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Viewing cable 06TOKYO2241, JAPANESE MORNING PRESS HIGHLIGHTS 04/26/06

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Reference ID Created Released Classification Origin
06TOKYO2241 2006-04-26 01:53 2011-08-26 00:00 UNCLASSIFIED Embassy Tokyo
VZCZCXRO4609
PP RUEHFK RUEHKSO RUEHNAG RUEHNH
DE RUEHKO #2241/01 1160153
ZNR UUUUU ZZH
P 260153Z APR 06
FM AMEMBASSY TOKYO
TO RUEHC/SECSTATE WASHDC PRIORITY 1353
INFO RUEKJCS/SECDEF WASHDC PRIORITY
RHEHAAA/THE WHITE HOUSE WASHINGTON DC PRIORITY
RUEAWJA/USDOJ WASHDC PRIORITY
RULSDMK/USDOT WASHDC PRIORITY
RUCPDOC/USDOC WASHDC PRIORITY
RUEAIIA/CIA WASHDC PRIORITY
RUEKJCS/JOINT STAFF WASHDC//J5//
RHHMUNA/HQ USPACOM HONOLULU HI
RHHMHBA/COMPACFLT PEARL HARBOR HI
RHMFIUU/HQ PACAF HICKAM AFB HI//CC/PA//
RHMFIUU/COMUSJAPAN YOKOTA AB JA//J5/JO21//
RUYNAAC/COMNAVFORJAPAN YOKOSUKA JA
RUAYJAA/COMPATWING ONE KAMI SEYA JA
RUEHNH/AMCONSUL NAHA 8518
RUEHFK/AMCONSUL FUKUOKA 5894
RUEHOK/AMCONSUL OSAKA KOBE 9083
RUEHNAG/AMCONSUL NAGOYA 5878
RUEHKSO/AMCONSUL SAPPORO 7070
RUEHBJ/AMEMBASSY BEIJING 1949
RUEHUL/AMEMBASSY SEOUL 8115
RUCNDT/USMISSION USUN NEW YORK 9981
UNCLAS SECTION 01 OF 11 TOKYO 002241 
 
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 04/26/06 
 
Index: 
 
1)   Top headlines 
2)   Editorials 
3)   Prime Minister's daily schedule 
 
Koizumi in action: 
4)   Today is the 5th anniversary of Prime Minister Koizumi's 
  taking over the helm 
5)   Asahi poll: 42% say living situation has worsened under 
Koizumi reforms; 18% say things got better 
6)   Shinzo Abe still most favored post-Koizumi contender with 
45% popularity rating, followed by Yasuo Fukuda with 20% 
7)   Prime Minister speaking to "Koizumi's children," the 
freshman class of LDP lawmakers, says, "You don't listen to what 
I tell you" 
8)   Koizumi being asked by US scholars to give speech before US 
Congress, becoming first Japanese prime minister to do so in 45 
years 
9)   Koizumi meets with former Secretary of State Kissinger 
10)  Former Chief Cabinet Secretary Yasuo Fukuda setting us own 
Asia policy in preparation for LDP presidential race this fall 
11)  Koizumi: China, South Korea will someday "regret their 
criticism of me for visiting Yasukuni Shrine" 
 
12)  In wake of President Roh's hard-nosed statement on 
  Takeshima, Japan would like to separate the island dispute from 
  other issues with South Korea 
 
Defense affairs: 
13)  High-level US official would like to see Japan, NATO engaged 
  in tactical discussions 
14)  Japan's share of Guam relocation cost will drop to 57.6% due 
to economizing in housing construction plan 
15)  Defense Agency, Finance Ministry clash looming over funding 
resources for Japan's share of relocating Okinawa Marines to Guam 
16)  Sagimihara mayor, satisfied with reversion of some US base 
land to city, will support the USFJ realignment agreement 
17)  Five opposition parties to support joint candidate in 
Okinawa gubernatorial election 
 
18)  USDA now re-inspecting meat-packers that ship to Japan 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi: 
Eight directors of Japan Skating Federation to quit over 
inadequate accounting in international section 
 
Mainichi: 
Eight persons to be arrested today over fake earthquake- 
resistance building code fabrications 
 
Yomiuri: 
Urban Renaissance Agency loses structural calculation papers for 
1,879 condominium buildings; 30% of papers that should be 
preserved 
 
Nihon Keizai: 
Privatized Japan Postal Services to make inroads into personal 
 
TOKYO 00002241  002 OF 011 
 
 
loan market; Ceiling of postal insurance also eyed 
 
Sankei: 
Financial Services Agency to impose administrative punishment on 
Sumitomo Mitsui Banking over forced sales of financial products 
 
Tokyo Shimbun: 
2016 Summer Olympic Games; Tokyo Metropolitan government plans 
main stadium that can accommodate 80,000 people at Harumi; 
 
2) EDITORIALS 
 
Asahi: 
(1)  Five years since Koizumi took over premiership: Shelf-life 
about to expire 
(2)  South Korean President Roh: Precariousness about insisting 
on principle alone 
 
Mainichi: 
(1)  Statement of President Roh: Cool-headed dialogue needed 
(2)  One year since JR West Japan accident: Regain pride and self- 
awareness as railway company 
 
Yomiuri: 
(1)  President Roh's statement: Bring the case to international 
law court, if he is confident of his claim 
(2)  WTO talks: Search for breakthrough to avoid breakdown in 
negotiations 
 
Nihon Keizai: 
(1)  We should not forget the lessons learned from Chernobyl 
(2)  Ordeal in establishing permanent Iraqi government 
 
Sankei: 
(1)  Five years since inauguration of Koizumi administration: 
Achieve reform without abandoning efforts 
(2)  Halted Yamanote Line services: Pile up evidence by 
inspection 
 
Tokyo Shimbun: 
(1)  One year since Amagasaki railway accident: Do not forget the 
pledge 
(2)  Chernobyl: No end to pursuit of safety 
 
3) Prime Minister's Official Residence (Kantei) 
 
Prime Minister's schedule, April 25 
 
NIHON KEIZAI (Page 2)  (Full) 
April 26, 2006 
 
09:01 
Attended a Cabinet meeting in the Diet building. Chief Cabinet 
Secretary Abe and JDA Director General Nukaga stayed behind. 
 
SIPDIS 
 
09:24 
Arrived at Kantei. 
 
10:00 
Reported to the Emperor in private. 
 
11:00 
 
TOKYO 00002241  003 OF 011 
 
 
Met at Kantei with Swedish Ambassador Lindstrom and others. 
Followed by Lower House Foreign Affairs Committee Chairman 
Harada. 
 
14:30 
Met Abe. 
 
15:05 
Met former US State Secretary Kissinger and others. Later, met 
Foreign Ministry Deputy Director General Nishida, African Affairs 
Deputy Director General Otabe, and others. 
 
16:50 
Met Science and Technology Policy Minister Matsuda and others. 
 
17:07 
Met Education, Culture, Sports, Science and Technology Minister 
Kosaka. Attended a meeting of the Science and Technology 
Conference. 
 
18:49 
Attended a launch party of the Hachisann kai, a group of the 
first-term Lower House members of the LDP at the Hotel New Sanno. 
 
19:22 
Met New Komeito head Kanzaki, Secretary General Takebe, Abe, and 
others at Kantei. 
 
4) Koizumi government marks 5th anniversary; Reform policy 
promoted economic recovery but public remains concerned about the 
future 
 
MAINICHI (Page 1) (Full) 
April 26, 2006 
 
The government of Prime Minister Junichiro Koizumi today 
celebrates its fifth anniversary. The government's view is that 
since it has been working on deregulation under the slogan of 
promoting structural reforms, the Japanese economy is now being 
pulled back from the brink of a deflationary spiral, but it 
insists that a social divide has not been created. However, 
people are increasingly concerned about the "negative effects" of 
reform, such as the rapidly falling birthrate and rising crime. 
 
Koizumi categorically told reporters yesterday: 
 
"I destroyed the forces that relied on support organizations and 
protected certain vested interests. I'm the first Liberal 
Democratic Party member who became prime minister without support 
from the largest faction called the Tanaka, Takeshita and now 
Tsushima faction. I broke down the party's traditional faction- 
 
SIPDIS 
based politics and faction-centered personnel appointments." 
 
He also stressed: "Criticism of the social gap is a reflection of 
criticism of the Koizumi government. For anti-Koizumi forces 
these phrases are the easiest ones to use." 
 
The Koizumi government still garners almost 50% of the public's 
support. The prime minister remains influential in the upcoming 
party presidential race. The economy, which slowed down soon 
after he took office, is now firmly on a recovery path. Most 
economic indicators have turned upward. 
 
TOKYO 00002241  004 OF 011 
 
 
 
Looking at other indicators, however, there are outstanding 
negative aspects, as well, including the declining birthrate and 
rising crime (excluding burglaries and violations of traffic 
rules) that could shake the social foundation. 
 
The number of Self-Defense Forces personnel dispatched to 
overseas missions increased to 1,440 (as of April 1) from zero 
when the Koizumi government was inaugurated. The position of the 
SDF has greatly changed from that before Koizumi assumed the 
prime ministership. 
 
5) Poll: 42% feel worse off, 18% well off 
 
ASAHI (Page 1) (Full) 
April 26, 2006 
 
The Asahi Shimbun conducted a telephone-based public opinion 
survey across the nation on April 22-23, in which respondents 
were asked to give their overall ratings for the Koizumi cabinet 
over the past five years since coming into office. Asked if the 
Koizumi cabinet has done well to date. 46% answered "yes," with 
21% saying "no." Respondents were also asked about their 
circumstances over the past five years. In response, 42% answered 
that they were worse off than five years ago, with 18% feeling 
better off. There was a split of opinion among those who answered 
that they were worse off than five years ago when they were asked 
if that was because of the Koizumi cabinet's policy measures. 
 
In addition to overall ratings for the Koizumi cabinet's 
performance, respondents were further asked to evaluate its 
economic policy, administrative reform, and social security 
policy. Among positive ratings, administrative reform, such as 
postal privatization, topped at 52%, followed by economic policy 
at 36%. Social security policy, such as pensions, ranked last at 
16%, with foreign policy second lowest at 27%. 
 
In the survey, respondents were asked if they were better off 
than five years ago. In response, "yes" accounted for about 30% 
among those in their 20s and also among those in their 30s. Among 
those in their 50s and over, however, "yes" accounted for only 
10% or so. Those in the upper age brackets were more pessimistic 
than those in younger generations. 
 
Those worse off than five years ago were also asked if they 
thought that was because of the Koizumi cabinet's policy 
measures. In response to this question, they were split in 
opinion, with 43% saying "yes" and 45% saying "no." Broken down 
into age brackets, "yes" went up with generations. Among those in 
their 60s and over, "yes" rose up to around 60%. This shows that 
many of those in the upper age brackets feel worse off than 
before due to the Koizumi cabinet's structural reforms. 
 
Those better off were also asked with the same question. In 
response, "yes" accounted for 29%, with "no" at 64%. Even among 
those who positively rated the Koizumi cabinet's economic policy, 
"yes" accounted for 42%, with "no" at 49%. 
 
6) Abe leads post-Koizumi race at 45%, Fukuda levels off 
 
ASAHI (Page 4) (Full) 
April 26, 2006 
 
TOKYO 00002241  005 OF 011 
 
 
 
"Who do you think is appropriate for the next prime minister?" In 
response to this question asked in a recent Asahi Shimbun poll, 
Chief Cabinet Secretary Shinzo Abe topped all other post-Koizumi 
candidates at 45%, followed by former Chief Cabinet Secretary 
Yasuo Fukuda at 20%, Foreign Minister Taro Aso at 4%, and Finance 
Minister Sadakazu Tanigaki at 3%. 
 
In the survey this time, respondents were asked to pick one from 
among four ruling Liberal Democratic Party lawmakers and others. 
Last month, Abe ranked top at 47%, with Fukuda standing at 20%, 
Aso at 5%, and Tanigaki at 4%. Abe slipped in the latest survey, 
but Fukuda stayed flat. The gap between the two has shrunken only 
a little. 
 
Among those respondents who gave positive evaluation to the 
Koizumi cabinet over the past five years since the prime minister 
came into office, Abe was most popular with 55%, followed by 
Fukuda with 18%. Among those negative about the Koizumi cabinet's 
performance, however, Fukuda stood at 26%, with Abe at 23%. 
 
7) Prime Minister Koizumi seeks to check "Koizumi's children" -- 
freshman class in the Diet -- saying, "You don't listen to what I 
say" 
 
MAINICHI (Page 5) (Full) 
April 26, 2006 
 
The new lawmakers of the Liberal Democratic Party (LDP), who were 
elected to the Diet in last fall's House of Representatives 
election, yesterday held a fund-raising party at a Tokyo hotel in 
which they celebrated the publication of a book "UBUDAS 83 LDP 
First-Termer Lower House Members' Directory." The fresh lawmakers 
call themselves "Hachisan Kai" or "Group of 83." 
 
Prime Minister Junichiro Koizumi, who was invited to the party, 
gave a speech, "You are called Koizumi's children, having been 
elected to the Diet. Children now days don't obey their parents. 
You are Diet members. I understand that you, too, don't listen to 
what I say." He sought to check Hachisan members' recent moves 
such as entering factions and formation of study groups. The 
party was very well attended by about 300 persons, including LDP 
Secretary General Tsutomu Takebe. 
 
SIPDIS 
 
8) Scholars and others in US clamor for Prime Minister Koizumi to 
give speech before US Congress; If so, would be the first by a 
Japanese premier in 45 years; Good chance to publicize the 
alliance 
 
SANKEI (Page 7) (Excerpts) 
April 26, 2006 
 
By Eiro Kesen in Washington 
 
With coordination continuing for Prime Minister Junichiro Koizumi 
to visit the United States in late June, US scholars and other 
are calling for the Prime Minister at the same time to give a 
speech before the US Congress. There has not been a speech by a 
Japanese premier before the Congress in 45 years, the last one 
given by Prime Minister Hayato Ikeda. Given the personal 
friendship between Koizumi and President Bush, the view is for 
the Prime Minister to make such a speech to impress domestic and 
 
TOKYO 00002241  006 OF 011 
 
 
foreign audiences with the importance of the Japan-US alliance. 
 
Kent Calder, director of the Reischauer East Asia Research 
Center, said: "President Bush in 2002 gave a speech before the 
Japanese Diet. If Prime Minister Koizumi gives a speech, it would 
not only stress the importance of the US-Japan relationship, it 
would also impress the American public with the difference 
between that and US-China ties." 
 
Former Ambassador to the US Armacost said, "It is a good idea," 
expressing his hope that the timing could be worked out with the 
Congress. Michael Green, former senior Asia director at the 
National Security Council, stated: "If there is an obstacle to 
it, it would be the problem of restarting US beef exports to 
Japan, as well as whether the Congress is in session. But given 
Japan's good image now, the members of Congress would likely 
welcome the speech." 
 
9) Prime Minister Koizumi meets for first time with Henry 
Kissinger 
 
MAINICHI (Page 5) (Full) 
April 26, 2006 
 
Prime Minister Junichiro Koizumi met yesterday at his office with 
former US Secretary of State Henry Kissinger. It was the first 
meeting between Koizumi and Kissinger, who is now visiting Tokyo 
to attend a private-sector-sponsored conference of experts from 
Japan, the United States and Europe. Kissinger told reporters 
after the meeting, "The topic of our conversation was friendly 
relations between Japan and other Asian countries." 
 
10) Former Chief Cabinet Secretary Fukuda reveals plan to craft 
Asia policy, expressing eagerness to run for LDP presidency 
 
MAINICHI (Page 1) (Full) 
April 26, 2006 
 
Former Chief Cabinet Secretary Yasuo Fukuda of the Liberal 
Democratic Party revealed a plan yesterday to formulate a new 
Asia policy based on the "Fukuda doctrine," proposed in August 
1977 by the late Prime Minister Takeo Fukuda, his father, as 
basic policy toward Southeast Asia. Fukuda revealed the plan in 
his speech yesterday in Tokyo. He also criticized Prime Minister 
Junichiro Koizumi's visits to Yasukuni Shrine. Although he did 
not mention the LDP presidential election in September, for 
former chief cabinet secretary is believed to have expressed his 
eagerness to run in the race by announcing his plan to revamp 
Japan's Asia policy. 
 
Fukuda announced his plan to come up with a new Asia policy based 
on the rise of China and a move to launch the East Asian 
Community, saying: 
 
"We cannot use the same doctrine which is already 30 years old. 
Japan now has the foundation for forging heart-to-heart relations 
(owing to the doctrine), and we need to add another floor to it." 
 
Fukuda also rapped Koizumi's Yasukuni visits, stating: 
 
"The same person visited the shrine over and over again. He 
initially didn't explain (that he visited there in his private 
 
TOKYO 00002241  007 OF 011 
 
 
capacity), but he now insists on it. It's a problem." 
 
Fukuda underlined the need to improve relations with China and 
South Korea. 
 
Although he is regarded as one of the contenders for the LDP 
presidency, Fukuda brushed aside the rumor as a creation by the 
media. But he did not deny the possibility of his candidacy, 
saying: 
 
"Prime Minister Koizumi didn't come forward until a month before 
(the presidential election). The same was true with former prime 
ministers Ryutaro Hashimoto and Keizo Obuchi." 
 
11) Prime Minister rebuts criticism of visits to Yasukuni Shrine: 
"China and South Korea may feel regret" 
 
NIHON KEIZAI (Page 2) (Full) 
April 26, 2006 
 
In reference to the fact that China and South Korea have cut off 
top-level meetings in reaction to his visits to Yasukuni Shrine, 
Prime Minister Junichiro Koizumi told reporters at his official 
residence yesterday: "I think they (China and South Korea) will 
regret it sometime in the future." Asked about a time when 
summits could be resumed, Koizumi replied: "It will take time 
because they need to save their honor." 
 
12) Government aims to separate Takeshima issue during EEZ talks 
in response to South Korea's hard-line position 
 
NIHON KEIZAI (Page 2) (Full) 
April 26, 2006 
 
South Korean President Roh Moo Hyun outlined a hard-line stance 
toward Japan in a special speech yesterday. By separating the 
issue of sovereignty over the Takeshima (Dokdo) islets from other 
issues, Tokyo would like to somehow find common ground with Seoul 
in the planned bilateral talks on demarcating their exclusive 
economic zones (EEZ) in May. The president, though, said: "To our 
people, Dokdo is a symbol of complete restoration of 
sovereignty." Both sides are expected to clash head-on from the 
beginning of the talks. 
 
In a press briefing yesterday, Chief Cabinet Secretary Shinzo Abe 
said: "Although a gap exists in both sides' positions, we will 
aim to reach an amicable settlement in a cool-headed manner" in 
the EEZ talks. 
 
Under the Japan-South Korea fisheries agreement that came into 
effect in 1999, fishing grounds near Takeshima are defined as 
provisional waters controlled jointly by the two countries. But 
Japanese fishing boats are not allowed to engage in fishing 
operations as they like. Vice Foreign Minister Shotaro Yachi 
welcomes the resumption of EEZ negotiations, saying: "If a 
borderline is set, an EEZ will be made clear." 
 
South Korea is expected to take a stern attitude in the upcoming 
talks. In the special speech, President Roh said that South Korea 
"will reconsider in full scale" its response to the Takeshima 
issue. He indicated that Seoul would link the matter to things 
like Prime Minister Junichiro Koizumi's visits to Yasukuni Shrine 
 
TOKYO 00002241  008 OF 011 
 
 
and Japan's history textbooks. Some observers anticipate that 
South Korea would come up with a tougher position than before in 
the EEZ talks. 
 
13) Senior US official unveils initiative to create venue for 
strategic talks between NATO, Japan 
 
YOMIURI (Page 2) (Full) 
April 26, 2006 
 
Takashi Sadahiro, Washington 
 
Deputy Assistant Secretary of State Kurt Volker revealed on April 
14 an initiative to created a venue in NATO for US partners, 
including NATO and Japan, to discuss strategies with countries 
outside the region to allow them to deal flexibly and jointly 
with international crises and conflicts. 
 
Secretary of State Condoleezza Rice will propose the vision at 
 
SIPDIS 
the NATO informal foreign ministerial conference to be held in 
Bulgaria April 27-28 with the aim of reaching an agreement at the 
NATO summit in November. Foreign Minister Taro Aso is expected to 
discuss cooperation with NATO during his May 4 visit to the NATO 
headquarters in Brussels. 
 
14) Japan's share of Guam relocation cost to drop to 57.6% with 
420 million dollars saved by utilizing private-sector capital 
 
YOMIURI (Page 2) (Full) 
April 26, 2006 
 
Japan and the US agreed on 10.27 billion dollars (1.14 trillion 
yen at the exchange rate used for the fiscal 2006 budget) as the 
total cost of relocating Okinawa-based Marines to Guam as part of 
the realignment of US forces in Japan. But this amount will 
decrease to 9.85 billion dollars (1.934 trillion yen) because the 
cost of constructing housing for the families of the troops will 
save 420 million dollars (46.6 billion yen) by utilizing private- 
sector capital. Japan's share of the total cost thus will be 
reduced to 57.6% or 5.67 billion dollars (629.4 billion yen), 
according to government sources yesterday. 
 
Under the agreement reached between Japan and the US on April 23, 
Japan's share is 59.3% or 6.09 billion dollars (676 billion yen) 
of the total relocation cost. Of the amount, 2.55 billion dollars 
(283 billion yen) is to finance the construction of housing for 
families. Both sides have agreed that the 2.55 billion dollars 
will be broken down into: (1) the government's investment of 1.5 
billion dollars (166.5 billion yen) in a special-purpose company 
through the Japan Bank for International Corporation (JBIC); (2) 
630 million dollars (69.9 billion yen) in loans offered by the 
JBIC and other institutions; and (3) 420 million dollars as the 
saved portion. 
 
When he met US Defense Secretary Rumsfeld on April 23, Defense 
Agency Director General Nukaga requested that agreement should be 
reached on an amount that excluded the 420 million dollars. But 
the US reportedly asked Japan to include that portion because it 
would find it easier to obtain approval from the Congress if 
Japan's share is set higher, and Japan accepted the request. 
 
15) Guam relocation cost: Major difficulties lie ahead over 
 
TOKYO 00002241  009 OF 011 
 
 
fiscal resources; Finance Ministry, Defense Agency; Confrontation 
inevitable over spending cut policy 
 
ASAHI (Page 2) (Full) 
April 26, 2006 
 
A number of difficulties have emerged regarding the fiscal 
resources to fund Japan's share of the cost of relocating US 
Marines in Okinawa to Guam, which totals 6.09 billion dollars. 
The Finance Ministry (MOF) plans to press ahead with sweeping 
cuts in expenditures, premised on the need to hike taxes. MOF 
intends to call on the Defense Agency (JDA) to cut expenditures 
in other areas so that the overall defense budget will not 
expand. The JDA is bound to oppose such a proposal. The 
government is now trying to scale down the overseas financing 
sector of the Japan Bank for International Cooperation (JBIC) as 
part of efforts to reform its policy financing. At such a time, 
it is questionable to let that bank extend a huge loan to the US. 
 
Meeting the press after a cabinet meeting yesterday, Finance 
Minister Tanigaki took the view that a possible cut in "sympathy 
budget" allocations to US forces in Japan (232.6 billion yen in 
fiscal 2006), while bearing the cost of relocating Marines to 
Okinawa, should be looked into. He noted, "Due to the severe 
fiscal condition, we must discuss this problem, including host 
nation support, as well." 
 
Vice Finance Minister Hosokawa on April 24 also advocates a 
policy of not creating a separate budget framework for covering 
the Guam relocation cost, noting, "The relocation cost should 
basically be regarded as defense-related expenditures." 
 
In its share of the relocation cost, the Japanese government will 
pay 2.8 billion dollars or approximately 320 billion yen at 
government expense. Provided that the relocation takes seven to 
eight years, an annual budget allocation of 40 to 50 billion yen 
will become necessary on average. The defense budget for fiscal 
2006 is approximately 4.8 trillion yen. Mandated payments due 
this year for past purchases of vessels and aircraft and other 
obligatory expenses, such as personnel expenses, command 80% of 
the entire defense budget, leaving little room for spending cuts. 
The fuel procurement cost has also been increasing due to the 
rise in crude oil prices. 
 
If the US Marines on Okinawa move to Guam, Japan's host nation 
support expenses will decrease. However, in order to 
substantially cut these, it is necessary to review the special 
measures agreement. It is unlikely that the US side will easily 
agree to do so. 
 
Many challenges exist in extending the 1.79 billion dollars 
(approximately 200 billion yen) as well. The JBIC, which is 
expected to serve as a vehicle in extending such loans, ended its 
loan extension business targeting advanced industrialized 
countries in fiscal 2002. Its operations now focus on services 
for developing countries. Chances are that if loans to the US are 
to be extended through the JBIC, it would be necessary pass new 
legislation. 
 
The government has introduced an administrative reform bill, 
including the integration of government-affiliated financial 
institutions, to the current Diet session. Since extending loans 
 
TOKYO 00002241  010 OF 011 
 
 
for the relocation of US Marines is contrary to that policy, the 
issue will likely be pursued during deliberations on that bill. 
 
16) Sagamihara mayor to accept final report on USFJ realignment 
 
TOKYO SHIMBUN (Page 1) (Full) 
April 26, 2006 
 
Japan and the United States are expected to shortly wrap up their 
intergovernmental talks over the realignment of US forces in 
Japan and release a final report. Meanwhile, Defense Agency 
Director General Fukushiro Nukaga yesterday met with Isao Ogawa, 
mayor of Sagamihara City, Kanagawa Prefecture, and told the mayor 
that the United States would return an additional area of about 
two hectares for railway and road use in Sagami Depot, a US Army 
facility covering a total area of 214 hectares. 
 
The Japanese and US governments talked about a plan to make joint 
use of that two-hectare land portion but then decided to return 
it to the city at its strong request. In response, the city is 
expected to accept the final report. The United States, which has 
already agreed to return 15 hectares in the depot, will return a 
total of 17 hectares. 
 
The city has also claimed some other US military areas, including 
a road on the eastwardly rim of a housing area in the city and a 
peripheral road along a golf course in Camp Zama stretching in 
the cities of Zama and Sagamihara. The Japanese and US 
governments will talk about their reversion in their bilateral 
joint committee. 
 
The United States has plans to revamp the US Army's 1st Corps and 
move its command functionality to Camp Zama. In the meantime, the 
Defense Agency also has plans to set up the Central Readiness 
Command (CRC) in the Ground Self-Defense Force and locate CRC 
headquarters at Camp Zama. However, the mayor positively 
evaluated the government's response, saying, "We could generally 
talk about our requests for the time being." With this, the mayor 
implied that the city would have no choice but to accept the new 
US Army command since the Japanese and US governments are 
scheduled to release the final report soon. 
 
17) Five Okinawa opposition parties against US force realignment 
to join efforts for November gubernatorial race 
 
MAINICHI (Page 2) (Full) 
April 26, 2006 
 
Representatives of five opposition parties in Okinawa -- Minshuto 
(Democratic Party of Japan), Japanese Communist Party, Social 
Democratic Party, Jiyu Rengo, and Okinawa Social Mass Party -- 
met yesterday and confirmed the policy to oppose US force 
realignment and join efforts for the November gubernatorial 
election. They will discuss how to determine their candidate at a 
later date. 
 
The five parties also searched for ways to join efforts in the 
2002 gubernatorial race, but their efforts to determine their 
candidate ended in failure. As a result, Keiichi Inamine, who was 
backed by the Liberal Democratic Party and New Komeito, won his 
reelection. Inamine has been mum regarding whether to seek his 
third term. 
 
TOKYO 00002241  011 OF 011 
 
 
 
18) US re-inspecting meatpacking facilities; When completed, will 
enter talks with Japan to resume US beef exports 
 
ASAHI (Page 12) (Excerpts) 
April 26, 2006 
 
The Ministry of Agriculture, Forestry and Fisheries (MAFF) has 
revealed that the US government on April 24 local time began to 
re-inspect facilities in the United States that export beef to 
Japan. Word of that came from the US Embassy in Tokyo. Since 
carrying out a re-inspection was promised by the US late last 
month at a meeting of Japanese and US government experts, the 
move is seen as an important procedure leading to the resumption 
of imports of US beef into Japan. 
 
In addition to the US' promise at the experts' meeting to re- 
inspect the meat-packing facilities, the Japanese government 
decided to hold meetings with consumers to exchange views on 
resumption of US beef imports. The meetings that were held in 10 
places across the country came to an end on April 24. 
 
As soon as the re-inspections are completed, expected to be in 
two weeks or so, the Japanese and US governments plan to meet 
again and discuss the specific process for restarting US beef 
imports. According to MAFF, there have been consultations three 
times on what points to re-inspect at the export facilities in 
question. 
 
DONOVAN