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UNCLAS SECTION 01 OF 12 TOKYO 002298 
 
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//06 
 
 
Index: 
 
1)   Top headlines 
2)   Editorials 
3)   Prime Minister's daily schedule 
 
USFJ realignment sticker shock: 
4)   Government shocked by Pentagon estimate of 3 trillion yen 
  ($26 billion) that Japan must pay for USFJ realignment costs 
5)   On 3-trillion yen realignment cost, Prime Minister Koizumi 
says US paying heed to domestic opinion that feels Japan should 
bear more for its defense 
6)   Disharmony in government between finance, foreign ministries 
and JDA over how to pay the cost of USFJ realignment 
7)   Japan's cost of USFJ realignment could go up depending on 
exchange rate fluctuations 
8)   Legislation needed to pay for USFJ realignment may not make 
it through the Diet this session 
9)   Japan Communist Party, Social-Democratic Party balk at Japan 
paying 3 trillion yen for USFJ realignment 
 
Other defense issues: 
10)  Upcoming 2-plus-2 meeting in Washington may decide to revise 
  the US-Japan defense cooperation guidelines 
11)  Full reversion of four US bases in Okinawa to be included in 
final report on USFJ realignment 
12)  Next GSDF unit readying for rotating to Iraq starting next 
month 
 
13)  Sakie Yokota, mother of girl abducted by North Koreans, 
  meets Deputy Under Secretary of Defense Lawless in Washington 
 
14)  South Korea setting up special team to deal with the 
  Takeshima (Dokdo) island dispute with Japan 
 
15)  LDP's Taku Yamasaki in meeting with senior Chinese party 
  official hears familiar litany on Prime Minister Koizumi's 
  Yasukuni Shrine visits 
 
16)  Columbia University Professor Curtis asks Koizumi in dinner 
  meeting whether the next prime minister will be popular or a 
  populist 
 
Economic agenda: 
17)  Afraid of impact on Upper House election next summer, LDP 
  tax panel decides to postpone plan to hike consumption tax 
18)  METI nationwide questionnaire finds public split on social 
disparity issue 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi: 
Fraud case to be established against Huser President Kojima on 
suspicion of selling condos while hiding defects; Crime of 
omission to be applied 
 
Mainichi: 
eHomes employees aware of sloppy inspection; No check carried out 
on earthquake resistance data 
 
 
TOKYO 00002298  002 OF 012 
 
SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 04//06 
 
Yomiuri: 
Japan, US to review Defense Guidelines to improve international 
cooperation 
 
Nihon Keizai: 
Government, TSE to make listing of Asian stock easier; Ban on 
depository receipts to be lifted 
 
Sankei: 
USFJ realignment; Japan's share comes 3 trillion yen, giving 
shockwave to government 
 
Tokyo Shimbun: 
Former Architect admits earthquake-resistance data fraud; Lent 
name to earn income 
 
2) EDITORIALS 
 
Asahi: 
(1)  Earthquake-resistance data fraud: Get to the bottom quickly 
(2)  Chernobyl: Too late once an accident occurs 
 
Mainichi: 
(1)  Earthquake-resistance data fraud: Ferret out the truth 
(2)  Prime Minister Koizumi marks fifth anniversary: Is he 
dispirited? 
 
Yomiuri: 
(1)  Arrests in earthquake-resistance data scandal: Eliminating 
this common practice 
(2)  Relations between Japan and EU: Strengthen dialogue on East 
Asia 
 
Nihon Keizai: 
(1)  Problem of heavily indebted people cannot be settled by 
lowering interest rates 
(2)  Needed: An Investigation to shed light on the earthquake- 
resistance data scandal 
 
Sankei: 
(1)  Arrests in quake-resistance data scam: Shed light on key 
suspicions 
(2)  Chernobyl: Learn the lessons of the accident 
 
Tokyo Shimbun: 
(1)  Arrests of those involved in condo scam: Thorough 
investigation needed to shed light on core issues 
(2)  Criminal investigation into bid-rigging: Use new methods to 
find out what happened 
 
3) Prime Minister's Official Residence (Kantei) 
 
Prime Minister's schedule, April 26 
 
NIHON KEIZAI (Page 2) (Full) 
April 27, 2006 
 
08:05 
Met Deputy Chief Cabinet Secretary Suzuki at Kantei. 
 
09:00 
Attended an Upper House Administrative Reform Special Committee 
 
TOKYO 00002298  003 OF 012 
 
SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 04//06 
 
meeting. 
 
11:58 
Returned to Kantei. 
 
13:00 
Attended the Upper House Administrative Reform Special Committee 
meeting. 
 
17:16 
Met at Kantei with Chief Cabinet Secretary Abe and his deputy 
Futahashi, followed by Economic and Fiscal Policy Minister 
Yosano. 
 
18:28 
Attended Keizai Doyukai's 60th anniversary party at the Japan 
Industrial Club in Marunouchi. 
 
19:01 
Dined at a Japanese restaurant in Akasaka with Columbia 
University Prof. Gerald Curtis, joined by actress Megumi Okuna. 
 
22:19 
Returned to his residence. 
 
4) Gov't shocked at 3 trillion yen for Japan's cost sharing of 
USFJ realignment 
 
SANKEI (Top play) (Full) 
April 27, 2006 
 
Japan's burden of cost sharing for realigning US forces in Japan 
is estimated at approximately 3 trillion yen. This estimated 
amount of money, shown by US Deputy Under Secretary of Defense 
Lawless in his recent remarks, shocked the Japanese government. 
"It's tremendous," Chief Cabinet Secretary Shinzo Abe said. "It's 
probably out of consideration for (US) public opinion," Prime 
Minister Junichiro Koizumi told reporters yesterday evening in 
trying to calm the shock. However, the figure in terms of 3 
trillion yen could have wings without a specific estimate of 
costs. It will likely become a major point of contention in the 
Diet during the latter half of its current session. 
 
"If we fail to agree now, this task may be carried over to the 
next government. If that is the case, Japan may not be able to 
ensure its cost sharing for Guam relocation." With this, the 
Japanese government urged the US government to make concessions 
in their talks over the cost of moving US Marines from Okinawa to 
Guam. Koizumi's term will be up in September. A government 
official therefore suggests the need for the Koizumi government 
to pave the way to legislating and budgeting the realignment of 
US forces in Japan. "Otherwise," the official added, "the next 
government won't last." 
 
The government is walking a tightrope in its time schedule. In 
early May, the government is scheduled to make a cabinet decision 
to adopt a plan to relocate the US Marine Corps' Futenma Air 
Station to a coastal area of Camp Schwab. Shortly thereafter, the 
government will present a time-limited package of special 
legislative measures to the Diet for its approval of Japan's 
fiscal assistance to the US military's realignment in Japan. 
 
 
TOKYO 00002298  004 OF 012 
 
SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 04//06 
 
The legislation is to package fiscal measures for Guam relocation 
and base realignment in Japan. When it comes to Guam relocation, 
the bill will allow the Japan Bank for International Cooperation 
(JBIC) to make investments or lend money for infrastructure 
construction, such as power supply and sewerage, in addition to 
housing construction. It also features subsidies for base-hosting 
municipalities accepting realignment plans. 
 
However, the opposition will likely call for the government to 
show the grounds for the 3 trillion yen. "We must be 
theoretically armed to the bone, or the Japan-US alliance may be 
upset," a senior official of the Foreign Ministry says. 
 
Lawless estimated Japan's share of base realignment costs at 20 
billion dollars. That is because there is the Japan-US Status of 
Forces Agreement (SOFA), which, under the Japan-US Security 
Treaty, stipulates the status of US military personnel stationed 
in Japan and governs base management and operations. SOFA Article 
24, for example, stipulates that Japan provides US forces with 
facilities in Japan without cost to the United States. 
 
In addition, Japan also bears US military training relocation 
costs and utilities in conformity with a special agreement to 
shoulder the burden of expenses for the stationing of US forces 
in Japan with its omoiyari yosan, literally "sympathy budget," or 
host nation support (HNS). The Japanese government has earmarked 
232.6 billion yen in its HNS budget for the current fiscal year. 
 
However, the cost of Futenma airfield's relocation is unclear in 
itself. The government will also need to estimate specific costs, 
such as billeting for US military personnel and housing for 
family dependents in the process of realigning US military bases 
in Japan. "Even if we're asked to show the breakdown of costs, we 
can't answer right away," says one in charge of negotiations with 
the US government. 
 
In the meantime, the Defense Agency estimates the total cost of 
the US military's realignment in Japan at 2.3 trillion yen, 
including the cost of Guam relocation. The agency also deems it 
possible to reduce the cost. One of the agency's officials is 
upset at Lawless's mention of Japan's share, saying, "He just 
talked about an estimate at this point." 
 
The Defense Agency is seeking to handle base relocation in a 
separate budget slot apart from defense spending as in the case 
of outlays related to the Japan-US Special Action Committee on 
Facilities and Areas in Okinawa (SACO). For one thing, if the 3 
trillion yen is slotted in the defense budget, the agency will 
need to substantially cut back on the Self-Defense Forces' 
budget. 
 
However, the Ministry of Finance will not approve a separate 
budget slot. "The Defense Agency's budget request is related to 
defense spending," a ministry source says. If the ministry's 
standpoint passes muster, the agency will inevitably have to 
scale back on the current midterm defense buildup plan for five 
fiscal years from 2005 through 2009 when reviewing it next fiscal 
year, as it does not anticipate fiscal disbursements for the US 
military's realignment in Japan. 
 
At the time of the 1991 Gulf War, the government implemented an 
ad hoc tax increase in order for Japan to outlay 9 billion 
 
TOKYO 00002298  005 OF 012 
 
SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 04//06 
 
dollars in assistance to the multinational force. However, it 
would be difficult to carry out a tax hike with a House of 
Councillors election scheduled for the summer of next year. The 
Koizumi government will shoulder a heavy burden in its closing 
days. 
 
5) Koizumi: Lawless gave consideration of US public opinion in 
making statement 
 
TOKYO SHIMBUN (Page 2) (Full) 
April 27, 2006 
 
In reaction to US Deputy Under Secretary of Defense Richard 
Lawless' announcement that Japan's share for the realignment of 
US forces in the country would come to 3 trillion yen, Prime 
Minister Junichiro Koizumi indicated that it was a domestic 
message, saying, "I think he made the comment in consideration of 
US public opinion that Japan's burden is too light in comparison 
to the United States' responsibility for the defense of Japan." 
 
Koizumi was speaking to reporters at his official residence. 
 
6) Discord obvious in government over sharing of cost of US force 
realignment; Finance Ministry, MOFA call for disbursing money 
from defense budget 
 
MAINICHI (Page 2) (Full) 
April 27, 2006 
 
US Deputy Defense Undersecretary Richard Lawless, the responsible 
official on the US side for talks on the realignment of US forces 
in Japan, announced on April 26 that Japan would pay an estimated 
26 billion dollars or about 3 trillion yen to help implement the 
overall realignment. In response, discord is coming to the 
surface in the government over the size of Japan's share and the 
fiscal resources to pay for it. Some officials have reacted 
fiercely to the fact that the Defense Agency (JDA) engaged in 
negotiations with the US without fully coordinating views with 
the Finance Ministry and the Ministry of Foreign Affairs (MOFA). 
Given such dissatisfaction, they are forming an encircling net 
around JDA to place the responsibility for the current situation 
on it. A one senior MOFA official said, "The cost naturally 
should be covered within the framework of the defense budget." 
 
Prime Minister Junichiro Koizumi said last night: "The US 
supposedly gave the numerical figure out of consideration to the 
domestic public opinion criticizing that Japan's burden is overly 
light despite the US efforts to protect Japan in a responsible 
manner." 
 
As part of the overall US force realignment cost, Japan and the 
US have agreed on Japan's sharing of 6.09 billion dollars of the 
10.27 billion dollar cost to relocate Okinawa-based Marines to 
Guam. According to what Lawless announced, it will cost about 20 
billion dollars more or approximately 2.3 trillion yen to realign 
US military bases in Japan, including the relocation of Futenma 
Air Station and the carrier-based aircraft. 
 
In a speech on April 24, JDA Administrative Vice Minister 
Takemasa Moriya also gave a numerical figure close to the 20 
billion dollars. He said: 
 
 
TOKYO 00002298  006 OF 012 
 
SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 04//06 
 
"Excluding the Guam transfer cost, we estimate 2 trillion yen 
will be needed over eight years or 260 billion yen annually. 
Japan has disbursed 600 billion yen (annually for US forces in 
Japan, including "sympathy budget" allocations), so Japan will 
have to shoulder a total of 860 billion yen a year." 
 
JDA, by emphasizing the huge sum of Japan's share of the 
relocation cost, is apparently aiming to urge the government to 
set an account separate from the defense budget. 
 
But the Finance Ministry has reacted to JDA, a senior official 
remarking: 'I wonder why such a large sum of money is needed. 
That is the figure the government presented while keeping the 
reactions in the US Congress in mind." Administrative Vice 
Finance Minister Koichi Hosokawa said in a press conference: "The 
cost should be included in defense-related expenses." Chief 
Cabinet Secretary Shinzo Abe said at a press conference: "It's my 
impression that it is an incredible sum of money. We will look 
into the content of the reported figure." On budgetary measures, 
Abe indicated that he would carefully watch coordination work 
between the Finance Ministry and JDA. 
 
7) Japan's share in USFJ realignment cost; Exchange rate will not 
be fixed, taking sharp exchange-rate fluctuations into account 
 
NIHON KEIZAI (Page 2) (Excerpts) 
April 27, 2006 
 
Now that the sharing of the USFJ realignment cost between Japan 
and the US has been fixed, the government will promptly take 
necessary measures. For a start, it will consider making an 
arrangement with the US side in order to avoid losses from 
exchange-rate fluctuations. In the meantime, with a view to 
securing 3 trillion yen to cover Japan's share, the Defense 
Agency will call on the Ministry of Finance (MOF) to set up a 
separate budgetary framework from the regular defense budget. 
 
Fluctuations in exchange rates will affect the dollar-denominated 
cost of relocating Marines in Okinawa to Guam. Japan has agreed 
to pay 6 billion dollars (approximately 710 billion yen) for the 
relocation. The plan most likely to be adopted is to stipulate 
that the exchange rate for December, when Japan's state budget is 
compiled, be used and to hold talks with the US if exchange rates 
greatly fluctuate. 
 
The realignment will not be completed before fiscal 2012, even if 
it proceeds well. The government therefore has judged that fixing 
an exchange rate for the next six years at this point would 
involve a great exchange risk. Provided that the 6 billion 
dollars are set in dollar terms, Japan's burden would increase by 
approximately 60 billion yen, if the depreciation of the yen 
against the dollar advances by 10 yen. 
 
8) Government to introduce legislation to finance 3 trillion yen 
in Japan's share of total US force realignment cost 
 
ASAHI (Page 2) (Full) 
April 27, 2006 
 
The government will soon start work to submit to the Diet a "Bill 
Related to US Force Realignment in Japan" (tentative name) as the 
basis for Japan to disburse money to bear part of the cost to 
 
TOKYO 00002298  007 OF 012 
 
SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 04//06 
 
relocate Okinawa-based Marines to Guam. The bill will include 
measures to create a fund to help promote the economies of base- 
hosting communities. Amid priority given to the Japan-US 
agreement, however, coordination work in the government over 
fiscal resources to finance Japan's share, which has been 
estimated at 3 trillion yen by the US government, has been put on 
the backburner. It remains to be seen if the legislation will be 
enacted during the current Diet session. 
 
The Japanese government has envisioned a scenario in which Japan 
and the US will complete a final plan at the two-plus-two top 
security meeting of defense and foreign ministers in early May 
and that the results of realignment talks will be played up 
during a meeting between Prime Minister Koizumi and President 
Bush planned after the end of the current Diet session. 
 
The government is also aiming to submit and enact bills related 
to US force realignment in the current Diet session. As for 
budgetary measures, the government intends to make arrangements 
to earmark the budget in fiscal 2007 or later. 
 
On the details and fiscal resources of Japan's share, however, "a 
scheme has yet to be firmed up," according to Defense Agency 
(JDA) Director General Nukaga. It seems that it will take 
considerable time for coordination between the Finance Ministry, 
which is eager to cut expenditures, and the JDA, which is calling 
for a separate account from the defense budget. 
 
If regional promotion measures and a subsidy system for base- 
hosting communities are included in the bills, their submission 
will likely be delayed. That is because Okinawa Prefecture has 
yet to agree on modifications to the current Futenma relocation 
plan. 
 
Meanwhile, the Ozawa-led Minshuto (Democratic Party of Japan) has 
lashed out at the government, claiming: "Questions have been 
raised about the stance of the Koizumi administration, the 
government, and the Liberal Democratic Party, which will use 
taxpayer money (in response to demands by the US)." If the 
government decides to pay a large sum without specifying a 
timeframe for relocating Marines to Guam, Diet deliberations will 
inevitably fall into chaos. 
 
9) JCP, SDP criticize Japan's share for US force realignment as 
outrageous 
 
TOKYO SHIMBUN (Page 2) (Full) 
April 27, 2006 
 
Japanese Communist Party (JCP) Executive Committee Chairman Kazuo 
Shii criticized yesterday a US defense deputy under secretary's 
statement that Japan's share of the realignment of US forces in 
Japan would run to 3 trillion yen, saying, "The sum is 
outrageous. It is unreasonable to disburse Japan's tax money for 
building facilities in Guam to enhance the US military." Shii was 
speaking on a CS Asahi Newstar program. 
 
Social Democratic Party (SDP) head Mizuho Fukushima also told a 
press conference, "Why does Japan has to bear such a large share 
while saying that the country would aim for a small, effective 
and simple government?" 
 
 
TOKYO 00002298  008 OF 012 
 
SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 04//06 
 
About the question of improving the law connected with disbursing 
funds, Fukushima also said: "It is preposterous to ram 
legislation through the Diet to impose a burden on the people 
just because the government promised the United States. 
Democratic principles of finance have been broken." 
 
10) Japan, US to decide at 2-plus-2 meeting to revise defense 
cooperation guidelines to expand international cooperation; 
Possibility of Japan passing permanent law allowing SDF overseas 
dispatches 
 
YOMIURI (Top play) (Excerpt) 
April 27, 2006 
 
The Japanese and US governments have set a policy course for 
revising the current set of defense cooperation guidelines and 
have now entered the final stage of coordination. The current set 
of guidelines focuses on cooperation between the Self-Defense 
Forces (SDF) and the US forces in the event of an emergency in 
the areas surrounding Japan, but now, based on changes in the 
international situation, the bilateral cooperation will be 
expanded to include global-scale international peacekeeping 
activities, including responding to the war on terror, and 
missile defense. Coordination is going forward so that agreement 
on revising the guidelines can be reached by the Japan-US 
Security Consultative Committee (2-plus-2) consisting of the 
foreign and defense affairs-related cabinet ministers of both 
countries, who will meet in early May. The Japanese government 
intends to link the guideline revision to other efforts, 
including permanent legislation allowing the overseas dispatch of 
the SDF.  The proposal has been floated to have a new Japan-US 
security declaration issued by Prime Minister Koizumi and 
President Bush at their summit in June. 
 
11) US force realignment: US to totally return four Okinawa 
bases; Final report outlined 
 
TOKYO SHIMBUN (Page 1) (Excerpts) 
April 27, 2006 
 
The Japanese and US governments outlined yesterday their final 
report on US force realignment for release in early May. The 
report incorporated a plan to completely return some US base 
facilities, such as Naha Naval Port facilities in southern 
Okinawa, in addition to what was specified in an interim report 
last year. 
 
The US will totally return the following four facilities in 
Okinawa, home to over 70% of the US bases in Japan: Futenma Air 
Station, which is already specified in the interim report, Naha 
Naval Port facilities, Makiminato Service Area, and Camp Kuwae. 
The US will return a total of 1,500 hectares of land, including 
two facilities at Camp Zukeran and another place that will be 
returned partially. This corresponds to a mere 6% of the total US 
military facilities and areas in Okinawa (23,680 hectares). But 
the government is insisting that this will help tremendously 
reduce burdens on populous areas. 
 
An agreement has also been reached to build two runways in a V 
shape on the coastline of Camp Schwab in Nago to replace Futenma 
Air Station. Aerial refueling planes will also be relocated from 
Futenma Air Station to the Iwakuni base in Yamaguchi and the Air 
 
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SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 04//06 
 
Self-Defense Force's (ASDF) Kanoya base in Kagoshima. 
 
Main points in the final report 
 
Return 1,500 hectares of land, including Naha Naval Port 
facilities in southern Okinawa. 
 
Construct two runways in a V shape at Camp Schwab. 
 
Move 8,000 Marines from Okinawa to Guam. Japan is to bear 59% of 
the relocation-related cost. 
 
Relocate part of fighter training from US Air bases to five ASDF 
bases. 
 
Return part of Sagami Depot measuring 17 hectares. 
 
Continue talks on air traffic control held by Yokota Air Base. 
 
12) Final coordination underway for dispatching 10th GSDF 
contingent to Iraq in May 
 
ASAHI (Page 2) (Abridged slightly) 
April 27, 2006 
 
The government has begun coordination to issue an order possibly 
next week for dispatching the 10th Ground Self-Defense Force 
(GSDF) contingent to the southern Iraqi city of Samawah. With the 
designation of a new prime minister by the Iraqi parliament, a 
plan had surfaced at one point to end Japan's assistance with the 
9th contingent that would stay in the country until the end of 
May. But the government has concluded that it would take time to 
form a cabinet and transfer security authority to Iraq. The 
government plans to make arrangements for a withdrawal while the 
10th contingent is in Iraq until August. 
 
According to a government source, once an order is issued, 
members of the 10th contingent would leave for Iraq starting in 
early May. It would be difficult to begin withdrawing troops from 
Samawah before late May. As it is said that a withdrawal usually 
takes two months, a GSDF pullout would not be completed until 
late July. 
 
Now that Jawad al-Maliki has been named new Iraqi prime minister, 
the government determined that the "political process" - the most 
difficult condition of four requirements for a pullout -- has 
been met. "Chances have emerged for the establishment of a new 
Iraqi administration before the end of this month and the release 
of a program on transferring security authority," a Foreign 
Ministry official said. The ministry began exchanging information 
with Britain and Australia this week. 
 
But according to the ministry, the cautious view is strong in the 
two countries that they should watch the political process. 
 
Some Japanese government officials also called for the 
termination of Japan's assistance with the 9th contingent. But 
calls for a rotational contingent outgrew them. 
 
13) Sakie Yokota, mother of abducted Megumi, shakes hand with 
Deputy Defense Undersecretary Lawless 
 
 
TOKYO 00002298  010 OF 012 
 
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SANKEI (Page 1) (Full) 
April 27, 2006 
 
By Sho Nakamura, Washington 
 
Members of a group of the families of the missing Japanese 
abducted by North Koreans, including Sakie Yokota, mother of 
Megumi Yokota, who was abducted at the age of 13, met on April 26 
at the US Defense Department with Deputy Secretary of Defense 
Gordon England and other officials. Deputy Undersecretary Richard 
Lawless welcomed them, receiving and sending them off in front of 
the Pentagon building. He wore a blue ribbon, a symbol of efforts 
to rescue the abductees from North Korea. 
 
14) South Korea sets up task force to strengthen claim on 
Takeshima (Dokdo) islets; likely to propose seafloor topography 
names in June 
 
ASAHI (Page 3) (Excerpts) 
April 27, 2006 
 
By Tadanao Takatsuki, Seoul 
 
South Korean Foreign Affairs and Trade Minister Ban Ki Moon 
revealed yesterday that his ministry would launch a task force to 
strengthen its claim on a group of South Korea-controlled islets 
in the Sea of Japan, known as Takeshima in Japan and Dokdo in 
South Korea, in response to a special statement released the day 
before yesterday by President Roh Moo Hyun. Regarding South 
Korea's agreement with Japan to delay its plan to name seafloor 
topography near the disputed islets, First Vice Foreign Minister 
Yoo Myung Hwan stated in the parliament that South Korea might 
propose its naming plan to an international conference in June if 
all preparations were made. 
 
Foreign Minister Ban said that the Takeshima (Dokdo) issue, which 
was handled by the Asian and Oceanian Affairs Bureau, would be 
transferred to the special task force team headed by a vice 
minister-level official. A number of experts will work for the 
task force. Working-level officials will work on specific 
operations, according to Ban. 
 
Following Roh's statement, many ruling and opposition party 
members are now calling on the government to present concrete 
measures to resolve the issue. In response to these domestic 
calls, the setting up of the task force on Takeshima seems to 
have decided. 
 
However, the view is that if the confrontation with Japan 
intensifies, South Korea, which effectively controls the islets, 
will find itself on the horns of a dilemma since the 
international community will know that the territorial dispute is 
still going on between the two countries. 
 
15) In meeting with LDP's Yamasaki, China's National People's 
Congress Standing Committee Chairman Wu criticizes Prime Minister 
Koizumi's visits to Yasukuni Shrine 
 
MAINICHI (Page 5) (Full) 
April 27, 2006 
 
By Nariyuki Tanaka, Beijing 
 
TOKYO 00002298  011 OF 012 
 
SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 04//06 
 
 
Taku Yamasaki, former vice president of the ruling Liberal 
Democratic Party, met yesterday in Beijing with Wu Bangguo, 
chairman of the Standing Committee of China's National People's 
Congress. During the meeting, Wu criticized Prime Minister 
Junichiro Koizumi's visits to the controversial Yasukuni Shrine, 
noting, "Visits to Yasukuni Shrine by a political leader have 
damaged (our bilateral relations)." Yamasaki only responded, "We 
would like to come up with measures to resolve the issue." 
Yamasaki met also with Vice Foreign Minister Wu Dawei, who told 
Yamasaki that he would soon visit the United States to discuss 
North Korea's refusal to return to the six-party talks. 
 
16) Prof. Gerald Curtis tells Prime Minister Koizumi, "Next prime 
minister may be a populist" 
 
MAINICHI (Page 5) (Full) 
April 27, 2006 
 
Prime Minister Junichiro Koizumi dined yesterday with Gerald 
Curtis, professor at US Colombia University, at a Tokyo 
restaurant. Curtis told Koizumi: "You are popular but not a 
populist. Chances are that the next prime minister will be a 
populist but not popular." 
 
17) LDP tax panel likely to put off consumption tax hike, 
possibly to fiscal 2008, with Upper House election in mind 
 
ASAHI (Page 1) (Excerpts) 
April 27, 2006 
 
The Liberal Democratic Party's (LDP) Research Commission on the 
Tax System decided to review the consumption tax rate in a 
revision of the tax system in fiscal 2007. But the possibility is 
growing stronger that the review will be deferred to fiscal 2008, 
reflecting growing concerns in the LDP about a negative impact on 
the House of Councillors next year. 
 
Fumiaki Ibuki, the subcommittee chairman of the LDP tax panel, 
said in a meeting of the Japan Business Federation (Nihon 
Keidanren): "Taking the current situation into consideration, it 
will be impossible to change the rate of the consumption tax in 
fiscal 2007." Tax panel Chairman Hakuo Yanagisawa also said: "It 
would be difficult in fiscal 2007. But we must carry it out in 
fiscal 2008." If a plan to raise the consumption tax is included 
in the tax reform plan for fiscal 2008, the rate will be hiked 
sometime from the fall 2008 through the spring 2009, at the 
earliest. 
 
18) Views of "social divide" split in METI poll; 46% call for 
correction; 47% acknowledge disparity as result of effort 
 
YOMIURI (Page 9) (Full) 
April 27, 2006 
 
The Basic Policy Panel of the Ministry of Economy, Trade, and 
Industry's (METI) Industrial Structure Council, an advisory panel 
reporting to METI, conducted a poll on the "social divide" and 
released results yesterday. The poll found that the number of 
those who called for the correction of the disparity and the 
number of those who were positive about such a disparity were 
even. 
 
TOKYO 00002298  012 OF 012 
 
SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 04//06 
 
 
To a question about income disparity, a total of 46.7% of pollees 
replied, "Such a disparity should be corrected a little more" or 
"It must be corrected." A total of 47.6% made positive replies, 
such as "The disparity is the result of differences in ability 
and effort" or "It is necessary as an incentive." 
 
The poll also asked why pollees feel that economic disparity is 
widening, allowing multiple replies. The largest portion of 45% 
noted, "Those who are earning high income, such as a handful of 
entrepreneurs, have increased," followed by 42% , who replied, 
"The number of those whose income dropped has increased due to 
industrial restructuring or bankruptcies." 
 
The poll targeted people aged 20 and over, and received 5,100 
replies from all over the country. 
 
DONOVAN