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UNCLAS SECTION 01 OF 11 TOKYO 002768 
 
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:  DAILY SUMMARY OF JAPANESE PRESS 05/19/06 
 
INDEX: 
 
(1) Japan, US agree on resumption of US beef imports: Products 
to be on store shelves possibly in July after official decision 
next month 
 
(2) Yosano, Nakagawa confront Takenaka over cooperation on 
government spending cuts; Determined to cut local finances 
 
(3) Post-Koizumi race: Researching Taro Aso (Part 3) 
 
(4) Futenma alternative: Construction plan to be out by October 
 
(5) Yokosuka on the front of missile defense, Aegis deployment 
at high pitch 
 
(6) LDP report on energy strategy, including nine measures 
 
ARTICLES: 
 
(1) Japan, US agree on resumption of US beef imports: Products 
to be on store shelves possibly in July after official decision 
next month 
 
ASAHI (Top Play) (Full) 
Evening, May 19, 2006 
 
The government has decided to formally approve a plan in June to 
reopen its market to US beef. In the technical talks held 
between the Japanese and US governments on May 17-19, both sides 
reached a broad agreement today to start procedures to resume 
beef trade. If everything goes smoothly, US beef will be back on 
the market in July, nearly six months after the second 
imposition of a ban on imports in January. Some skeptics, 
however, remain unconvinced about the safety of US meat export- 
procedures. Behind the broad agreement, despite such a 
circumstance, there apparently lies a political judgment, with 
an eye on the Japan-US summit set for June. 
 
The government sees no major problem arising from the recent re- 
inspections by the US at domestic meat-processing plants. In 
response to the US side's acceptance of its requests, including 
prior inspections by Japanese experts at meat-processing plants 
and snap inspections by the US government at meat-processing 
facilities; Japan has judged that "a system to observe the 
requirements for Japan-bound beef has been arranged in the US." 
 
The government plans to hold public hearings on safeguards with 
consumers across the nation for about three weeks. Once it 
obtains consumers' understanding, the government will approve 
the resumption of US beef imports. 
 
The focus of discussions in the latest series of experts 
meetings was on how to prevent specified risk materials (SRM) 
that could transmit the disease to cows from being included in 
shipments. 
 
The US government explained that the 35 meat-processing 
facilities with licenses to ship beef to Japan have prepared a 
manual on the removal of SRM and that their employees have been 
trained. The US thus stressed that the export requirements have 
been observed in the US. 
 
 
TOKYO 00002768  002 OF 011 
 
 
In Japan, the Agriculture, Forestry and Fisheries Ministry and 
the Foreign Ministry were positive about resuming US beef 
imports, while the Health, Labor and Welfare Ministry, the 
responsible government agency for safe control of meatpacking 
facilities, remained cautious and asked for detailed 
explanations from the US regarding technical and other issues. 
Because more time was spent than expected for explanations of 
the causes of the recent Beef Export Verification violations in 
Hong Kong and Taiwan, the talks were extended for another day. 
 
US Deputy Agriculture Under Secretary Chuck Lambert, who headed 
the US delegation, gave a press conference after the end of the 
talks this morning and said: "Both sides have yet to reach a 
final agreement, but we have moved closer toward a resumption of 
imports. Resumption should be possible by the end of June." 
 
(2) Yosano, Nakagawa confront Takenaka over cooperation on 
government spending cuts; Determined to cut local finances 
 
SANKEI (Page 5) (Full) 
May 19, 2006 
 
The government and the Liberal Democratic Party (LDP) are 
pursuing full-fledged discussions on ways to cut government 
expenditures in the run-up to the compilation in June of basic 
policy guidelines on economic and fiscal management and 
structural reforms, which is going to be the last issuance of 
such guidelines by the Koizumi administration. LDP Policy 
Research Council Chairman Hidenao Nakagawa and State Minister 
for Financial, Economic, and Fiscal Policy are closely working 
together with the determination to cut the local finance system, 
on which Internal Affairs and Communications Minister has 
jurisdiction. Originally, Nakagawa had been in line with 
Takenaka over economic policy and in conflict with Yosano. 
However, the dynamics of the policy-setting process has changed. 
 
In response to Prime Minister Junichiro Koizumi's order that the 
LDP should lead discussions on ways to cut expenditures, 
Nakagawa has called in officials in charge of fiscal affairs to 
the LDP headquarters almost daily and asked them to look into 
the possibility of ending state contribution to payouts of 
unemployment benefits under the public employment insurance 
system. 
 
Yosano, who is in charge of the government's Council on Economic 
and Fiscal Policy (CEFP), is visiting Nakagawa once a week. When 
Takenaka was in charge of compiling basic policy guidelines, the 
LDP and the CEFP were at odds, but the situation has now 
changed. They are now frequently cooperating with each other, as 
can be seen in the fact that Nakagawa and Yosano held a meeting 
and decided to cut public works expenditures by 3% over the next 
five years. 
 
On May 11, Nakagawa, Yosano and Minister of Economy, Trade, and 
Industry Nikai met at the LDP headquarters and agreed to map out 
an outline of a strategy for economic growth, which would 
incorporate specific measures to raise economic growth. 
Commenting on cooperation between Nakagawa and Yosano beyond the 
spending cut issue, a government source explained: "Through 
mutual cooperation, Nakagawa can have his pet argument of aiming 
for high economic growth reflected in the government's policy, 
and Yosano can have the government jointly take the 
responsibility for pending cuts." 
 
TOKYO 00002768  003 OF 011 
 
 
 
Nakagawa has a close relationship with Chief Cabinet Secretary 
Shinzo Abe, and Yosano has been in step with Finance Minister 
Sadakazu Tanigaki over such issues as a consumption tax hike. 
Some have pointed that because of such circumstances, their 
close working relationship could affect the upcoming LDP 
presidential election. 
 
Nakagawa and Yosano are now increasingly focusing on the 
possibility of reforming the local finance system. Yosano cited 
the order of local spending items subject to cuts as follows: 
(1) personnel costs of the central and local governments; (2) 
public works spending; (3) local finances; (4) diplomatic, 
defense, cultural, education, and scientific expenditures. He 
said, "Local finances, including personnel costs, will become a 
key area in slashing government spending." 
 
Nakagawa on May 17 met with former Education and Science 
Minister Takeo Kawamura and ordered him to look into the 
possibility of scrapping the Law for Securing Capable 
Educational Personnel, which give preferential treatment to 
teachers of public elementary and middle schools over other 
public servants in terms of salaries. If the law is completely 
scrapped, 200 billion yen, of which 60 billion yen is subsidized 
from government coffers, in local government expenditures can be 
cut. 
 
Takenaka takes the position that expenditures for public works 
and social securities should be slashed first. However, Yosano 
pointed out that though Mr. Takenaka told Mr. Nakagawa that 
reform of the local finance system will not lead to tangible 
spending cuts, they would discuss specific targets in slashing 
government spending. The government and the ruling camp are 
scheduled to hold the first meeting of their consultative 
council to discuss spending cuts. A fierce debate between 
Nakagawa and Yosano on one hand and Takenaka on the other will 
likely take place. 
 
(3) Post-Koizumi race: Researching Taro Aso (Part 3) 
 
NIHON KEIZAI (Page 2) (Abridged slightly) 
May 19, 2006 
 
Taro Aso wept over drinks, asking others, "Was I too arrogant to 
open up to locals?" He ran in the 1983 Lower House election 
seeking his third consecutive term but was defeated by just 
2,600 votes. The defeat was ascribable to his excessive 
dependence on organizations beginning with Aso Cement. 
 
Strong sense of camaraderie 
 
Assembled at Aso's home were three people, including Fukuoka 
Jisho Co. Chairman Kazuhiko Enomoto. He had worked hard with Aso 
as members of the Japan Junior Chamber (JC). Aso and Enomoto 
have known each other for over 30 years. 
 
Aso became president at age of 32. Many friends since then have 
become corporate executives like Enomoto. But they still call 
Aso "Taro-chan," who is now foreign minister. They have 
developed a strong sense of fellowship through the JC and 
business activities. 
 
On February 4, a party was held at a Fukuoka hotel to "encourage 
 
TOKYO 00002768  004 OF 011 
 
 
Aso," bringing together some 300 local business leaders, 
including Kyushu Electric Power Co. President Machisada Kamata. 
Members frankly offered advice to Aso, saying, "If you want to 
become prime minister, you must not say too much," or, "You 
should keep calling a spade a spade." 
 
The group for Aso Taro provides top corporate executives with 
chances to collect information. Meetings are usually organized 
by Nippon Steel Corp. Honorary Chairman Takashi Imai in the 
Kanto region, by Kansai Electric Power Co. Chairman Yoshihisa 
Akiyama in the Kansai region, and by Nishi-Nippon Railway Co. 
Advisor Reinosuke Oya in the Kyushu region. They meet 
approximately four times a year to exchange views. 
 
Aso also places importance on the San Francisco Club, a Stanford 
University alumni association with some 20 members, including 
Nippon Paper Group Head Office Special Adviser Kiminori Saito 
and Koito Manufacturing Co. President Takashi Otake. 
 
Aso was a serious student while studying at Stanford, according 
to an alumnus. He can engage in simple conversation with a 
foreign guest in English with ease. US Ambassador to Japan 
Thomas Schieffer plays golf with him. He has many friends in the 
US Congress as well. 
 
"Knows a lot of people but not well" 
 
Aso's sister, Yukiko, described her brother's association with 
people this way: "He knows a lot of people but does not know any 
of them well." Aso's friend said, "Although he doesn't mean to 
make enemies, his unnecessary words could turn people away 
occasionally." 
 
In Nagatacho, views on Aso are split. Aso is a member of Shishi- 
no-kai, which also includes Masahiko Komura, Makoto Koga, and 
Takeo Hiranuma. A lawmaker on friendly terms with Aso said, "No 
lawmaker really hates Mr. Aso. At the same time, there aren't 
many who would follow him, risking everything." 
 
Former Prime Minister Zenko Suzuki was the father of his wife, 
Chikako. Aso joined Kochi-kai when he was a member of the Suzuki 
faction and became a close advisor to Yohei Kono, who joined the 
group later on. Kono was forced to give up his candidacy for the 
1995 LDP presidential race as Koichi Kato and others prepared to 
field Ryutaro Hashimoto. Because of this experience, Aso has 
mixed feelings toward Kato and others. 
 
He has been a favorite with elders since he was a young business 
manager. His relationships with former Prime Minister Yoshiro 
Mori, LDP Upper House Caucus Chairman Mikio Aoki, and other 
senior members are not bad. Prior to the 2003 LDP presidential 
election, in which Prime Minister Junichiro Koizumi won his 
second term, Aoki, who was backing Koizumi, said to Aso on the 
golf course, "You should run in the race after this one." 
 
Aoki has yet to announce his support for anyone. Aso takes the 
view that he can win up to 30% of the people over to his side 
but that 30% will never follow him, meaning that question is 
whether he can win half of the remaining 40% of the people. 
Specifically how is he going to win 30% of the people to his 
side? He must rework his strategy. 
 
Aso's main personal ties 
 
TOKYO 00002768  005 OF 011 
 
 
 
Political community 
 
(Former Japan Junior Chamber presidents) 
Yoshitada Konoike, former state minister in charge of 
disaster prevention 
n 
Masaji Matsuyama, Upper House member 
 
(Relatives) 
Shunichi Suzuki, former environment minister 
Keizo Takemi, Upper House member 
 
(Former Kono faction) 
Katsuhito Asano, Upper House member 
Jun Matsumoto, former Diet Committee vice chairman 
 
Business community 
 
Keiichi Konaga, adviser, AOC Holdings. Inc. 
Reinosuke Oya, adviser, Nishi-Nippon Railway Co. 
Takashi Imai, honorary chairman, Nippon Steel Corp. 
Yoshihisa Akiyama, chairman, Kansai Electric Power Co. 
 
Sports, culture 
 
Tsunekazu Takeda, president, Japan Olympic Committee 
 
SIPDIS 
Saburo Kawabuchi, president, Japan Football Association 
Koichiro Noda (penname Masahiro Noda), science fiction 
writer 
 
(4) Futenma alternative: Construction plan to be out by October 
 
RYUKYU SHIMPO (Page 1) (Full) 
May 19, 2006 
 
The Defense Agency is now drafting a plan to be adopted in a 
cabinet meeting for the realignment of US forces in Japan. 
According to its outline revealed yesterday, the plan will map 
rday, the plan will map 
out the US military's realignment on the whole. In addition, the 
Defense Agency will also create a blueprint for the relocation 
of Futenma airfield. The plan will specify where to build the 
Futenma alternative, and the agency will work out a construction 
plan by October, according to the revealed outline. The 
government will set up a new consultative body to discuss 
economic stimulus packages for local communities hosting the 
Futenma alternative, and the government will work out its policy 
by December. The government is now coordinating with Okinawa 
Prefecture and Nago City on wording. The Defense Agency wants 
the plan to be adopted in a cabinet meeting on May 23. However, 
local communities are also expected to oppose the plan. For this 
reason, the Okinawa prefectural government stresses that it 
cannot accept the government's making of a cabinet decision on 
the plan before the upcoming Pacific Islands Forum (PIF) event, 
which will open its session (in Okinawa) on May 26. The Okinawa 
prefectural government is calling for the government to forego 
the cabinet decision. 
 
The Defense Agency says the government needs to legislate 
measures in order for the government to implement the US 
military realignment plan. In consideration of the current Diet 
session, the Defense Agency is aiming to have the plan adopted 
 
TOKYO 00002768  006 OF 011 
 
 
in a cabinet meeting on May 23. Japan and the United States have 
now agreed to lay down a V-shaped pair of airstrips in a coastal 
area of Camp Schwab in the city of Nago. However, the Okinawa 
prefectural government is opposed to this newly planned coastal 
runway construction and is calling for the government to build a 
temporary helipad. The Okinawa prefectural government's position 
is that it cannot accept a cabinet decision that is premised on 
the government's coastal plan. As it stands, Tokyo and Okinawa 
are facing rough going in their coordination. 
 
The draft plan shown by the Defense Agency at this point has no 
description of the V-shaped airstrips. However, it specifies 
laying down the alternative facility in a shore area across the 
cape of Henoko, stretching out to Oura Bay and Henoko Bay at its 
both ends. The Okinawa prefectural government is opposed to 
specifying the construction site premised on the government's 
plan to build V-shaped airstrips in a coastal area. Okinawa is 
calling for Tokyo to cross out this coastal relocation and 
consider installing a temporary helipad. 
 
In addition to specifying the planned construction site, the 
draft plan also says the government will work out the 
construction plan by October. The Nago city government has 
indicated that it would like to talk about this construction 
plan in a new consultative body like the previous ones that 
existed to discuss the alternative facility and the construction 
plan. 
 
However, the government thinks that it will take too much time 
to consult like before. Instead, the government prefers to hold 
working-level consultations at first. In the end, the government 
would like to finalize the plan after cabinet ministers, 
governors, and municipal heads meet once or twice. 
 
The draft plans also says the government will set up a new 
consultative body to talk about economic stimulus measures for 
base-hosting localities, aiming to work out such pump-priming 
measures. The draft plan does not specify when to set up this 
new consultative body. However, the government would like to set 
it up after making a cabinet decision on the realignment plan. 
 
(5) Yokosuka on the front of missile defense, Aegis deployment 
at high pitch 
 
ASAHI (Page 15) (Full) 
May 17, 2006 
 
The US Navy's Yokosuka base in the harbor city of Yokosuka, 
Kanagawa Prefecture, is known as an aircraft carrier's homeport. 
Over the past couple of years, however, the Yokosuka base has 
been a frontline outpost for missile defense-or MD for short. In 
the meantime, the US Navy is deploying MD-capable Aegis ships to 
Yokosuka at a high pitch. 
 
Forefront bastion 
 
The US Navy will deploy an Aegis-equipped ship to Yokosuka in 
August this year, and all eyes are focused on it. The US Aegis 
ship is a cruiser named "Shiloh." In appearance, the USS Shiloh 
looks like other Aegis ships of the conventional type. However, 
the cruiser can be loaded with SM-3 sea-based missiles. The 
United States boasts of its military power as No. 1 in the 
world. Even so, the US Navy still has only three SM-3 Aegis 
 
TOKYO 00002768  007 OF 011 
 
 
vessels. 
 
The SM-3 is capable of shooting down intermediate-range missiles 
like North Korea's Nodong missiles. In November last year, the 
US Navy conducted an MD test in waters off Hawaii. In that test, 
a ballistic missile mockup was launched, and an Aegis ship of 
the US Navy successfully shot down a warhead when it was off the 
projectile in midcourse phase at an altitude of about 160 
kilometers in outer space. 
 
The MD test was conducted in a scenario to shoot down 
intermediate-range missiles launched from North Korea at Japan- 
and to intercept those launched from China at Taiwan or other 
targets. 
 
The Yokosuka base, which is the only outpost overseas for the US 
Navy's deployment of aircraft carriers, is a critical 
strongpoint. In 1973, the USS Midway was first deployed to 
Yokosuka. The USS Kitty Hawk, currently homeported at Yokosuka, 
is the third-deployed flattop. The Kitty Hawk participated in 
the 2001 Afghan air campaign and the 2003 Iraq war. 
 
The US Navy has already decided to replace the Kitty Hawk in 
2008 with the USS George Washington, a nuclear-powered aircraft 
carrier currently homeported at Norfolk, Virginia, on the US 
East Coast. 
 
In September 2004, the Yokosuka base was tasked with an 
additional role as an MD strongpoint. The Bush administration of 
the United States is aiming to shield the United States with an 
MD network at an early stage. Under its strategy, Yokosuka-based 
US Aegis vessels are now watching out in the Sea of Japan. The 
US Navy-as is evident from its declassified logs-has also set up 
operational zones around the island of Okushiri, which is 
situated off Japan's northernmost main island of Hokkaido. 
 
The US Navy currently deploys a total of 11 vessels to Yokosuka, 
and there has been no change in this number. However, there has 
been progress in the replacement of conventional-type vessels 
with state-of-the-art ones. The Yokosuka base had only four MD- 
capable Aegis ships. With the Shiloh's deployment, however, the 
Yokosuka base will have a further enhanced lineup of eight MD- 
capable Aegis ships. The Yokosuka base has been only tasked with 
the role of watching out for ballistic missiles and tracking 
their paths if and when launched. However, the base will now be 
fully operational as a key shield that constitutes an MD 
network, including the task of shooting down ballistic missiles. 
 
The US Pacific Fleet plans to mount SM-3 missiles on all its 
Aegis vessels in the future. The Yokosuka base is expected to 
further reinforce its functionality as a forefront bastion for 
MD readiness. 
 
Integration 
 
The Defense Agency welcomes the Shiloh's deployment to Yokosuka. 
"It's very welcome," said an official of the Defense Policy 
Division. 
 
In 2003, Japan made a cabinet decision to introduce an MD 
system. In the current fiscal year, Japan will set about 
developing intercept missile technologies. The Maritime Self- 
Defense Force will also complete its initial SM-3 mounting 
 
TOKYO 00002768  008 OF 011 
 
 
renovation of Aegis ships in fiscal 2007 and will have a total 
lineup of four SM-3 Aegis ships on stage by the end of fiscal 
¶2010. 
 
"I know US Aegis ships are on patrol around Japan for MD," said 
an MD official of the Defense Agency. "But," the official added, 
"they have no missile intercept capability." This official 
recounted: "When the Shiloh is deployed over here, it's possible 
to make up for time with the US Navy's missile intercept 
capability until Japan builds its own MD system. Moreover, after 
Japan completes its own system, it will be possible to carry out 
multiplex coverage with US Aegis ships on stage." 
 
In June this year, the US Navy plans to carry out an SM-3 test 
off Hawaii. The Kirishima, an Aegis ship deployed to the MSDF's 
Yokosuka base, will participate in this test. Japan and the 
United States will go ahead with their MD integration. 
 
"The United States is pushing for its MD initiative," said 
Hiromichi Umebayashi, representative of Peace Depot, a nonprofit 
organization looking into facts about US military activities 
under the United States' freedom of information law. "They can 
account for MD and its necessity to the American people-that's 
just because there are factors like North Korea and China," 
Umebayashi noted. He went on: "They have bases in Japan, and 
they cannot make any MD scenario without Japan's cooperation. 
Japan will be involved even more deeply in the United States' 
military strategy." 
 
Interview with US Pacific Fleet Commander Gary Roughead: MSDF 
presence a plus, high-performance fleet a deterrent 
 
The Asahi Shimbun interviewed Adm. Gary Roughead, commandeer of 
the US Navy Pacific Fleet, which is headquartered in Hawaii and 
commands the 7th Fleet based at Yokosuka. 
 
-- What's the Yokosuka base for the US Navy? 
 
Adm. Roughead: Our forward deployment of an aircraft carrier to 
Yokosuka contributes greatly to security in the region with the 
capability of responding immediately to any emergency. We're 
working together with the MSDF, and our partnership is also a 
plus. There's no other place but Yokosuka where we can see both 
the US Navy and the MSDF in the same bay when we stand on the 
deck. 
 
-- In February, the United States released a "Quadrennial 
Defense Review (QDR)" report, which lays emphasis on naval 
forces in the Pacific region. 
 
Adm. Roughead: It's clear that Asian economies will go global in 
the future. Ensuring security and stability in the region will 
help not only countries in the region but also the United States 
become prosperous. If we ensure the sea lanes of communication, 
it's also possible to attain economic growth. 
 
-- That's the United States' military strategy with China and 
North Korea in mind, isn't it? 
 
Adm. Roughead: In the Pacific region, there are now more than 
140 submarines other than ours. The number and performance of 
ballistic missiles are also increasing. We don't focus on any 
specific country, but we'd like to maintain our military 
 
TOKYO 00002768  009 OF 011 
 
 
advantage. That's why we think it's important to work together 
with Japan and push for ballistic missile defense. 
 
-- Then, what's your analysis of the military capabilities of 
China and North Korea? 
 
Adm. Roughead: People often ask if China is a threat, but we 
must consider two points. One is the capability of attacking 
another country, and the other is the intention of attacking 
another country. There is progress in China's military growth, 
but we can't see China's intention. It's important to explore 
what the People's Liberation Army is thinking about it. When it 
comes to the North Korea problem, we hope for a solution though 
dialogue. However, something unexpected could happen in the 
region, so it's important to keep tabs. 
 
-- The US Navy is reinforcing the Aegis fleet deployed to the 
Yokosuka base. 
 
Adm. Roughead: We deploy the most capable vessels to Yokosuka. 
Antisubmarine warfare and ballistic missile defense are our top- 
priority issues. In the future, our military capabilities in the 
West Pacific region would continue to increase. Our forward 
deployment of more capable vessels will be a deterrent. That's 
the best policy for security in the region. 
 
-- The United States has decided to deploy one more aircraft 
carrier in the Pacific region in addition to the deployment of 
an aircraft carrier to the Yokosuka base. 
 
Adm. Roughead: That's intended to demonstrate our rapid response 
and presence. We're planning to operate three aircraft carriers 
in the West Pacific this summer. But that's a result of 
streamlining our ship maintenance and training. We could not do 
so several years ago. 
 
-- Is the Sasebo base (in Nagasaki Prefecture) likely to be 
another homeport? 
 
Adm. Roughead: We're not thinking of homeporting any aircraft 
carrier at Sasebo. The port (of Yokosuka) will be very crowded, 
but if we can repair another aircraft carrier in Yokosuka, 
that's very plus. 
 
-- The United States plans to deploy a nuclear-powered aircraft 
carrier to Yokosuka, but local communities are opposing it. 
 
Adm. Roughead: Many people only see an aircraft carrier as a 
warship. But our nuclear-powered aircraft carrier played a 
central role with its rapid response to the tsunami disaster of 
Sumatra in 2004. A nuclear carrier can carry out various 
missions. 
 
(6) LDP report on energy strategy, including nine measures 
 
DENKI SHIMBUN (Top Play) (Full) 
May 18, 2006 
 
The Liberal Democratic Party's energy strategy panel, chaired by 
House of Representatives member Koji Omi, finalized an interim 
report on the nation's comprehensive energy strategy yesterday. 
The report calls for stabilizing the density of emitted carbon 
dioxide and ensuring energy security, given changes in the 
 
TOKYO 00002768  010 OF 011 
 
 
international energy situation, climate changes, and growing 
calls for energy security. To achieve these challenges, the 
interim report stresses the need for a strategy for technology 
development and dissemination, as well as a comprehensive 
diplomatic strategy for energy resources. The report includes 
nine specific recommendations, such as the formation of a 
resources-securing strategy and the boosted use of atomic 
energy. The Ministry of Economy, Trade and Industry (METI) has 
decided to draw up a report on a new national energy strategy by 
the end of this month. The ministry intends to reflect the LDP- 
proposed measures in the report. 
 
The LDP report proposes these nine measures: (1) construct a 
strategy to secure energy resources; (2) boost the use of atomic 
power; (3) strengthen energy security and safety-ensuring 
policy; (4) adopt the principles of peaceful use of atomic power 
and of nonproliferation simultaneously; (5) respond to the post- 
Kyoto Protocol framework; (6) develop and disseminate energy- 
saving technologies; (7) utilize renewable energy resources; (8) 
use fossil fuels in a clean and effective way; and (9) promote 
the nuclear fuel cycle. 
 
In the part of resources-securing strategy construction, the 
report suggests the need to nurture core oil and gas development 
companies, like Japanese majors, in addition to strengthening 
cooperative relations with resources suppliers in such areas as 
education, and medical, in addition to energy. The panel also 
calls for strengthening the functions of government-affiliated 
institutions, such as investment and debt guarantees by Japan 
Oil, Gas and Metal National Corporation (JOGMEC). 
 
The LDP also aims to boost the utilization of nuclear energy; 
improve the safety operation of current light-water reactors and 
their operation rates; and promote research and development 
(R&D) related to fast-breeder reactors (FBR) and nuclear fusion. 
In the part of the nuclear fuel cycle, the LDP suggests that 
Japan should step up efforts to develop FBR as a national key 
technology and speed up the development process. The main ruling 
party stresses the need for allocating a budget to that end in 
the special account for power development. It also calls for 
close consultations between researchers and energy users in 
order to smoothly move the process forward from the R&D stage to 
the demonstration stage, and then to the practical-use stage. 
The report also suggests the need to promote R&D under 
international cooperation in a positive manner. 
 
The protocol reactor Monju will resume operation in 2008. The 
government aims to put a demonstration reactor in practical use 
around 2025 and a commercial reactor in 2050. Regarding the 
final disposal of high-level waste, the report says that the 
government should strengthen its cooperative role should be 
strengthened and tackle expanding the subsidy system for local 
communities housing power plants (worth 210 million yen) as an 
urgent task. In order to pursue the two principles of peaceful 
use of atomic power and nonproliferation simultaneously, the 
report proposes tightening the control of the Nuclear Supply 
Group's export management and promoting cooperation for the 
Global Nuclear Energy Partnership (GNEP) initiative. 
 
In the area of the post-Kyoto Protocol framework, the report 
calls for including energy saving and nuclear power in the clean 
development mechanism. It also seeks that the G-8 summit in 
Japan in 2008 should be used as an area for multilateral 
 
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cooperation to make dramatic progress. In addition, the report 
also includes specific recommendations regarding energy saving, 
renewable energy, and clean use of fossil fuels. 
 
SCHIEFFER