengthen the bilateral alliance. In response to this move, 
the agency decided to take such an unprecedented punitive action 
against the two firms over their leakage of defense secrets. 
 
Defense Agency Director General Fukushiro Nukaga called in MELCO 
President Tamotsu Nomaguchi and MRI President Masayuki Tanaka to 
the Defense Agency and strictly warned them. "Both of your 
companies have extremely grave responsibilities as contractors 
handling highly classified information," Nukaga told them. Nukaga 
also told them to come up with info leakage preventive measures. 
In addition, the defense chief also told them that the agency has 
decided to take punitive actions, such as suspending its entry 
into new contracts with the two companies until the agency can 
confirm that there is no fear of recurrence. 
 
The Defense Agency asked MELCO to work out a report on a 
prototype of the future SAM missile from 1994 through 1995, and 
the report's graphs describing missile performance and other 
technical data flowed to the Science and Technology Association 
of Korean Residents in Japan. 
 
12) Government to released nation's stockpiled oil in event of 
embargo imposed on Iran 
 
SANKEI (Page 1) (Excerpts) 
March 3, 2006 
 
The government decided yesterday that it would release official 
stockpiles of oil if an embargo is imposed against Iran as part 
of economic sanctions for its nuclear development program. In 
past emergencies, the government had supplied oil stored by the 
private sector. If state oil is actually released, this would be 
the first such case. Should an oil export embargo be laid on 
Iran, Japan will receive a serious blow because it imports 15% 
(230 million barrels annually) of its oil from that nation. 
 
The Foreign Ministry, the Ministry of Economy, Trade and 
Industry, and other concerned ministries have already started 
work to map out measures to ensure stable oil supplies, as well 
as to look into the impact of such economic sanctions on the 
Japanese and world economy. The international community is likely 
to consider such sanction measures as restricting governmental 
exchanges, suspending the issuance of visas, withdrawing the 
embassies from Iran; and freezing its assets overseas, in 
addition to an oil embargo. 
 
Japan imports nearly 90% of its oil from the Middle East region. 
From the viewpoint of energy security, the government intends to 
look into exploring new oil suppliers in other areas and 
 
TOKYO 00001126  009 OF 012 
 
 
expanding new energy development. 
 
Iran houses the Azadegan oil field, in which Japanese companies 
have 75% of all concession rights. Keeping this in mind, some 
government officials are calling for caution about sanctions 
against Iran. 
 
The US, though, has announced it would take a resolute step in a 
bid to stop Iran's nuclear ambitions. In addition, even France 
and Germany, which clashed with the US on the occasion of the 
Iraq war, have fallen in step with the US. Given this, many 
insist that Japan should give priority to international 
cooperation. 
 
Iran produces 5.1 % (4.08 million barrels daily) of the total 
volume of oil in the world, but there will be less impact on the 
US and European countries than on Japan even if an embargo is 
imposed on Iran. The US does not import oil from that nation, and 
the European countries are less dependent on Iran's oil. 
 
13) Outstanding loan balance of new government-affiliated 
financial institutions as of end of fiscal 2008 set at half of 
GDP in 2004; Administrative reform promotion bill leaves source 
of contention over law that authorizes existing public banks 
 
NIHON KEIZAI (Page 2) (Full) 
March 3, 2006 
 
The full text of an administrative reform promotion bill 
featuring the reorganization of government-affiliated financial 
institutions was unveiled yesterday. The draft noted that the 
outstanding loan balance at the end of fiscal 2008 of a public 
financial institution to be established anew, by combining 
existing ones, is set to be no more than half the fiscal 2004 
gross domestic product (GDP). It also mentioned the complete 
privatization of Shoko Chukin Bank and the Development Bank of 
Japan but did not call for the abolition of their legal 
authorization. Since there is room left for various government 
agencies to involve themselves in the new bank for the purpose of 
securing positions for their retirees, there is concern that the 
reform will become ineffectual. 
 
Government agencies in Kasumigaseki are strongly opposed to the 
bill. Regarding amakudari, it simply stipulates that 
consideration should be given so that positions are not limited 
to people with specific experience in the public sector. The bill 
has opened the way for private citizens to take such positions, 
but it stopped short of placing a ban on amakudari. 
 
Regarding the complete privatization of Shoko Chukin Bank and the 
Development Bank of Japan, concerned government agencies strongly 
insist on the preservation of the law that authorizes their 
existence. The law stipulates that government agencies with 
supervisory authority over those institutions have jurisdiction. 
It also mentions the details of operations of those financial 
institutions. Economy, Trade, and Industry Vice Minister Hideji 
Sugiyama said that the legal framework was necessary so that 
small and medium-size businesses can receive financing. 
 
Internal Affairs and Communications Minister Heizo Takenaka is 
calling for scrapping the law. He insists that the management of 
the new entity should be in compliance with the Banking Law, as 
 
TOKYO 00001126  010 OF 012 
 
 
is the case with other private banks. Since the two sides remain 
at odds over this issue, how to handle the law will most likely 
remain a source of contention. 
 
Coordination on the handling of the Japan Bank for International 
Cooperation among the Finance Ministry, the Foreign Ministry, and 
METI had run into snags, but a settlement has finally been 
reached on a proposal for dividing it into two functions. The key 
to smooth negotiations will be whether the efficacy of official 
development assistance (ODA) can be boosted by eliminating 
concerned government agencies' sectionalism. 
 
14) Next focus of Diet deliberations is on key bills: No 
prospects in sight for submission of amendment to Basic Education 
Law, national referendum bill 
 
NIHON KEIZAQI (Page 2) (Full) 
March 3, 2006 
 
With the Lower House passage of the fiscal 2006 budget bill, the 
focus of Diet sessions will shift to the handling of key bills. 
Top priority for the government and the ruling camp is to secure 
the early enactment of administrative reform promotion 
legislation, which they characterize as the final touch of the 
series of the Koizumi reforms. In conjunction with the 
presentation of the bill by the government on Mar. 10, the ruling 
parties plan to set up a special committee in the Diet possibly 
in the middle of this month for intensive deliberations on the 
bill. 
 
The government and the ruling parties are having difficulty 
coordinating views on other key bills, though. The Liberal 
Democratic Party (LDP) is calling for the inclusion of the word 
"patriotism" in a bill amending the Basic Education Law, while 
the New Komeito is taking a cautious stance toward the proposal. 
Views of LDP members are split between the Upper and Lower Houses 
over the national referendum legislation, which stipulates 
specific procedures for revising the Constitution. There are no 
prospects in sight for coordination with the Democratic Party of 
Japan (DPJ = Minshuto). 
 
The LDP has been eager to pass both bills. Many members want to 
see them enacted while Prime Minister Koizumi, with his high 
public support ratings, is in office. If it becomes difficult to 
obtain Diet approval for that bill because of a delay in its 
submission to the Diet, it will likely jeopardize the prime 
minister's power base. 
 
Among bills planned for submission to the current Diet session, 
the submission of a bill amending the Imperial House Law, which 
is aimed to allow females and their descendants to ascend the 
Imperial throne, and a set of bills for upgrading the Defense 
Agency to an agency status will likely be put on the backburner. 
 
Key bills which government and ruling parties aim for enactment 
during current Diet session 
 
Administrative reform promotion bill 
Mentions ideals and timelines for reforming 10 areas, including 
the integration and disbandment of government-affiliated 
financial institutions and a net reduction in public servants. 
 
 
TOKYO 00001126  011 OF 012 
 
 
Set of bills reforming the medical services system 
A rise in the share of medical expenses to be covered by patients 
 
Amendment to the Building Standards Law 
Strengthen penalties against illegal architectural design and 
supervision over private-sector inspection agencies. 
 
Amendment to the Law on the Prevention of Collusive Bidding at 
the Initiative of Government Agencies 
Strengthen, expand punishments on public servants who were 
directly involved in bid-rigging 
 
Bills on which coordination of views is not going smoothly 
 
Amendment to Basic Education Law 
LDP is calling for the inclusion of the word "patriotism," but 
the New Komeito is opposing the proposal. 
 
National referendum bill 
Stipulates procedures for a national referendum aimed to revise 
the Constitution. 
 
Set of bills for upgrading the Defense Agency (JDA) to a ministry 
status 
Upgrade JDA, currently an extra-ministerial bureau of the Cabinet 
Office, to ministry status, which enables it to establish 
ministry ordinances and propose agenda items for cabinet 
meetings. 
 
15) Beef issue: US agriculture secretary takes hard-line stance, 
revealing irritation with possible protraction of Japan's second 
ban on beef imports 
 
YOMIURI (Page 9) (Full) 
March 3, 2006 
 
Eiji Hirose, Washington 
 
In an interview on March 1 with the Yomiuri Shimbun, US Secretary 
of Agriculture Mike Johanns criticized Japan for its strict 
action of the reinstatement of an embargo on US beef imports. 
This is the first criticism he has made in public. His hardened 
attitude reflects America's irritation at growing calls in Japan 
to be cautious about resuming US beef imports. 
 
In dealing with the discovery of vertebral columns - a material 
prohibited by Japan to be exported - in the US beef shipment to 
Japan, Johanns until recently had fully admitted to the US 
mistake and he had reiterated that Japan's second import ban on 
US beef "is understandable." 
 
But in the interview this time, Johanns turned the argument 
around. For instance, he said, "The beef issue shouldn't be 
affected by political science but should follow science." He 
emphasized that in his view, Japan's second ban on beef imports 
was "an overreaction," saying, "If one vehicle imported from 
Japan was found to have a defect, should the US completely halt 
imports of Japanese cars?" 
 
His criticism came in the background that the US has failed to 
avoid a worst-case scenario, namely that the US had hoped that a 
report released in February by the Department of Agriculture 
 
TOKYO 00001126  012 OF 012 
 
 
(USDA) would lead to Japan's early lifting of the embargo on US 
beef imports, but on the contrary, the report highlighted the 
sloppy beef administration in the US, thereby making Japan even 
more cautious about resuming US beef imports. 
 
Johanns announced a policy of allowing Japanese government 
officials to inspect US facilities on a regular basis after the 
resumption of beef imports. He did so perhaps out of his strong 
sense of alarm that in order to publicize the safety of US beef, 
he would have to take whatever measures possible. 
 
In the US Congress, some legislators are already beginning to 
call for economic sanctions against Japan. The Japan-US beef 
dispute had been settled late last year with Japan's lifting of 
the ban on US beef imports, but the Congress is again taking a 
serious look. 
 
16) Agricultural Report for 2005 likely to emphasize "offensive" 
stance, according to its draft 
 
YOMIURI (Page 9) (Full) 
March 3, 2006 
 
Major points of the Agricultural Report of Food, Agriculture, and 
Farm Villages that the Ministry of Agriculture, Forestry and 
Fisheries (MAFF) will finalize by this spring were revealed 
yesterday. The report is full of "offensive agricultural 
approaches" as promoted by Prime Minister Koizumi, for instance, 
a response to violations of the right to new plant variety and 
promotion of farm product exports by taking advantage of the 
Japanese food boom abroad. 
 
The report deals with the reinstatement of the ban on US beef 
imports in the wake of the discovery of specified risk materials 
in the US beef shipment to Japan and bird flu that might spread 
worldwide. In order to ensure consumer confidence in food, the 
report emphasizes the importance of fully familiarizing 
agricultural organizations and food processing firms with the 
observation of laws, as well as making clear who are producers 
and who are consumers. Besides, the report points out the need to 
make arrangements to urge retired baby-boomers to settle down in 
farm villages. 
 
SCHIEFFER