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RUCNDT/USMISSION USUN NEW YORK 9133

UNCLAS SECTION 01 OF 09 TOKYO 001169 
 
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 03/06/06-2 
 
 
Index: 
 
1)   Iwakuni referendum, announced yesterday, to query populace 
  on accepting carrier-jets from Atsugi 
2)   Though government is watching Iwakuni referendum, results 
may not affect the USFJ realignment process 
3)   New radar at Aomori base designed to deal with North Korean 
ballistic missiles 
 
Foreign policy issues: 
4)   Aiming at checking China, Japan forging security ties with 
  India, starting with joint drill in Indian Ocean 
5)   Former chief cabinet secretary Fukuda calls for repairing 
ties with China and South Korea 
6)   Japan's UN reform proposal would make Russia, China pay a 
fair share of UN budget 
 
7)   Poll shows record 65% favoring constitutional revision 
 
8)   New Komeito readying for Upper House election by sweeping 
  change of top party posts 
 
Minshuto in turmoil: 
9)   New Minshuto Diet affairs chair Watanabe sets off storm of 
  denials by suggesting early election of party president 
10)  As Minshuto mulls early election of party head, names of 
Hatoyama, Ozawa being floated already as Maehara replacement 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi: 
Financial Services Agency to tighten regulations on excessive 
loans 
 
Mainichi & Yomiuri: 
China's National People's Congress comes up with a new five-year 
plan predicting it will rank third in GDP with an annual growth 
rate of 7.5% on average 
 
Nihon Keizai: 
Toshiba to construct a new flash memory factory in Yokkaichi City 
by investing 50 billion yen 
 
Sankei: 
Abductees' families, including Yokota's, to testify before US 
Congress, aiming to raise international pressure 
 
Tokyo Shimbun: 
GM to sell its-held Suzuki shares in dissolving capital tie-up 
 
2) EDITORIALS 
 
Asahi: 
(1)  China's National People's Congress: Farmers in trouble with 
high medical expenses 
(2)  Reform for decentralization of power: Local allocation tax 
comes into focus 
 
Mainichi: 
(1)  ODA reform settled: Strategy is the prime minister's job 
 
TOKYO 00001169  002 OF 009 
 
 
(2)  Taiwan's pro-independence platform: Can legal arguments help 
the president restore public support? 
 
Yomiuri: 
(1)  Budget bill approved: Keep tight rein on financial 
reconstruction 
(2)  Soccer lottery: Can it break free of bureaucracy? 
 
Nihon Keizai: 
Do not misread change in nuclear policy 
 
Sankei: 
(1)  Attitudes of senior high school students: Aspirations are 
necessary 
(2)  Bird flu: Swift information disclosure is essential 
 
Tokyo Shimbun: 
(1)  Doshu system (reorganization of prefectures into larger 
regional blocs with devolution of central government power): 
Debate should start with propriety of doshu system 
(2)  Interest rate caps: Why is there is no end to cases of 
heavily indebted people? 
 
3) Japan still has no exit strategy from Iraq even though time 
for withdrawal of troops is drawing close; US is trying to 
constrain exit moves of Japan, Britain, Australia 
 
ASAHI (Top play) (Full) 
March 4, 2006 
 
When will Japan actually exit Iraq?  The Japanese government is 
finding itself facing a difficult decision in setting a timetable 
for the Ground Self-Defense Force (GSDF) troops to leave Samawah 
in southern Iraq, where they are not deployed. Although the 
British conceive a complete withdrawal of their forces by June, 
the United States, which would like to first see the 
establishment of the new Iraqi government, is trying to constrain 
the British government from moving toward that goal. However, the 
move toward establishing a new Iraqi government is not 
progressing as armed conflict spreads across the country. The 
Japanese government would like to wait until the last minute to 
make its decision, and one proposal being floated is to withdraw 
the GSDF troops temporarily to Kuwait and wait there until the 
new Iraqi government is established. 
 
Quadrilateral conference 
 
Britain: "The British troops will complete their training of 
Iraqi forces in mid-May. Once that condition is fulfilled, we 
will complete our troop withdrawal by June." 
 
US: "You should more carefully observe the Iraqi political 
process." 
 
On Feb. 24, such a gap in views was revealed between US and 
British delegates to a quadrilateral meeting in London that also 
included Japan and Australia.  The Australian delegate stated: 
"Australian forces will move in tandem with Japan's Self-Defense 
Forces." If that is the case, then when will Japan withdraw? 
 
Japan: "We would like to carefully observe public security, the 
political process, the reconstruction assistance situation, and 
 
TOKYO 00001169  003 OF 009 
 
 
moves of the British and Australian forces." 
 
According to sources in the Japanese government, the delegation, 
consisting of division-director level officials from the Foreign 
Ministry (MOFA), Defense Agency (JDA), and the Cabinet 
Secretariat avoided to the end any mention of a withdrawal 
 
SIPDIS 
timetable at the conference. 
 
The first time that Britain, which is responsible for security in 
southern Iraq, mentioned withdrawal was in talks last September. 
The reason was because the British were being pressed to 
strengthen their forces deployed to Afghanistan between this 
spring and summer. America immediately responded: "Iraq will have 
a national assembly election in December (2005). Do you think it 
is acceptable to let Iraq fall apart?" The discussion ended 
there. 
 
The US, though, is no longer saying "no" to withdrawal, according 
to a JDA senior official. A senior MOFA official analyzed: "The 
US, too, realizes that the game will be won or lost in Iraq in 
the next several months." 
 
However, of the 28 countries now deploying troops to Iraq, not a 
one has announced that it will withdraw. The British, as well, 
are no different than the Japanese in giving priority to 
relations with the US. At first, the British talked about 
February as the date for starting to withdraw but recently, they 
have started to say, "We don't mind if it is April." A high-level 
Japanese official sees March as no longer the date for the start 
of Japan's pullout. Until the new government, now being prepared, 
is launched, the British troops will not start to withdraw, 
according to informed sources. 
 
The London meeting ended without setting the next date. On March 
18, there will be a security dialogue in Australia that will 
include the US and Japan. Foreign Minister Aso noted: "Chances 
are high that the withdrawal of (ground troops) will be 
discussed." A senior SDF office also said, "It will take a 
political judgment at this point," indicating that Prime Minister 
Koizumi is expected to make the final decision. 
 
Scenario 
 
"After comprehensively considering various factors, Japan will 
make a judgment on its own." On the evening of March 3, Prime 
Minister Koizumi made this remark to the press corps that was 
trying to nail down a withdrawal timetable. A government sources 
stated: "Koizumi's psychology is complicated. Though he hates to 
be told he is blindly following the US lead, he also does not 
want to damage the Japan-US alliance." 
 
A judgment on Japan's own, though, would not be a simple thing. 
About the time when the British and the Australian troops are 
getting ready to pull out, the JDA chief would obtain the Prime 
Minister's approval and issue a withdrawal order telling the SDF 
to pull up stakes in Samawah, "while giving their regrets to the 
local community," according to a senior officer. This is the 
optimum scenario envisioned by the government. 
 
However, it will take two to three months to completely pull out. 
If according to the US' desire, the political situation, 
including the establishment of a new government, is watched 
 
TOKYO 00001169  004 OF 009 
 
 
carefully, the withdrawal will not line up with the plans of the 
British government, which would pull out its troops completely by 
June. 
 
At this point, as a stopgap measure, a proposal has come up among 
some Japanese officials. It involves not waiting for the Tokyo 
withdrawal order per se, but to let the local commander on his 
own judgment decide to move the GSDF troops to Kuwait. When the 
new government is installed, the Prime Minister would then order 
a withdrawal. The JDA chief then would issue the final order. 
 
However, several senior high-level government officials point 
out: "Will there be an explanation of this to domestic and 
foreign audiences?" and "Will there be a problem from the 
standpoint of civilian control?" 
 
If such is the case, and the withdrawal timetable cannot be 
shortened, another proposal being floated is to send a security 
support unit to provide additional coverage in Samawah. 
 
However, if the basic plan that sets the maximum number of troops 
at 600 is exceeded, there would need to be prior cabinet approval 
of a change in the plan. Dispatching troops for the sake of 
expediting withdrawal has the possibility of leading to a de 
facto withdrawal announcement, according to a Cabinet Secretariat 
official. 
 
The government at this point only has a policy course of avoiding 
being the first to announce the intention to withdraw from Iraq, 
according to a senior JDA official. 
 
4) Japan-US deputy-director-level talks to start tomorrow to find 
common ground for US force realignment; Deadline approaching for 
tough issues, including relocation costs, Yokota RAPCON 
 
NIHON KEIZAI (Page 2) (Full) 
March 6, 2006 
 
Talks between senior foreign and defense officials of Japan and 
the United States are scheduled to open in Hawaii tomorrow to 
discuss the realignment of US forces in Japan. The talks are 
expected to center on the two countries' shares of the expenses 
for the relocation of the US Marines from Okinawa to Guam and the 
return to Japan of the right to air traffic control over Yokota, 
commonly called Yokota RAPCON. Bilateral coordination is in the 
final stretch with a view to producing their final report before 
the end of this month. 
 
On Feb. 4, Defense Facilities Administration Agency Director 
General Iwao Kitahara asked Okinawa Gov. Keiichi Inamine for his 
support for the planned relocation of the US Marine Corps' 
Futenma Air Station. But the governor flatly rejected the 
request, saying, "We cannot accept such a plan." 
 
The US has come up with a plan to relocate up to 8,000 US Marines 
from Okinawa to Guam, an increase of 1,000 from the number 
specified in the interim report released last October. The US has 
also asked Japan to bear a large portion of the relocation cost 
estimated at 8 billion dollars, or 940 billion yen. Japan's slow 
reaction to the Futenma relocation plan has elicited an 
extravagant price tag from the US. Although Japan plans to sound 
out the US on compressed costs and installments, there is no 
 
TOKYO 00001169  005 OF 009 
 
 
prospect that the US will accept Japan's proposal. 
 
Finding a relocation site for 12 aerial tankers based at Futenma 
Air Station is another challenging task. Although the interim 
report says that the Maritime Self-Defense Force's Kanoya base in 
Kagoshima Prefecture should be studied on a priority basis, the 
US has begun calling for redeployment to Iwakuni Air Station in 
Yamaguchi Prefecture. In addition, meeting with opposition from 
Chitose in Hokkaido and Komatsu in Ishikawa Prefecture, the two 
governments have been struggling to find a new site for fighter 
training now conducted at Kadena Air Base. 
 
"It is absurd for the US to have the right to air traffic control 
over Japan's airspace," a government source said. There is no 
sign of the US accommodating Japan's call for the joint military- 
civilian use of Yokota Air Base and returning Yokota RAPCON. 
Japan wants to establish a new council to finalize specific plans 
in order to prevent the US from drawing a curtain on the issue. 
 
The return of a base in Kanagawa Prefecture is also a sticky 
issue. The government has asked for the return of Sagami Depot in 
return for the establishment of the US Army 1st Corps 
headquarters at Camp Zama. But the US has balked at Japan's 
proposal. The US is scheduled to deploy in 2008 a nuclear-powered 
aircraft carrier at its Yokosuka Naval Base, the first time for 
this to happen in Japan. Japan's failure to have Sagami Depot 
returned might draw a strong backlash from the local governments 
that will be forced to shoulder a greater burden. 
 
5) Strong possibility of final USFJ realignment agreement without 
Okinawa on board since government unable to bridge gulf 
 
MAINICHI (Page 2) (Full) 
March 5, 2006 
 
Defense Facilities Administration Agency Director General Iwao 
Kitahara on Marcy 4 met in succession in Okinawa Prefecture with 
Governor Keiichi Inamine and Nago City Mayor Yoshikazu 
Shimabukuro in order to try to repair relations between the 
central government and Okinawa's local government strained by a 
feud over the relocation of the US forces' Futenma Air Station to 
the coastal portion of Camp Schwab (in Nago City). However, he 
was completely unsuccessful in bridging the gap between the two 
sides. Although the talks between Japan and the US on completion 
of a final report on the realignment of US forces in Japan by 
late March are reaching the home stretch, there is a strong 
possibility that the government-to-government agreement will be 
sealed without acquiring the concurrence of the "main actor" 
Okinawa. 
 
Immediately after Director General Kitahara uttered words of 
congratulations to Mayor Shimabukuro for his election, the mayor 
beat him to the punch by directly stating, "I won't listen to any 
talk about the coastal plan." After that, the mayor hardly 
uttered a word, and Kitahara, unable to broach the main theme, 
briefed him on the measures planned to reduce the burden on 
Okinawa, such as the reduction of US Marines. The meeting ended 
in only 15 minutes with the atmosphere just as awkward as it 
started. 
 
The government until now has sought the understanding for the 
relocation of Futenma to Camp Schwab's coastal area by insisting, 
 
TOKYO 00001169  006 OF 009 
 
 
"It is a proposal with a high probability of being implemented, 
and it also takes into the consideration the environment." In 
response, the prefecture touted the appropriateness of the first 
plan of 1999 to build a facility off the shoreline of Henoko in 
Nago City. Nago City insisted that if the facility was going to 
be moved closer to the coastal portion of Camp Schwab, the plan 
would need major revision, so there ended up a three way split in 
views. 
 
It is true that though Gov. Inamine has given a certain amount of 
praise to the specific measures to reduce the burden on Okinawa, 
such as the coordination to fully return the Naha Military Port 
facility, which local communities have bee hoping for. The 
government as these plans harden up, has been thinking of using 
the burden reduction measures as leverage to promote 
understanding toward the Camp Schwab coastal plan. But the 
prefectural side has given no sign of slackening its attitude. 
 
The Japanese and the US governments will carry out senior working 
level meetings again in Hawaii, starting March 7, with talks 
heading into the last stretch on plans to consolidate and reduce 
bases in southern potion of the main island of Okinawa. However, 
the US side sees the USFJ realignment as a package deal, and 
consider the realization of the Futenma relocation plan as a 
condition a condition for other measures to reduce the burden 
placed on Okinawa, such as moving the US Marines to Guam. If the 
final report is signed without having obtained the concurrence of 
local governments, it could become an agreement filled with the 
possibility of other burden reduction measures being withdrawn, 
as well. 
 
6) US Embassy security division director would tolerate revision 
of Futenma relocation proposal to location toward the ocean, 
indicating flexible response to local wishes 
 
SANKEI (Page 1) (Full) 
March 5, 2006 
 
Director of the Security Division Kevin Maher in the US Embassy 
in Japan -- a main player in the Japan-US senior working-level 
talks on the realignment of US forces in Japan -- gave an 
interview to the Sankei Shimbun. In it, he expressed a view 
tolerating a revision of the plan to relocate MCAS Futenma 
(Ginowan City) to the coastal portion of Camp Schwab (Nago City) 
that would reposition toward the ocean as the local community 
desires. "If there is need for technical adjustments, we will 
respond flexibly," he said. 
 
The coastal plan, which was agreed to by Japan and the US last 
October, would construct an alternate facility for Futenma Air 
Station in a form that straddled the land and sea portions of 
Camp Schwab. However, in that case, since the flight route would 
pass over the roofs of neighboring homes, both Nago City and 
Okinawa Prefecture have remained opposed to the plan. Diet 
members who represent Okinawa, too, share the same view as Nago 
City and have asked the government to shift the construction site 
to a spot slightly off shore. 
 
Maher pointed out that the coastal plan "may need technical 
adjustments if it is to be carried out as agreed in the basic 
plan." In addition, he stated, "We will respond flexibly to 
adjustments in the details." Although he did not refer to any 
 
TOKYO 00001169  007 OF 009 
 
 
specific revision in contents, he indicated, "It would be 
impossible without assuring the local community that we have 
given consideration to their safety and the noise problem." 
 
He apparently was indicating a stance of responding to a revision 
that would shift the relocation spot toward the ocean off Camp 
Schwab. 
 
The US government in negotiating the relocation of Futenma Air 
Station once proposed a plan for the shallow waters off Camp 
Schwab. The Japanese side, including the Foreign Ministry, was 
then positive about revising the plan in the direction of the 
ocean, but the Defense Agency (JDA), which took the lead with the 
current plan, would not budge. As one JDA officials stated, "Once 
the plan was revised, we would not be able to keep up with 
requests for revisions from other local governments." 
 
But now with the US government taking a tolerant stance, it seems 
likely that pressure will mount on JDA to revise its position. 
 
7) Okinawa rally to oppose Futenma heliport relocation brings 
together 35,000 participants 
 
TOKYO SHIMBUN (Page 2) (Full) 
March 6, 2006 
 
In the planned realignment of US forces in Japan, Tokyo and 
Washington have agreed to relocate Futenma Air Station to the 
coastal part of the US Marine Corps' Camp Schwab. A rally to 
oppose this coastal plan was held yesterday at Kaihin Park in 
Ginowan City, bringing together approximately 35,000 citizens, 
according to organizers. Participants criticized the government 
for having bypassed the people of Okinawa in agreeing to the 
coastal plan. They resolved to have the will of the people of 
Okinawa reflected in a final report on the USFJ realignment to be 
mapped out before the end of March. 
 
The rally was the largest one ever regarding USFJ realignment. It 
is the second largest ever, following the 1995 rally to protest 
to the rape of an elementary school girl by three US service 
members, which was attended by 85,000 people. 
 
The organizer of the rally was the Implementation Committee 
consisting of the Social Democratic Party, Okinawa Social Mass 
Party, Japanese Communist Party, Democratic Party of Japan (DPJ = 
Minshuto), trade unions, and citizen groups. Though the Liberal 
Democratic Party and the New Komeito are against the coastal 
plan, they did not take part in the rally fearing that their 
participation would worsen their relations with the government. 
Neither Okinawa Governor Keiichi Inamine nor Nago Mayor Yoshikazu 
Shimabukuro took part. 
 
Tokunobu Yamauchi, leader of the organizing group and former 
chief cashier of the prefectural government, noted in a speech: 
"The position of the people of Okinawa is that they do not accept 
the coastal plan. Democracy means listening to that. . . . Let's 
work to protect the future of Okinawa by opposing this agreement 
that was reached without regard to local residents." 
 
A housewife participant from Sedake, Nago City, close to the 
relocation site, spoke from the stage, "I just want to protect a 
quiet and tranquil life and hand down a wonderful natural 
 
TOKYO 00001169  008 OF 009 
 
 
environment to children." 
 
The rally also resolved to oppose special legislation designed to 
enable the recovery of land from the sea in the relocation site 
without the authorization of the governor, something the 
government is reportedly looking into. 
 
8) Kadena mayor reacts negatively to joint use of Kadena Air Base 
with ASDF 
 
ASAHI (Page 38) (Full) 
March 6, 2006 
 
Defense Facilities Administration Agency Director General Iwao 
Kitahara held talks with Mayor Tokujitsu Miyagi of Kadena hosting 
US Kadena Air Base at the town hall yesterday. In the talks, 
Miyagi expressed his unwillingness to accept Tokyo and 
Washington's plan for allowing the Air Self-Defense Force to 
jointly use Kadena Air Base as part of US force realignment. The 
mayor said, "In view of Okinawa's history (that a large number of 
local residents were killed by the Imperial Japanese Army during 
the Battle of Okinawa), there is a strong allergic reaction to 
the Self-Defense Forces. So we cannot accept the plan." 
 
The partial relocation of F-15 fighter training from Kadena Air 
Base to mainland Japan is specified in the Japan-US interim 
report produced last October. The joint use of Kadena Air Base 
with the SDF is expected to result in a greater burden on local 
residents. Kitahara sought Miyagi's understanding, saying, "I 
will assure you that the government will take proper steps to 
reduce the burden (in the end)." 
 
9) US: Difficult to return (RAPCON of) Yokota Air Base 
 
NIHON KEIZAI (Page 2) (Full) 
March 4, 2006 
 
It was learned on March 3 from a written government reply on the 
question of the possible return of air traffic control rights by 
the US Air Force's Yokota Air Base, the US has answered, "It 
would be difficult for operational reasons." But the government 
reply states that Japan "would continue to make further efforts" 
to seek its return. On the reversion of Yokota Air Base itself, 
the statement read: "The base plays an important role from the 
perspective of the Japan-US Security Treaty.  There is no current 
thinking about seeking its reversion."  The replies were to 
questions by Upper House lawmaker Shizuo Oyakata. 
 
10) Japan to propose setting up consultative body for specific 
steps to return Yokota base air traffic control 
 
NIHON KEIZAI (Page 1) (Full) 
March 6, 2006 
 
Japan and the United States will resume intergovernmental working- 
level consultations tomorrow in Hawaii over the realignment of US 
forces in Japan, with their senior officials for foreign affairs 
and defense attending. The Japanese government will then propose 
setting up a new consultative committee for the overall reversion 
of air traffic control from the US military's Yokota base in 
Tokyo. Meanwhile, the Japanese and US governments are expected to 
release a final report on the US military realignment in March at 
 
TOKYO 00001169  009 OF 009 
 
 
the earliest. The Japanese government will specify a course of 
action in the final report for US Forces Japan (USFJ) to return 
the Yokota airbase's air traffic control to Japan. As the next 
step, Japan wants to hammer out specific procedures in the 
proposed consultative committee. At present, most civilian 
aircraft avoid the Yokota base's airspace. The Japanese 
government wants to improve the efficiency of flight routes for 
commercial airlines. 
 
The consultative committee consists of senior officials from the 
Japanese and US governments. The Japanese government wants to 
accelerate discussions, envisioning the overall return of air 
traffic control by 2009, when Haneda Airprot's offshore extension 
will be completed. 
 
In October last year, the Japanese and US governments released an 
interim report incorporating an agreement to explore steps to 
facilitate civilian aircraft flights through Yokota airspace. 
However, the United States has said that it would be difficult to 
return air traffic control for operational reasons. As it stands, 
it will be difficult for the two governments to reach an 
agreement at an early date. The Japanese government would like to 
pave the way in the new panel to joint military-civilian use or 
overall reversion in the future. 
 
The Yokota base's airspace is hexagon-shaped and extends to an 
altitude of 7,000 meters, stretching over Tokyo and eight other 
prefectures from the Izu Peninsula in Shizuoka Prefecture to 
Niigata Prefecture. Commercial airliners are allowed to fly 
through the airspace if they have permission in advance from the 
US military. Actually, however, most civilian airplanes avoid the 
Yokota airspace. Narrow air corridors are crowded with civilian 
aircraft, causing near misses. 
 
Among regular flights, air routes between Haneda and northern 
Kyushu are most affected. If the Yokota airspace is returned to 
Japan, it will be possible to double-track their flights in that 
airspace. "The flight time will be about five minutes shorter, 
and commercial airlines can save tens of billions of yen a year 
in fuel costs," an official says. 
 
After Haneda Airport's offshore extension work, the total number 
of flights to and from Haneda-including those to and from Narita 
Airport-will increase from 470 at present to 650. The government 
has therefore been tasked with Yokota airspace utilization. 
 
SCHIEFFER