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UNCLAS SECTION 01 OF 13 TOKYO 001925 
 
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:  DAILY SUMMARY OF JAPANESE PRESS 04/10/06-3 
 
 
INDEX: 
 
(30) Okinawa Gov. Inamine has to make tough choice on Futenma 
relocation 
 
(31) Why is Futenma relocation difficult? Greatest attention 
focused on local consent 
 
(32) Editorial - fresh agreement on Futenma relocation; Okinawa 
Prefecture should look for a pragmatic response 
 
(33) Editorial: Inamine must cooperate on Nukaga-Shimabukuro 
agreement 
 
(34) Editorial: Government must steadily advance Futenma 
relocation work 
 
(35) Editorial: Government must take Nago's decision on Futenma 
relocation to heart 
 
(36) What are the conditions for withdrawal of GSDF troops from 
Iraq? A clear roadmap for next round of assistance essential; 
Security operations, reconstruction assistance in southern Iraq 
to enter next stage shortly   8 
 
(37) US force realignment following a wild path (Part 2): Toxic 
agents and use of vacated land 
 
(38) Vertically segmented society: Origin of income disparity; 
"Gaiatsu" pressure for reform; Japanese side takes advantage of 
shared interests with US 
 
ARTICLES: 
 
(30) Okinawa Gov. Inamine has to make tough choice on Futenma 
relocation 
 
ASAHI (Page 1) (Slightly abridged) 
April 9, 2006 
 
Soon after 2:00 p.m. on April 8 at the Defense Agency, after a 
meeting with Defense Director General Fukushiro Nukaga, Okinawa 
Gov. Kenichi Inamine chose his words carefully and spoke slowly: 
"I respect Nago City's decision. However, the prefectural 
government will maintain its own position." He talked in his 
usual style, but in a harsh tone. 
 
Over the relocation of the US Marine Corps' Futenma Air Station 
(located in Ginowan City), the main issue of the realignment of 
US forces in Japan, Nukaga and Nago City Mayor Yoshikazu 
Shimabukuro agreed to build two runaways in a V-shape, changing 
the Futenma relocation plan agreed on last October between the 
governments of Japan and the United States. Inamine, however, 
indicated that the Okinawa prefectural government would continue 
to call for relocating the Futenma base to an offshore airfield 
to be built on a reclaimed land and oppose the V-shaped runaway 
plan. In order to implement the plan agreed by Nukaga and 
Shimabukuro, it is absolutely necessary to secure approval from 
the governor, who has authority over sea-floor reclamation. 
Inamine's opposition, therefore, has some degree of the weight 
for the central government. 
 
Inamine has also said that he would continue discussions with the 
 
TOKYO 00001925  002 OF 013 
 
 
central government, since if he discontinues the dialogue, he 
would lose the means to realize Okinawa's view. 
 
When Inamine accepted the 1999 Futenma relocation plan, he set 
two conditions: a 15-year limit on the use of the replacement 
facility and joint civilian-military use. 
 
There are no signs that Tokyo and Washington discussed those two 
conditions during negotiations on the replacement plan agreed 
last October. Inamine intends to ask the government whether it 
will make efforts to realize the 15-year limit and whether it 
will consider promotion measures in place of the joint military- 
civilian use. 
 
Since the plan to build an alternative air station on the coast 
of Camp Schwab was decided on last year, different plans were 
worked out in Okinawa. One of the plans was to relocate 
tentatively only the heliport facility to the land in Henoko, 
building a helipad. The plan would eliminate the danger from the 
areas surrounding the Futenma base, as well as reduce the levels 
of noise and risk. If the helipad plan is realized, the 
alternative air station will be greatly scaled down. 
 
Inamine has not mentioned anything about his course of action 
after his tenure in office expires in December. If a potential 
successor advocates the helipad plan in the fall gubernatorial 
election and if that candidate wins the race, the helipad plan 
will become the will of the Okinawa people. This is a scenario 
envisioned by senior Okinawa government officials. 
 
However, Nago City has already agreed with the central 
government. The prefectural government, therefore, has begun to 
feel pressed. A senior Okinawa government official commented on 
the night of April 7: "The governor is now facing a crucial 
moment. We have to review our strategy. I wonder whether we 
should take the V-shaped heliport plan seriously." 
 
Shimabukuro held a press conference on the night of April 7 in 
Nago City. Asked about whether the agreement with the central 
government violated his campaign pledge, the mayor responded, 
"Yes, it does." He has searched for dialogue with the central 
government since he was elected as mayor of Nago in January. He 
has a different policy stance from Inamine, who has called for 
the offshore air station plan. He had sought a substantial 
change, but he accepted the plan to relocate the Futenma similar 
to the offshore plan. 
 
If a mood of accepting the V-shape heliport plan spreads in Nago 
City, obstacles outside the prefecture will disappear. Therefore, 
Vice Governor Hirotaka Makino warned Nago Deputy Mayor Suematsu 
not to make any easy concessions. 
 
Inamine himself cannot see how far he will be able to maintain a 
hard-line stance. In order to meet with Prime Minister Junichiro 
Koizumi, Shimabukuro and the heads of towns and villages around 
Nago City were waiting at the Defense Agency for Inamine, who was 
holding talks with Nukaga. Inamine, however, headed for Haneda 
Airport, after saying, "I cannot meet the prime minister at 
present." 
 
(31) Why is Futenma relocation difficult? Greatest attention 
focused on local consent 
 
 
TOKYO 00001925  003 OF 013 
 
 
ASAHI (Page 33) (Full) 
April 7, 2006 
 
Question: We have recently often heard about Futenma in news 
reports, haven't we? 
 
Answer: It's the US Marines Futenma Air Station in Okinawa 
Prefecture. The United States has promised to return it to Japan. 
So the Japanese government and Nago City have been conducting 
last-minute negotiations on the relocation of the Futenma base. 
 
Question: Why did the United States decide to return Futenma 
airfield to Japan? 
 
Answer: Futenma is located in the middle of Ginowan City, 
accounting for about 25% of the city's total area. There are 
residential areas and schools around the base. Residents have 
pointed out the risk of accidents and noise. The agreement on the 
return of the airfield was reached in a meeting between Prime 
Minister Ryutaro Hashimoto and President Bill Clinton ten years 
ago. 
 
As a condition for the return of Futenma airfield, the Japanese 
government decided to relocate it to an offshore airfield to be 
built on reclaimed land off Nago City. Okinawa Prefecture and 
Nago City at one point accepted the government's plan. However, 
the offshore airfield plan spurred vehement opposition from 
conservation groups, because dugongs inhabit waters where the 
government planned to build the alternative air station. The 
government was unable to move forward with the plan. Okinawa 
residents have criticized the central government for trying to 
relocate the base within Okinawa. Okinawa hosts about 75% of US 
bases in Japan. 
 
Question: Has Futenma Air Station been used since then? 
 
Answer: Yes. In the summer two years ago, a US military 
helicopter crashed into a university adjacent to the base. What 
Okinawa residents were concerned about became a reality. As a 
result, there were increasing calls for the return of Futenma. 
 
Question: Therefore, the government started discussing Futenma 
relocation again. 
 
Answer: The discussion coincided with US President George W. 
Bush's decision to review the locations of US bases worldwide in 
dealing with terrorism. The Japanese and US governments have 
decided to relocate Futenma as part of the global transformation 
of US forces. Tokyo and Washington last fall worked out a plan to 
relocate the Futenma Air Station to the coast of Camp Schwab. 
 
Question: Is the plan likely to follow that line? 
 
Answer: No. Although the Japanese government agreed on the plan 
with the US administration, it did not give Okinawa Prefecture 
and Nago City full explanations on the plan. The US thinks that 
obtaining local consent is important for the stable use of the 
alternative air station. Futenma relocation is a symbol for 
whether the realignment of US forces will come out well. 
 
(32) Editorial - fresh agreement on Futenma relocation; Okinawa 
Prefecture should look for a pragmatic response 
 
 
TOKYO 00001925  004 OF 013 
 
 
SANKEI (Page 2) (Full) 
April 9, 2006 
 
The decade-old outstanding issue between Japan and the United 
States of the relocation of the US military's Futenma Air Station 
has achieved major progress toward a resolution, as Defense 
Agency (JDA) Director-General Fukushiro Nukaga and Mayor 
Yoshikazu Shimabukuro of Nago City, which is expected to provide 
the relocation site, agreed on the evening of April 7 on a plan 
to construct two runways in a V-shape in order to exclude 
residential areas from flight paths. 
 
Although coordination with the Okinawa government still remains 
on the central government side, this agreement has evidently 
removed a major obstacle standing in the way of the efforts by 
Japan and the US to reach a final agreement on the realignment of 
the US forces in Japan. We give high marks to both the JDA, which 
managed to bring about an accord while paying close attention to 
such factors as the safety of residents, as well as Nago City's 
pragmatic decision that has come from its attitude of emphasizing 
co-existence with the base. 
 
Japan and the United States agreed to come up with a final 
agreement on the US force realignment before the end of March, 
but they failed to meet the deadline. One reason is perhaps due 
to the Futenma issue, and the other is because of the deep gulf 
over how to share the costs of the relocation of US Marines from 
Okinawa to Guam. In order to uphold and boost the Japan-US 
alliance, the governments of the two countries must resolve the 
remaining pending issues swiftly in a way that will be acceptable 
to both sides' peoples. 
 
Unless Japan and the US work together to deal with new threats, 
such as international terrorism and the proliferation of weapons 
of mass destruction, in addition to a rising China on the 
military front and North Korea's nuclear ambitions, Japan cannot 
secure its own peace and safety. 
 
The basic agreement between the central government and Nago City 
specifies that the central government should get approval from 
Okinawa Prefecture, as well as all affected municipalities in the 
prefecture. 
 
In particular, reclaiming land from the sea for the relocation 
requires permission from the governor in accordance with the Law 
on Reclaiming Publicly Owned Waters. How Okinawa Prefecture will 
respond to the agreement is therefore drawing attention. Okinawa 
Gov. Keiichi Inamine yesterday met with Nukaga and reiterated 
that his prefectural government would firmly maintain its 
previous position, even though he respects Nago City's decision. 
 
The previous position means that the prefectural government has 
accepted the initial plan to relocate Futenma to site offshore 
from the Henoko district on the condition that a new facility 
should be available to both the military and the private sector 
and that the term of the use of a new facility should be limited 
to 15 years. The governor raises an objection to the agreement 
this time, citing its lack of consideration of these conditions. 
 
But Inamine derailed the initial plan due to the fact that his 
campaign pledge guaranteeing a 15-year limit on the use of the 
alternate facility was not accepted. He insists on the initial 
plan, but that plan does not exist anymore. 
 
TOKYO 00001925  005 OF 013 
 
 
 
The relocation of Futenma is linked to a reduction of 8,000 
Marines and the return of US military facilities located in the 
southern part of the prefecture. Inamine also values the 
relocation itself in view of alleviating the burden on Okinawa. 
Given all this, he is indeed required to make a pragmatic 
response. 
 
(33) Editorial: Inamine must cooperate on Nukaga-Shimabukuro 
agreement 
 
NIHON KEIZAI (Page 2) (Full) 
April 9, 2006 
 
An agreement has been reached between Defense Agency Director 
General Fukushiro Nukaga and Nago Mayor Yoshikazu Shimabukuro on 
a plan to construct two runways for the planned relocation of the 
US Marine Corps' Futenma Air Station. The plan designed to build 
two separate runways -- one for takeoffs and the other for 
landings -- is intended to reduce noise for the concerned 
communities. 
 
Upon being briefed on the plan by Nukaga, Okinawa Gov. Keiichi 
Inamine expressed opposition. As governor of Okinawa, Inamine is 
in a position to swiftly eliminate dangers associated with 
Futenma Air Station. He must cooperate with the central 
government and Nago without worrying about losing face. 
 
Prior to the production last October of a Japan-US interim 
report, the Defense Agency proposed an inland plan, while Nago 
and the US military called for a reef plan. The inland plan, 
which would make it easy to block demonstrators, attached 
importance to the ease of construction, whereas the reef plan 
gave priority to usability, including the noise level. The reef 
plan was reportedly able to generate tremendous economic benefits 
as well. 
 
The Japan-US interim report specified a plan combining the inland 
and offshore plans. Shimabukuro did not support this plan when he 
ran in the Nago mayoral race in January. But his campaign pledge 
to hold talks with the central government if it was able to come 
up with a convincing plan won him the post. Nukaga and 
Shimabukuro held talks on an extension of this policy line and 
revised the relocation plan in compliance with local requests. 
 
But the agreement sparked criticism in Okinawa. The Ryukyu 
Shimpo, for instance, knocked it as a "cheap trick" on April 8. 
Such a reaction is natural from the position calling for moving 
Futenma Air Station out of Okinawa. What is most important is to 
make efforts to swiftly eliminate dangers associated with Futenma 
Air Station being surrounded by residential areas. To that end, 
Nukaga and Shimabukuro repeatedly held talks. A joint press 
conference held by the defense chief and Nago mayor was epochal 
in view of the past sense of distrust between Tokyo and Okinawa. 
 
The agreement between the central government and Nago could put 
Gov. Inamine in a difficult position; Inamine was elected in 1998 
on a pledge to realize a military-civilian airport that the US 
military could use for up to 15 years. Meeting with US 
resistance, the 15-year proposal has substantially delayed the 
realization of the Futenma relocation plan. Operation of civilian 
planes at Nago, about an hour's drive from Naha, would end up 
creating another unprofitable local airport. 
 
TOKYO 00001925  006 OF 013 
 
 
 
Some members in Okinawa connected with the Liberal Democratic 
Party are supportive of the Nukaga-Shimabukuro agreement. 
Cooperating for the agreement is a proper step, not a violation 
of a public pledge. Face-saving resistance would only help the 
current trend of permanent base arrangements in Japan. It was ten 
years ago, in 1996, that Tokyo and Washington reached an 
agreement to return Futenma Air Station to Japan in five to seven 
years. The Futenma relocation must not be deferred any further. 
 
The agreement between Tokyo and Nago would result in major public 
works projects in Okinawa under the supervision of the 
organization that will take over the Defense Facilities 
Administration Agency. It is necessary to keep a closer watch to 
make certain that taxpayer's money would not be wasted by bid 
rigging and other practices. 
 
(34) Editorial: Government must steadily advance Futenma 
relocation work 
 
YOMIURI (Page 3) (Full) 
April 8, 2006 
 
A settlement has been finally reached on the issue of relocating 
the US Marine Corps' Futenma Air Station in Ginowan to the 
coastline of Camp Schwab in Nago. 
 
Giving utmost consideration to controlling noise pollution, the 
central government proposed adding one more runway to the Camp 
Schwab plan, and the Nago municipal government accepted the 
proposal yesterday. 
 
The relocation of the heliport functions of Futenma is a symbolic 
measure in the realignment of US forces in Japan. The government 
must swiftly translate the relocation plan into practice upon 
obtaining local communities' agreement, even from the viewpoint 
of stabilizing and strengthening the Japan-US alliance. 
 
In the final report of the Special Action Committee on Okinawa 
(SACO) in 1996, the Japanese and US governments agreed to 
relocate Futenma Air Station to reclaimed land off the Henoko 
district of Nago. In the face of opposition from local residents, 
however, the government was unable to implement the plan, with no 
progress made even on the environmental impact assessment. 
 
This time, the US, dissatisfied with the present situation, urged 
Japan to realize the coastal plan under the context of 
reorganizing US forces in Japan. If Japan fails again to resolve 
the impasse on the relocation issue, the relationship of trust 
between Japan and the US, the foundation of their alliance, will 
unavoidably be undermined. 
 
The relocation of Futenma functions will put a heavy burden on 
the Nago municipal and nearby local governments. 
 
On this issue, Okinawa Governor Keiichi Inamine has expressed his 
opposition to the government's plan. When he accepted the plan, 
Inamine attached such conditions as joint use of the base as a 
military-civilian airport and a 15-year time limit. His 
opposition supposedly reflects his reaction to the absence of his 
requests in the government's plan. 
 
Uncertainty is now looming large over the security environment in 
 
TOKYO 00001925  007 OF 013 
 
 
the region, given China's military buildup and other elements. In 
promoting US force realignment in Japan, the Pentagon has kept in 
mind the threat posed by the "arc of instability," an area 
stretching from Northeast Asia to the Middle East. Given the 
situation, the presence of US military bases in Okinawa is 
becoming more important. 
 
With a 15-year time limit, it would be impossible to cope with 
changes in the security situation in the region, and the peace 
and national security of Japan might be negatively affected. 
 
Soliciting agreement from local communities on the Futenma 
relocation plan is a precondition for the proposed transfer of 
about 8,000 US Marines from Okinawa to Guam. The Guam transfer 
plan should also be desirable for Governor Inamine, because the 
plan will lead to reducing the security burden on Okinawa. 
 
With the deal between the central government and the Nago 
municipal government, the Futenma relocation plan has taken a 
step forward. 
 
However, such plans as relocating a carrier-based air wing now 
stationed at the Atsugi base in Kanagawa Prefecture to the US 
Marine Corps' Iwakuni Air Base in Yamaguchi Prefecture, as well 
as transferring aerial tankers from Futenma Air Station to Kanoya 
Base in Kagoshima Prefecture, have been left unsolved. 
 
In order to strengthen the Japan-US alliance for the sake of 
maintaining peace in Japan and the region, the government must 
step up efforts to resolve the problems at an early date on its 
own responsibility. 
 
(35) Editorial: Government must take Nago's decision on Futenma 
relocation to heart 
 
MAINICHI (Page 5) (Full) 
April 9, 2006 
 
The planned relocation of the US Marines' Futenma Air Station, 
one of the thorniest issues in the realignment of US forces in 
Japan, has finally taken a step toward settlement. 
 
As a result of their talks, Defense Agency Director General 
Fukushiro Nukaga and Nago Mayor Yoshikazu Shimabukuro signed an 
agreement April 7 to build two runways in a V-shape at the 
planned relocation site on the coastline of Camp Schwab. 
 
Although Nukaga decided to accommodate Nago's wishes to remove 
residential areas from the envisioned flight path, he did not 
agree to its call for moving the runway over 400 meters offshore. 
 
Shimabukuro made an anguished decision. His decision may draw 
fire from local municipalities in Okinawa. The government must 
take Shimabukuro's decision seriously. 
 
Nukaga also met with Okinawa Gov. Keiichi Inamine April 8, and 
the governor reiterated his opposition to the revised plan while 
indicating that he would respect Nago's independent decision. The 
focus will now shift to the central government's efforts to 
convince the Okinawa prefectural government. 
 
The danger of aircraft accidents has long been mentioned 
regarding Futenma Air Station, which sits in the middle of 
 
TOKYO 00001925  008 OF 013 
 
 
residential areas in Ginowan. Okinawa cannot afford to leave the 
Futenma relocation issue unaddressed. Despite the Japan-US 
agreement, the issue has been in limbo over the last decade. 
 
The Futenma relocation plan was triggered by the 1995 schoolgirl 
rape. In 1996, the Special Action Committee on Okinawa (SACO) 
produced its final report specifying the relocation of Futenma 
Air Station. In 1999, a decision was made to build a sea-based 
airport off Henoko in Nago by reclaiming land. 
 
But Inamine advocated a joint military-civilian airport that the 
US military could use for up to 15 years. The Futenma relocation 
plan essentially went down the drain due to an anti-base movement 
and other factors. 
 
Building an offshore airport on reclaimed land would be 
tremendously beneficial to the local economy, but it might have a 
serious adverse impact on the natural environment. Anti-base 
demonstrations at sea may also force the government to 
temporarily halt construction work for building a sea-based 
airport. 
 
In restudying the Futenma relocation plan, the government gave 
high priority to feasibility and consequently came up with the 
Camp Schwab coastal plan. The government also explained that the 
relocation to Camp Schwab, an existing US base, would not result 
in another US base in the prefecture. 
 
But many residents in Okinawa, which hosts the bulk of US bases 
in Japan, are still calling for removing the air station from 
their prefecture. Although Shimabukuro's decision may come under 
fierce fire, he should offer a thorough explanation to the local 
residents and persistently convince anti-relocation residents. 
 
Needless to say, the responsibility for US force realignment 
rests entirely on the central government. The government is to 
blame for a number of mistakes, such as its failure to offer 
sufficient explanations to concerned local municipalities at an 
early stage. There is every reason for the central government to 
come up with measures to revitalize the economy of Okinawa, which 
lies under a heavy base burden. 
 
Tokyo and Washington failed to produce their final US force 
realignment report in late March, as planned. Now that the 
agreement has been reached with Nago on the Futenma relocation 
plan, the government should devote all its efforts to addressing 
the remaining challenges to obtain national understanding. 
 
(36) What are the conditions for withdrawal of GSDF troops from 
Iraq? A clear roadmap for next round of assistance essential; 
Security operations, reconstruction assistance in southern Iraq 
to enter next stage shortly 
 
YOMIURI (Page 11) (Abridged) 
April 6, 2006 
 
Commentary 
 
By Hidemichi Katsumata 
 
There is a lot of speculation about the timing of a pullout of 
Ground Self-Defense Forces (SDF) troops from Iraq. What are the 
conditions for the withdrawal? 
 
TOKYO 00001925  009 OF 013 
 
 
 
The initial outlook for the withdrawal was that preparations 
would be started in late March and the pullout will be completed 
before the end of May. Later, the timing was changed to 
preparations in April and a pullout in June. Now again, the 
timing has become increasingly opaque. "It may slip to this 
fall," Foreign Minister Aso said. 
 
The outlook for withdrawal preparations in late March was based 
on the record high voter turnout of the national assembly 
elections in Iraq late last year, which was viewed as the last 
event in the completion of the political process in that country. 
With the elections participated in by both the majority Shiites 
and the minority Sunnis, there was optimism that a new government 
would be established by March. 
 
But after the Shiite United Iraq Alliance chose a candidate for 
premiership in February, there was an outbreak of terrorism 
allegedly committed by Sunnis, and since then exchanges of 
attacks between the two groups have continued. 
 
A senior Defense Agency (JDA) official said, "We hope to see 
major cabinet posts filled and a new government formed by mid- 
May." Once a new government is launched, Japan will be able to 
shift its ongoing assistance to full reconstruction assistance, 
such as by providing 3.5 billion yen in yen loans. 
 
But is the birth of a new government a requisite for the pullout 
of GSDF troops? 
 
The GSDF and the British and Australian forces have stationed 
their troops in Muthana Province (with a population of some 
600,000) centering on Samawah in southern Iraq. The GSDF's 
mission is to help reconstruct Iraq, while British and Australian 
troops are engaged in maintaining the public safety of the 
province, as well as training local security forces. 
 
Speaking of the current state in the province, a senior GSDF 
officer who had returned home from there gave this account: 
"Security operations by means of patrolling have already mainly 
been turned over to Iraqi forces and police. Local security has 
already completed the training courses prepared by British forces 
at the end of February. The local Iraqi police with a strength of 
6,000 have already been formed in the region." Late January, the 
British Defense Ministry told Japan, the United States, and 
Australia that it would begin pulling out its troops in March, 
apparently perceiving that its security mission that started 
during the postwar chaos was shifting to a new stage. 
 
When it comes to how far Samawah has recovered from wartime 
devastation, brick and cement factories are in operation 
everyday, unlike two years ago, when GSDF troops set foot in the 
region. Late last year, a construction rehabilitation committee 
was set up in Muthana Province. 
 
The GSDF has created short-term jobs in repairing pubic 
facilities, such as schools and roads, and it has consistently 
employed at least 1,000 local residents, but it needs to have a 
long-term employment program designed to hire tens of thousands 
in the future. "The GSDF has engaged in assistance to Iraq as the 
first runner of Japan, but its role is coming to a close," said a 
senior GSDF officer. This remark is persuasive. 
 
 
TOKYO 00001925  010 OF 013 
 
 
Late March, the government announced that it would provide Iraq 
with approximately 76.5 billion yen in loans as part of 
reconstruction assistance in such fields as rebuilding ports and 
improving electric power supply to Baghdad. This will be the 
first step toward Japan's full-fledged financial assistance. In 
this context, it seems time for the government to accept 
candidates for reconstruction assistance from its ministries and 
agencies, as well as the private sector, as the second runner 
following the GSDF. The Special Measures Law on Assistance to 
Iraq in its Article 10 states that the government should actively 
accept candidates for reconstruction assistance. The government 
should promptly sketch out what it will do after the GSDF 
pullout. 
 
Japan, Britain, and Australia are "unable to pull out their 
troops from Iraq, because the US has yet to give them the go- 
ahead," according to a senior JDA official. Given the present 
state of Muthana Province, where full-scale reconstruction has 
begun, the government needs to persuade the US to issue the go- 
ahead, as well as clarify its roadmap for full-fledged assistance 
to local administrative offices in Iraq. Doing so should be a 
condition for the GSDF pullout. 
 
(37) US force realignment following a wild path (Part 2): Toxic 
agents and use of vacated land 
 
TOKYO SHIMBUN (Page 22) (Excerpts) 
April 3, 2006 
 
The site vacated by the US military Onna Communications, covering 
63.1 hectares, is now desolate. The facilities were returned to 
Japan in 1995. 
 
In 1996, polychlorinated biphenyl (PCB), hazardous waste, was 
found on the site. The contaminated soil and mud was stored in 
700 metal drums, and the sealed drums were moved to the Self- 
Defense Force (SDF) base in Onna Village. The drums have yet to 
be removed from there. 
 
Yasushi Yamashito, an Onna municipal government official, 
commented: "Besides the contamination, there is another issue of 
how to use the vacated site." About 400 landowners have come up 
with different suggestions, some calling for using their land as 
farmland or housing lots, and others for building lots for sale. 
 
The Onna municipal government has looked into ways to use the 
site at a newly established study committee. Yamashiro said: 
 
"Not the local government but the landowners will make a 
decision. But since they are getting old, an energetic discussion 
cannot be expected. I wonder how many more years it will take for 
a conclusion." 
 
Whenever US military facilities and areas in Okinawa are returned 
to Japan, the issues of environmental contamination and land use 
emerge as problems. Former Okinawa Governor Masahiko Ota, now a 
House of Councillors member, stated: 
 
"It will take at least 10 years until a land-use plan is 
implemented. Meanwhile, the subsidies paid to landowners will be 
terminated in three years. The government might be expecting 
landowners to say, 'The government does not need to return our 
land.'" 
 
TOKYO 00001925  011 OF 013 
 
 
 
Japan and the US have agreed to incorporate in a final report on 
US force realignment in Japan an agreement on the return of 
military bases in the southern and central part of Okinawa, 
including Naha Military Port and Camp Zukeran. All local 
communities housing US military bases have similar problems. 
 
In Makiminato Service Area in Ginowan City, whose return is now 
under consideration, a hexavalent chromium spill in the sea made 
headlines in 1975. Hexavalent chromium is a deadly poison. 
 
The toxic material was generated from the car-cleaning agents 
brought in from Vietnam during the Vietnam War. An American 
soldier removed the stopper of the storage tank against the 
advice of Japanese base employees. Afterward, the cleaning agents 
were stored in drums that were piled up at the site. Later, 
however, they disappeared. 
 
Takahiro Ina, an executive member of the Makiminato branch of the 
Union of Workers at US Military Bases in Okinawa, said: "I think 
the drums in question have been buried." 
 
Ina made the above prediction in view of the facts that a 
Japanese government inspection of the former Camp Kuwae in Chatan 
in 2002 turned up metallic arsenic and hexavalent chromium from 
the soil and that 20 drums containing waste oil had also been 
found underground near a rifle range. Last February, 10,300 live 
shells, including rocket ammunition, were also found underground. 
 
Article 3 of the Japan-US Status of Forces Agreement stipulates 
that the US may take all measures necessary for the 
establishment, operation, safeguarding, and control of bases. 
Under Clause 1, Article 4, the United States is not obligated, 
when it returns facilities, to restore them to the condition they 
were at the time they became available to the US armed forces. 
 
Ina said: "The US military has used base facilities as they like. 
Even if the facilities and areas are returned to us, the burden 
on Okinawa will not immediately be removed." 
 
The Japanese and US governments have agreed on a plan to reduce 
8,000 Marines in Okinawa as a measure to reduce the base burden 
there. But Ina is skeptical of the plan's credibility. 
 
In response to an inquiry from the Tokyo Shimbun about the total 
number of Marines in Okinawa, the US military command office 
replied, "The number is 17,000 to 18,000," but it added, "Because 
some have been dispatched to fight terrorism, the current number 
is 15,000." 
 
It is uncertain how many Marines will be kept in Okinawa after 
the reduction proposal is implemented, and it is difficult to 
verify it. 
 
Estimating the total cost of relocating Marines from Okinawa to 
Guam at about 10 billion dollars (about 1.16 trillion yen), the 
US has asked Japan to pay 75% of the cost. Needless to say, it 
will be the Japanese government's duty to clean up the 
contaminated soil after facilities and areas are returned to 
Japan. 
 
(38) Vertically segmented society: Origin of income disparity; 
"Gaiatsu" pressure for reform; Japanese side takes advantage of 
 
TOKYO 00001925  012.2 OF 013 
 
 
shared interests with US 
 
MAINICHI (Page 2) (Full) 
April 7, 2006 
 
Twenty-seven mentally handicapped people work at "Friendly," a 
welfare workshop in Kitamoto, Saitama Prefecture. They are all 
insured through the Yamabiko Mutual Aid Society (with 
approximately 5,200 members), an unauthorized mutual aid 
association not regulated by the Insurance Business Law. 
 
Osamu Miyamoto (22) is frequently hospitalized for pneumonia. He 
relies on the Mutual Aid Society to pay his hospital fees, 
because its premium is low. His mother Kimiko (50) noted that 
insurers denied him insurance just because he was mentally 
handicapped. 
 
The revised Insurance Business Law stipulates that mutual aid 
societies should be staffed with insurance experts. The Financial 
Services Agency (FSA) explained that the regulation is intended 
to make the financial standing of mutual aid societies sound for 
the protection of consumers. The administrative offices of mutual 
aid societies are concerned that if they hire insurance experts, 
most of the premiums paid by policyholders will be used up to 
cover personnel expenses. 
 
The FSC in January 2004 referred the possibility of regulating 
unauthorized mutual aid associations to the Financial Services 
Advisory Council along with a list of requests. The list was 
excerpts from the requests that insurance business organizations 
and the US filed with the Comprehensive Regulatory Reform Council 
chaired by Yoshihiko Miyauchi, chairman of Orix. In seeking 
regulation on mutual aid associations, the US used the strongest 
words: all mutual aid associations should be regulated in the 
same way that insurance companies are regulated. Behind this move 
is a sense of alarm that mutual aid associations might grab their 
market share. 
 
Even Kimio Morisaki, vice chairman of the Association of Foreign 
Non-life Insurance Companies and an expert member of the FSC 
pointed out, "If such a strict regulation were adopted in a hasty 
manner, some might tend to suspect that the aim is to force 
mutual aid associations out of business." 
 
There were already moves seen over mutual aid associations last 
fall. The American Chamber of Commerce and Industry (ACCI) called 
on the government to regulate them. The US also included this 
request in its annual US-Japan Enhanced Initiative on 
Deregulation and Competition Policy, a list of requests for 
deregulation to Japan. 
 
In January 1994, President Clinton received a report from Glen S. 
Fukushima that stated: "The administration does not know when, 
how, or to what extent the US should apply pressure on Japan in 
order to achieve its targets most effectively without incurring 
opposition." According to Fukushima, the president underlined 
this segment of the report, jotting, "This is correct." He then 
reportedly ordered Secretary of State Christopher and United 
States Trade Representative (USTR) Kantor to read the report. 
 
Fukushima is a second-generation Japanese-American. He once 
studied in Japan. He became the president of the ACCJ after 
working at the USTR Japan Desk for five years under the Reagan 
 
TOKYO 00001925  013 OF 013 
 
 
and Bush administrations. 
 
The US government at the time was at an impasse in negotiations 
to cut the US trade deficit with Japan. The US dispatched USTR 
Japan Desk Director General Charles Lake, now ACCJ chairman, to 
Japan nine months after the Fukushima report was issued. The aim 
was to convey to the Japanese side the US policy shift to seeking 
deregulation from Japan. The US interests coincided with those of 
the Ministry of International Trade and Industry and the Japan 
Business Federation (Keidanren), which believed that free 
competition was the way to enhance Japan's competitiveness. 
 
Washington in November 1994 presented its first annual US-Japan 
Enhanced Initiative on Deregulation and Competition Policy to 
Japan. Fukushima revealed: "Japanese business leaders, government 
officials, and politicians once asked us to include their 
requests in our report." A senior official of the Keidanren 
administrative office categorically said: "We have used gaiatsu, 
when needed. The US is the only country to rely on when we want 
to use gaiatsu." 
 
The Regulatory Reform Committee, chaired by Miyauchi, in November 
2000 invited US Ambassador Foley. He explained the US-Japan 
Enhanced Initiative on Deregulation and Competition Policy there. 
One committee member said, "It is regrettable that the US has not 
come up with a view calling for deregulation of the strongly 
regulated medical services area. Deregulating this area will help 
the US increase its business opportunities." 
 
As foreign companies operating in Japan employ more Japanese 
employees, Japanese individual members of the ACCJ have come to 
account for 60% of its total membership -- approximately 3,000. 
 
Requests filed by those Japanese employees, who are versed in 
Japan's corporate society, are making gaiatsu more powerful. 
 
In 2001, the ACCJ chose Miyauchi as its person of the year. It 
was to honor his many years of vigorous activities for 
deregulation and structural reforms. 
 
In mid-February this year, about 40 ACCJ members split up and 
visited influential lawmakers and government agencies. This is a 
lobbying activity called the Diet-door knock. The ACCJ's action 
policy for this year is to serve as a supporter for Japan's 
reform. 
 
SCHIEFFER