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UNCLAS SECTION 01 OF 10 TOKYO 002224 
 
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 04/25/06 
 
Index: 
 
1)   Top headlines 
2)   Editorials 
3)   Prime Minister's daily schedule 
 
Agreement on Guam relocation cost sharing: 
4)   JDA chief Nukaga told Prime Minister Koizumi prior to US 
  trip that negotiations would aim at Japan picking up 60% of Guam 
  relocation cost 
5)   Compromise settlement on Guam relocation issue led by 
Defense Agency, with US Ambassador Schieffer playing intermediary 
role 
6)   Opposition camp all critical of US-Japan agreement on 
sharing cost of Guam relocation 
7)   Minshuto wants "thorough probe" into the Guam relocation 
cost during current Diet session 
 
8)   Government allocates 4.3 billion yen for extension of MSDF 
  refueling service in Indian Ocean 
 
Political situation: 
9)   Shock wave still rolls across LDP after loss to Minshuto in 
  Sunday's by-election, with doubts growing about supporting Abe as 
  Koizumi successor 
10)  Asahi poll: Koizumi cabinet support rate, public 
expectations of Ichiro Ozawa both at 50% 
 
Aftermath of Takeshima survey standoff: 
11)  Vice Foreign Minister Yachi sees possibility of Japan 
  resuming maritime survey near Takeshima depending on ROK moves 
12)  Japan to propose joint survey with South Korea of Takeshima 
waters to come up with common names for ocean bed features 
13)  Criticism wells regarding government's handling of row with 
ROK over maritime survey near Takeshima isles 
 
14)  Prime Minister Koizumi, EU leaders have meeting of minds on 
  issue of Iran's nuclear program 
 
15)  Ten public hearings show deep-seated resistance to US beef 
  by Japanese consumers; Governments hopes for settlement of import 
  issue in June 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi: Mainichi: 
Police to arrest 10 persons involved in earthquake-resistance 
data scam tomorrow 
 
Yomiuri: 
Outline of final report on USFJ realignment: Four facilities in 
Okinawa to be returned within eight years; Disbursement law to be 
established to cover Guam relocation cost 
 
Nihon Keizai: 
Buyouts of Japanese companies by foreign firms: Government 
mulling consolidation of tax system for stock swaps; Taxation on 
stockholders to be deferred 
 
Sankei: 
 
TOKYO 00002224  002 OF 010 
 
 
JR Yamanote Line stops for five and a half hours: Tracks found to 
have risen; Overconfidence in new engineering method to blame? 
 
Tokyo Shimbun: 
Tokyo District Court rules that reporters can refuse to answer 
questions indirectly relating to the identification of sources; 
Decision widens applicable scope 
 
2) EDITORIALS 
 
Asahi: 
(1)  Guam relocation cost: Will taxpayers agree? 
(2)  Integration of public servants' pension systems: Little hope 
for elimination of gap with private-sector pension system 
 
Mainichi: 
(1)  Cost of relocating US Marines to Guam: Did Japanese side say 
what it should say? 
(2)  Chernobyl: No end to aftermath of accident 
 
Yomiuri: 
(1)  Cost of relocating US Marines to Guam: Accountability needed 
for Japan to pay "due share" 
(2)  Merger of Hankyu Holdings and Hanshin Electric Railway 
 
Nihon Keizai: 
(1)  Guam relocation cost: Political judgment intended to reduce 
burden of Okinawa 
(2)  Proposal for integrating public servants' pension systems 
still leaves gap between public and private sectors 
 
Sankei: 
(1)  Guam relocation cost: Cost of protecting peace 
(2)  JR West Japan accident: Mountain of problems still remain 
unsettled 
 
Tokyo Shimbun: 
(1)  Guam relocation cost: We want to see details 
(2)  Global economy: Imbalances should not be left unattended 
 
3) Prime Minister's Official Residence (Kantei) 
 
Prime Minister's schedule, April 24, 2006 
 
NIHON KEIZAI (Page 2)  (Full) 
April 25, 2006 
 
09:49 
Met Finance Minister Tanigaki at Kantei. Followed by Deputy Chief 
Cabinet Secretary Suzuki. 
 
11:01 
Attended an Upper House plenary session. 
 
12:31 
Arrived at Kantei. 
 
13:59 
Met Secretary General Takebe. 
 
15:02 
Met Austrian Chancellor Schuessel. 
 
TOKYO 00002224  003 OF 010 
 
 
 
16:03 
Met students of the international school Horizon Academic in 
Tsurumi-ku, Yokohama. Met Japan Coast Guard head Ishikawa. 
 
SIPDIS 
 
17:00 
Attended an executive meeting in the Diet building. 
 
17:17 
Arrived at Kantei. 
 
17:45 
Held a meeting with EU Committee Chairman Barroso and Schuessel 
at his official residence. 
 
19:07 
Held a joint press conference at Kantei. Later, enjoyed 
performance of the Vienna Boy's Choir. Presented a kesho mawashi 
to sumo wrestler Kotooshu. Later, dined with the EU leaders. 
 
21:33 
Returned to his official residence. 
 
4) JDA chief Nukaga told Prime Minister before trip to US that he 
would aim in negotiations for a 60% share of cost of Guam 
relocation 
 
TOKYO (Page 3) (Abridged) 
April 25, 2006 
 
Prior to his trip to the United States in connection with the 
issue of Japan's share of the cost of relocating US Marines now 
on Okinawa to Guam, Defense Agency (JDA) Director General 
Fukushiro Nukaga met with Prime Minister Koizumi and told him of 
his plan to aim in the negotiations for Japan to bear a 60% share 
of the cost. "I am hoping for Japan to pay 30% (in fiscal 
expenditures from the General Account budget), and 30% (in 
reimbursable loans)." This was revealed by a government source on 
April 24. 
 
The agreement between the Japanese and US governments has Japan 
paying a 59% share of the cost, or $6.19 billion, out of a total 
of approximately $10.27 billion. 
 
According to the government source, Foreign Minister Taro Aso on 
April 21 during a meeting of relevant cabinet ministers proposed 
the 30 % -30% solution and Nukaga accepted it. He informed the 
Prime Minister that he would negotiate with the US according to 
the Aso proposal and the Prime Minister accepted the plan. 
 
5) Cost sharing issue settled under Defense Agency's lead with US 
ambassador serving as intermediary; Koizumi left matter entirely 
to Nukaga 
 
NIHON KEIZAI (Page 2) (Abridged slightly) 
April 25, 2006 
 
Hiroshi Maruya, Washington 
 
The US force realignment issue has been settled owning to the 
initiative displayed by the Prime Minister's Official Residence 
(Kantei) and the Defense Agency with US Ambassador to Japan 
 
TOKYO 00002224  004 OF 010 
 
 
Thomas Schieffer, who enjoys the confidence of US President 
George W. Bush, acting as an intermediary between Japan and the 
US Defense Department. The article takes a look at what took 
place behind the Japan-US talks. 
 
Finance Ministry also gives a push 
 
On the night of April 23, Defense Agency Director General 
Fukushiro Nukaga stood before television cameras in front of the 
Defense Department along with Defense Secretary Donald Rumsfeld, 
who had not received Nukaga when he arrived in the US, to brief 
on the results of their talks. Nukaga hailed the results of his 
talks with Rumsfeld, saying, "With this agreement, the two 
countries will continue to be extremely close and important 
allies." 
 
Nukaga had left Japan for the US with no fixed timetable for his 
talks with Rumsfeld. As a result, he had to change his hotel from 
one in downtown Washington to another near the Defense 
Department. Nukaga prepared himself for his talks with Rumsfeld 
by postponing his departure from the US until Sunday night to be 
ready for a cabinet meeting back in Japan on Tuesday. 
 
Cabinet talks usually end with an accord based on groundwork laid 
out by government offices. But this time around, Nukaga had to 
take his chances, though he was armed with full authority given 
by Kantei and channels for direct talks with the US government. 
 
On March 21, shortly after the Pentagon revealed that it had 
asked Japan to bear 75% of the total cost, Prime Minister 
Junichiro Koizumi essentially gave Nukaga full power to negotiate 
with the US on all aspects, including finances. In the past, this 
sort of matter would have been handled under the Foreign 
Ministry's lead, but this time it was entrusted to the Defense 
Agency led by Nukaga and Administrative Defense Vice Minister 
Takemasa Moriya. Koizumi's decision gave birth to a setup in 
which the Kantei and Defense Agency took the lead and were backed 
up on fiscal matters by the Ministry of Finance. 
 
A week later, Koizumi and Nukaga had dinner with LDP Security 
Research Commission Chairman Taku Yamasaki. Koizumi told Yamasaki 
that the Defense Agency would take the lead, thus cutting off the 
LDP from realignment talks. 
 
On April 5, Nukaga learned that senior working-level talks in 
Washington ended in failure. This prompted him to make up his 
mind to seek a political settlement. On April 13, visiting US 
Deputy Under Secretary of Defense Richard Lawless thanked Nukaga 
for a plan to build two runways in a V-shape to replace Futenma 
Air Station. But chances were slim that the US would concede on 
the relocation cost. 
 
One hour before leaving the US 
 
Around that time, US Ambassador to Japan Schieffer visited the 
Kantei and got involved in the negotiations. Schieffer had been 
exhibiting a flexible stance all along by suggesting some fine- 
tuning to the Futenma relocation plan. 
 
Nukaga had been in close contact with Schieffer to feel out 
Washington's intention. Nukaga briefed Koizumi on April 17 and 
¶20. Koizumi said: "Japan's annual host nation support is 600 
 
TOKYO 00002224  005 OF 010 
 
 
billion yen. It's not proper to separate the Guam relocation cost 
alone from HNS." Koizumi and Nukaga confined the need to come up 
with a figure that was convincing to the public. Nukaga then left 
for the US. 
 
"Nukaga-san," Schieffer called on the Japanese defense chief as 
he received him at the US Defense Department. In his talks with 
Nukaga that lasted over three hours, Rumsfeld even said at one 
point, "If Japan cannot finance it, we can call off the Marine 
relocation plan." Looking back on his talks with Rumsfeld, Nukaga 
said at the press conference, "The talks encountered a number of 
difficulties, but we managed to reach an agreement after three 
breaks." It was only one hour before his flight back to Japan via 
Europe. 
 
6) Opposition parties criticize Japan-US agreement on sharing US 
Marines relocation cost as "unprecedented" 
 
ASAHI (Page 4) (Full) 
April 25, 2006 
 
Commenting on an agreement reached between Japan and the United 
states on sharing the cost of relocating US Marines from Okinawa 
to Guam, the main opposition party Minshuto (Democratic Party of 
Japan) released yesterday a statement in the names of foreign 
minister and defense chief of its "Next Cabinet" that went: 
 
"It is internationally unprecedented to spend money from the 
national treasury on relocating the military facilities of an 
allied country. The government might implement the agreement 
without letting the public know the breakdown of the cost that 
Japan will share. We would like to thoroughly examine it." 
 
The Japanese Communist Party's Head of the Secretariat Tadayoshi 
Ichida made a critical comment on the bilateral accord at a press 
conference yesterday: 
 
"It is only natural for the United States to pay the whole cost. 
The United States will relocate Marines from Okinawa to Guam for 
the time being in order to realize its global strategy. It is not 
for reducing Okinawa's burden." 
 
Social Democratic Party Secretary General Seiji Mataichi released 
a statement that went: "We cannot accept that Japan will share 
the cost of building US military facilities in the United States. 
Such would go against Japan's fiscal reconstruction efforts." 
 
7) Ruling camp praises but Minshuto calls for "thorough probe" 
into US-Japan agreement on cost-sharing of Guam relocation; Issue 
to be debated in latter half of Diet session 
 
NIHON KEIZAI (Page 2) (Excerpt) 
April 25, 2006 
 
Voices of approval yesterday came in succession from the 
government and ruling parties for the settlement of the issue of 
relocating Okinawa Marines to Guam. However, Minshuto (Democratic 
Party of Japan) is taking a stance calling for severe scrutiny of 
the contents of the agreement. The issue is likely to become a 
focus for debate in the latter half of the current Diet session. 
 
Minshuto yesterday issued a statement that read: "Even though an 
 
TOKYO 00002224  006 OF 010 
 
 
agreement has been reached between the Japanese and US 
governments, since Japan is a democratic state, the agreement 
needs to be strictly checked and approved by the Diet. I would 
like to see a thorough probe into the agreement." 
 
8) Government to disburse 4.3 billion yen to finance plan for 
extended MSDF deployment in Indian Ocean 
 
MAINICHI (Page 5) (Full) 
April 25, 2006 
 
The government decided in its administrative vice ministerial 
conference yesterday that it would disburse 4.384 billion yen 
from the reserve fund for fiscal 2006 to finance its plan to 
extend through Nov. 1 the deployment of the Maritime Self-Defense 
Force (MSDF) in the Indian Ocean based on the Special 
Antiterrorism Law. The balance of the fund will be 45.392 billion 
yen. 
 
9) Defeat in Lower House by-election creating commotion in LDP; 
Dark clouds threatening Abe's lead in LDP presidential race 
 
ASAHI (Page 3) (Excerpts) 
April 25, 2006 
 
"We could not win the election even though we fully took 
advantage of Mr. Abe's popularity," said a Liberal Democratic 
Party (LDP) member yesterday a day after the LDP candidate was 
defeated in a House of Representatives election for the Chiba No. 
7 district. The defeat in the by-election is now causing 
controversy over the choice of a successor to Koizumi as LDP 
president. Although the view is strong among LDP members that 
Chief Cabinet Secretary Shinzo Abe, who enjoys high popularity, 
should succeed Prime Minister Junichiro Koizumi, some members 
distancing themselves from Abe have now stressed that policies 
are more important than popularity. They seem to have obtained an 
excuse to create an anti-Abe mood. 
 
Abe, the leading contender to succeed Koizumi as LDP president, 
stood out in supporting the campaign of the LDP candidate in 
Sunday's Lower House by-election. He went to the candidate's 
constituency three times to deliver speeches. Three other post- 
Koizumi contenders -- Foreign Minister Taro Aso, Finance Minister 
Sadakazu Tanigaki, and former Chief Cabinet Secretary Yasuo 
Fukuda -- visited only once each. 
 
Even so, the LDP was unable to win the election. Former Prime 
Minister Yoshiro Mori stated in Kobe City yesterday: "We receive 
the feelings of voters thorough an election. Since voters have 
their own opinions, they cast their votes for the candidate they 
believe in regardless of Mr. Abe and Mr. Fukuda." 
 
All the more because Prime Minister Koizumi also went to the 
constituency to give a speech, a senior LDP Upper House member 
said, "We have now learned that we should not rely on the prime 
minister's high popularity." 
 
An aide to Abe, however, took a bullish attitude, saying: 
 
"We will need to field a person who can compete with Minshuto 
(Democratic Party of Japan) President Ichiro Ozawa in the next 
prime ministerial race. In that case, voices calling for Mr. Abe 
 
TOKYO 00002224  007 OF 010 
 
 
to run in the race will become stronger." 
 
Koizumi told reporters yesterday, "I think anyone who becomes LDP 
president would be capable of doing the job." 
 
A mid-level lawmaker from the Shimazu faction in the LDP, 
however, predicted: 
 
"There was a move looking for a possibility that factions, 
excluding the Mori faction, would cooperate in order to fight 
against Abe and the Mori faction. Such a move cannot be ruled 
out." 
 
10) Poll: Cabinet support rate recovers to 50%; 50% have 
expectations of Minshuto head Ozawa 
 
ASAHI (Page 3) (Excerpts) 
April 25, 2006 
 
The Asahi Shimbun conducted a nationwide opinion poll on April 22- 
¶23. The survey found that approval rating for the cabinet of 
Prime Minister Junichiro Koizumi was 50%, up from 46% in the 
March poll. The major reason for the boost was increased support 
from women and young people. Meanwhile, 50% of respondents said 
that they had hopes for Minshuto (Democratic Party of Japan) 
President Ichiro Ozawa. This is the highest such rate for a new 
party leader, which reflects people's need for a strong political 
party capable of standing up to the LDP. 
 
Some 38%, nearly unchanged from the previous survey, favored the 
LDP, and 17% supported Minshuto, recovering to the percentage it 
registered in the survey conducted last October from 13% in the 
previous poll. 
 
11) Vice Foreign Minister Yachi: "Japan could conduct maritime 
survey near Takeshima depending on South Korea's moves" 
 
ASAHI (Page 2) (Full) 
April 25, 2006 
 
Speaking to the press yesterday, Administrative Vice Foreign 
Minister Shotaro Yachi said regarding Japan's maritime survey in 
its exclusive economic zone (EEZ) near Takeshima, a group of 
disputed islets known as Dokdo in South Korea: "Theoretically 
speaking, we could conduct a survey if the South Korean side 
again makes another move, as this is our legitimate right." Tokyo 
and Seoul reached an agreement that South Korea would not propose 
new names for seafloor topographical features at an international 
conference in June and that Japan would call off the maritime 
survey. Yachi indicated, however, that Japan could resume the 
planned maritime survey depending on South Korea's steps. 
 
Foreign Ministry Asian and Oceanian Affairs Bureau Director 
General Kenichiro Sasae also said before the LDP Maritime Policy 
Special Committee yesterday: "There is no agreement on what to do 
in June and beyond. Theoretically, Japan could resume the 
maritime survey." 
 
12) Japan to propose joint survey, common names for underwater 
topography around Takeshima 
 
MAINICHI (page 5) (Full) 
 
TOKYO 00002224  008 OF 010 
 
 
April 25, 2006 
 
Administrative Vice Foreign Minister Shotaro Yachi indicated in a 
press conference yesterday that Japan would propose common names 
for underwater topography in waters around the Takeshima (Dokdo) 
islets, over which both Japan and South Korea claim sovereignty. 
Yachi said: "It is desirable (for the two countries) to conduct a 
joint survey, share information, and establish international 
names through bilateral talks." Japan and South Korea have agreed 
to resume talks in May on demarcating an exclusive economic zone 
(EEZ) in waters around Takeshima. In the talks, Japan intends to 
make the proposal, but South Korea is unlikely to agree to it. 
 
Yachi stated regarding Japan's planned maritime survey near 
Takeshima: "It is theoretically possible that if further moves by 
South Korea are discovered, Japan will start a survey." 
 
13) Foreign Ministry details Japan-South Korea negotiations on 
maritime survey in LDP panel; Government's responses come under 
fire 
 
YOMIURI (Page 4) (Full) 
April 25, 2006 
 
In a meeting of the Liberal Democratic Party's Special Committee 
on Maritime Affairs (chaired by Keizo Takemi) yesterday, the 
Foreign Ministry's Asian and Oceanian Affairs Bureau Director 
General Kenichiro Sasae reported on the details of the 
negotiations between Japan and South Korea over a Japanese 
maritime survey in waters around the Takeshima (Dokdo) islets. 
 
In the meeting, many participants welcomed the fact that both 
sides managed to avert a clash. But one member complained: "Japan 
said that it would not conduct the survey although South Korea 
still says that it will move (to propose Korean names for 
underwater topography). Isn't that a problem?" Another suggested: 
"Japan should make arrangements to bring the issue to the 
International Court of Justice." 
 
Many also criticized the government's response and setup for 
sharing information since the Japan Coast Guard learned of South 
Korea's move to propose Korean names late last year. 
 
Vice Foreign Minister Shotaro Yachi said in a press conference 
yesterday: 
 
"Japan will call off the planned maritime survey. It is 
theoretically possible that if further moves by South Korea are 
discovered, Japan will start a survey, based on its legitimate 
right." 
 
14) Prime Minister at Japan-EU summit discusses Iran's uranium 
enrichment 
 
YOMIURI (age 4) (Full) 
April 25, 2006 
 
Prime Minister Koizumi held a regular Japan-EU summit yesterday 
with Chancellor Schuessel of Austria, which holds the presidency 
of the European Union (EU), and European Committee Chairman 
Barroso. They issued a joint statement expressing strong 
misgivings over Iran's uranium enrichment activities and calling 
 
TOKYO 00002224  009 OF 010 
 
 
on North Korea to completely abandon its nuclear programs. 
 
The statement criticized Iran's uranium enrichment activities as 
"going against the resolution adopted by the International Atomic 
Energy Agency's (IAEA) executive board, as well as the demand in 
the United Nations Security Council chairman's statement." Toward 
North Korea, the statement called for the UN to implement the 
resolution critical of human rights problems in that nation 
adopted by the General Assembly last December. 
 
In the meeting, Koizumi renewed his opposition to a removal an 
end to the EU arms embargo on China. The EU side just replied: 
"We understand Japan's concern." 
 
15) Consumers show strong aversion to US beef at town meetings at 
10 venues; Government aims to settle import resumption issue in 
June 
 
MAINICHI (Page 11) (Excerpts) 
April 25, 2006 
 
The Ministry of Agriculture, Forestry, and Fisheries (MAFF) and 
the Ministry of Health, Labor, and Welfare (MHLW) have completed 
10 town meetings with consumers throughout the country over the 
US beef import ban following the finding of vertebral columns in 
a US beef shipment, with the last meeting in Takamatsu yesterday. 
At all meetings consumers voiced views cautious about the idea of 
lifting the ban, indicating that they have deep-seated aversion 
to US beef. The government intends to settle the issue before 
Prime Minister Junichiro Koizumi visits the US possibly in late 
June. The reliability of measures to prevent a recurrence to be 
worked out between Japan and the US will determine the fate of 
beef trade. 
 
Opinions voiced at town meetings were apparently based on 
skepticism about safety and distrust of the US government. 
 
"The import ban should not be removed until the US carries out 
blanket testing." (Sapporo) 
"The inclusion of vertebral columns is not a unique case. It is a 
structural problem." (Osaka) 
"The government may be holding town meetings just for the sake of 
formality with a view to resuming the beef trade." (Takamatsu) 
 
Only a few called for an early resumption of imports. Since 
bilateral talks have thus far focused on how the vertebral 
columns were included, explanations provided by the government 
during town meetings did not cover safety measures. In this 
regard, a gap was seen in exchanges of views with consumers. 
 
However, procedures to reinstate the beef trade have now 
undoubtedly taken a step forward. The US Department of 
Agriculture will shortly reinspect 37 meat-processing plants that 
had been authorized to export products to Japan. It has also come 
up with a proposal to retrain inspectors and improve its 
mechanisms for sharing information internally. The governments of 
the two countries will look into whether additional measures are 
necessary. They are expected to reach an agreement in principle 
on a resumption of US beef imports possibly in May. 
 
At that point, the government will hold another round of similar 
town meetings and formally decide to reinstate the beef trade, if 
 
TOKYO 00002224  010 OF 010 
 
 
it determines that it has obtained consumer understanding. The 
process following the decision will likely be that the Japanese 
side will conduct prior inspection and the US will authorize meat 
packers that have cleared such inspections to ship products to 
Japan. 
 
DONOVAN