VZCZCXRO2129
PP RUEHFK RUEHKSO RUEHNAG RUEHNH
DE RUEHKO #2790/01 1420108
ZNR UUUUU ZZH
P 220108Z MAY 06
FM AMEMBASSY TOKYO
TO RUEHC/SECSTATE WASHDC PRIORITY 2307
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 8935
RUEHFK/AMCONSUL FUKUOKA 6307
RUEHOK/AMCONSUL OSAKA KOBE 9527
RUEHNAG/AMCONSUL NAGOYA 6262
RUEHKSO/AMCONSUL SAPPORO 7470
RUEHBJ/AMEMBASSY BEIJING 2369
RUEHUL/AMEMBASSY SEOUL 8548
RUCNDT/USMISSION USUN NEW YORK 0354

UNCLAS SECTION 01 OF 11 TOKYO 002790 
 
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 05/22/06 
 
INDEX: 
 
1)   Top headlines 
2)   Editorials 
Prime Minister's weekend schedule: Omitted today 
 
Opinion polls: 
3)   Annual national conscientious poll: anxiety over economy has 
largely dissipated, but 31% of public see foreign relations 
headed in wrong direction 
4)   Jiji poll: Half of the Japanese public comfortable with word 
"patriotism" put into amended Basic Education Law 
 
Iraq assistance: 
5)   GSDF withdrawal from Iraq to start possibly in July 
6)   Questionable whether all of the GSDF troops will be out of 
Iraq when Prime Minister Koizumi steps down in September 
7)   Koizumi promises to continue assistance to Iraq after the 
GSDF are pulled out 
8)   Full-scale ODA planned for Iraq after GSDF leave 
 
Defense and security issues: 
9)   Prime Minister Koizumi confident that US-Japan security 
arrangements will deter North Korea from launching Taepodong 2 
missile 
10)  New interceptor missile to be deployed to Okinawa as 
deterrent against North Korean aggression 
11)  Revision of defense procurement plan or Chukibo would slash 
front-line equipment in order to pay for some of the USFJ 
realignment costs 
12)  US, Japan agree to partially free up Yokota air control 
space to civilian aircraft 
 
13)  US, Japanese governments coordinating Koizumi-Bush summit 
meeting in US on June 29 
 
14)  Sakie Yokota: Would that Koizumi had worked half as hard as 
President Bush on behave of her daughter and other North Korean 
abductees 
 
15)  Budget crunch: government, ruling camp favor continued cuts 
in ODA, defense spending in budgets over the next five fiscal 
years 
 
Beef issue: 
16)  Prime Minister Koizumi: We will go along with judgments of 
experts in deciding to reopen Japanese market to US beef 
17)  Minshuto's Hatoyama denounces decision to resume US beef 
imports: Priority given President Bush over protecting food 
safety of Japanese people 
18)  Fate of 2,000 tons of US beef stopped at border by Japanese 
customs is in the air 
19)  Japan logs a 27th BSE infected cow, this time in Hokkaido 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi: 
Slow progress in professional education project for visiting 
nurses as part of steps to promote home medical care 
 
 
TOKYO 00002790  002 OF 011 
 
 
Mainichi: 
Japan to purchase emission credits for 100 million tons of 
greenhouse gases shortly, fearing a possible surge in emission 
trading prices 
 
Yomiuri: 
Toyota to operate 10 new factories abroad by 2010, aims to 
produce 10 million units yearly 
 
Nihon Keizai: 
KDDI to join hands with Sony to develop a "Walkman-brand" cell 
phone 
 
Sankei: 
Government, ruling coalition to cut government share of 
unemployment allowance, as the number of recipients is on 
decrease with economic recovery 
 
Tokyo Shimbun: 
LDP mulls excluding grown-up NEETs from dependent deduction, aims 
to encourage them to work by increasing their parents' burden 
 
2) EDITORIALS 
 
Asahi: 
(1)  Yokota airspace: Its return is the first step toward safety 
(2)  Local tax allocation system reform: Establishing "common 
tax" will be one solution with promotion of decentralization 
 
Mainichi: 
(1)  Resumption of US beef imports: Export conditions must be 
observed without recurrence of sloppiness 
(2)  Establishment of permanent government in Iraq: This should 
be linked to a step toward pullout of foreign troops 
 
Yomiuri: 
(1) Reorganization of NTT: Lack of awareness of international 
competition 
(2)  Sri Lanka: Japan, India need to work together to prevent 
ceasefire from crumbling 
 
Nihon Keizai: 
(1)  Iraqi people still face tests for stability 
(2) Japanese firms trying to outdo each other regarding dividends 
 
Sankei: 
(1) Road-use revenues should be used to constrain tax increases 
(2)  Trade talks: WTO and EPA are both useful 
 
Tokyo Shimbun: 
(1) Measures for job-hopping part-timers: They should have more 
opportunities to work at private firms instead of working as 
public servants 
(2)  Completion of Three Gorges Dam: What problems it will cause 
in the future? 
 
3) Poll: 17% see economy as improving, 31% see foreign relations 
as worsening 
 
ASAHI (Page 1) (Full) 
May 21, 2006 
 
 
TOKYO 00002790  003 OF 011 
 
 
An increasing number of people are actually feeling that the 
economy has recovered, but much of the public also is feeling a 
growing disparity among the different regions of the country, 
according to findings from a poll released by the Cabinet Office 
yesterday. 
 
The public opinion survey was conducted across the nation from 
January through March on a face-to-face interview basis. A total 
of 10,000 persons were chosen from among those aged 20 and over, 
and valid answers were obtained from 5,071 persons. In the 
survey, respondents were asked to pick one or more from among 24 
areas where they thought Japan was changing for the better and 
where Japan was changing for the worse. 
 
The proportion of those who picked Japan's economy as changing 
for the better sharply increased from 5.3% in last year's survey 
to 16.9% in this year's survey. The proportion of those who 
picked Japan's economy as changing for the worse decreased from 
38.5% in last year's survey to 20.5% in this year's survey. 
 
In the survey, respondents were also asked to pick one or more 
from among the same areas where they thought Japan was changing 
for the worse. In response to this question, 38.3% picked public 
security as worsening, topping all other areas. Even so, the 
figure shows a substantial decrease from 47.9% in last year's 
survey and went down for the first time since 1998. Those who 
picked Japan's foreign relations as changing for the worse 
accounted for 31.3%, up from 23.5% in last year's survey. The 
proportion of those who picked local disparities also increased 
from 9.7% to 15.0%. 
 
4) Poll: Over 50% support gov't draft amendment to education law 
on patriotism 
 
TOKYO SHIMBUN (Page 2) (Abridged) 
May 22, 2006 
 
According to findings from a poll released by Jiji Press 
yesterday on the issue of amending the Basic Education Law, more 
than 50% of the Japanese public answered "yes" when asked if they 
were in favor of the government's draft bill that incorporates 
the idea of patriotism. Broken down into political party 
supporters, 57.9% of those supporting the leading opposition 
Democratic Party of Japan (Minshuto) also answered "yes." In the 
survey, respondents were also asked if they were in favor of 
amending the law itself, and negative answers to this question 
accounted for a little less than 20% of all respondents. This 
will likely affect the Diet in its debate on the advisability of 
revising the law. 
 
The survey was conducted across the nation on May 11-14 after the 
government presented an amendment bill to the Diet incorporating 
the wording "love our country and its land." A total of 2,000 
persons were chosen for face-to-face polling from among those 
aged 20 and over. The retrieval rate was 66.6%. 
 
5) GSDF withdrawal may begin in July 
 
NIHON KEIZAI (Page 1) (Full) 
May 21, 2006 
 
In the wake of the inauguration of Iraq's new government, Tokyo 
 
TOKYO 00002790  004 OF 011 
 
 
will begin seriously studying ways to pull out Ground Self- 
Defense Force troops from Samawah. Prime Minister Junichiro 
Koizumi plans to tell US President George W. Bush of Japan's 
basic policy of withdrawing GSDF troops and continuing to provide 
support for Iraq in their summit meeting in late June. The 
government will swiftly undertake coordination with Britain and 
Australia to begin pulling GSDF troops out of Samawah as early as 
July in tandem with their troops. 
 
A government source indicated on May 20 that a GSDF pullout would 
not occur until after the Koizumi-Bush talks, adding: 
"Coordination with concerned countries will be necessary. In view 
of the rotational period, it would be desirable to begin pulling 
out troops in July or later." 
 
6) Completion of GSDF withdrawal before Koizumi's departure from 
office uncertain 
 
ASAHI (Page 2) (Excerpts) 
May 21, 2006 
 
Following the establishment of a unity government in Iraq, the 
government will begin coordination in earnest to pull out Ground 
Self-Defense Force troops from Samawah. The government has 
concluded that of the four requirements for a pullout, two 
conditions - progress in recovery and progress in the political 
process - have now been met. But because the remaining two 
conditions - transfer of security authority and the trend of the 
US-led multinational force -- have not been met, the GSDF may not 
able to withdraw from Iraq while Prime Minister Koizumi is in his 
office, his goal. 
 
According to the government, Iraq's council on national security 
of concerned ministers including the interior and defense 
ministers will discuss the transfer of security authority with 
the United States and Britain. They will examine the security 
situation, progress in fostering Iraqi security authorities, and 
other factors of each area. 
 
The transfer of security authority in southern Iraq, including 
Samawah, is expected to take at least one more month. GSDF 
pullout would not occur until then. There is concern in the 
government that as long as Prime Minister Nouri al-Malaki serves 
concurrently as security minister, the Iraqi government has no 
leeway to discuss the transfer of security authority. 
 
Under such circumstance, the 10th GSDF contingency will complete 
replacing the 9th contingency in late May. The government will 
search for ways to pull out Japanese troops before the 10th 
contingency's tour of mission ends in August. With a withdrawal 
likely to take a couple of months, it remains to be seen if the 
GSDF can completely leave Iraq before Prime Minister Koizumi's 
term of office ends in September. 
 
7) Japan to help rebuild Iraq even after SDF pullout: Koizumi 
 
YOMIURI (Page 2) (Full) 
May 22, 2006 
 
Prime Minister Junichiro Koizumi said on May 21 that Japan would 
continue to help rebuild Iraq, even after it pulls out its Self- 
Defense Forcers troops from the war-battered country, but he gave 
 
TOKYO 00002790  005 OF 011 
 
 
no specific time frame for the withdrawal. During a visit to 
Kanazawa City, Ishikawa Prefecture, Koizumi told reporters: 
 
"Japan will continue humanitarian support and reconstruction 
assistance. I think there will be other things to do to help Iraq 
even after the SDF are withdrawn from Samawah. The government 
will decide comprehensively (as to when pull out the SDF 
personnel)." 
 
Koizumi welcomed the launch of Iraq's new government, saying: 
 
"A government in the Middle East that is stable and never gives 
in to terrorism will benefit the international community as a 
whole. I think the country needs more time, but I would like to 
see the country's enthusiasm to build their country on their own. 
The international community will by all means support the 
country." 
 
8) Government to start GSDF withdrawal from Samawah possibly next 
month, offer ODA 
 
MAINICHI (Page 2) (Full) 
May 21, 2006 
 
Following the inauguration of the new Iraqi government on May 20, 
the Japanese government will soon start coordination with the new 
Iraqi government and the US to pull Self-Defense Force troops out 
of Samawah in the southern part of Iraq, possibly next month. 
Under the Japanese government's scenario, the government would 
decide to withdraw troops before the Japan-US summit set for late 
June and complete the withdrawal by the end of July, together 
with British and Australian troops, who have been in charge of 
maintaining security in Samawah. 
 
Foreign Minister Taro Aso issued a statement welcoming the 
decision: "The political process set under a UN Security Council 
resolution has been completed." The Japanese government sees that 
security authority will be transferred first in southern Iraq. 
Even so, the actual situation is that the plan for withdrawing 
troops sometime between March and May envisioned by Japan, 
Britain, and Australia has been put off because of the delayed 
launch of the new government and the deteriorating security 
situation in Iraq. There is a possibility of increasing 
instability in Iraq that could eventually delay the withdrawal 
further. 
 
Should the SDF withdrawal process move ahead in line with the 
government's scenario, the government would expand the areas 
subject to airlift activities by the Air Self-Defense Force 
between Kuwait and southern Iraq to cover Baghdad. By also adding 
United Nations staff members and materials to the airlift 
operations, the government aims to underscore its continued 
assistance for Iraq. The government has also decided to conclude 
a contract with the Iraqi government soon to offer 76.5 billion 
yen worth of yen loans for projects to repair thermal power 
plants and construct port facilities as part of its official 
development assistance (ODA) 
 
9) Prime Minister: "Security alliance will deter" Taepodong 
launch 
 
TOKYO SHIMBUN (Page 2) (Full) 
 
TOKYO 00002790  006 OF 011 
 
 
May 20, 2006 
 
When asked late yesterday about the signs that North Korea is 
making preparations to launch a Taepodong long-range missile, 
Prime Minister Koizumi said: "Japan is endeavoring to secure 
safety while maintaining deterrence under the Japan-US Security 
Treaty. I think North Korea is well aware of this point." Koizumi 
thus indicated that North Korea is not in a situation where it 
will decide to launch a missile. 
 
When asked if he would notify the people if the likelihood of a 
missile launch were to increase, Koizumi pointed out, "I don't 
think we are in such a situation," adding, "I think the 
government's job is to take every possible measure to secure 
safety." 
 
10) US military to deploy PAC-3 in Okinawa in current fiscal year 
against North Korea 
 
NIHON KEIZAI (Page 1) (Full) 
May 21, 2006 
 
The governments of Japan and the United States decided May 20 to 
deploy the US military's Patriot Advanced Capability-3 (PAC-3) 
ground-to-air missiles at Kadena Air Base in Okinawa based on 
their final agreement on the realignment of US forces in Japan. 
The aim is to boost US deterrence against North Korean and 
Chinese missiles. Japan and the US will aim at operation of the 
system in the current fiscal year. 
 
The PAC-3-centered missile defense system is designed to detect 
an enemy missile and intercept it before it lands. A sea-based 
Aegis vessel will first fire a Standard Missile-3 (SM-3) at an 
enemy missile flying outside the earth's atmosphere. In the event 
the MS-3 misses the target, a ground-based PAC-3 will intercept 
it in the terminal phase. 
 
The PAC-3 has greater capability than the current PAC-2, which is 
designed chiefly to intercept aircraft. Japan has decided to 
deploy the PAC-3 at Air Self-Defense Force bases. The ASDF plans 
to deploy the PAC-3 at its Iruma base in Saitama, Hamamatsu base 
in Shizuoka, and others bases along with the US Kadena base. 
 
There have been signs that a missile-testing facility in 
northeastern North Korea has been preparing to launch what seems 
to be a Taepodong-2 long-range ballistic missile. Japan and the 
United States intend to swiftly deploy the PAC-3 in Japan against 
such an unexpected event. 
 
11) Gov't to cut spending on front line equipment to raise funds 
for US force realignment 
 
YOMIURI (Page 1) (Abridged) 
May 20, 2006 
 
The government has decided to review its current midterm defense 
buildup plan (Chukibo) for five fiscal years from 2005 through 
2009, totaling 24.24 trillion yen, and cut back on the budget for 
front line equipment in order to secure resources related to 
Japan's cost sharing for the realignment of US forces in Japan, 
officials said yesterday. The government is now coordinating to 
review the plan for the period of five fiscal years from 2007 or 
 
TOKYO 00002790  007 OF 011 
 
 
two fiscal years from 2008. The government will refer to a review 
of the plan in a cabinet decision to be made soon in order to 
implement a final report on the US military's realignment. 
 
The United States has agreed to redeploy Marine Corps troops from 
Okinawa to Guam in the process of realigning US forces in Japan. 
The US government estimates this Marine relocation at 10.27 
billion dollars, equivalent to 1.14 trillion yen in the fiscal 
2006 budget. Japan, in its cost sharing for the relocation of 
Marine troops to Guam, is to pay 6.09 billion dollars or 676 
billion yen, including 2.8 billion dollars or 310.8 billion yen 
to be outlaid from the state coffers and 1.5 billion dollars or 
166.5 billion yen to be invested. 
 
Meanwhile, the Defense Agency estimates the cost of realignment 
of US military bases in Japan at approximately 1.5-2.0 trillion 
yen, including economic stimulus measures for base-hosting 
localities. One official of the agency presumes Japan's share of 
costs for the US military's realignment in Japan will total over 
2.0 trillion yen. In this case, Japan will have to outlay more 
than 200 billion yen on average each fiscal year so as to 
complete the force realignment in 10 years or so. 
 
The Defense Agency wants to set up a separate budget slot for the 
government as a whole to make up for these realignment costs as 
in the case of costs related to the Special Action Committee on 
Facilities and Areas in Okinawa (SACO). However, the Finance 
Ministry insists that the Defense Agency should handle the force 
realignment within the framework of its own budget slot. 
 
However, the Defense Agency has shown understanding on reviewing 
the midterm defense buildup plan and reducing its budget to a 
certain extent for front equipment. 
 
The current midterm defense buildup plan requires the government 
to review itself in 2007 as needed for the remaining period of 
two fiscal years. The Defense Agency says it still cannot grasp 
the total amount for Japan's cost sharing at this point. For this 
reason, the agency insists that the plan should be reviewed in 
fiscal 2007 as stipulated in the plan. However, the Finance 
Ministry has asked the Defense Agency to review the defense 
buildup plan one year earlier than scheduled. 
 
The Defense Agency thinks that the current defense buildup plan's 
spending cuts would be limited because many of the government's 
planned large-scale projects are scheduled for fiscal 2010 or 
later, including the project of building an alternative facility 
at more than 300 billion yen for the relocation of the US Marine 
Corps' Futenma Air Station in the city of Ginowan, Okinawa 
Prefecture. 
 
12) Japan, US agree to open a portion of Yokota RAPCON to 
commercial flights, now 190 flights per day; Flight time likely 
to be shortened by 1 minute 
 
NIHON KEIZAI (Page 39) (Excerpts) 
May 20, 2006 
 
The Japanese and US governments agreed at a meeting yesterday of 
the commercial flights subcommittee under the Japan-US Joint 
Committee to open possibly as early as this autumn a portion of 
the airspace now controlled by the US military in Japan, commonly 
 
TOKYO 00002790  008 OF 011 
 
 
called "Yokota radar approach control" (Yokota RAPCON), to 
commercial flights. This move came as a stopgap measure ahead of 
the implementation of the agreement already reached between the 
two governments to return a part of the Yokota airspace by 
September 2008 as the numbers of landings and takeoffs by 
airliners at Haneda Airport will increase, following the 
completion of its expansion project. 
 
According to the Ministry of Land, Infrastructure, and Transport 
and also other government offices concerned, Yokota RAPCON covers 
airspace above Tokyo and eight prefectures, and its highest 
altitude is about 7,000 meters. Commercial flights from Haneda 
Airport are forced to pass over it to avoid the airspace, and 
commercial flights heading for Haneda and Narita airports are 
forced to take a detour to avoid the airspace. 
 
The United States has now allowed commercial airplanes to fly in 
the upper airspace covering 600 meters ranging from around Eda in 
Yokohama City to around Sagami Bay, if there are no military 
necessities. This move will affect the flight routes of 190 
flights per day departing from Haneda Airport to head for the 
Hokuriku, Chugoku, Shikoku, and northern Kyushu regions. With 
this partial opening of the Yokota airspace, each flight can 
shorten its flight time by one minute or so. 
 
13) Coordination underway for Japan-US summit on June 29; Chance 
to publicize good bilateral ties to audiences at home and abroad 
 
SANKEI (Page 2) (Excerpts) 
May 21, 2006 
 
The governments of Japan and the United States are now 
coordinating to set up a summit meeting between Prime Minister 
Junichiro Koizumi and President George W. Bush on June 29 in 
Washington. Koizumi intends to underscore the "alliance in the 
world" theme in this, his last visit to Washington as a Japanese 
prime minister prior to stepping down in September. 
 
With the long-standing issue of realigning the US forces in Japan 
now resolved, as well as the possible resumption of US beef 
imports before the prime minister's visit to Washington, the 
summit will become an opportunity for the two leaders to show 
audiences at home and abroad the good state of bilateral ties. 
The leaders will exchange views on such issues as when Japan will 
withdraw its Self-Defense Forces from Iraq, the East Asia 
situation, including China and North Korea, Iran's nuclear 
development, and reform of the United Nations. 
 
Koizumi will attend a dinner party hosted by the president and 
his wife. The two governments are now looking into a plan for 
Koizumi to visit the residence of his favorite singer, Elvis 
Presley, in Memphis, Tennessee. 
 
14) Sakie Yokota, mother of Megumi Yokota who was abducted by 
North Korea, says, "I want the prime minister to take even half 
of the action that US president took" 
 
YOMIURI (Page 4) (Full) 
May 20, 2006 
 
At a meeting on May 19 of a group of nonpartisan Diet members 
working on abductions by North Korea, Sakie Yokota, the mother of 
 
TOKYO 00002790  009 OF 011 
 
 
Megumi Yokota, one of those Japanese abducted by North Korea, 
made a specific request of Prime Minister Junichiro Koizumi: 
 
"Even if he only does half of what US President Bush did, I would 
like Prime Minister Koizumi to clearly speak to the public about 
his eagerness to resolve the abduction issue. I want him to take 
visible action." 
 
She then expressed her displeasure with him, stating, "I wanted 
to meet him, but he has yet to give me that chance." 
 
In response to her remarks, Koizumi told reporters on the night, 
"I have been deeply impressed by the activities taken by Mr. and 
Mrs. Yokota. The government will make its utmost efforts to help 
them." 
 
15) Government mulling continued cuts in ODA, defense spending 
for another five years starting in next fiscal year's budget 
 
NIHON KEIZAI (Page 1) (Full) 
May 22, 2006 
 
The government and the ruling camp have started looking into the 
possibility of cutting official development assistance (ODA) and 
defense-related expenditures from the general-account budget for 
five years starting in the next fiscal year's budget. ODA and 
defense expenditures have been subject to cuts since fiscal 2002. 
The government and the ruling parties intend to maintain this as 
a basic policy even after Prime Minister Koizumi steps down in 
September. Since concerned government agencies and ruling party 
members will likely oppose such a policy, talks to coordinate 
views of concerned government agencies will likely encounter 
complications. 
 
The Liberal Democratic Party (LDP) Spending Reform Project Team, 
chaired by Policy Research Council Chairman Hidenao Nakagawa, 
will launch full-fledged talks on the handling of ODA and defense 
expenditures at by-selective committees, headed by former 
Minister of Education, Culture, Sports, Science, and Technology 
Takeo Kawamura, starting this week. The Council on Economic and 
Fiscal Policy will also simultaneously discuss the same issue 
with the aim of having the continuation of the downward trend 
reflected in the 2006 basic policy guidelines on economic and 
fiscal management and structural reforms to be compiled in June. 
 
The current fiscal year's ODA budget has been slashed for the 
seventh year in a row to 759.7 billion yen, down 3.4% from the 
previous year in general account terms. The dominant view in the 
government and the ruling bloc is that the efficiency of ODA- 
financed projects should be enhanced through intensive 
appropriation of funds to strategic areas, such as environment- 
related areas or the use of nonprofit organizations. Talks will 
likely focus on a 3% cut for the next fiscal year. 
 
The prime minister has pledged to the international community an 
increase in ODA to a total of 10 billion dollars over the next 
five years in terms of the number of projects. As such, the 
government plans to tap fiscal investment and loan funds to 
finance such ODA projects so that an increase of ODA 
appropriations from the general-account budget can be avoided. 
 
The fiscal 2006 defense-related budget will likely be cut for the 
 
TOKYO 00002790  010 OF 011 
 
 
fourth consecutive year to 4.8139 trillion yen, down 0.9%, even 
if appropriations for SACO (Japan-US Special Action Committee on 
Okinawa)-related spending are included. In view of the prospect 
that the total share of Japan in the cost of USFJ realignment, 
which is estimated to reach 3 trillion yen over the next six 
years, will be added to the defense budget, the prevailing view 
in the government and the ruling camp is that it would be 
unavoidable to continue to cut defense-related expenditures, 
except for appropriations for USFJ realignment. 
 
16) Prime minister: "The government will follow experts' 
decision," with eye on upcoming Japan-US summit 
 
SANKEI (Page 3) (Excerpts) 
May 20, 2006 
 
Speaking before reporters last night, Prime Minister Junichiro 
Koizumi stated about a resumption of US beef imports: "We want to 
follow the experts' decision. Once both sides agree to import 
conditions, Japan will resume imports." Many observers see that 
the government's agreement on May 19 reflects its desire to 
resolve the issue before the Japan-US summit scheduled for late 
June, though government officials deny this. The agreement is in 
a sense a "political settlement." 
 
In the Japan-US talks held before Japan resumed imports last 
December, they devoted considerable time to assessing the safety 
of US beef. This time, the focus of discussions was on import 
conditions, including auditing and snap inspections at meat- 
processing facilities in the US. 
 
On the US side, President Bush has indicated expectations for an 
early resumption of imports, and in the Congress dissatisfaction 
is also growing. Some government officials are overheard 
murmuring that if the import ban drags on, the problem of food 
safety might develop into a trade dispute between Japan and the 
US. 
 
Under such a situation, Prime Minister Koizumi will leave for the 
US in late June. He has envisioned that during their meeting, he 
and President Bush will reconfirm the Japan-US alliance in a 
global context and underscore the importance of Japan-US ties. 
The prime minister, who has built personal relations of trust 
with Bush, apparently has a desire to see the thorny beef issue 
resolved and bilateral pending issues minimized before meeting 
Bush. 
 
17) Minshuto's Hatoyama criticizes government for agreeing to 
resume US beef imports: Priority given to US president over the 
food safety of the Japanese people 
 
TOKYO (Page 2) (Full) 
May 21, 2006 
 
Secretary General Yukio Hatoyama of Minshuto (Democratic Party of 
 
SIPDIS 
Japan) gave speeches on May 20 in Nakazugawa City and other parts 
of Gifu Prefecture. In them, he referred to the Japanese 
government's decision to resume imports of US beef in mid-June, 
linking it to Prime Minister Koizumi's planned visit to the 
United States in late June. He sharply criticized the government 
for its response, saying: "When it came to choosing between the 
relationship with President Bush and the safety and peace of mind 
 
TOKYO 00002790  011 OF 011 
 
 
(of the Japanese people), he chose the President and abandoned 
the people." 
 
Hatoyama stated: "In the previous decision (last November), as 
well, the (decision in effect) to resume beef imports came just 
before the President came to Japan. It's the same again, with the 
Prime Minister all flustered just before his trip to Japan, 
thinking that there is little time left in order to make the 
decision (of beef) on time. I've never heard of a more stupid 
thing than this!" 
 
18) Fate of 2,000 tons of stored US beef still up in the air 
 
YOMIURI (Page 2) (Full) 
May 21, 2006 
 
The government's ban on US beef imports in January has left about 
2,000 tons of the meat stored in freezers or refrigerators across 
the nation since it cannot clear customs. The government imposed 
a second ban after a specified material risk that could transmit 
BSE was found in a US beef shipment to Japan. 
 
In a meeting of experts from the Japanese and US governments on 
May 19, both sides reached broad agreement to resume imports in 
July at the earliest. But they have not yet decided on how to 
deal with the stored beef. A document released after the meeting 
just noted: "No problem was found with the stored beef as a 
result of an examination of records." 
 
The government expects to set a policy to handle the stored beef 
before it officially decides to resume imports in mid-June. Even 
if the beef were to clear customs and be placed on the market, 
however, it is uncertain whether wholesalers would purchase it. 
The trading firms involved have been in a great quandary. 
 
19) Dairy cow in Hokkaido identified as 27th domestic case of BSE 
 
TOKYO SHIMBUN (Page 3) (Full) 
May 20, 2006 
 
The Ministry of Agriculture, Forestry, and Fisheries yesterday 
announced that a dairy cow that had tested positive in the first 
BSE test finally checked out positive in the second test. This is 
the 27th domestic case of BSE. 
 
The cow's meat and internal organs have been incinerated. They 
had not been placed on the market. 
 
The cow is a female Holstein aged five years and eight months. It 
had been bred in Toyosu Town and died on May 16. The first test 
conducted by the Hokkaido Tokachi Livestock Hygiene Service 
Center tentatively turned out positive. The final test at the 
Animal Hygiene Service Center in Ibaraki Prefecture also turned 
out positive. 
 
The cow was born in August 2000 before the use of meat and bone 
meals was banned in 2001. 
 
SCHIEFFER