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UNCLAS SECTION 01 OF 12 TOKYO 002094 
 
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 04/18/06 
 
 
INDEX: 
 
(1) Futenma relocation: V-airstrip plan iffy; Expert wonders if 
US military will follow agreement 
 
(2) Japan, US talks on Guam relocation cost in final stretch; Two- 
plus-two on May 2; US lowers total cost to 9.5 billion dollars 
but Tokyo, Washington still wide apart 
 
(3) China's ban on sea traffic in East China Sea does not cross 
over the Japan-China median line, says Chinese Foreign Ministry; 
China corrects error in its previous notice 
 
(4) Minshuto head Ozawa to clash with government, ruling 
coalition over a set of three issues: social divide, Yasukuni 
Shrine visits, and foreign policy 
 
(5) WTO Doha round unlikely to reach agreement; US gradually 
moving away from WTO 
 
(6) US Embassy minister in speech emphasizes America's efforts to 
address environmental issues 
 
(7) Visitors' gallery column: US Fair Trade Commission Chairman 
Deborah Majoras says Japan should put more effort into studying 
competition policy 
 
(8) Future course of Food Safety Commission - Interview with 
Yasuhiko Nakamura, member of FSC and guest professor at Tokyo 
University of Agriculture: Panel is still immature but in right 
direction 
 
(9) Examining post-Koizumi contenders (Part 1): Sadakazu Tanigaki 
 
(10) Kasumigaseki confidential: Transfer of operations and 
authority from government to private-sector 
 
ARTICLES: 
 
(1) Futenma relocation: V-airstrip plan iffy; Expert wonders if 
US military will follow agreement 
 
ASAHI (Page 39) (Full) 
April 16, 2006 
 
The Defense Agency and Okinawa Prefecture's Nago City have 
reached a basic agreement on a plan to lay down a V-shaped pair 
of airstrips across the cape of Henoko in the city to take over 
the heliport functions of the US Marine Corps' Futenma Air 
Station in its relocation to that coastal area. The agreed V- 
airstrip plan is intended to avoid flying over neighboring local 
communities. However, the plan is premised on a specific wind 
direction and only expects a one-way landing approach and takeoff 
roll. Self-Defense Forces officials and civilian experts are 
raising questions about the plan, with one of them regarding it 
as "iffy" and another wondering if the US Marines will fly along 
the agreed flight paths. 
 
The city of Nago, in its talks with the government over the newly 
planned alternative base for Futenma airfield, insisted on its 
stance of avoiding the setting of flight paths of US military 
aircraft over the local communities of Henoko, Toyohara, and Abu. 
In order to meet this precondition, the Defense Agency hammered 
 
TOKYO 00002094  002 OF 012 
 
 
out the idea of laying down two runways in a V-shape. One of the 
runways is on the shoreside for normal landings and takeoffs 
under the visual flight rule (VFR) and landings under the 
instrument flight rule (IFR) in bad weather. The other airstrip 
is on the seaside for takeoffs in bad weather. 
 
The V-airstrip installation plan is premised on the wind 
direction. "In the area of Henoko," Defense Agency Director 
General Nukaga noted, "the wind blowing there is almost always 
from the north." The Defense Facilities Administration Agency's 
Naha bureau checked to see yearlong wind directions at the cape 
of Henoko from April 2004. The DFAA found from the survey that 
about 70% of the winds there were from the north side-northerly 
or northeasterly winds. 
 
Generally speaking, headwinds are ideal for the safe landings and 
takeoffs of both helicopters and fixed-wing aircraft. Premised on 
findings from the weather monitoring survey, US warplanes are 
expected to land and take off from the southwest to the 
northeast. 
 
"They're going to deal with nature, but they're thinking to 
themselves that the wind will blow in a specific direction only." 
With this, Kensuke Ebata, a commentator on military affairs, 
raised a question about the Defense Agency's way of thinking. 
"It's strange to think that way," Ebata said. He added: "I've 
never heard that there's a civilian airport or a military 
facility that allows landing and taking off in a one-way 
direction only. It's only natural to go around for safe landings 
and takeoffs depending on the wind direction." 
 
What if the wind blows the other way from the south? In this 
case, one SDF officer noted: "In order to make a landing on the 
shoreside runway, pilots would have no choice but to go around 
and nose down in their landing approach from the other way around 
over the Abu area to avoid a tailwind." The officer also said, 
"They often take different flight paths in order to make safe 
landings." One official in the Defense Policy Division of the 
Defense Agency has also admitted: "We've yet to talk with the US 
side about what to do when the wind blows from the south." 
 
In the case of a southerly wind, the shoreside runway could be 
used instead for taking off and the seaside one for landing. 
However, many are raising a question about using different 
runways for landing and taking off. 
 
Even in the case of landing as expected by the Defense Agency, 
aircraft could encounter a sudden gust of wind or other 
unexpected conditions when it is about to touch down. In this 
case, the aircraft has to nose up and go around. The pilot will 
then need to fly his aircraft over the shoreside runway and try 
again. However, the pilot has to make a considerably sharp right 
turn if he tries to avoid flying over the Abu area's local 
communities situated ahead of that runway, according to an SDF 
pilot. "It's dangerous," the SDF pilot said. 
 
Fixed-wing aircraft conducts 'touch-and-go' training at Futenma 
airfield. In this case as well, it is impossible to use different 
runways. 
 
"On the map, they're supposed not to fly over local residential 
areas," said an SDF expert on heliborne operations. "But," this 
expert went on, "that's a far cry from the facts about weather 
 
TOKYO 00002094  003 OF 012 
 
 
conditions and actual flight operations." 
 
Another problem is the type of aircraft to be deployed. The US 
Navy has revealed a plan to deploy the MV-22 Osprey in Okinawa to 
replace the Marines' carrier helicopters, beginning in the fall 
of 2012 or later. The MV-22 Osprey is a tiltrotor vertical/short 
takeoff and landing (VSTOL) aircraft, which can also fly at a 
high speed like fixed-wing aircraft. The US Navy once suspended 
its development of this aircraft due to its crashes. 
 
(2) Japan, US talks on Guam relocation cost in final stretch; Two- 
plus-two on May 2; US lowers total cost to 9.5 billion dollars 
but Tokyo, Washington still wide apart 
 
YOMIURI (Page 3) (Abridged slightly) 
April 18, 2006 
 
Talks between Japan and the United States on sharing the cost for 
relocating US Marines from Okinawa to Guam -- the thorniest issue 
in the realignment of US forces in Japan -- have now reached the 
final stretch. But the negotiations on the costly project have 
run into snags. Tokyo and Washington intend to hold a meeting of 
the Japan-U.S. Security Consultative Committee of foreign and 
defense ministers (2 plus 2) on May 2 as a deadline for settling 
the issue and adopting a final report. 
 
Tug-of-war 
 
Prime Minister Junichiro Koizumi yesterday morning ordered 
Defense Agency Director General Fukushiro Nukaga to make every 
effort to swiftly settle the cost-sharing issue. 
 
As part of the realignment of US forces in Japan, the governments 
of Japan and the US have decided to reduce the number of US 
Marines in Okinawa by 8,000 to alleviate the burden on the 
prefecture. But reaching an agreement between Tokyo and 
Washington on sharing the cost is a prerequisite for relocating 
the troops, who will mostly go to Guam. 
 
The US initially asked Japan to bear 75% of the total estimated 
cost of 10 billion dollars, or 1.11 trillion yen, based on the 
fiscal 2006 exchange rate. The cost included 7.5 billion dollars 
(832.5 billion yen) directly connected with the relocation of 
Marines, and 1 billion dollars (111 billion yen) for building 
Navy and Air Force facilities. Japan, however, insisted that the 
cost be reduced, arguing, "The total cost itself is not 
reasonable." 
 
Tokyo originally expressed its willingness to loan 3 billion 
dollars (333 billion yen) for building family housing and other 
facilities. 
 
On April 13-14, Nukaga held talks with US Deputy Under Secretary 
of Defense Richard Lawless and others in which the defense chief 
presented a compromise plan of disbursing 3 billion dollars from 
the general account in addition to the loan portion. The US also 
lowered the total cost to 9.5 billion dollars (1.545 trillion 
yen). But the two sides have yet to reach an agreement, as their 
views are still wide apart. 
 
Groundbreaking burden-reducing step 
 
Japan has never financed a US military facility on American soil. 
 
TOKYO 00002094  004 OF 012 
 
 
 
During the 1991 Gulf war, Japan extended 13 billion dollars of 
financial assistance to the coalition. To assist in Iraq's 
reconstruction efforts, Japan also promised to provide 5 billion 
dollars (555 billion yen) in official development assistance, 
including 69.9 billion yen for SDF activities. 
 
Nukaga emphatically said, "During the Gulf war, Japan disbursed 1 
trillion yen from state coffers, and after the Iraq war, 500 
billion yen was offered to assist Iraq's reconstruction efforts." 
A senior Defense Agency official also took this view: "The US 
force realignment is a once-in-half-a-century chance to reduce 
Okinawa's burden. In view of international contributions, there 
is every reason for Japan to pay its fair share of the cost." 
 
A percentage formula or tallying specific items? 
 
The Defense Agency thinks Japan should foot the bill by tallying 
specific items rather than setting a certain percentage of the 
total cost. The government wants to avoid its share from rising 
in proportion to growing US estimates. 
 
But the government's view is not necessarily monolithic with the 
Foreign Ministry, which is ready to accept the percentage 
formula. 
 
The Defense Agency intends to settle the issue through talks 
between the Nukaga-led Defense Agency and the US Defense 
Department rather than at the April 24-25 senior working-level 
talks in Washington. 
 
(3) China's ban on sea traffic in East China Sea does not cross 
over the Japan-China median line, says Chinese Foreign Ministry; 
China corrects error in its previous notice 
 
YOMIURI (Page 1) (Full) 
Eve., April 18, 2006 
 
China issued a notice banning ship navigation in the waters 
around the Japan-China median line within (Japan's) exclusive 
economic zone (EEZ). The aim of this notice was for China to 
expand its exploration of gas fields in the East China Sea. In 
this regard, the Chinese Foreign Ministry late yesterday 
indicated that it would revise its previous notice, noting, 
"There was a technical error in it." With this revision, the 
oceanic area subject to the navigation ban will be waters that 
fall within China's territory from the median line. This 
information came from the Chinese Foreign Ministry to the 
Japanese Embassy in Beijing. 
 
According to an account by China, the Chinese Maritime Bureau 
mistakenly set an area for the work scope for the expansion of 
the Pinghu gas field in the East China Sea at latitude 27.7-29.4 
north instead of at latitude 29.7-29.4 north. Correcting this 
error, the bureau will revise the previous notice banning sea 
traffic. According to the Japan Coast Guard (JCG), an area 
stretching some 3.6 kilometers east to west and some 200 
kilometers south crossing over the median line has been 
previously prohibited from navigation. But with the revision, the 
length of the area stretching south has been shortened to about 
five kilometers. 
 
Chief Cabinet Secretary Shinzo Abe stated at a press conference 
 
TOKYO 00002094  005 OF 012 
 
 
after a cabinet meeting this morning: "I am left with the 
impression that it was merely a plain mistake. Even if the area 
is within the Chinese territory from the median line, China needs 
to pay due respect to the other country's rights and 
obligations." He again indicated displeasure with China's 
responses taken during the past few days. 
 
(4) Minshuto head Ozawa to clash with government, ruling 
coalition over a set of three issues: social divide, Yasukuni 
Shrine visits, and foreign policy 
 
TOKYO SHIMBUN (Page 2) (Full) 
April 18, 2006 
 
It has been ten days since Ichiro Ozawa assumed the presidency of 
the main opposition party Minshuto (Democratic Party of Japan). 
Ozawa has set a policy course of making a clear distinction 
between the party's position and that of the ruling Liberal 
Democratic Party (LDP). He has replaced his predecessor Seiji 
Maehara's policy of presenting counterproposals in the Diet. 
Ozawa instead will toughen the stance of opposing the government 
and ruling coalition, focusing on a set of three issues: the 
widening social gap, visits to Yasukuni Shrine by Prime Minister 
Junichiro Koizumi, and Japan's foreign policy toward Asian 
countries. 
 
According to press reports, a candidate backed by Minshuto now 
has an edge over other candidates running in the House of 
Representatives by-election in the Chiba No.7 district. In a 
campaign speech on April 15 for the Minshuto ticket, Ozawa took 
up the issue of the widening social disparity in Japan. He 
severely criticized the government, claiming, "Money makes money. 
Gaps between the urban and rural areas are widening further. 
Japan is creating an unfair society. We must change politics." 
 
Ozawa has proposed the creation of a "fair country" that will 
provide the people with a safety net. He wants to make clear the 
distinction between the party's policy and the Koizumi reform 
drive, which he says excessively relies on free competition and 
market mechanisms. The special feature of Ozawa's policy is that 
he highly values the lifetime employment and seniority-base 
systems as measures for job security. 
 
In his speech for Minshuto's candidate, Ozawa also criticized 
Koizumi's repeated visits to Yasukuni Shrine, which will become a 
main campaign issue in the LDP presidential race. 
 
Ozawa's assertion is that Yasukuni Shrine is a place to honor 
those who died in past wars. He stated that those branded as 
Class-A war criminals did not die in battle, and they therefore 
should not be enshrined at the shrine. Some critics have noted 
that Ozawa's view is tantamount to political intervention in the 
affairs of a religious institution. 
 
Ozawa, however, wore an expression of relief, telling reporters, 
"It would be easy to do so. If we obtain the reins of government, 
we will do it immediately. I will tell you how to do it then." 
 
Given Japan's deteriorated relations with China and South Korea 
over Koizumi's Yasukuni visits, Ozawa has stressed that he would 
do his best to strengthen Japan's Asia diplomacy. 
 
Ozawa also places emphasis on Japan-US relations, just as Koizumi 
 
TOKYO 00002094  006 OF 012 
 
 
does. He, however, underscores that he would make efforts to 
repair strained relations with neighboring countries, while 
maintaining Japan-US relations as the axis. In that context, he 
would further strengthen Asia diplomacy. 
 
While criticizing Koizumi's foreign policy as tilting solely 
toward the United States, Ozawa has proposed establishing a 
national security system centered on the United Nations. Some 
Minshuto members have said that Ozawa's views are more 
understandable than Maehara's. Ozawa clearly mentions the policy 
differences with Koizumi, "Since his policy is premised on the 
present political system, our ways of thinking are different." 
The question is how Ozawa will give shape to a "new Ozawa policy 
line." Minshuto lawmakers have become increasingly interested in 
a new version of Ozawa's book "Plan to Remodel Japan." Ozawa is 
reportedly working on a revision. 
 
(5) WTO Doha round unlikely to reach agreement; US gradually 
moving away from WTO 
 
NIHON KEIZAI (Page 3) (Slightly abridged) 
April 17, 2006 
 
The Doha round of World Trade Organization (WTO) negotiations, 
which began in 2001, has been stalled. Overtures for a 
breakthrough were repeatedly held, but all have failed so far. 
The WTO Ministerial Conference intended for reaching a general 
agreement on setting rules on trade liberalization is scheduled 
for late April, but it is becoming increasingly unclear whether 
it will actually take place as planned. The United States has 
begun moving away from the WTO. It is instead shifting emphasis 
to free trade agreement (FTA) talks. 
 
Japan, US discuss on phone 
 
"A number of difficult challenges remain to be addressed before 
we reach a basic agreement at the end of April." This remark came 
from US Trade Representative (USTR) Rob Portman in early April, 
when he expressed concern on the phone to Minister of Economy, 
Trade and Industry (METI) Toshihiro Nikai. Nikai, who wants to 
finalize the talks with joint efforts with the US, sought 
cooperation from Portman. However, a growing view among major 
nations is that "it is difficult to reach an agreement before the 
end of April," a senior METI official said. 
 
This view is related to the failure in recent overtures for a 
breakthrough in the deadlocked WTO talks. Six major nations and 
regions, including Japan, the US, Europe, and Brazil, convened a 
ministerial conference in London in mid-March but they failed to 
achieve any visible results. Afterwards, the US, the European 
Union (EU), and Brazil met twice in Rio de Janeiro on March 31 
and on April 1, but their talks did not make progress on major 
areas, such as a range of tariff cuts. Reportedly, USTR Portman 
conveyed on the phone the atmosphere of the meetings to his 
Japanese counterpart during the Japan-US consultations. 
 
The WTO will hold working-level talks in Geneva starting on April 
18, but when it comes to the ministerial conference planned for 
later this month, no detailed schedule for it has been 
determined, allowing only speculation that it will be postponed. 
 
Difficult coordination in agricultural sector 
 
 
TOKYO 00002094  007 OF 012 
 
 
The biggest barrier to the (Doha round of) negotiations is the 
agricultural sector. Most member nations have agreed to follow a 
tariff reduction formula, under which heavy customs duties, for 
instance, those on agricultural products, will be drastically 
reduced. But when it comes to the focal issue of how far the 
(tariff) rates will be lowered, no concessions have been made. 
Brazil and the US have called for a 75-90% cut of tariffs on 
products on which heavy customs duties are now imposed, while the 
group of food importers, including Japan, insist that a reduction 
rate should be limited to a maximum of 45% . 
 
Meanwhile, the US, which has been urged to significantly cut its 
farm subsidies, is now on the defensive. The US Congress is 
increasingly moving toward protectionism. In fact, it raised 
vehement opposition to an Arab-affiliated firm's takeover of US 
port operations and then forced the firm to withdraw its 
takeover. The Congress also is strongly opposed to a drastic cut 
in farm subsidies. The US government is apparently stymied (by 
the Congress' moves). In addition, Brazil and other countries are 
under pressure to reduce their tariffs inflicted on industrial 
products. "(WTO) negotiations are thus in a tangle," a government 
official said. 
 
If a general agreement is not reached (at the ministerial 
conference) scheduled for the end of April, the conference will 
be again held in June. But, "If no agreement is reached there, a 
final agreement before the end of the year will become 
impossible," a government official explained. 
 
"If the talks fell apart, the US would have to shift emphasis to 
FTA talks." This March, a US official made this remark to a 
Japanese official in charge of WTO talks. The US has begun moving 
away from the WTO. One government official expressed concern: 
"Isn't the US planning to walk out of the WTO?" 
 
The US Congress had granted the Bush administration the Trade 
Promotion Authority (TPA) for negotiations, but the TPA will 
expire at the end of June 2007. Given the time necessary to go 
through the process of obtaining approval from the Congress, if a 
final agreement is reached before the end of the year, the Doha 
round would be in effect stopped. 
 
A senior Foreign Ministry official expressed concern: "Maybe the 
US is attempting to form a club of the willing in the trade area 
as it did in invading Iraq while shrugging off the United 
Nation's resolution?" If that were to happen, the momentum toward 
trade liberalization that has now swept across the world, 
including developing nations, could wither at once. 
 
(6) US Embassy minister in speech emphasizes America's efforts to 
address environmental issues 
 
CHUNICHI SHINBUN (Page 23) (Full) 
April 15, 2006 
 
By Shinya Abe 
 
Joyce Rabens, minister for environment, science and technology at 
the US Embassy in Tokyo, delivered a speech at the Nagoya 
American Center in Nagoya City regarding America's efforts to 
address climate change, including global warming. In the speech, 
she highlighted the Bush administration's positive stance toward 
environmental issues. 
 
TOKYO 00002094  008 OF 012 
 
 
 
The United States left the Kyoto Protocol, an international 
treaty on prevention of global warming, and has yet to return. 
Minister Rabens was not positive about America returning to the 
pact: "Given the Senate's opposition to signing the Protocol, the 
US is unlikely to return." 
 
On the other hand, Rabens stressed that the US government "has 
poured as much money as other countries for anti-global-warming 
measures." 
 
From the standpoint of national security, she pointed out the 
need to reduce dependence on imports of energy resources and 
pointed out the steps (the US has taken in that regard): "We have 
promoted through the tax system the use of such alternative 
energy resources as atomic energy, solar energy, and wind power"; 
and, "We have placed restrictions on the fuel used by new pickup 
truck models (such as recreational vehicles)." 
 
Rabens was asked questions from the audience, for instance, about 
average person's awareness of environmental issues and America's 
transportation system that tends to depend heavily on automobiles 
and airplanes, which are not viewed as being energy-efficient. 
 
Rabens answered proudly, "America is second to none in its 
efforts to address environmental issues, for instance, reducing 
the use of plastic shopping bags and recycling plastic bottles." 
Commenting on the traffic system, she explained the situation in 
her country: "A high-speed railway, if constructed, would be 
effective (in view of cutting green house gas emissions), but a 
vast investment would be necessary. Legislators have no interest 
in investments that will have no effect on the next election." 
 
(7) Visitors' gallery column: US Fair Trade Commission Chairman 
Deborah Majoras says Japan should put more effort into studying 
competition policy 
 
NIHON KEIZAI (Page 19) (Full) 
April 17, 2006 
 
Deborah Majoras, chairman of the US Fair Trade Commission points 
out: "It was said that because of Japan's corporate culture and 
other factors, the system of surcharge leniency (under the 
amended Anti-Monopoly Act) would not work, but the fears were 
groundless." She lauded the fact that the first examples of 
reporting offenders have come out under the system, saying, 
"Japan and the US are now on equal ground in terms of companies 
seeking to improve productivity (under fair competition). 
 
Even in the US, which preceded Japan on this, it was thought at 
first that there would be few companies reporting offenders. 
However, in reality, the exposures have been effective. "I would 
like to see more efforts put not only into exposing offenders but 
also into studying how to make competition policy even better, " 
she said. 
 
(8) Future course of Food Safety Commission - Interview with 
Yasuhiko Nakamura, member of FSC and guest professor at Tokyo 
University of Agriculture: Panel is still immature but in right 
direction 
 
ASAHI (Page 15, 2006) 
April 14, 2006 
 
TOKYO 00002094  009 OF 012 
 
 
 
I appreciate the efforts of the members of the prion experts 
panel in tackling the very difficult work of assessing risk. It 
is regrettable that half of the members resigned recently. Most 
of them left the panel due to age limits or personal 
circumstances. It is very simple and dangerous to label those who 
resigned as skeptics (of resuming US beef imports). Some said 
that they were forced out of the panel under political pressure, 
and others claimed that they were replaced with "yes-men." Such 
views are just based on conjecture. 
 
Some of the members who stepped down take the view that a 
conclusion has already been reached" and that "the assessment is 
not being done on a scientific basis." But I do not think their 
views are correct. I have attended various deliberations and 
study meetings held at ministries and agencies hundreds of times. 
In such meetings, the chairman and the secretariat always set the 
direction. Seeing such a situation some criticized that the 
ministries and agencies set policies as they like under the cover 
of such meetings. Such criticism is somewhat reasonable. 
 
Expert panel members conducted a good 10 rounds of discussion on 
US beef, without setting a time limit. The Ministry of Health, 
Labor and Welfare (MHLW) and the Ministry of Agriculture, 
Forestry and Fisheries (MAFF) must have been irritated at the 
pace. 
 
Since information on US beef, covering from production to 
distribution, was quite insufficient, the panel collected data to 
make up for the lack of information. But data were not enough, 
either. Under such a situation, the panel came up with a final 
assessment on the premise that the US would fulfill the 
conditions set by Japan in resuming imports. Though it was an 
anguished judgment, I think it was also a scientific assessment 
of sorts. 
 
If a member harbors dissatisfaction, that person should make an 
assertion during an open meeting in a thorough way. We do not 
mind even if the number of meetings increases. All panel members 
take responsibility for a report worked out by the panel. If a 
member complains about the report afterwards, such is rude to 
other members and will confuse the public. In any conference, all 
participants cannot necessarily be satisfied with the decisions 
reached there. Various opinions are presented, and coordination 
is carried out to seek a point of compromise. 
 
I also feel that the MHLW and MAFF had set the course of having 
the panel start looking into domestic anti-BSE measures, review 
the nation's blanket-testing system, and then deliberate on US 
beef. We had not noticed this scenario. 
 
In this sense, we need to mull how to response to the 
government's requests for our advice and suggestions from now. If 
there are problems in such requests, or if the panel finds it 
difficult to conduct discussions, we will take the time needed 
for discussion. We might come up with a conclusion that 
deliberations are unnecessary. 
 
Our panel is independent of the government, but it cannot be 
completely unconnected with it, because there are the public is 
behind the lawmakers. The panel cannot take action that ignores 
society. Given this, the Food Safety Commission (FSC) is 
accountable to both the political sphere and the public. The 
 
TOKYO 00002094  010 OF 012 
 
 
panel also needs to listen to an explanation about why the 
government asked for its advice. It is not enough for the panel 
to only assess risk on a scientific basis. It is important for 
the panel to perform its duty while keeping itself politics at 
arm's length while maintaining a tense relationship with it. 
 
When the first case of BSE was found in Japan in September 2001, 
a major panic broke out. The blunders made by MAFF deepened 
consumer distrust further. A series of beef mislabeling incidents 
and labeling violations threatened the safety and security of 
food. If we adopt our conventional method for scientific 
assessment in our usual way, people might think that we are 
helping the management side, including the MHLW, to conduct their 
jobs in an easier way. 
 
In order to restore consumer confidence in beef, the government 
separated the function of scientific assessment from the function 
of management and set up the FSC, with the aim of pursuing a 
fairer judgment. Though the panel is in the right direction, it 
is still immature because it was inaugurated only less than three 
years ago. The panel has still repeated the process of trial and 
error. It might be considered that the recent "uproar" was caused 
due to its immaturity. 
 
(9) Examining post-Koizumi contenders (Part 1): Sadakazu Tanigaki 
 
NIHON KEIZAI (Page 2) (Abridged) 
April 17, 2006 
 
On April 15, Finance Minister Sadakazu Tanigaki made a one-day 
trip to his home turf, House of Representatives Kyoto 
Constituency No. 5, for the first time in about six months. 
 
"He is stubborn when it comes to policies" 
 
Tanigaki delivered a speech in Maizuru. Asked afterward about his 
aspirations to become prime minister, Tanigaki modestly said: 
"Revamping the country's finances is the biggest challenge for 
the successor to Prime Minister Koizumi. I need to produce solid 
plans first in order to seek the position." Later on, Tanigaki 
visited the grave of his father, Senichi, in Fukuchiyama. 
 
Tanigaki has repeatedly referred to the need to swiftly hike the 
consumption tax, turning a deaf ear to other lawmakers' advice to 
keep the LDP presidential election in mind by abstaining from 
mentioning the possibility of a future tax hike. Health, Labor 
and Welfare Minister Jiro Kawasaki, one of Tanigaki's strongest 
supporters, described him this way: "He works honestly and 
diligently without playing to the gallery. But he is unexpectedly 
stubborn when it comes to policies." 
 
In September 2002, Tanigaki became chairman of the National 
Public Safety Commission in the Koizumi cabinet. Although nearly 
three years have passed since he was shifted to the post of 
finance minister, Tanigaki's popularity ratings as a potential 
Koizumi successor are still hovering around 2%. LDP members close 
to Tanigaki are more eager than Tanigaki himself to make him the 
next prime minister. 
 
Knowledgeable about policies and having a warm personality, 
Tanigaki has long been regarded as a future prime ministerial 
candidate by members of Kochikai (former Miyazawa faction). 
Ironically, Tanigaki captured national attention during the so- 
 
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called Kato rebellion against then Prime Minister Mori. 
 
A tearful Tanigaki trying to dissuade Kato from voting for an 
opposition bloc-presented no-confidence motion against the Mori 
cabinet in a Lower House plenary session that was televised 
nationally. 
 
Upset by the scene, Sadatoshi Ozato, who was serving as 
"guardian" to Tanigaki, immediately called the lawmaker to a 
Japanese restaurant near the Diet building to chide him: "What 
are you thinking about? A lawmaker's action has a lasting impact 
on the public." Looking back on the incident, a fellow lawmaker 
also said bitterly, "That tarnished Mr. Tanigaki's image." 
 
Five and a half years have passed since then. Former factional 
colleagues, such as Kawasaki, Yasuo Fukuda, and Gen Nakatani, 
have been busy paving the way for Tanigaki's candidacy for the 
LDP presidency. In April, they met twice on Friday nights to work 
out their strategy. 
 
On the night of April 7, when Tanigaki was on an official trip 
abroad, factional executives had a heated discussion on measures 
for the faction's May 15 party. A plan is also underway to unveil 
the faction's policy proposals at the upcoming party to make them 
a Tanigaki administrative vision. 
 
But Tanigaki himself remains elusive. Tanigaki supporters met for 
the second time on the night of April 14 to work out their 
strategy. But Tanigaki cancelled his attendance at the eleventh 
hour, citing another meeting. Other members were visibly 
disappointed. 
 
Only 15 members 
 
Of the four post-Koizumi contenders -- Taro Aso, Tanigaki 
Sadakazu, Yasuo Fukuda, and Shinzo Abe -- only Tanigaki is a 
faction leader. But his faction is small with only 15 members - 
five short of the required endorsements of 20 lawmakers for 
seeking the LDP presidency. There are movements to reunite 
Kochikai as well. But given Abe's high popularity, a mood to 
support Tanigaki is not gaining momentum. 
 
Will the simple and honest approach of calling for fiscal 
reconstruction alone be able to bring bright prospects for 
Tanigaki? 
 
(10) Kasumigaseki confidential: Transfer of operations and 
authority from government to private-sector 
 
BUNGEI SHUNJU (Page 234) (Full) 
May 2006 
 
The Council on Economic and Fiscal Policy, an advisory panel to 
the government, has been working on drafting measures in line 
with Prime Minister Junichiro Koizumi's policy line of 
"transferring operations and authority from the government to the 
private sector." However, what is happening in the advisory panel 
itself is a "transfer from the private-sector to the government." 
 
Prime Minister Koizumi and his private secretary, Isao Iijima, 
early this year chose Atsuro Saka (joined the Finance Ministry in 
1970) as assistant deputy chief cabinet secretary. Even the 
Finance Ministry did not expect this appointment. The only aim of 
 
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Koizumi and Iijima was to use Saka to counter Internal Affairs 
and Communications Minister Heizo Takenaka, who deprived Saka of 
his role while the two were working respectively as chair and 
member of the Council on Economic and Fiscal Policy in the 
Cabinet Office. As Koizumi noted, "Mr. Saka has a wealth of 
experience in the Economic and Fiscal Policy Council," Saka 
demonstrated remarkable negotiating skills and an ability to 
coordinate views. He was an unusual person in the Cabinet Office, 
which is made up of bureaucrats coming mainly from the former 
Economic Planning Agency who are out of touch with politics. 
 
Saka has now been working closely with Takenaka's successor, 
Kaoru Yosano, state minister in charge of financial affairs. Both 
Saka and Yosano are graduates of Azabu High School and the 
University of Tokyo. They have been playing golf together for 
some time. 
 
Yosano, who favors Finance Ministry bureaucrats, installed 
Yukihiro Oshita (entered the Finance Ministry in 1986) in the 
newly established office to assist reform of the revenue and 
expenditure system. Oshita served as secretary to Yosano during 
his tenure as deputy chief cabinet secretary. Yosano has 
consolidated the structure aimed at a consumption tax hike. All 
the more because Saka and Oshita worked hard to draft the fiscal 
structural reform law, which has been frozen as a symbolic 
blunder in economic policy, they are enthusiastic returning to do 
battle. 
 
Council members from the private sector such as Osaka Prof. 
Masaaki Honma who fell into line with Takenaka's views, are now 
toeing the line of the bureaucrat-centered council. Takenaka is 
now like an airplane on the verge of crashing. Koizumi and Iijima 
are only interested in how to maximize their power to the end. 
The situation in the Council on Economic and Fiscal Policy, now 
controlled by the bureaucracy, tells the true story about the 
Koizumi reform drive that was carried out for nearly five years 
without principles. 
 
SCHIEFFER