VZCZCXRO3462
PP RUEHFK RUEHKSO RUEHNAG RUEHNH
DE RUEHKO #1598/01 0870048
ZNR UUUUU ZZH
P 280048Z MAR 06
FM AMEMBASSY TOKYO
TO RUEHC/SECSTATE WASHDC PRIORITY 0180
INFO RUEKJCS/SECDEF WASHDC PRIORITY
RHEHAAA/THE WHITE HOUSE WASHINGTON DC PRIORITY
RUEAWJA/USDOJ WASHDC PRIORITY
RULSDMK/USDOT WASHDC PRIORITY
RUCPDOC/USDOC WASHDC PRIORITY
RUEAIIA/CIA WASHDC PRIORITY
RUEKJCS/JOINT STAFF WASHDC//J5//
RHHMUNA/HQ USPACOM HONOLULU HI
RHHMHBA/COMPACFLT PEARL HARBOR HI
RHMFIUU/HQ PACAF HICKAM AFB HI//CC/PA//
RHMFIUU/COMUSJAPAN YOKOTA AB JA//J5/JO21//
RUYNAAC/COMNAVFORJAPAN YOKOSUKA JA
RUAYJAA/COMPATWING ONE KAMI SEYA JA
RUEHNH/AMCONSUL NAHA 7971
RUEHFK/AMCONSUL FUKUOKA 5335
RUEHOK/AMCONSUL OSAKA KOBE 8486
RUEHNAG/AMCONSUL NAGOYA 5347
RUEHKSO/AMCONSUL SAPPORO 6520
RUEHBJ/AMEMBASSY BEIJING 1344
RUEHUL/AMEMBASSY SEOUL 7529
RUCNDT/USMISSION USUN NEW YORK 9480

UNCLAS SECTION 01 OF 11 TOKYO 001598 
 
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 03/28/06 
 
 
Index: 
 
1)   Top headlines 
2)   Editorials 
3)   Prime Minister's daily schedule 
 
4)   Government plans 76.5 billion yen ODA loan to Iraq to build 
  infrastructure 
 
5)   Russia's President Putin to visiting former prime minister 
  Mori: "Regrettable we still don't have a peace treaty" 
 
Prime Minister Koizumi meets the press: 
6)   Koizumi stresses end of deflation by September in press 
  conference 
7)   Text of Koizumi's comments in press conference on economy, 
LDP election, Iraq, and Yasukuni Shrine issue 
 
Defense and security issues: 
8)   Obituary: Once key player on Futenma relocation issue, 
  former Nago City mayor Kishimoto dies 
9)   Where will the government and Nago City come down finally in 
talks on shifting location of Futenma alternate facility? 
10)  Unlikely that final agreement on USFJ realignment can be 
reached by end of month, likely to slip to April or later 
11)  US, Japan to meet on March 30-31 on final coordination on 
Marine relocation cost sharing 
12)  Kyodo poll finds majority of Japanese negative about Japan 
bearing cost of moving Marines from Okinawa to Guam 
13)  US bases to refuse transit or refuge to Japanese civilians 
under Tokyo, Okinawa emergency plans 
14)  Joint unified command over three self-defense forces 
designed to respond flexibly to terrorist attacks, disasters 
 
Economic agenda: 
15)  Poll shows public now favors social welfare over boosting 
  economy as priority policy area 
16)  Family assets dropped 11% in five years survey shows, 
further proof of expanding income disparity in Japan 
 
17)  Minshuto has lost its momentum as opposition force since e- 
  mail fiasco 
 
18)  Movement to restart US beef trade as US, Japanese experts 
  meet in Tokyo 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi, Mainichi, Yomiuri, Sankei & Tokyo Shimbun: 
Death sentence for Aum Shinrikyo founder Asahara likely to become 
final as high court dismisses appeal 
 
Nihon Keizai: 
Sapporo, other firms to change articles of association ahead of 
legal change 
 
2) EDITORIALS 
 
Asahi: 
(1)  Basic rules needed for disconnecting life support 
 
TOKYO 00001598  002 OF 011 
 
 
(2)  LDP likely to dominate debate on policy in the second half 
of the Diet session 
 
Mainichi: 
(1)  Introduction of pluthermal program dependent on zero 
accidents 
(2)  The social divide: Will next prime minister be chosen from 
among LDP lawmakers? 
 
Yomiuri: 
(1)  Pluthermal power the way of the future 
(2)  Legal improvements necessary for disconnecting life support 
 
Nihon Keizai: 
(1)  Death sentence for Asahara likely to be finalized without 
further appeal 
(2)  Nuclear fuel cycle must be pushed forward 
 
Sankei: 
(1)  Heavy responsibility lies on Aum Shinrikyo founder Asahara's 
attorneys 
(2)  We praise Saga Prefecture's foresight on pluthermal power 
 
Tokyo Shimbun: 
(1)  Consumption tax hike: Government should show many choices 
(2)  Consent needed for disconnecting life support 
 
3) Prime Minister's Official Residence (Kantei) 
 
Prime Minister's schedule, March 27 
 
NIHON KEIZAI (Page 2)  (Full) 
March 28, 2006 
 
08:02 
Met with Deputy Chief Cabinet Secretary Suzuki at the Prime 
Minister's Official Residence (Kantei). 
 
09:00 
Upper House Budget Committee meeting. 
 
11:58 
Arrived at the Kantei. 
 
13:00 
Upper House Budget Committee meeting. 
 
15:47 
Handed a party endorsement certificate to a person expected to 
run in the Lower House Chiba Constituency No. 7 by-election. Then 
attended an executive meeting. 
 
16:06 
Arrived at the Kantei. 
 
16:41 
Upper House plenary session. 
 
17:29 
Met with LDP Secretary General Takebe. Then visited Upper House 
President Ogi and Vice President Tsunoda, and senor officials of 
the ruing parties to report the passage of the budget bill. 
 
TOKYO 00001598  003 OF 011 
 
 
 
18:30 
Press conference at the Kantei. Then met with former Executive 
Council Chairman Ozato. 
 
19:32 
Dined with Chairman Sata and ruling party-member directors of the 
Lower House Steering Committee at Chinese restaurant at Hotel 
Okura. Chief Cabinet Secretary Abe and Deputy Chief Cabinet 
Secretary Nagase were present. 
 
SIPDIS 
 
21:10 
Arrived at the official residence. 
 
4) Government to offer 76.5 billion yen in yen loans to Iraq for 
irrigation, power plants, port improvement projects 
 
YOMIURI (Page 1) (Full) 
March 28, 2006 
 
The government decided yesterday to provide Iraq with 76.5 
billion yen (approximately 655 million dollars) for irrigation, 
power plants, and port improvement projects in the near future. 
The money will be disbursed from the 3.5 billion dollars in yen 
loans set aside by the government for Iraq. Foreign Minister Aso 
will announce the decision today. With an eye on a withdrawal of 
Ground Self-Defense Force (GSDF) troops from Iraq, Japan will 
reveal its intention to continue to help reconstructing Iraq even 
after their withdrawal. Japan suspended yen loans to Iraq in 
¶1985. It will resume the assistance for the first time in 20 
years. 
 
The yen loans will finance projects to construct irrigation 
facilities and power plants across Iraq, as well as to improve 
ports in the southern part of the nation. The Iraqi side has 
asked Japan to provide this kind of assistance, citing the 
serious lack of cultivated land and water due to successive wars 
there. 
 
The Japanese and Iraqi governments are expected to sign an 
agreement for the yen-loan projects after a permanent Iraqi 
government is inaugurated, and the projects are likely to be 
implemented in or after May. 
 
The Japanese government announced at the fall 2003 international 
conference on Iraq reconstruction to offer 3.5 billion dollars 
worth of loans and 1.5 billion dollars worth of grant aid. Almost 
all the grant money has already been used, but the 3.5 billion 
dollars in loans has been left untouched due to delays in 
reducing the debt Iraq owes Japan. 
 
5) "It is regrettable that there is no peace treaty with Japan," 
says Russian president in talks with former Prime Minister Mori 
 
NIHON KEIZAI (Page 2) (Full) 
March 28, 2006 
 
Members of the Japan-Russia Eminent Persons Conference, including 
former Prime Minister Yoshiro Mori are now visiting Russia. They 
met with President Putin at the annex to the President's Office 
at noon yesterday (evening of the same day, Japan time). During 
the meeting, the president underscored, "It is regrettable that 
 
TOKYO 00001598  004 OF 011 
 
 
there is no peace treaty between the two countries. The only 
means to settle this situation would be (to settle the Northern 
Territories issue), based on criteria set under international 
law, national interests of the two countries and the building of 
trust and friendship." He thus indicated his intention to 
continue efforts to settle the Northern Territories issue. 
 
During the meeting of the Eminent Persons Conference, Putin 
visited the annex and extended a greeting for several minutes: 
"Russia is aiming to settle every issue with Japan. I hope we can 
find solutions that are acceptable to our two countries." 
 
6) Prime Minister Koizumi voices hopes of getting economy out of 
deflation by September, expects successor to keep reform policy 
on track 
 
NIHON KEIZAI (Page 1) (Full) 
March 28, 2006 
 
Prime Minister Junichiro Koizumi expressed his determination to 
work hard to get the economy out of deflation by September, when 
his term of office as Liberal Democratic Party president expires. 
The prime minister said in a press conference last night after 
the government's budget for fiscal 2006 cleared at the House of 
Councillors' plenary session: 
 
"I would like to bring the economy onto a solid recovery track 
and get it out of deflation as soon as possible. I am determined 
to do my best to fulfill my official responsibilities as prime 
minister until my tenure in office expires in September." 
 
In reference to his successor, Koizumi said: "I hope a successor 
will put on a stable track the reform drive that the Koizumi 
cabinet has carried out in cooperation with the ruling parties." 
On the question of whether to withdraw Self-Defense Force troops 
stationed in Iraq, he just said: "We are not in the stage of 
speaking of the timing of their withdrawal for now." 
 
Asked if he would make another visit to Yasukuni Shrine before he 
steps down, the prime minister replied: "I will make a proper 
judgment." Regarding the Chinese and South Korean governments' 
criticism of him, the prime minister commented: "It is still hard 
to understand. These are the only two countries that continue to 
cut off summit talks because of antagonism over the issue." 
 
Now that the budget has passed the Diet, the focus of 
deliberations will be shifted to such key legislation as a bill 
amending the Basic Education Law, those related to promoting 
administrative reform, and a national referendum bill governing 
procedures for constitutional revision. Struggle among potential 
post-Koizumi candidates is also likely to intensify now. 
 
7) Main points from Prime Minister Koizumi's press conference 
March 27 
 
YOMIURI (Page 4) (Full) 
March 28, 2006 
 
Economic management 
 
I would like to get the economy out of deflation as soon as 
possible by consolidating the economic recovery. 
 
TOKYO 00001598  005 OF 011 
 
 
 
LDP presidential election 
 
I want my successor to push ahead with the reform drive by 
following the path paved by the Koizumi cabinet. It is said that 
being a leader requires three qualities: a sense of mission, 
insight, and passion. I hope that armed with those qualities, my 
successor will deal with matters appropriately. 
 
Iraq 
 
A rocky path lies ahead of the Iraqi people's effort to establish 
their own stable and democratic government. It is too early to 
mention when Japan will withdraw the (Ground) Self-Defense Force 
troops. 
 
Visits to Yasukuni Shrine 
 
I will make an appropriate decision on my visit to Yasukuni 
Shrine (during my tenure in office). I cannot understand the 
Chinese and South Korean governments' criticism of my visits to 
Yasukuni Shrine. It would make no sense for any country not to 
hold summit talks because of a single issue (paying homage at 
Yasukuni Shrine). Progressive Japanese people, intelligent 
people, and critics all say, "Japan-China relations have gone 
awry because of visits to Yasukuni Shrine." Is this correct? If 
Japan does as China says, does that mean progress in Japan's 
policy toward Asia? The answer is no. We must develop relations 
with China and South Korea regardless of clashes of opinions over 
a matter or two. 
 
8) Former Nago Mayor Kishimoto, who accepted relocation of 
Futenma Air Station, dies 
 
YOMIURI (Page 39) (Full) 
March 28, 2006 
 
Tateo Kishimoto, former mayor of Nago City, Okinawa Prefecture, 
died at 6:50 p.m. yesterday. He was 62 years old. His home is at 
256-1, Umosa, Nago City. The schedule for the funeral service and 
the location of the funeral have yet to be decided. In 1999, 
Kishimoto declared his intention to accept the plan to relocate 
the US Marine Corps Futenma Air Station in Ginowan City to a 
place offshore from Henoko in Nago City. But in the interim 
report on the realignment of US forces in Japan released last 
October, the relocation site was changed to the coastal area of 
Camp Schwab. Kishimoto had been opposed to that change. 
 
In December 1997, when Kishimoto served as deputy mayor, then 
Mayor Tetsuya Higa announced he would accept the relocation plan 
for the Futenma airfield and resigned from the post. As his 
successor, Kishimoto ran in the mayoral election and won his 
first election. In December 1999, he formally declared he would 
accept the relocation plan. 
 
In February 2002, he won reelection, but in May 2004, he was 
hospitalized and underwent an operation. He never recovered from 
his illness. This past January, he abandoned plans to run again. 
 
9) Futenma relocation flight paths: What is the settlement line? 
Government intends to try to get away with minor changes, while 
Nago wants to see flight paths moved to ocean side of residential 
 
TOKYO 00001598  006 OF 011 
 
 
area 
 
YOMIURI (Page 4) (Full) 
March 28, 2006 
 
Defense Agency Director General Fukushiro Nukaga is scheduled to 
hold another round of talks later this week with Nago Mayor 
Yoshikazu Shimabukuro in order to settle quickly the question of 
relocating the US Marine Corps' Futenma Air Station in Okinawa 
Prefecture to the coastline of Camp Schwab in the prefecture. 
However, with views between the central government and Nago 
remaining wide apart over making changes to the alternate 
facility's flight paths, whether Nukaga and Shimabukuro can find 
common ground remains unclear. 
 
Around yesterday noon, Nago Vice Mayor Bunshin Suematsu briefed 
the Henoko, Toyohara, and Kushi district mayors on the minor 
changes proposed by the central government. As a result, they 
agreed to oppose them at present. 
 
Shimabukuro held talks yesterday afternoon with Gov. Keiichi 
Inamine and briefed him on his talks on March 25-26 with Nukaga. 
Shimabukuro is reportedly asked Nukaga to move (the flight paths) 
to the ocean side of the residential area in accordance with the 
Nago's call to move the government's plan 450 meters further out 
to sea. The government proposed, among other things, turning the 
direction of the runway about 10 degrees counter-clockwise. It 
would be difficult to set the flight paths on the ocean side of 
the Abu district. 
 
Meanwhile, Vice Defense Minister Takemasa Moriya in a press 
conference yesterday expressed displeasure with Nago, saying: 
"According to government surveys, there is a valuable marine 
habitat there for the dugongs. But local people said, 'There is 
no marine habitat,' and 'We haven't seen dugongs here for 
decades.'" 
 
Former Nago Mayor Tateo Kishimoto passed away yesterday evening. 
He was opposed to the government plan. Nukaga and Shimabukuro 
initially planned to meet tomorrow, but they decided to postpone 
it. A Defense Agency official said, "With the death of Kishimoto, 
the overall timetable for talks may be delayed." 
 
10) Final agreement between Japan and US on USFJ realignment to 
slip to next month or later 
 
NIHON KEIZAI (Page 2) (Full) 
March 28, 2006 
 
Following the death of former Nago Mayor Tateo Kishimoto, the 
planned March 29 talks between Defense Agency Director General 
Fukushiro Nukaga and incumbent Nago Mayor Yoshikazu Shimabukuro 
will likely be put off, government officials revealed yesterday. 
 
Chances are now strong that a final agreement between Japan and 
the United States on the relocation of the US Marine Corps 
Futenma Air Station will be delayed to April or later although 
the two countries initially planned for the end of March if the 
talks between the central government and Nago City are postponed. 
 
11) Japan-US talks reset for Mar. 30-31 over USJF realignment 
 
 
TOKYO 00001598  007 OF 011 
 
 
MAINICHI (Page 2) (Abridged) 
March 28, 2006 
 
Japan and the United States will hold another round of talks in 
Washington on March 30-31 over issues regarding the realignment 
of US forces in Japan, with senior officials for foreign and 
defense affairs attending. The Japanese and US governments have 
already agreed to wind up the realignment talks in late March and 
are expected to enter into the final phase of coordination over 
pending issues, such as Japan's share of the cost of moving US 
Marines from Okinawa to Guam. With the talks scheduled ahead, the 
Japanese government is now coordinating with the municipal 
government of Nago City, Okinawa Prefecture, on the issue of 
relocating the US Marine Corps' Futenma Air Station. Tokyo wants 
to reach an agreement with Nago before the talks. Tokyo, 
Washington, and Nago will be in the climax of negotiations this 
week over the US military realignment. 
 
12) Kyodo News poll on relocation of US Marines: 51% reluctant 
about cost-sharing, with over 40% in favor of 
 
TOKYO SHIMBUN (Page 2) (Excerpts) 
March 28, 2006 
 
Kyodo News Services conducted a nationwide telephone opinion poll 
on March 25-26 concerning the ongoing talks between the Japanese 
and US governments on the realignment of US forces in Japan, now 
in the final stage. On the focal question of whether Japan should 
share the cost of relocation of US Marines in Okinawa to Guam, 
the poll found that a total of 51.3% of the respondents were 
reluctant, including those who said, "Japan should not pay the 
cost at all" and those who said, "Japan should not pay much of 
the cost." 
 
Yet, the poll revealed that with a total of 45.3% being positive 
about cost sharing, the public is divided over the issue. 
 
Those who said, "I support the Koizumi cabinet," came to 50.4%, 
the figure being almost the same as 51.8% of the previous survey 
conducted in February. Those who said, "I don't support it," 
reached 41.0%, up 3.8 points. 
 
On the developments of the talks on the US force realignment, 
local municipalities, including Okinawa Prefecture and Iwakuni 
City in Yamaguchi Prefecture, are raising strong objections to 
the realignment plans. In response to the question asking what 
the Japanese government should do to reach a final agreement, 
those who said, "Japan should make efforts to reach a conclusion, 
giving consideration to both (the United States and local 
residents), accounted for the largest percentage of 56.6%, 
greatly topping 35.5% of the respondents who said, "Japan should 
give priority to local wishes," and 5.7% of the respondents who 
said, "Japan should give priority to agreement with the US." 
 
The US government has estimated the relocation cost at a total of 
10 billion dollars, or approximately 1.18 trillion yen. It has 
asked the Japanese government to pay 75% of the cost. When asked 
about this cost-sharing, 2.4% of the respondents said, "Japan 
should pay as large a share of the cost as possible," and 42.9% 
said, "Japan should pay the cost to some extent." On the other 
hand, 37.0% said, "Japan should not have too large a share of the 
cost," and 14.3% said, "Japan should not pay anything at all." 
 
TOKYO 00001598  008 OF 011 
 
 
13) US bases in Tokyo, Okinawa to give no right of way for 
emergency evacuation 
 
MAINICHI (Page 2) (Abridged) 
March 28, 2006 
 
The United States is refusing to give the right of way through 
the premises of its military bases in Tokyo and Okinawa for base- 
neighboring local communities' evacuation of their residents in 
the event of armed attacks against Japan and other emergencies, 
sources revealed. The Tokyo metropolitan and Okinawa prefectural 
governments had incorporated such emergency evacuation in their 
respective initial civilian protection plans. The central 
government will cross it out in its plan to be adopted in a 
cabinet meeting on March 31. The United States, according to the 
sources, has cited crisis management as a primary reason for its 
disagreement. However, the US Air Force's Yokota base in Tokyo 
covers an area of 714 hectares and stretches over five cities and 
a town. In Okinawa, US military bases occupy about 10% of its 
land area. The two local governments are at a loss, with one of 
their officials saying, "We can't facilitate local evacuation 
during emergencies because their bases stand in our way." Other 
municipalities hosting US bases have similar trouble, according 
to the sources. The problem will likely involve many more base- 
hosting localities. 
 
The Okinawa prefectural government had planned to take necessary 
measures, including on-base traffic and evacuation, because a 
large number of local residents live in areas situated between US 
military bases and the sea and they may be isolated. The Tokyo 
Metropolitan government had also incorporated similar measures in 
order to evacuate Yokota base neighbors during emergencies. 
 
According to Cabinet Secretariat and other government officials, 
the Foreign Ministry and other relevant government offices held 
consultations with the US Embassy and US forces. However, the US 
side refused the Japanese proposal for security reasons, saying 
it will be impossible to tell terrorists from the general public 
on base. The Tokyo metropolitan and Okinawa prefectural 
governments therefore decided to delete these on-base traffic and 
evacuation measures from their respective plans. However, both 
Tokyo and Okinawa will continue their requests to the US side. 
 
14) SDF starts integrated operations 
 
SANKEI (Page 2) (Abridged) 
March 28, 2006 
 
The Self-Defense Forces yesterday integrated the operations of 
its land, sea, and air branches for rapid deployment in the event 
of terrorism, disasters, and various other contingencies. The 
Joint Staff Council (JSC), which has liaised with the Ground, 
Maritime, and Air Self-Defense Forces (GSDF, MSDF, and ASDF), has 
now been reorganized into the Joint Staff Office (JSO). JSC 
Chairman Lt. Gen. Hajime Massaki has become the first JSO chief. 
 
The GSDF, MSDF, and ASDF, which used to assist the Defense Agency 
director general through their respective chiefs of staff, will 
launch joint task forces in order to deal more effectively and 
rapidly with missile defense (MD), major earthquakes, 
international emergency relief, and various other situations. The 
JSO chief will now assist the defense chief and command the three 
 
TOKYO 00001598  009 OF 011 
 
 
SDF services. 
 
The SDF's operational integration is based on a July 2005 
amendment to the Defense Agency Establishment Law. The three SDF 
services could not team up and liaise well at the time of the 
Great Hanshin Earthquake in 1995. In addition, the SDF needed to 
have an integrated point of contact with US Forces Japan. The 
GSDF, MSDF, and ASDF chiefs of staff, who have respectively led 
the three SDF services, will be held responsible for education, 
training, defense buildup, and other managerial functions. The 
three top brass officers, remaining aides-de-camp to the defense 
chief, will be in charge of rear-echelon logistics in the event a 
joint task force is organized. 
 
15) Poll: Economic measures gradually down among priority issues 
for Koizumi cabinet 
 
NIHON KEIZAI (Page 5) (Full) 
March 28, 2006 
 
The Nihon Keizai Shimbun conducted a public opinion survey on 
March 24-26, in which respondents were asked to pick one or more 
policy issues they want the Koizumi cabinet to pursue on a 
priority basis. In response to this question, social security, 
such as pensions and welfare services, topped all other issues at 
55%, followed by economic measures at 26%, educational reform at 
23%, tax reform at 22%, fiscal reconstruction at 21%, and 
employment measures at 21%. 
 
In the survey, the proportion of those who picked social security 
leveled off from a survey conducted in December last year, with 
that of those picking economic measures down 3 percentage points. 
Economic measures topped all other issues over 60% for a while 
after the Koizumi cabinet came into office in the spring of 2001. 
With the nation's economy recovering, however, economic measures 
have declined in public precedence. 
 
The general public is also taking a bullish outlook for the 
economy. In the survey, respondents were asked if they thought 
the nation's economy would improve. In response, "yes" accounted 
for 24%, up 4 points from last December's survey. 
 
The survey was taken by Nikkei Research Inc. over the telephone 
on a random digit dialing (RDD) basis. For the survey, samples 
were chosen from among males and females, aged 20 and over, 
across the nation. A total of 1,488 households with one or more 
voters were sampled, and answers were obtained from 846 persons 
(56.9%). 
 
16) Household assets decrease 11% over five years, according to 
survey by Internal Affairs Ministry 
 
TINUYRU (Page 2) (Full) 
March 28, 2006 
 
The Internal Affairs and Communications Ministry yesterday 
released the results of the fact-finding survey on national 
consumption the ministry conducts every five years. The total 
amount of assets held by one household as of the end of November 
2004 was 39 million yen on average, down 11.1% from the previous 
survey (1999). The decline in land prices has brought down 
residential land equity, which accounts for 56% of all household 
 
TOKYO 00001598  010 OF 011 
 
 
assets, by 18.6% and home equity by 2.3%. Financial assets grew 
6.1% due to increased savings reflecting the recent economic 
recovery. 
 
Classifying all households into 10 groups according to annual 
income, the ministry found that the average amount of all assets 
held by those in the highest-income group, with an average annual 
income of 16.68 million yen, was 81,61 million yen. Families in 
the lowest-income group, with an average annual income of 2.12 
million yen, possessed 24.34 million yen in assets on average, 
making the differential in assets between the groups 440%. The 
asset differential between the rich and the poor was 600% in 
1989, when the survey was started. The gap was 440% in 1994, and 
410% in 1999, showing a tendency to narrow, but it widened in the 
latest survey for the first time. 
 
17) With feeling of despair due to e-mail uproar, Minshuto unable 
to go on the offensive 
 
NIHON KEIZAI (Page 2) (Full) 
March 28, 2006 
 
The Diet approved yesterday the budget for fiscal 2007. The main 
opposition party Minshuto (Democratic Party of Japan) has, 
however, found it hard to recover from the e-mail fiasco. 
Minshuto is smothered in a strong sense of helplessness because 
the party failed to put an end to the e-mail issue even though 
the party had come up with its own draft proposals regarding 
decentralization and reform of the public servant system to 
counter the government's administrative reform promotion 
legislation. 
 
Citing administrative reform and medical system reform bills as 
important issues in the second half of the ongoing Diet session, 
party head Seiji Maehara told reporters, stressing that his party 
would "maintain a policy line of presenting counter proposals." 
 
Minshuto has formulated its own plans: one is a "decentralization 
vision" under which the state's responsibilities would be split 
into eight areas, including foreign policy and market monitoring; 
and the other is a public servant system reform plan calling for 
slashing the national public servants' personnel costs by more 
than 20% over three years. The party intends to adopt the 
proposals in a meeting of the "Next Cabinet" as early as March 
¶29. It wants to make them as a pillar of its administrative 
counterproposals. 
 
Regarding the e-mail issue, however, it has been decided to 
summon the middleman, who provided the copy of a false e-mail to 
Minshuto lawmaker Hisayasu Nagata, to testify as a witness before 
a House of Representatives Committee on Discipline session on 
April 4. Many in the largest opposition party have called on 
lawmaker Nagata, who caused the uproar by bringing up the false e- 
mail issue at the Diet, to quit his Diet seat. Mizuho Fukushima, 
who heads the small opposition party Social Democratic Party, 
criticized Minshuto, saying, "It is regrettable that the largest 
opposition party has weakened its pursuit (of the government and 
the ruling coalition)." 
 
Lower House Disciplinary Committee confirms Diet testimony of 
Nishizawa 
 
 
TOKYO 00001598  011 OF 011 
 
 
The Lower House Committee on Discipline reconfirmed yesterday 
that it would summon Takashi Nishizawa, who allegedly provided 
Nagata with the copy of the faked e-mail suggesting Livedoor Co. 
founder Takafumi Horie had transferred money to a son of Liberal 
Democratic Party Secretary General Tsutomu Takebe, to testify 
before its session on April 4. Committee Chairman Tetsundo 
Iwakuni told reporters, "If he took Mr. Nagata for a ride to make 
him raise the e-mail at the Diet, his action would be an act of 
terrorism." 
 
With this regards, Nishizawa's attorney stated at a press 
conference yesterday, "I wonder testifying a private person at 
the Diet is appropriate." He stopped short of saying, "He will 
explain before too long" about the circumstance he provided the e- 
mail to Nagata. 
 
18) Japan, US beef experts to meet today; Moves to resume imports 
likely to appear 
 
ASAHI (Page 11) (Excerpts) 
March 28, 2006 
 
Experts of the Japanese and US governments will meet in Tokyo 
today and tomorrow to discuss ways to deal with the US beef 
import ban by Japan. Some kind of move to reinstate beef trade 
will likely appear during the meeting. 
 
A number of senior US government officials have made statements 
urging an early resumption of US beef imports since mid- 
March?prompted by the decision by the Hong Kong Special 
Administrative Region (SAR), which was unveiled on the 13th. 
 
Beef bones, a material banned in Hong Kong as a mad cow disease 
risk, were found in a US beef shipment, but the Hong Kong SAR 
imposed an embargo only on beef from the leading meat packer that 
shipped the products in question. A Japanese agriculture ministry 
source pointed out, "Hong Kong's judgment that only the company 
that shipped the products in question should be subject to the 
import ban heightened US discontent with Tokyo, which is 
continuing a total import ban." 
 
It took two full years to lift the previous embargo, which was 
imposed in December 2003. Many government officials see that the 
reason why the embargo became protracted was that the Food Safety 
Commission, which has as members many experts who are skeptical 
about the US food safety control system, discussed conditions for 
resuming US beef imports. 
 
SCHIEFFER