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UNCLAS SECTION 01 OF 10 TOKYO 002579 
 
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 05/12/06 
 
Index: 
 
1)   Top headlines 
2)   Editorials 
3)   Prime Minister's daily schedule 
 
4)   Former Chief Cabinet Secretary Fukuda meets Secretary Rice 
  in Washington 
 
Defense and security: 
5)   Government to draft implementation plan now for Futenma base 
  relocation 
6)   With Futenma agreement concluded, Prime Minister Koizumi 
focuses meeting with Okinawa governor on local economic measures, 
such as jobs and use of reverted sites 
 
7)   New law will be needed for promotion of Okinawa's economic 
  development 
8)   Okinawa Gov. Inamine stresses need for economic development 
package for Okinawa 
9)   Inamine adamant about not running for reelection as Okinawa 
governor this fall 
10)  Koizumi in Diet reply says it is still difficult to put a 
total price tag for Japan's share of USFJ realignment 
11)  Opposition camp in Diet critical about burden on Japan of 
the USFJ realignment plan 
12)  Aspects of return of Yokota air space control to Japan are 
still up in the air 
 
13)  Prime Minister, Upper House LDP leader Aoki agree on 
  extension of current Diet session, but how long to extend it must 
  be coordinated 
 
14)  Mori faction wants to remove outspoken lawmaker Ichita 
  Yamamoto, an Abe supporter, from its roles 
 
15)  Treasury Secretary Snow in telephone conversation with 
  Finance Ministry Tanigaki seeks to constrain Japan from 
  intervening to stop yen appreciation 
 
16)  Japan lauds OIE change in age-limit rule for regulation-free 
  international beef shipments to original formula of under 30 
  months 
 
17)  Government to propose Japanese-style energy conservation 
  system at Environment Forum to convey successful cases to China 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi: 
Okinawa governor meets with prime minister on Futenma relocation: 
New law to be mulled to develop provincial districts; 
Consultative organ involving Okinawa to be established 
 
Mainichi: 
Bid-rigging over sewage disposal; Managing company, co-managing 
company had authority; Five leading companies alternate in those 
posts every six months, exclusively receiving 64% of orders 
 
Yomiuri: 
 
TOKYO 00002579  002 OF 010 
 
 
Nagaoka Post Office illegally discounts postage for metered mail; 
More than 30 personnel to be disciplined 
 
Nihon Keizai: 
Communications Ministry mulling optional system for mobile phone 
rates 
 
Sankei: 
Damage to murals at Takamatsuzuka tomb; Restorers did not wear 
protective garments 
 
Tokyo Shimbun: 
Nationwide broadband network plan; Communications Ministry to 
deal with break-even situation 
 
2) EDITORIALS 
 
Asahi: 
(1)  Futenma relocation: Okinawa governor makes difficult 
decision 
(2)  Interest rate hike in US; Determination to correct imbalance 
urged 
 
Mainichi: 
(1)  USFJ realignment: Final coordination with Okinawa should be 
undertaken in serious manner 
(2)  LDP presidential race: It is not necessary to line up behind 
one candidate 
 
Yomiuri: 
(1)  Futenma shift: Framework for pressing ahead with relocation 
plan established 
(2)  US Interest rate increase: It is necessary to pay close 
attention to sharp rise of the yen 
 
Nihon Keizai: 
(1)  Implementation of US financial policy now at a difficult 
stage 
(2)  High marks to Governor Inamine's policy change 
 
Sankei: 
(1)  Futenma relocation: Realistic move by Okinawa deserves 
praise 
(2)  Bird week: Learn a lesson from an increase in the number of 
albatrosses 
 
Tokyo Shimbun: 
(1)  Futenma relocation: There are still unfinished tasks 
(2)  Increase in number of people dying alone: Taking better care 
of people 
 
3) Prime Minister's Official Residence (Kantei) 
 
Prime Minister's schedule, May 11 
 
NIHON KEIZAI (Page 2)  (Full) 
May 12, 2006 
 
10:10 
Met at Kantei with Deputy Chief Cabinet Secretary Nagase, 
followed by Vice Defense Minister Moriya. 
 
 
TOKYO 00002579  003 OF 010 
 
 
13:08 
Attended Lower House plenary session. 
 
14:59 
Returned to Kantei. 
 
16:05 
Met with Okinawa Gov. Inamine, joined by Foreign Minister Aso and 
Defense Agency Director General Nukaga. 
 
18:30 
Met with Upper House member Yoriko Kawaguchi. 
 
19:07 
Met at his official residence with Chief Cabinet Secretary Abe, 
Administrative Reform Minister Chuma, Lower House Administrative 
Reform Committee Chairman Ibuki, and committee directors from the 
ruling parties. 
 
4) Fukuda meets with US Secretary of State Rice 
 
SANKEI (Page 5) (Full) 
May 12, 2006 
 
By Hiroyuki Kano, Washington 
 
Former Chief Cabinet Secretary Yasuo Fukuda met in Washington 
with US Secretary of State Condoleezza Rice for about 30 minutes 
on the afternoon of May 10 (morning of May 11, Japan time). They 
are believed to have discussed the Asia situation, including the 
strained Japan-China relations, as well as the Middle East 
situation, even though what they discussed has yet to be 
unveiled. After the meeting, Fukuda told reporters, "We discussed 
various issues." 
 
Former US Ambassador to Japan Howard Baker and Japanese 
Ambassador to the United States Ryozo Kato also attended the 
meeting. Prior to his meeting with Rice, Fukuda exchanged views 
with Asia experts from the Congressional Research Service (CRS). 
 
5) Futenma relocation: Government to devise implementation plan; 
Challenges, such as Okinawa's request for temporary heliport, lie 
ahead for completion of relocation by 2014 
 
NIHON KEIZAI (Page 3) (Excerpts) 
May 12, 2006 
 
The issue of relocating Futenma Air Station, a key element in the 
realignment of US forces in Japan, has moved a step closer to 
realization. Now that Okinawa Gov. Keiichi Inamine has reversed 
his previous stance and effectively approved the airfield's 
relocation to the coastline of Camp Schwab, the government aims 
for a cabinet decision on May 19 to map out an implementation 
plan, including a timetable for construction, through talks with 
local communities. But the government's response to Okinawa's 
request for a temporary heliport is still unclear. Hurdles still 
remain for the realization of the Japan-US agreement to complete 
the relocation by 2014. 
 
Asked by reporters about the significance of the broad agreement 
reached between the Defense Agency and Okinawa, Prime Minister 
Junichiro Koizumi said last night, "It carries great 
 
TOKYO 00002579  004 OF 010 
 
 
significance," adding, "A cabinet decision must be made based on 
a set of procedures." 
 
According to a government source, a cabinet decision would be 
made on a plan to build two 1,800-meter runways in a V-shape on 
the coastline of Camp Schwab. Devising an implementation plan for 
facilities and other specifics would follow coordination with the 
US and local communities. 
 
As a condition for accepting the relocation plan, Inamine 
insisted on the inclusion of the "elimination of risks at Futenma 
Air Station" in the agreement with the government. The government 
must conduct environmental surveys in the eight years before the 
alternative facility is completed in 2014. Inamine's request 
reflects Okinawa's desire to relocate Futenma's helicopter unit 
as soon as possible. 
 
Okinawa has called for the construction of a temporary, easy-to- 
build heliport on the land portion of Camp Schwab. But the 
Defense Agency remains reluctant to accept the request for 
financial reasons. Although the agency is planning to relocate 
the helicopter unit to the alternative facility in stages even 
while it is under construction, it remains to be seen if the US 
military will approve such a plan. 
 
6) Tokyo, Okinawa reach agreement on Futenma relocation; Prime 
Minister Koizumi, "We'll respond to Okinawa with sincerity"; 
Tokyo to do its utmost for employment measures; Futenma plan 
likely to get cabinet approval next week 
 
YOMIURI (Page 1) (Full) 
May 12, 2006 
 
Prime Minister Junichiro Koizumi yesterday evening met with 
Okinawa Gov. Keiichi Inamine at the Prime Minister's Official 
Residence and confirmed the contents of an agreement recently 
reached between the governor and Defense Agency Director-General 
Fukushiro Nukaga on the relocation plan for the US Marine Corps 
Futenma Air Station in Ginowan City, Okinawa Prefecture. 
Following the basic agreement with Inamine, the central 
government will seek cabinet approval as early as next week for 
its policy of implementing the plans for the realignment of US 
forces in Japan without falling behind the schedule. 
 
The meeting came following the agreement reached yesterday 
morning between the governor and JDA Director-General Nukaga on 
advancing discussions between (Tokyo and Okinawa) basically in 
line with the plan finalized by the Japanese and US governments 
for relocating the Futenma airfield to a coastal area of Camp 
Schwab in Nago City. The meeting was joined by Foreign Minister 
Aso and Nukaga. 
 
Gov. Inamine said, "Security affairs fall under the exclusive 
control of the state," but added: "When there is the return of 
land, there are very difficult problems to deal with, for 
instance, how to use vacated land and employment of workers (at 
US military facilities). I'd like the central government to deal 
with matters that cannot be handed under the existing laws." 
Inamine thus called on the central government to give due 
consideration to how to use vacated land, as well as how to 
secure employment for Japanese base workers, based on the 
agreement between Tokyo and Washington on such plans as 
 
TOKYO 00002579  005 OF 010 
 
 
transferring Marines from Okinawa to Guam and relocating the 
Futenma airfield. Koizumi told Inamine that the government would 
address his request with sincerity, saying, "We on the part of 
the central government would like to make every possible effort 
to respond to your request." On the plan to open an Okinawa 
Graduate University for Science and Technology in Onnason 
Village, Koizumi said: "I will realize it at an early date in 
order to raise the level of science in Japan." 
 
7) With Okinawa governor's broad agreement to Futenma plan, prime 
minister promises to take economic measures, including use of 
vacated land, jobs for local employees 
 
TOKYO SHIMBUN (Page 1) (Excerpts) 
May 12, 2006 
 
Okinawa Governor Keiichi Inamine reached an agreement with the 
government to conduct further discussions based on the 
government's plan to relocate the US Marine Corps' Futenma Air 
Station in Ginowan to a coastal area of Camp Schwab in Nago. 
Following the agreement, Prime Minister Junichiro Koizumi met 
with Inamine at his official residence for about 15 minutes 
yesterday afternoon and said: "The government will make utmost 
efforts with sincerity" to take measures to revitalize the local 
economy after the return of the US base to Japan, focusing on the 
use of the vacated land and the reemployment of local base 
workers. 
 
Inamine told Koizumi that the prefecture would deal with the 
Futenma relocation issue based on the government's plan, 
remarking: "Although the prefecture has its own position on the 
base issue, we also want to address the issue." 
 
Inamine then asked Koizumi to take every possible measure for the 
prefecture, including new legislation, saying: "The return (of US 
military bases) involves such difficult issues as how to use the 
vacated land and what to do with local base workers. Some of such 
issues cannot be resolved under current laws. I would like you to 
take this into consideration." 
 
8-1) Prime Minister Koizumi meets with Okinawa Gov. Inamine on 
Futenma relocation; Tokyo to consider new legislation for local 
development, which will include plan for establishment of 
consultative body joined by Okinawa 
 
ASAHI (Top play) (Lead paragraph) 
May 12, 2006 
 
Prime Minister Koizumi yesterday met with Okinawa Gov. Keiichi 
Inamine at the Prime Minister's Official Residence and the two 
confirmed that Tokyo and Okinawa would continue consultations on 
the planned relocation of the US Marine Corps Futenma Air Station 
in Ginowan City, Okinawa Prefecture to the cape of Henoko in Nago 
City in the prefecture, based on Tokyo's relocation plan. The 
central government will obtain cabinet approval possibly next 
week for its policy concerning the plans on the realignment of US 
forces in Japan. Included in the policy will be a plan for 
establishing a consultative body between relevant municipalities, 
including Okinawa Prefecture. Tokyo will also announce a policy 
of discussing a relevant bill on the US force realignment 
regarding Japan's share of the cost for the relocation of US 
Marines from Okinawa to Guam, as well as local promotion 
 
TOKYO 00002579  006 OF 010 
 
 
measures. 
 
8-2) Inamine gives importance to economic stimulus measures; 
Futenma relocation may stall depending on who wins November 
Okinawa gubernatorial race 
 
NIHON KEIZAI (Page 3) (Excerpts) 
May 12, 2006 
 
Okinawa Gov. Keiichi Inamine has softened his stance regarding 
the Futenma relocation issue. He has apparently judged it wise to 
push ahead with a package of economic stimulus measures, 
including ways to utilize vacated US bases and creating jobs, in 
tandem with the government's cabinet decision, to meet Okinawa's 
strong calls. 
 
"I am determined to accomplish anything that is possible in my 
tenure of office," Inamine said to reporters in Tokyo yesterday. 
He also described his broad agreement with the Defense Agency as 
a big step forward. 
 
There is some skepticism in the Okinawa business community about 
chances for the conservative prefectural administration to 
survive the gubernatorial election in November. It was necessary 
for Inamine, who might not run in the race, to highlight his 
achievements other than economic stimulus measures, such as ways 
to improve the operation of the Japan-US Status of Forces 
Agreement. 
 
The agreement reached between Inamine and the Defense Agency has 
drawn a mixed reaction from Okinawa. Chairman Kureya of the 
Okinawa Construction Business Association noted: "The governor 
made maximum concessions for eliminating risks at Futenma. A 
speedy relocation will help save the construction industry." 
 
Representative Miyazato of an Okinawa issues research group said 
bitterly, "I had hoped the governor would oppose the Futenma 
relocation. His about-face was a disappointment. It will have a 
huge impact on the gubernatorial election in November, drawing a 
strong backlash from Okinawa residents." In the event of a 
reformist being elected governor, the relocation issue might 
again stall. 
 
9) Okinawa Gov. Inamine unlikely to run again 
 
ASAHI (Page 1) (Full) 
May 12, 2006 
 
Okinawa Gov. Keiichi Inamine, 72, now serving his second term, 
has decided not to run again in the gubernatorial election set to 
take place as his term of office will expire in December. He will 
likely announce his final decision about his course of action in 
June, when the prefectural assembly is convened, but a process 
for choosing his successor is likely to be accelerated down the 
road. Inamine has previously told his aides: "I'd like to hand 
over my mantle to someone." At a press conference after the 
meeting yesterday between him and Prime Minister Koizumi on the 
realignment of US forces in Japan, Inamine was asked about the 
gubernatorial race. Referring to media reports, he made crystal 
clear his intention not to run for a third term, saying: "People 
already understand my basic thoughts on the matter." 
 
 
TOKYO 00002579  007 OF 010 
 
 
10) Prime Minister in Diet reply: "Specifying Japan's share of 
total US realignment cost is difficult" 
 
NIHON KEIZAI (Page 2) (Excerpts) 
May 12, 2006 
 
In a House of Representatives plenary session yesterday, Prime 
Minister Junichiro Koizumi stated regarding Japan's share of the 
total cost of relocating US forces in Japan: "We will closely 
examine the details of Japan's share, so it is difficult to 
present a specific figure at present." On the 26 billion dollars 
(approximately 3 trillion yen) that US Deputy Under Secretary of 
Defense Lawless estimated as Japan's share, the prime minister 
only said: "We have yet to reach agreement on any specific 
amount." 
 
Defense Agency Director General Fukushiro Nukaga also stopped 
short of mentioning any concrete cost, just saying: "While taking 
the nation's current austere fiscal situation into consideration, 
we would like to closely examine details with the US and then 
coordinate views with the relevant government agencies." 
 
Minshuto (Democratic Party of Japan) member Koichi Takemasa 
stated regarding the estimate presented by Lawless: "I was 
stunned. It is a problem that not the Japanese government but a 
US ranking official presented the estimate." He then questioned 
if it is necessary for Japan to bear a huge share of the 
realignment cost." 
 
11) Opposition camp criticizes Japan's burden for US force 
realignment in Lower House plenary session 
 
YOMIURI (Page 4) (Full) 
May 12, 2006 
 
The Lower House plenary session yesterday conducted a question- 
and-answer session on the final report on the realignment of US 
forces in Japan. Taking up the fact that US Deputy Defense Under 
Secretary Richard Lawless had estimated at one point Japan's 
 
SIPDIS 
share for US force realignment, including the relocation of 
Okinawa-based Marines to Guam, at 26 billion dollars (2.886 
trillion yen based on the exchange rate of the fiscal 2006 
budget), Koichi Takemasa of the opposition Minshuto (Democratic 
Party of Japan) asked for a concrete explanation, saying in a 
strong tone, "We are angry about having been pressed for a huge 
burden under the country's tight financial situation." 
 
Prime Minister Koizumi replied: 
 
"The government was not aware in advance what Mr. Lawless would 
announce. We will closely examine necessary expenses, and it is 
difficult at this point to present the total amount clearly." 
 
12) Airlines ask for early return of Yokota RAPCON; "If Yokota's 
big wall is removed, lower airfares and faster flights will be 
possible" 
 
YOMIURI (Page 38) (Excerpt) 
May 12, 2006 
 
As part of the realignment of US forces in Japan, it has been 
decided to return a portion of the radar approach control 
 
TOKYO 00002579  008 OF 010 
 
 
(RAPCON) at the US Yokota Air Base to Japan by September 2008. 
Prompted by this decision, the Scheduled Airlines Association of 
Japan (SAAJ), consisting of 11 domestic airlines, yesterday 
submitted a petition calling for an early return of RAPCON to the 
Ministry of Land, Infrastructure, and Transport (MLIT) and other 
government offices. According to an MLIT official, the so-called 
Yokota RAPCON, which puts restrictions on commercial flights, has 
been called a "big wall standing in airspace west of Tokyo" by 
airline officials for many years. SAAJ looks to the return, 
saying: "The return (of RAPCON) will bring about efficient 
flights, less fuel consumption, and the easing of air gridlock." 
 
13) Koizumi, Aoki agreed on May 8 to extend Diet session; 
Coordination underway on length of extension 
 
NIHON KEIZAI (Page 2) (Full) 
May 12, 2006 
 
Prime Minister Junichiro Koizumi and Mikio Aoki, chairman of the 
Liberal Democratic Party (LDP) caucus of the House of 
Councillors, agreed on May 8 to extend the term of the current 
Diet session, which will end on June 18, it was learned 
yesterday. The two had reportedly concealed their decision out of 
fear of possible boycotts of deliberations on key bills by the 
opposition camp. 
 
According to senor LDP members, Koizumi and Aoki have agreed to 
significantly extend the session in order to pass a bill revising 
the Basic Education Law through the Diet during the ongoing 
session. 
 
Aoki and former Prime Minister Yoshiro Mori reached an agreement 
in a meeting on May 7 to aim at enacting the legislation during 
the current Diet session. 
 
The focus is now on how many days the session should be extended. 
The decision will likely be made just before the current regular 
session is over after watching closely the development of 
deliberations on important bills. 
 
14) Former Prime Minister Mori urges Ichita Yamamoto to resign 
from faction 
 
SANKEI (Page 5) (Full) 
May 12, 2006 
 
In a general meeting of his faction yesterday, former Prime 
Minister Yoshiro Mori of the Liberal Democratic Party (LDP) urged 
House of Councillors member Ichita Yamamoto, who has openly vowed 
to support Chief Cabinet Secretary Abe in the upcoming LDP 
presidential race, to withdraw from the faction, saying: 
 
"It's not good for Mr. Abe (because he has yet to announce his 
candidacy for the election). You will kill him with kindness. I 
warned you the other day, saying, 'You should remain in calm.' 
But today I urge you to withdraw (from the faction)." 
 
After the meeting, Yamamoto reacted strongly, saying: 
 
"I cannot understand that it is not good to speak up that Mr. 
Abe, an ace of our faction, is appropriate to be the next prime 
minister. There is no reason for me to give up my membership of 
 
TOKYO 00002579  009 OF 010 
 
 
the faction." 
 
Abe called Yamamoto in the Prime Minister's Official Residence 
and said to him, "If there are misunderstandings, I want you to 
make efforts to clear them up." 
 
15) US Secretary of Treasury constrains Japan during telephone 
dialogue with Tanigaki; Alarmed about yen-selling intervention 
 
SANKEI (Page 9) (Full) 
May 12, 2006 
 
It was learned yesterday that Finance Minister Sadakazu Tanigaki 
and his US counterpart John Snow talked on the phone. According 
to a government source, the two financial chiefs exchanged views 
on exchange rates, as the yen is now strong against the dollar. 
Snow reportedly urged Japan not to sell yen and buy dollars in an 
effort to prevent a sharp rise in the value of the yen. He made 
this move, bearing in mind the US auto industry, which favors a 
weak-dollar trend. 
 
Vice Finance Minister Hosokawa during yesterday's regular press 
briefing said, "I would like to refrain from making a comment on 
the telephone talks," but he added: "The Finance Ministry makes 
contact with cabinet ministers of the G-7 nations and to exchange 
information and views as occasion." 
 
Commenting on the exchange market, where the yen is gaining 
further ground, Hosokawa hinted at the possibility of intervening 
in the market to constrain the yen's sharp rise. He explained: 
"Finance ministers and central bank governors from the Group of 
Seven nations in a statement issued in April reaffirmed their 
position that exchange rates should reflect the economy's basic 
conditions. We are closely watching the movements of exchange 
rates and will take appropriate measures when needed." 
 
16) OIE withdraws initial proposal for free trade in boneless 
meat 
 
ASAHI (Page 8) (Full) 
May 12, 2006 
 
It was learned yesterday that the World Organization for Animal 
Health, known as OIE, has withdrawn its initial proposal for 
removing restrictions on trade in boneless beef. The OIE is 
drafting a new proposal to reinstate the age limit of 30 months 
for boneless beef and intends to present it at its annual meeting 
to start on May 21 in Paris. 
 
In its meeting last year, the OIE adopted a new international 
standard to allow boneless beef from cattle 30 months of age or 
younger to be traded without restrictions. This year, the 
organization decided to further ease the regulation to remove the 
age limit of 30 months and notified Japan and other member 
countries of the new proposal. In a press conference yesterday, 
Agriculture, Forestry, and Fisheries Vice Minister Mamoru 
Ishihara welcomed the OIE's withdrawal of the proposal. 
 
17) Government to propose Japanese-style energy conservation 
system at Environment Forum to convey successful cases to China 
 
MAINICHI (Page 2) (Full) 
 
TOKYO 00002579  010 OF 010 
 
 
May 12, 2006 
 
The government yesterday decided to propose a Japanese-style 
energy conservation method to China during the Japan-China Energy 
Conservation and Environment Forum to be held in Tokyo starting 
on May 29. Specific proposals include legislating energy-saving 
guidelines set by each government agency and introducing tax 
incentives for the promotion of energy conservation. The sharp 
increase in energy consumption in China is said to be a reason 
for soaring crude oil prices and environmental pollution. The 
government wants to help China conserve energy by conveying 
Japan's successful cases. 
 
China released a mid- to long-term energy conservation plan in 
¶2004. It has also established a number of energy conservation- 
related laws. However, since there are no specific numerical 
targets and a monitoring system has not been established yet, its 
energy efficiency remains at one-ninth of the level achieved by 
Japan. 
 
For this reason, Japan will work on China to introduce a Japanese- 
style energy conservation method, by showing actual examples, 
including the standardization of numerical energy-conservation 
targets, a system Japan introduced in the 1970s, learning a 
lesson form the oil crises at that time. 
 
SCHIEFFER