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UNCLAS SECTION 01 OF 09 TOKYO 002176 
 
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 04/21/06 
 
Index: 
 
1)   Top headlines 
2)   Editorials 
3)   Prime Minister's daily schedule 
 
Defense issues: 
4)   JDA chief Nukaga leaves for Washington today to discuss Guam 
  relocation issue 
5)   US proposes that cost of relocating Marines to Guam be 
spread out over 5 years 
6)   MSDF dispatch to Indian Ocean extended another half year 
 
Maritime standoff with South Korea: 
7)   Vice Foreign Minister Yachi headed for Seoul today to seek 
  negotiated solution to standoff with ROK over maritime survey in 
  EEZ 
8)   Direct negotiations between Japan, South Korea to avoid 
turmoil, save face 
9)   Government probing South Korea's attitude by sending Yachi 
to Seoul to negotiate maritime standoff 
10)  Little leeway seen in Seoul's stance on Japan's maritime 
survey with public emotions high and election coming 
11)  US will not get involved in Japan-ROK maritime dispute: 
Senior official 
 
China connection: 
12)  SDF fighters scrambled against Chinese jets over 200 times 
  last year, eight times more than before 
13)  Chinese embassy in Tokyo refuses to allow police to question 
consular officers over alleged illegal-labor scam 
 
14)  Speculation that Prime Minister Koizumi may visit Yasukuni 
  Shrine as major festival there starts today 
 
15)  Administrative reform promotion bill clears Lower House; 
  Sluggish deliberations; Three key points 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi: 
FTS report calls for level playing ground with requests, such as 
easing access to mail delivery business and opening mail delivery 
networks to other companies 
 
Mainichi: 
Former architect Aneha found to have asked company to which he 
lent his name to change construction data inspection firm to 
eHomes, availing himself of sloppy inspection system 
 
Yomiuri: 
US-China summit: US president calls on China to exercise 
influence on Pyongyang; Reform of yuan also urged 
 
Nihon Keizai: 
Regulation on issuance of new stocks to be strengthened 
 
Sankei: 
US-China summit; No progress over Iran, trade issues; China calls 
on US to be flexible toward Pyongyang 
 
TOKYO 00002176  002 OF 009 
 
 
 
Tokyo Shimbun: 
Kimura Construction Co. suspected of conducting window-dressing 
despite debts exceeding assets by 1.2 billion yen in financial 
statement for June 2005 term 
 
2) EDITORIALS 
 
Asahi: 
(1)  Academic survey: Is it necessary to test all students? 
(2)  Government assets: There is no panacea for fiscal 
reconstruction 
 
Mainichi: 
(1)  Administrative Reform Promotion legislation clears Lower 
House; We want to hear exchanges of views between Prime Minister 
Koizumi and opposition DPJ president Ozawa 
(2)  Survey around Takeshima (Dokdo): No need to rush to name 
ocean bed 
 
Yomiuri: 
(1)  Takeshima (Dokdo) survey: Both countries should calmly find 
way to solve issue 
(2)  Iran's nuclear development: It is impossible to settle issue 
diplomatically without unity 
 
Nihon Keizai: 
(1)  Transport safety and passengers' peace of mind should be 
secured, based on basic rules 
(2)  What will come after asbestos compensation by Kubota? 
 
Sankei: 
(1)  G-7: Rebuilding the system for international cooperation 
(2)  Exhibiting debris from JAL crash: Make use of lessons from 
Osutaka 
 
Tokyo Shimbun: 
(1)  Administrative reform promotion bill: More discussion needed 
(2)  Organ transplant law: Will of donors should be valued 
 
3) Prime Minister's Official Residence (Kantei) 
 
Prime Minister's schedule, April 20 
 
NIHON KEIZAI (Page 2)  (Full) 
April 21, 2006 
 
09:34 
Arrived at Kantei. 
 
11:05 
Joined a program sponsored by science producer Denjirosan 
Yonemura at the Science Museum 
 
11:37 
Arrived at Kantei. 
 
13:43 
Attended a Lower House plenary session. 
 
13:55 
Arrived at Kantei. 
 
TOKYO 00002176  003 OF 009 
 
 
 
16:00 
Met Foreign Ministry European Affairs Bureau Director General 
Harada and African Affairs Bureau Deputy Director General Otabe. 
Later, attended a Security Council meeting. 
 
17:14 
Met JDA Director General Nukaga. Met Latvian Prime Minister 
Kalvitis. 
 
18:59 
Returned to his official residence. 
 
4) Defense chief to visit US over Guam relocation 
 
ASAHI (Page 1) (Full) 
April 21, 2006 
 
Defense Agency Director-General Nukaga will leave Japan today to 
visit the United States to meet with US Secretary of Defense 
Rumsfeld and search for common ground over the pending issue of 
sharing the cost of moving US Marines from Okinawa to Guam in the 
process of realigning US forces in Japan. The Pentagon estimates 
the total cost of Marine relocation to Guam at 10 billion 
dollars, or approximately 1.18 trillion yen, and the US 
government has asked Japan to cover 75% of that cost. The 
Japanese government has put forward the idea of loan-based 
funding of about 3 billion dollars. The two governments' 
respective standpoints remain wide apart, so Nukaga will seek to 
bridge the gap with his US counterpart. 
 
Nukaga met with Prime Minister Koizumi at his office yesterday 
evening and reported his plan to visit to the United States. "We 
have held talks in an energetic manner but are now in the final 
phase, so it's important that those in a responsible position 
hold talks," Nukaga quoted Koizumi as telling him. 
 
However, Nukaga told reporters that he did not know if he could 
reach an agreement with his US counterpart on cost sharing. "I'm 
not going there just because we've made some arrangements," he 
added. 
 
Nukaga is scheduled to arrive in Washington on the evening of 
April 21, or tomorrow morning, Japan time. He will meet with 
Rumsfeld that night or on the morning of April 22. US Ambassador 
to Japan Schieffer is also expected to attend their meeting. 
Nukaga met with Schieffer yesterday. 
 
Nukaga will ask the US government to review its estimate of the 
total cost and its request for Japan's share. In addition, Nukaga 
will also tell his US counterpart that the Japanese government is 
also considering direct spending from state coffers in an aim to 
reach an agreement with the US government. 
 
5) US asks Japan to pay Guam cost over five years; JDA chief to 
leave for US today 
 
NIHON KEIZAI (Page 1) (Full) 
April 21, 2006 
 
The US has asked Japan to pay over five years 7.5 billion dollars 
of the 10 million dollars estimated cost of transferring Okinawa- 
 
TOKYO 00002176  004 OF 009 
 
 
based Marines to Guam, according to informed sources yesterday. 
Defense Agency Director-General Fukushiro Nukaga will leave Japan 
today for a three-day visit to the US to meet US Defense 
Secretary Rumsfeld and other officials in Washington. In a 
 
SIPDIS 
meeting with Rumsfeld, he will call for a reduction in the 
estimated cost needed for US force realignment in Japan. 
 
Nukaga is set to tell Rumsfeld that Japan estimates the cost for 
realigning bases in Japan, including the planned relocation of 
the US Marine Corps Futenma Air Station, at about 2.5 trillion 
yen. Based on this calculation, he will convey Japan's desire to 
hold down its total spending for the entire realignment package 
to less than 3 trillion yen. Washington and Tokyo are arranging 
for a Japan-US defense summit on April 22. 
 
6) Government to extend MSDF deployment in Indian Ocean for 
another six months 
 
NIHON KEIZAI (Page 2) (Full) 
April 21, 2006 
 
In a Security Council meeting yesterday, the government decided 
to change its basic plan on the dispatch of Maritime Self-Defense 
Force to the Indian Ocean under the Antiterrorism Special 
Measures Law and extend the dispatch for another six months 
through Nov. 1. The change of the plan will be approved at a 
cabinet meeting today. 
 
7) Vice Foreign Minister Yachi visits South Korea today to seek a 
breakthrough 
 
ASAHI (Page 1) (Excerpts) 
April 21, 2006 
 
The Japanese government decided yesterday to dispatch 
Administrative Vice Foreign Minister Shotaro Yachi to Seoul today 
in an attempt to find a diplomatic breakthrough in the standoff 
between Japan and South Korea over Japan's planned maritime 
survey in Japan's exclusive economic zone (EEZ), including the 
area around a group of disputed islets in the Sea of Japan 
(Takeshima in Japanese and Dokdo in Korean), claimed by both the 
Japanese and South Korean governments. Seoul had demanded that 
Japan scrap its plan, while Tokyo has proposed that South Korea 
end its efforts to name or rename geographical features in the 
disputed area in Korean. Two Japan Coast Guard survey ships 
remain on standby near a port in Tottori Prefecture until a 
conclusion is made in the negotiations. 
 
8) Vice foreign minister off to Seoul to avert clash over marine 
survey around disputed Takeshima (Dokdo) islands 
 
YOMIURI (Page 2) (Excerpts) 
April 21, 2006 
 
In an effort to reach a diplomatic settlement on the standoff 
between Japan and South Korea over Japan's plan to conduct a 
maritime survey near the waters around Takeshima (Dokdo), 
avoiding a clash between Japanese and South Korean ships, the 
government has decided to send to Seoul Administrative Vice 
Foreign Minister Shotaro Yachi. 
 
Yachi was initially scheduled to meet on April 20 with South 
 
TOKYO 00002176  005 OF 009 
 
 
Korean Ambassador to Japan Ra Jong Yil in Tokyo. He instead has 
determined that in order to help South Korea save face and to 
show Japan's good faith it is better to negotiate with South 
Korean Foreign Affairs and Trade Minister Ban Kim Moon, so that 
he will be able to demonstrate Japan's diplomatic efforts for a 
resolution of the issue. 
 
Yachi is expected meet with Kim and First Vice Minister Yu Myong 
Hwang. Behind-the-scenes talks between Japan and South Korea are 
now being carried out by senior diplomatic officials. "It would 
be good not to make a winner and a loser in the negotiations," a 
source said. The two sides are looking for a breakthrough that 
would allow them to save face. 
 
Tokyo and Seoul reportedly are negotiating on specific points: 
Japan should not carry out its maritime survey during the 
negotiations, and South Korea should propose at an appropriate 
time the naming of geographical features in the disputed area in 
Korea, giving up on its plan to propose it to an international 
conference in June. 
 
9) Row over Takeshima survey: Vice foreign minister to visit ROK, 
to take a hard and soft approach to look into how Seoul will 
respond 
 
NIHON KEIZAI (Page 2) (Excerpts) 
April 21, 2006 
 
The government's decision to send Vice Foreign Minister Shotaro 
Yachi to South Korea is an unusual development. Behind this 
decision is the government's intention to ease growing tensions 
over Japan's plan to conduct a marine survey in the waters around 
Takeshima (Dokdo), a group of islets claimed by both Japan and 
South Korea. Yachi is likely to again convey to South Korea 
Japan's policy of canceling the planned survey if South Korea 
gives up on its plan to propose using Korean names for undersea 
locations at an upcoming international conference on marine 
geography names. But South Korea appears unwilling to budge from 
its current position. Whether Japan can resolve the standoff with 
South Korea remains to be seen. 
 
"We will aim for an amicable solution. We are continuing 
diplomatic efforts and contacts at various levels of officials." 
This remark came from Senior Vice Foreign Minister Katsutoshi 
Kaneda at a press briefing yesterday. Kaneda repeated the words 
"an amicable solution" four times in reference to the row over 
Japan's survey plan, but the Ministry of Foreign Affairs (MOFA) 
does not have any idea how to settle the row with South Korea. 
MOFA's idea is for both sides to throw away their respective 
plans - Japan's plan for a marine survey and South Korea's plan 
for proposing Korean names for undersea locations, but Seoul has 
shown no signs of agreeing. 
 
Tokyo will demonstrate its sincerity by sending Yachi to Seoul 
and expects it to soften its attitude. But it is unlikely that 
things will go as Japan expects, because the dispatch of the vice 
minister to South Korea has come belatedly as a last resort, 
according to many observers. 
 
Under a three-stage scenario designed to deal with the row with 
South Korea, as a first approach, Tokyo will send the vice 
minister to South Korea and look for a point of compromise. 
 
TOKYO 00002176  006 OF 009 
 
 
Reportedly, some in the South Korean government point out that if 
Japan acts first by declaring its cancellation of the survey, it 
will then be easier for South Korea to withdraw the proposal it 
plans to present at the international conference." 
 
10) Seoul has little room for compromise, given national 
sentiment ahead of unified local elections 
 
NIHON KEIZAI (Page 2) (Full) 
April 21, 2006 
 
By Hiroshi Minegishi, Seoul 
 
South Korea remains defiant toward Japan, but it is looking for 
ways at the same time to resolve the row with Japan with 
diplomatic efforts. Behind this dual approach is the calculation 
that it would be disadvantageous to South Korea if the issue of 
sovereignty over Takeshima (Dokdo in Korean), a group of islets 
now under de facto South Korean control, drew a lot of attention 
and became an international issue, ratcheting up tensions between 
Japan and South Korea. But compromise options available to the 
South Korean government are very limited, because the issue is 
linked to territory and history, to which the general public 
reacts sensitively, and given the unified local elections slated 
for late May. 
 
The South Korean government has made clear its hard-line 
position, conveying to United Nations Secretary General Annan its 
decision not to follow the proceedings for dispute resolution 
under the auspices of international legal organizations. However, 
its real intention is to try to settle the issue through 
diplomacy. Evidence of this is found in Seoul's acceptance of a 
visit to South Korea by Vice Foreign Minister Yachi. 
 
South Korea has no intention to depart from its basic stance, but 
an idea being considered there is to postpone proposing name 
changes for underwater geographical features at an upcoming 
international conference and thereby push Japan to cancel its 
survey plan. Minister of Foreign Affairs and Trade Ban Ki Moon 
yesterday steered clear of mentioning a specific time when his 
country would present a proposal on name changes to the 
international conference, saying only, "We will do so at a proper 
time." 
 
The South Korean government has reacted strongly to this issue. 
One reason is because Japan's planned marine survey concerns 
sovereignty, and more importantly, such a survey is associated 
with the history of humiliation Koreans suffered during Japan's 
colonial rule. Japan put Takeshima in Shimane Prefecture in 1905, 
when Japan took away Korea's power to conduct independent 
diplomacy. Reportedly, Takeshima is viewed by South Koreans as 
being the beginning of the ruin of their country. 
 
In addition, there was an armed clash between Japan and Korea in 
1875, when the Japanese government sent vessels to the coast of 
Kanghwado in the name of marine surveys. South Koreans still 
remember that this clash later forced Korea to conclude the 
Kanghwado Treaty, which granted Japan extraterritorial rights. 
This chain of distrust of Japan has made it more difficult for 
South Korea to reach a settlement with Japan. 
 
11) US will not intervene in Tokyo-Seoul dispute 
 
TOKYO 00002176  007 OF 009 
 
 
 
ASAHI (Page 3) (Full) 
April 21, 2006 
 
Kei Ukai in Washington, Yusaku Yamane in Beijing 
 
A standoff is intensifying between Japan and South Korea over a 
Japanese plan to survey the seabed near disputed islets 
(Takeshima in Japanese and Dokdo in Korean). Commenting on the 
standoff, a ranking US government official stated on April 19, 
"We have urged the two governments to restrain their actions for 
a peaceful settlement." The official indicated that Washington 
had no intention to intervene in the bilateral issue, saying, 
"Are position is that we will not get involved in territorial 
disputes." 
 
Meanwhile, Chinese Foreign Ministry Press Bureau deputy chief Qin 
Gang stated yesterday: "We hope that South Korea and Japan will 
deal appropriately with the issue through talks." 
 
12) ASDF scrambles 8 times more often against Chinese aircraft 
over past year 
 
NIHON KEIZAI (Page 2) (Full) 
April 21, 2006 
 
Air Self-Defense Force (ASDF) fighter jets made a total of 229 
scrambles over the past fiscal year of 2005 in response to planes 
approaching Japan's airspace, the Defense Agency said yesterday. 
The figure is over 60% greater than that in the preceding fiscal 
year and exceeded 200 for the first time in seven years. There 
was a substantial increase in the number of scrambles against 
Chinese planes, the agency explained. "We'll continue to watch 
with serious concern," a Joint Staff Office source said. 
 
According to the Defense Agency's estimated statistics, those 229 
scrambles of ASDF fighter jets included 116 against Russian 
planes and 107 against Chinese planes. In fiscal 2004, the ASDF 
scrambled 13 times against Chinese planes. These stats show that 
the ASDF scrambled eight times more often against Chinese planes 
over the past fiscal year. ASDF fighters scrambled twice against 
Taiwanese planes. 
 
The Defense Agency has not revealed anything in detail about the 
types of those Chinese aircraft or their activities. In its 
analysis, however, the agency recounted that China has been 
developing gas fields in the East China Sea and that there were 
probably many more intelligence-gathering flights. The agency is 
increasingly alert. 
 
There was an airspace violation on Jan. 25, when a Russian plane 
flew over the island of Rebun in Hokkaido. 
 
13) Chinese Embassy declines police request to question diplomats 
over visa scam 
 
MAINICHI (Page 28) (Full) 
April 21, 2006 
 
The Chinese Embassy declined the Metropolitan Police Department's 
(MPD) request to question two diplomats, including a counselor 
(51) at the embassy, over their relations with Chinese 
 
TOKYO 00002176  008 OF 009 
 
 
businessman Zhang Jin (51), who has been indicted on charges of 
illegally obtaining residential status for another man in 
violation of the Immigration Control Law. The MPD has seized a 
memo indicating that the counselor was instructing Zhang to do 
more for the China-Taiwan reunification movement. The MPD intends 
to ask again that they be made available for questioning. 
 
The MPD asked the Foreign Ministry on April 13 to arrange for the 
counselor and a senior commerce section member to appear at the 
MPD to answer questions about their ties with Zhang, setting 
April 20 as a deadline for them to comply. 
 
Under the International Convention, diplomats are granted 
immunity from the host nation's laws. A Chinese Embassy spokesman 
said: "There is no need to comply with the request under the 
International Convention." He added: "It is not unusual for 
Chinese Embassy staff to contact Chinese in Japan." 
 
14) Speculation rife on whether prime minister will visit 
Yasukuni Shrine's spring festival, which starts today 
 
MAINICHI (Page 3) (Excerpts) 
April 21, 2006 
 
In view of the start of the spring festival at Yasukuni Shrine 
today, there is speculation in the government and ruling parties 
as to whether Prime Minister Junichiro Koizumi will visit the 
shrine. The prime minister visited Yasukuni on the first day of 
the festival in 2002. However, in the major opposition Democratic 
Party of Japan (Minshuto or DPJ), Ichiro Ozawa, who is critical 
of the prime minister's visit to the shrine, has recently come 
into office as president of the party. The by-election in the 
Lower House Chiba No. 7 Constituency, which will play a role in 
determining the future political situation, will take place on 
April 23. Japan's relations with China and South Korea are 
increasingly strained. There is, therefore, strong speculation 
that the prime minister will not visit Yasukuni during the spring 
festival. However, if he does so, it is bound to have a major 
impact both inside and outside Japan. 
 
A New Komeito senior official strongly warned against a visit to 
Yasukuni, noting: "If the prime minister visits the shrine, the 
reaction of Beijing and Seoul will definitely become even 
stronger. It will be playing right into the hands of Mr. Ozawa. 
Should that occur, the focus of confrontation between the LDP and 
the DPJ will become clearer, having a clear impact on the Chiba 
by-election." Because of this, the dominant view in the 
government and the ruling camp is that the prime minister will 
not visit Yasukuni Shrine. 
 
15) Administrative reform promotion bill clears Lower House; 
Sluggish deliberations; Three key points: (1) Can administrative 
expenses be constrained? (2) What is simple government? and (3) 
What are public services? 
 
ASAHI (Page 4) (Excerpts) 
April 21, 2006 
 
The current Diet session has been termed the administrative Diet 
session, but the ruling and opposition parties are arguing at 
cross-purposes on reform competition. Deliberations on the 
administrative reform promotion bill, which cleared the Lower 
 
TOKYO 00002176  009 OF 009 
 
 
House yesterday, were sluggish due to the fake e-mail fiasco 
involving the major opposition party Democratic Party of Japan 
(Minshuto or DPJ) and the replacement of its president. However, 
three major key points have emerged through discussions on the 
scale and role of administration. The focus of deliberations 
starting next week will likely be on to what extent these points 
can be worked out. 
 
Lawmakers remained skeptical about the efficacy of constraints on 
administrative spending, the main objective of the legislation. 
The bill included a policy of slashing the net number of national 
government employees by more than 5% over five years as a means 
to trim total personnel expenses. However, at the outset of the 
deliberations, Prime Minister Koizumi made this reply: "The 
proposed cut in the number of national government employees does 
not mean that each government agency should reduce their staff 
uniformly." A number of ruling party lawmakers questioned 
concerned cabinet ministers in an attempt to press them to 
protect certain areas. 
 
DPJ lawmakers intensively pursued the issue of negotiated 
contracts for public works. Yosuke Kondo, who took the podium to 
offer a counterargument during yesterday's Lower House plenary 
session criticized the practice, "Concluding such a form of 
contracts is in principle allowed as exceptions. However, 
negotiated contracts, in fact, account for 70% of the entire 
contract cases." 
 
The prime minister has ordered various cabinet ministers to 
review negotiated contracts in their ministries this month. 
Encouraged by this order, the DPJ is geared up to pursue the 
issue, including the collusive ties between local instruments of 
government and public corporations that accept retired senior 
bureaucrats. 
 
SCHIEFFER