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Viewing cable 06TOKYO1859, JAPANESE MORNING PRESS HIGHLIGHTS 04/07/06

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Reference ID Created Released Classification Origin
06TOKYO1859 2006-04-07 01:44 2011-08-26 00:00 UNCLASSIFIED Embassy Tokyo
VZCZCXRO5149
PP RUEHFK RUEHKSO RUEHNAG RUEHNH
DE RUEHKO #1859/01 0970144
ZNR UUUUU ZZH
P 070144Z APR 06
FM AMEMBASSY TOKYO
TO RUEHC/SECSTATE WASHDC PRIORITY 0626
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 8184
RUEHFK/AMCONSUL FUKUOKA 5555
RUEHOK/AMCONSUL OSAKA KOBE 8713
RUEHNAG/AMCONSUL NAGOYA 5546
RUEHKSO/AMCONSUL SAPPORO 6732
RUEHBJ/AMEMBASSY BEIJING 1562
RUEHUL/AMEMBASSY SEOUL 7743
RUCNDT/USMISSION USUN NEW YORK 9671
UNCLAS SECTION 01 OF 10 TOKYO 001859 
 
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 04/07/06 
 
 
Index: 
 
1)   Top headlines 
2)   Editorials 
3)   Prime Minister's daily schedule 
 
DPJ race: 
4)   DPJ to elect new head today, Ozawa leading Kan 
5)   Ozawa, Kan basically not differ on security policy, 
constitutional reform 
 
USFJ realignment & defense topics: 
6)   JDA chief, Nago mayor to meet today for final agreement on 
  Futenma airfield relocation plan 
7)   Gov't to propose another change to Futenma relocation plan 
8)   Political decision sought for Guam relocation, with eye to 
Futenma 
9)   JDA wants to create joint document with local host on 
Futenma relocation 
10)  Solution sought also for other pending realignment issues 
11)  Guam relocation issue now on cabinet agenda 
12)  Cabinet ministers to consult on Guam relocation 
13)  Yokota AB: US C-130 transport's fuel blowdown in flight not 
abnormal 
 
Diplomatic agenda: 
14)  Japan, Russia urge North Korea to sit down at negotiating 
  table 
15)  Japan-Russia summit set for July 
16)  6-party delegates to meet in Tokyo 
17)  Japan to call on China for foreign ministerial meeting 
18)  Japan, Saudi Arabia to seek diplomatic solution for Iran's 
nuke program 
 
Economic topics: 
19)  Japan's economic expansion equal 'bubble' 
20)  Beef panel chairman nixes political clout behind recent 
reshuffle 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi: 
Ozawa camp confident of winning majority in Minshuto presidential 
election 
 
Mainichi: 
Land, Infrastructure, and Transport Ministry officials also 
arranged bid rigging for public works 
 
Yomiuri & Tokyo Shimbun: 
Ozawa winning greater support than Kan ahead of Minshuto 
presidential race today 
 
Nihon Keizai: 
Matsushita, NEC, Texas Instruments to tie up on mobile phone 
components 
 
Sankei: 
Meteorological Agency to provide advance information on 
earthquakes 
 
TOKYO 00001859  002 OF 010 
 
 
 
2) EDITORIALS 
 
Asahi: 
(1)  How about stopping screening for high school textbooks? 
(2)  France facing difficulty creating jobs 
 
Mainichi: 
(1)  Unified standards based on citizens' will needed on the 
issue of ventilator removal 
(2)  Social disparity: Establish a nation in which people can 
comfortably live without savings 
 
Yomiuri: 
(1)  Will law revision fuse TV, Net? 
(2)  Chaos in France: Vested interests hobbling employment reform 
 
Nihon Keizai: 
(1)  We should consider English education in elementary school in 
constructive manner 
(2)  US force realignment talks making slow progress 
 
Sankei: 
(1)  Revision of Education Basic Law: LDP should take the lead 
(2)  Deregulation of media: Transparent, wide-ranging discussion 
needed 
 
Tokyo Shimbun: 
(1)  US bill for relocating Marines to Okinawa too high for Japan 
(2)  One year after anti-Japanese demonstrations: Ending tit-for- 
tat criticism 
 
3) Prime Minister's Official Residence (Kantei) 
 
Prime Minister's schedule, April 6 
 
NIHON KEIZAI (Page 2) (Full) 
April 7, 2006 
 
10:50 
Met at Kantei with MOFA Middle Eastern and African Affairs Bureau 
chief Yoshikawa, METI Trade Policy Bureau chief Kitamura, and 
others. 
 
13:08 
Attended a Lower House plenary session. 
 
15:52 
Met at Kantei with LDP Administrative Reform Promotion 
Headquarters chief Eto and Secretary General Hayashi. 
 
16:05 
Met Asahi Beer adviser Yuzo Seto, followed by National Police 
Agency Commissioner General Uruma. 
 
17:28 
Met Economic and Fiscal Policy Minister Yosano. 
 
18:40 
Met with Prince Sultan of Saudi Arabia. Afterward jointly signed 
an MOU on policy talks. 
 
 
TOKYO 00001859  003 OF 010 
 
 
19:17 
Hosted a dinner party. 
 
20:41 
Met former Prime Minister Mori. 
 
4) DPJ presidential election today; Ozawa leading Kan 
 
YOMIURI (Top Play) 
April 7, 2006 
 
The Democratic Party of Japan (DPJ = Minshuto) will hold a 
plenary meeting of its members of the both Diet chambers this 
afternoon and pick a successor to Seiji Maehara, who has 
announced his intension to step down, through a vote of its 192 
lawmakers. Ichiro Ozawa (63), former party vice president, and 
Naoto Kan (59), former party president, will file their 
candidacies in the morning. Individual interviews with DPJ 
members by the Yomiuri Shimbun found that as of yesterday 
evening, Ozawa was in the lead, gaining support from 97, a 
majority. Kan is catching up, however, securing support from mid- 
tier and junior members. Ozawa and Kan met in Tokyo yesterday 
evening and agreed to work to enhance unity within the party 
regardless of who is elected party leader. 
5) Minshuto (Democratic Party of Japan) presidential race: No 
essential difference found between Ozawa, Kan in their respective 
views of security, Constitution 
 
YOMIURI (Page 4) (Excerpts) 
April 7, 2006 
 
Minshuto's presidential race is certain to be a contest between 
two veteran lawmakers in the party. Former party Vice President 
Ichiro Ozawa and former party President Naoto Kan will today 
announce their candidacies. The focus of the election is how the 
two influential lawmakers will hammer out their respective 
roadmaps to rebuild the party and what policy they will come up 
with to counter the Koizumi administration. There is no essential 
difference between the two in terms of their respective policies 
and their methods of party management, but a difference in their 
unique abilities stemming from their respective political 
experiences is felt. 
 
At the time of the September 2003 merger between Minshuto and the 
former Liberal Party (Jiyuto) led by Ozawa, there was a gap in 
security policy between Ozawa and Kan. Ozawa's idea is to set up 
a standby unit for United Nations-led peacekeeping operations 
separately from the Self-Defense Forces in order to realize 
Japan's active participation in UN activities. Kan later came 
around to Ozawa's idea in 2004, when he served as president of 
the party. Basically, the two now share the same stance on 
security policy. 
 
Ozawa has shown his enthusiasm about revising the Constitution. 
Kan also, when he was president of the party in 2004, declared 
his intention to put together an amendment to the Constitution. 
In the area of foreign affairs, both Ozawa and Kan emphasize 
relations with the United States as well as China. There is no 
essential difference in policies between the two. 
 
6) Futenma relocation: JDA chief to meet with Nago mayor for last- 
minute consultations 
 
TOKYO 00001859  004 OF 010 
 
 
 
MAINICHI (Page 2) (Full) 
April 7, 2006 
 
By  Hiroe Ueno 
 
In order to discuss the planned relocation of the US military's 
Futenma Air Station from Ginowan City, Okinawa Prefecture, to a 
coastal area of Camp Schwab in Nago City in the prefecture, Nago 
Mayor Yoshikazu Shimabukuro will today come to Tokyo. He will 
meet with Defense Agency (JDA) Director General Fukushiro Nukaga 
and hold last-minute consultations with him in trying to reach an 
agreement on the relocation issue. A plan is being considered in 
the government that if the two reach an agreement, Okinawa Gov. 
Keiichi Inamine will come to Tokyo as early as tomorrow and meet 
with Prime Minister Junichiro Koizumi. 
 
Shimabukuro met with Nukaga on April 4. As of April 6, he spelled 
out the results of the consultations between him and the central 
government to the heads of three districts - Henoko, Toyohara, 
and Kushi - located in the vicinity of Camp Schwab, the ruling 
groups of the municipal assembly, senior members of his support 
group, and others. He has been given a free hand by them on 
whether to accept Tokyo's proposal. Nago City has stated, "We 
intend to finalize the issue during the consultations this time." 
Depending on what the JDA comes up with in the planned meeting 
(today), the relocation issue could be settled all at once. 
 
On the coastal plan for the relocation of the airfield, Nago City 
has called on the central government to remove the districts of 
Henoko, Toyohara, and Abe from the flight routes of US aircraft 
and move the relocation site offshore. The JDA has offered minor 
changes to the plan that will turn the runway 10 degrees 
counterclockwise and move it a few dozen meters toward the ocean 
side. 
 
7) Futenma relocation: Government to present revised plan; 
Nukaga, Shimabukuro to make final coordination today 
 
ASAHI (Page 1) (Abridged) 
April 7, 2006 
 
Defense Agency Director General Fukushiro Nukaga and Nago Mayor 
Yoshikazu Shimabukuro are scheduled to hold revision talks in 
Tokyo this afternoon to make final arrangements for reaching an 
agreement on a plan to relocate Futenma Air Station from Ginowan 
to Cape Henoko in Nago. The Defense Agency is expected to present 
a revised, compromise plan to Nago, which has been calling for 
moving the envisaged runway further offshore. 
 
Administrative Vice Defense Minister Takemasa Moriya said in a 
press conference yesterday, "We definitely want to reach a 
conclusion with Nago." A government source also noted, "The two 
sides could reach an agreement any moment now." 
 
Prime Minister Koizumi, a proponent of the Cape Henoko plan in 
principle, has left talks with Nago entirely to Nukaga. Prior to 
his talks with Shimabukuro today, Nukaga is scheduled to see 
Koizumi to brief him on past developments and discuss policy on 
today's talks. 
 
In past talks with Nago, the Defense Agency has proposed turning 
 
TOKYO 00001859  005 OF 010 
 
 
the runway to be built at Cape Henoko 10 degrees counterclockwise 
in order to remove residential areas from the flight path. But 
Nago insisted on moving the runway further offshore. 
 
Shimabukuro told a confidant yesterday: "I was able to elicit 
major concessions from the government. I expect the government 
will present a (revised) plan in the next talks." Nago intends to 
make a decision after seeing the plan. 
 
Shimabukuro held talks with Okinawa Gov. Keiichi Inamine in 
Okinawa City last night, in which the mayor said, "In dealing 
with the government, I will continue to stick to the conditions 
presented by Nago." In response, Inamine reiterated that Okinawa 
would not accept the government plan. 
 
8) USFJ realignment: Moves afoot for political settlement of 
dispute over Guam relocation cost 
 
YOMIURI (Page 2) (Abridged slightly) 
April 7, 2006 
 
Japan and the United States ended their talks on the realignment 
of US forces in Japan on April 5 one day earlier than expected, 
with the two sides remaining divided over the cost of relocating 
US Marines to Guam from Okinawa. Some officials in the government 
are now calling for a political settlement at minister-level 
negotiations. A Foreign Ministry official said, "A settlement at 
a meeting of administrative officials would be difficult." 
 
In an April 4-5 meeting, the US side proposed that Japan pay 75% 
of the 10 billion dollar (1.1 trillion yen) cost of moving the 
Marines, but the Japanese side reiterated its position that it 
would offer to lend the US 3 billion dollars (333 billion yen) 
for housing. As a result, the talks ended with the gulf remaining 
wide. Washington also proposed grant assistance, besides loans, 
from the general account budget. Tokyo reportedly refused the 
request, however. 
 
The reason for the talks ending earlier than scheduled is because 
coordination has been stalled between the Japanese government and 
local communities on a plan to move the US Marine Corps Futenma 
Air Station to the coast of Camp Schwab. 
 
The US side has stated that a final report on the USFJ 
realignment will not be crafted unless the coordination with 
local communities is concluded. Prime Minister Junichiro Koizumi 
also said, "I would like to make efforts as much as possible to 
obtain understanding and cooperation from (local residents)." 
Tokyo and Washington have to move ahead with their talks while 
watching the development of coordination between the government 
and the city of Nago in Okinawa. 
 
At a press conference yesterday, Vice Defense Minister Takemasa 
Moriya stated on the Guam relocation cost issue: 
 
"A final judgment will be made by the defense chief. We are 
negotiating based on the thinking that administrative officials 
should boil down details prior to talks between the defense 
chiefs." 
 
Moriya indicated that the issue would be resolved by Defense 
Agency Director General Fukushiro Nukaga and US Secretary of 
 
TOKYO 00001859  006 OF 010 
 
 
Defense Donald Rumsfeld. 
 
9) Futenma relocation: JDA during today's talks to sound out Nago 
about mapping out joint paper 
 
NIHON KEIZAI (Page 2) (Full) 
April 7, 2006 
 
In a bid to bring progress to the issue of relocating US forces' 
Futenma Air Station in Ginowan to Nago, Okinawa Prefecture, the 
Defense Agency (JDA) yesterday started considering the 
possibility of sounding out the city about the drafting of a 
joint paper outlining the relocation plan. In order to find a 
breakthrough in the continuing confrontation with the city, the 
JDA wants to use the joint paper as a basis for future talks, by 
incorporating in it principles which both sides find acceptable. 
 
JDA Director General Fukushiro Nukaga will meet with Nago Mayor 
Yoshikazu Shimabukuro again today. He will work on him to agree 
to map out a joint paper. 
 
The JDA conveyed its view to Nago in late March that it would be 
difficult to substantially alter the government's relocation 
plan. The joint paper will be drafted in line with this policy 
stance. However, taking Nago's request into consideration, the 
planned paper will mention that the flight routes for US military 
aircraft will avoid residential areas. The paper will likely stop 
short of mentioning how the planed flight routes will be moved. 
It will instead just note that the issue will be worked out in 
the future. How Nago will respond to the proposals will be the 
focus of today's meeting. 
 
Vice JDA Minister Takemasa Moriya during yesterday's press 
briefing announced that today's meeting with Shimabukuro will be 
the final negotiations with the city. Regarding the cost of 
relocating the US Marine Corps to Guam, he explained, "We will 
report the issue to related cabinet ministers for a political 
judgment." He thus revealed plans to seek a settlement at 
bilateral defense talks between Nukaga and US Defense Secretary 
Rumsfeld, after a policy decision is made at a meeting of related 
cabinet ministers. 
 
10) Tokyo aims to settle outstanding issues in US force 
realignment at working-level talks set for next week 
 
MAINICHI (Page 2) (Excerpts) 
April 7, 2006 
 
By Yoso Furumoto 
 
With a meeting between Defense Agency (JDA) Director-General 
Fukushiro Nukaga and Nago Mayor Yoshikazu Shimabukuro arranged 
for today, local coordination by the central government on the 
planned relocation of the US military's Futenma Air Station is 
about to enter the homestretch. Japan-US working-level talks on 
the realignment of US forces in Japan, which had started in 
Washington on April 4, were called off after two days of 
discussion, but the talks have been rescheduled to occur in Tokyo 
April 13-14. This move apparently has come out of the necessity 
of waiting for the completion of local coordination on the 
Futenma relocation plan. 
 
 
TOKYO 00001859  007 OF 010 
 
 
Nukaga intends to obtain consent from Nago City (on the 
relocation plan) before the end of the week and then look to 
finalize the issue of cost sharing between Japan and the United 
States on the relocation of US Marines from Okinawa to Guam at 
Japan-US working-level talks set for next week. 
 
In order to prepare during the current session of the Diet 
legislation necessary for Japan to facilitate the US force 
realignment, including Japan's payment of the Guam relocation 
cost, Tokyo thinks it is necessary for both the countries to 
reach a final agreement by mid-April. If Tokyo fails in 
coordination with Nago City, it will be forced to make a 
difficult decision on whether to push ahead with what is included 
in the Japan-US agreement without local consent. Depending on the 
circumstances, the US could toughen its stance. 
 
11) Five cabinet ministers to reconsider Japan's response, 
following end of Japan-US talks on Guam relocation cost without 
agreement 
 
ASAHI (Page 4) (Full) 
April 7, 2006 
 
Japan and the US ended talks between their foreign and defense 
deputy directors general on the realignment of US military forces 
in Japan on April 5 (local time). Both sides remained divided 
over the cost of relocating US Marines from Okinawa Prefecture to 
Guam. The Japanese government will revamp its proposals in 
preparation for talks scheduled for April 13-14. But the US 
government is still calling on Japan to pay 75% of the total 
relocation cost. No prospects are in sight for an agreement. 
 
A senior official of the Defense Agency (JDA) admitted that there 
is still a wide gap between Japan and the US over relocation cost 
sharing. 
 
The US has proposed that Japan pay about 7.5 billion dollars 
(881.5 billion yen) of the total cost of 10 billion dollars. But 
Japan reportedly restated that it would defray approximately 3 
billion dollars (352.5 billion yen), mainly for constructing 
housing, under a loan formula. 
 
Administrative Vice JDA Director General Takemasa Moriya said in 
a press conference yesterday: "I will report it to five relevant 
cabinet ministers," indicating that the five cabinet ministers 
would reconsider what response Japan should take. 
 
12) Guam relocation to shift to cabinet-level talks 
 
TOKYO SHIMBUN (Page 2) (Abridged) 
April 7, 2006 
 
Japan and the United States ended senior-working-level talks held 
in Washington on the realignment of US forces in Japan yesterday, 
one day earlier than scheduled. They failed to reach a settlement 
on the cost for relocating US Marine Corps from Okinawa to Guam. 
Working-level officials are scheduled to meet again on April 13- 
14 in Tokyo. Given difficulties in administrative-level talks, 
Defense Agency Director General Fukushiro Nukaga is expected to 
take part in talks. 
 
In the talks in Washington, the US asked Japan to pay 7.5 billion 
 
TOKYO 00001859  008 OF 010 
 
 
dollars of the estimated 10 billion dollars for building military 
facilities, including infrastructure, in Guam. Japan, on the 
other hand, announced its willingness to contribute 3 billion 
dollars, mostly loans. The two sides remained wide apart. 
 
The focus will shift to America's efforts to constrain the cost 
and Japan's coordination to determine its share. In the Japanese 
government, there is strong resistance to shouldering a large 
share, especially in the Finance Ministry. As a result, Nukaga is 
likely to deal directly with the US after working out measures 
with Chief Cabinet Secretary Shinzo Abe, Foreign Minister Taro 
Aso, and Finance Minister Sadakazu Tanigaki. 
 
13) US aircraft drops fuel over Tama River 
 
TOKYO SHIMBUN (Page 27) (Abridged) 
April 7, 2006 
 
Around 10:15 a.m. April 6, a C130 transport airplane suddenly 
made three sharp turns while emitting something that appeared to 
be a vapor trail from its right wing in the sky above the Tama 
River in Hamura City, Tokyo. Freelance journalist Kenji 
Kawashima, 58, captured this moment in a photograph. 
 
The aircraft repeated the maneuver about 300 meters above the 
Tama River. A Yokota Air Base Public Affairs official commented: 
"The aircraft elected some fuel in order to lower the gas 
pressure in the fuel tank. It was nothing unusual." 
 
Kawashima presented the photograph to the city. A city official 
responsible for base affairs then asked Yokota Air Base about the 
vapor through the Yokota Defense Facilities Administration 
Office. In response, the office quoted the base as explaining the 
vapor as steam released from the fuel tank. The office later 
revised its reply and announced that it was fuel, not steam. 
Yokota Air Base has 13 C130 propeller planes on a regular basis. 
 
14) Tokyo, Moscow agree to urge Pyongyang to come back to talks 
 
MAINICHI (Page 5) (Full) 
April 7, 2006 
 
Foreign Ministry Asia and Oceanian Affairs Bureau Director 
General Kenichiro Sasae, Japan's chief delegate to the six-party 
talks on North Korea's nuclear ambitions, yesterday met with the 
Russian delegate, Vice Foreign Minister Alexeieff, at the Foreign 
Ministry. They agreed to work on Pyongyang to come back to the 
six-party talks promptly and unconditionally. 
 
15) Japan-Russia summit in July 
 
ASAHI (Page 4) (Excerpts) 
April 7, 2006 
 
A meeting of senior Japanese and Russian government officials was 
held yesterday at the Foreign Ministry's Iikura Guest House in 
Tokyo. The two sides have agreed to hold a summit between Prime 
Minister Junichiro Koizumi and President Vladimir Putin on the 
sidelines of the Group of Eight (G8) Summit, which will take 
place in Russia in July. They also have agreed to hold a Japan- 
Russia foreign ministerial on the sidelines of the G8 foreign 
ministerial talks planned for June in Russia. 
 
TOKYO 00001859  009 OF 010 
 
 
 
16) Six-party negotiators to assemble in Tokyo; Chinese vice 
minister to visit Japan 
 
ASAHI (Page 1) (Excerpts) 
April 7, 2006 
 
Yusaku Yamane, Beijing 
 
The Chinese Foreign Ministry announced yesterday that Vice 
Foreign Minister Wu Dawei, chair of the six-party talks on North 
Korea's nuclear program, would visit Japan soon. Chief 
negotiators of the six-party talks, including North Korean Vice 
Foreign Minister Kim Kye Gwan and US Assistant Secretary of State 
for East Asian and Pacific Affairs Christopher Hill, plan to 
visit Tokyo to attend a conference sponsored by a private sector 
organization, which will start on April 9. Negotiations will be 
carried out in Tokyo on a resumption of the six-party talks, 
which have been suspended since the United States invoked 
financial sanctions against North Korea, as well as on the 
North's nuclear issue. 
 
17) Japan to sound China out on a foreign ministerial meeting in 
Qatar next month 
 
YOMIURI (Page 4) (Excerpts) 
April 7, 2006 
 
Foreign Minister Taro Aso decided yesterday to attend an Asia 
Cooperation Dialogue meeting to be held May 23-24 in Qatar. Since 
Chinese Foreign Minister Li Zhaoxing is likely to take part in 
the session, the Japanese side intends to sound China out on a 
meeting between Aso and Li there. 
 
Japan-China foreign ministerial talks have been suspended since 
Prime Minister Junichiro Koizumi visited Yasukuni Shrine last 
October. If realized, Aso will meet with his Chinese counterpart 
for the first time. 
 
18) Japan, Saudi Arabia in joint statement confirm need for 
diplomatic solution to Iranian nuclear issue 
 
SANKEI (Page 5) (Slightly abridged) 
April 7, 2006 
 
Prime Minister Junichiro Koizumi and visiting Saudi Arabian Crown 
Prince Abdullah ibn Abd al-Azis issued a joint statement after 
their meeting at the Prime Minister's Official Residence last 
night. The statement reiterated the importance of resolving the 
Iranian nuclear issue diplomatically. 
 
The statement noted: "It is important to make the Middle East a 
region in which there are no weapons of mass destruction or 
transport means for such weapons." It also specified (1) the need 
to promote high-level political dialogue, including a foreign 
ministerial; (2) Saudi Arabia's support for Japan's bid for a 
permanent seat on the United Nations Security Council; and (3) 
welcoming the decision to start negotiations on concluding a free 
trade agreement (FTA) between Japan and the Gulf Cooperation 
Council (GCC). 
 
Referring to Iraq's reconstruction, Prime Minister Koizumi said: 
 
TOKYO 00001859  010 OF 010 
 
 
"I hope that Iraq will swiftly establish a new government and 
that the Iraqi people will make efforts to build their country." 
 
19) Ongoing economic expansion ties "bubble" economy 
 
SANKEI (Page 1) (Lead paragraph) 
April 7, 2006 
 
A key gauge of the current state of the economy stood above the 
boom-or-bust line of 50% in February for the seventh straight 
month. The index of coincident economic indicators - released by 
the Cabinet Office yesterday - reached 55.6% (95% of last month). 
The index of leading indicators, predicting economic developments 
months ahead, also stood at 80% (81.8% of last month). It seems 
that Japan is experiencing its second-longest period of economic 
expansion in the postwar era, tying the "bubble" economy. Some 
observers anticipate that the current economic expansion could 
continue until November and surpass the "Izanagi economy," which 
marked the longest period of economic growth. 
 
20) FSC rules out political impact behind mass resignation of 
Prion Expert Council members 
 
ASAHI (Page 2) (Full) 
April 7, 2006 
 
Half the members of the Food Safety Commission's (FSC) Prion 
Experts Council, which has been responsible for discussing the 
safety of US beef, have stepped down. Referring to this, Chairman 
Masaaki Terada yesterday noted: "It is not my understanding that 
they resigned because they were dissatisfied. According to what I 
have learned through direct talks with them, they resigned 
because they judged that if they continued to dedicate themselves 
to their activities as panel members, they would not be able to 
pursue research or teaching." He thus countered the view that 
those members were forced to quit because they had been wary of 
resuming US beef exports. 
 
Commenting on the reasons for their resignations, Terada noted, 
"It is not possible that there was any political influence." 
 
SCHIEFFER