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UNCLAS SECTION 01 OF 11 TOKYO 002969 
 
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 05/31/06 
 
 
Index: 
 
1)   Top headlines 
2)   Editorials 
3)   Prime Minister's daily schedule 
 
4)   Assistant Secretary of State Richard Boucher calls on Japan 
  to support US-India nuclear cooperation arrangement 
 
USFJ realignment: 
5)   Koizumi Cabinet approves basic policy line on USFJ 
  realignment but relocation site for Futenma base not mentioned 
6)   Strong negative reaction from Okinawa to cabinet decision on 
USFJ realignment 
7)   Local governments affected by US force realignment complain 
of "insufficient explanation" by GOJ 
8)   Japan's share of USFJ realignment cost remains invisible in 
the cabinet decision approving the basic plan 
9)   LDP team calls for cuts in host-nation support to offset the 
expenses of USFJ realignment 
10)  Rising worry that with sealing of cabinet agreement on USDF 
realignment, SDF could become involved in "America's wars" 
 
11)  Japan-China gas field talks switching from border 
  demarcation to give priority to joint exploration and development 
 
Political agenda: 
12)  Prime Minister Koizumi rules out extension of Diet, placing 
  a number of important bills in limbo 
13)  Bereaved Families Association Chairman Koga's proposal for 
neutralizing Yasukuni Shrine sets off divisive debate pro and con 
in the organization 
14)  Justice Ministry panel prepares new proposals to address 
problem of foreign labor in Japan 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi: 
Asahi poll of 74 companies to crack down on illegal parking: 36 
corporations have retired police officers; 14 companies have new 
hires 
 
Mainichi and Tokyo Shimbun: 
Tokyo High Court rejects Shoko Asahara's objection, paving the 
way for his death sentence 
 
Yomiuri: 
Government, ruling coalition decide to carry education, 
referendum bills over to next Diet session under Koizumi's 
successor 
 
Nihon Keizai: 
Matsushita, Hitachi to double liquid crystal panel production 
capability by jointly investing 80 billion yen in new Chiba line 
and building plants in Eastern Europe 
 
Sankei: 
ANA considering selling all 35 hotels to Intercontinental 
 
2) EDITORIALS 
 
TOKYO 00002969  002 OF 011 
 
 
 
Asahi: 
(1)  Cabinet decision on US force realignment filled with 
postponements 
(2)  Kimigayo decision: Punishment unfit for education 
 
Mainichi: 
(1)  US force realignment: Prime Minister Koizumi must fulfill 
his responsibilities until September 
(2)  Hanshin TOB: A thorough explanation necessary for passengers 
and Hanshin Tigers fans 
 
Yomiuri: 
(1)  Push steadily ahead with realignment plan 
(2)  Social Insurance Agency scandal: Murase policy course must 
not be rejected 
 
Nihon Keizai: 
(1)  Life insurers must increase competitiveness with information 
disclosure as leverage 
(2)  US force realignment will change SDF as well 
 
Sankei: 
(1)  Cabinet decision on US force realignment: Okinawa does not 
need further turmoil 
(2)  Look-alike paintings: What's happened to the pride of an 
artist 
 
Tokyo Shimbun: 
(1)  US force realignment: Government's decision to jump the gun 
would cost Japan dearly 
(2)  The environment and the declining population: Compact 
measures essential 
 
3) Prime Minister's Official Residence (Kantei) 
 
Prime Minister's schedule, May 30 
 
NIHON KEIZAI (Page 2)  (Full) 
May 31, 2006 
 
08:55 
Attended a cabinet meeting in the Diet building. JDA Director 
General Nukaga stayed behind. 
 
09:26 
Arrived at Kantei. 
 
10:10 
Met World Bank Governor Wolfowitz. Followed by incoming and 
outgoing chief judge Kohei Nasu and Kunio Hamada. 
 
11:00 
Met former Russian Prime Minister Primakov. Later met Diet 
Affairs Committee Chairman Hosoda. 
 
14:05 
Met Justice Minister Sugiura. 
 
15:00 
Met incoming and outgoing Japan Business Federation chairman 
Mitarai and Okuda. Followed by Upper House Secretary General 
 
TOKYO 00002969  003 OF 011 
 
 
Katayama, Fire and Disaster Management Agency Director General 
Itakura, and others. 
 
15:57 
Met Finance Minister Tanigaki, Vice Finance Minister Hosokawa, 
and others. Followed by Vice Foreign Minister Yachi. 
 
17:37 
Met State Minister in Charge of Economic, Fiscal and Financial 
Policy Yosano, and Assistant Deputy Chief Cabinet Secretary Saka. 
Later, met Education Minister Kosaka. 
 
19:02 
Met Chief Cabinet Secretary Abe, deputy chief cabinet secretaries 
Nagase and Suzuki, senior vice ministers from various government 
agencies, and others. 
 
4) US Assistant Secretary of State Boucher asks Japan to support 
US-India nuclear cooperation 
 
ASAHI (Page 7) (Full) 
May 31, 2006 
 
In an interview yesterday to the Asahi Shimbun, US Assistant 
Secretary of State (for South and Central Asian Affairs) Richard 
 
SIPDIS 
Boucher, now visiting Japan to attend in international conference 
centered on the peace process in Sri Lanka, referred to the 
nuclear cooperation pact for private-sector use signed between 
the United States and India in March: "I would hope that Japan 
examine the contents in detail and look on it favorably." The US 
government is sounding out Japan for its support of this issue, 
with an eye on the Japan-US summit meeting at the end of June. 
His statement as a high-level US official is a clear request for 
support. 
 
Assistant Secretary Boucher stressed: 1) India is expanding its 
relations with Western countries across the board; 2) a clean 
energy supply (through nuclear power) would be for India's 
economic development; and 3) this would lead toward greater 
international cooperation in nuclear non-proliferation. 
 
He stated that "it would be in Japan's best interests" to have 
stable development in India, which is located in between the 
unstable Middle East, with its Islamic fundamentalist terrorists, 
and Southeast Asia. He thus urged support from a strategic 
viewpoint, as well. 
 
5) Cabinet adopts basic US force realignment policy without 
specifying Futenma relocation site 
 
YOMIURI (Top play) (Excerpts) 
Evening, May 30, 2006 
 
The government at its cabinet meeting this morning adopted a 
basic policy on the realignment of US forces in Japan. The basic 
policy also mentions the government's plan to swiftly map out a 
plan to construct alternative facilities for Futenma Air Station 
(now located in Ginowan, Okinawa Prefecture) based on a Japan-US 
agreement. The policy also specifies a review of the Midterm 
Defense Buildup Program to squeeze out necessary funds for the 
realignment. The focus will now shift to such matters as US force 
realignment promotion special measures legislation, concrete 
 
TOKYO 00002969  004 OF 011 
 
 
plans for implementing the realignment, and how to split the 
costs of realignment. 
 
The Defense Agency initially planned to specify "waters in the 
vicinity of Cape Henoko and Oura and Henoko bays" in the basic 
policy as the relocation site for Futenma Air Station. But the 
agency in the end decided not to specify a specific site in 
deference to Okinawa, which take the view: "We have not agreed to 
the government plan." At the same time, the policy clearly 
specifies the abolition of the December 1999 cabinet decision on 
the original Futenma Air Station relocation plan. 
 
The government will also review the Midterm Defense Buildup 
Program (24.24 trillion yen for FY2005-2009) once the estimate 
for the realignment becomes clear in order to come up with funds 
for the realignment. 
 
The policy also reads, "The government will take steps to help 
promote local economies so that they will be able to contribute 
to the peace and security of Japan in compliance with requests 
from communities bearing additional burdens." The aim is to 
enhance economic stimulus measures for local governments to be 
affected by the realignment, such as Nago and Iwakuni in 
Yamaguchi Prefecture, the relocation site for carrier-based 
planes now based at the Atsugi base in Kanagawa Prefecture. 
 
Key points in the basic policy on US force realignment 
 
    Take economic stimulus measures in compliance with requests 
from local governments bearing additional burdens. 
    Bear the due cost for relocating US Marines to Guam to 
o 
swiftly realize the relocation. 
    Improve the efficacy of defense-related outlays. Review the 
Midterm Defense Buildup Program once the estimated cost becomes 
clear. 
    Swiftly map out a Futenma alternative facility construction 
plan based on the plan approved by the Japan-US Security 
Consultative Committee. 
 
6) Cabinet approves US force realignment plan, but Okinawa raises 
strong objection 
 
MAINICHI (Page 6) (Excerpts) 
Evening, May 30, 2006 
 
By Teruhisa Mimori, Nakae Ueno, Shinya Oba 
 
Okinawa today raised a strong objection to the cabinet's 
endorsement to the central government's policy of implementing 
the US force realignment plan. The Okinawa prefectural government 
complained that the central government had failed to observe the 
basic confirmation exchanged between Okinawa and the Defense 
Agency (JDA) on May 11. Nago City, which has accepted the 
relocation plan for the US Marine Corps Air Station Futenma, also 
is becoming increasingly distrustful of the central government, 
, 
because Tokyo decided to end the economic stimulus measures for 
the northern part of Okinawa. 
 
Okinawa Gov. Keiichi Inamine, now visiting Tokyo, yesterday 
criticized the cabinet's approval at a press conference in Tokyo: 
 
TOKYO 00002969  005 OF 011 
 
 
"(The basic) confirmation states that thorough consultations will 
be held with each concerned area, but this sort of effort has not 
been fully made. I will emphasize this point from now on." When 
asked whether his government would take part in a consultative 
body - an arena for the central government and local 
municipalities to discuss such matters as a construction plan for 
an alternative facility for the Futenma airfield -- Inamine 
indicated he would carefully make a decision about this, saying: 
"I'd like to decide while discussing it with cities, towns, and 
villages that will be affected by the realignment plan." 
 
On the consultative organ, Vice Okinawa Gov. Hirotaka Makino told 
reporters earlier in the day: "We won't respond to talks if the 
talks are based on the coastal plan." The vice governor thus 
implied Okinawa's refusal to participate in the consultative 
organ even if the central government asks Okinawa to take part in 
it. 
 
The Okinawa prefectural government's position indicated in the 
basic confirmation is that the relocation site should be a 
coastal area of Camp Schwab, so Okinawa and the central 
government has yet to bridge the gap. (The basic confirmation) 
mentioned that the central government will discuss the details of 
the relocation plan with affected municipalities, such as the 
Okinawa prefectural government and Nago City, before the cabinet 
approves the realignment plan. 
 
In this regard, Vice Gov. Makino said: "The governor has told JDA 
Director-General (Fukushiro) Nukaga that 'a cabinet approval is 
an act by the central government, but I can't go along with the 
contents of (what the cabinet approves).'" But the JDA has 
twisted this remark by the governor as meaning 'local 
understanding has been obtained.' It's extremely regrettable." 
 
7) Cabinet decision on USFJ realignment faced with local backlash 
 
NIHON KEIZAI (Page 2) (Abridged) 
May 31, 2006 
 
The government made a cabinet decision yesterday on the planned 
realignment of US forces in Japan. From now on, the government 
will expedite its coordination with local governments to shape 
specific realignment plans, such as relocating Futenma base in 
the city of Ginowan, Okinawa Prefecture. However, base-hosting 
localities raised objections to the cabinet decision all at once, 
claiming that the government has failed to fully account for the 
US force realignment. The government will likely face rough going 
in the final phase of its coordination with local base hosts. 
 
"We've confirmed in written form (with the Defense Agency) that 
the government will fully comply with local standpoints," Okinawa 
Prefecture's Governor Keiichi Inamine said. "But," Inamine went 
on, "the government didn't." He stressed, "We have our own 
plans." With this, the governor clarified that he would not 
accept Futenma relocation to Camp Schwab's coastal area and that 
the Okinawa prefectural government would persist in its own 
counterproposals, such as building a temporary helipad on the 
camp's premises. 
 
In its cabinet decision yesterday, the government took the 
position that it would set up a consultative body with Okinawa 
Prefecture and its base-hosting municipalities and would work out 
 
TOKYO 00002969  006 OF 011 
 
 
a construction plan at an early date. The government intends to 
launch the consultative body in June and work out a plan in the 
fall of this year. However, Okinawa is crying out against Tokyo 
over its pork-barreling of base-hosting localities. It is 
therefore unclear whether Okinawa will readily sit down at the 
negotiating table. 
 
In the meantime, the US Navy will redeploy a carrier-based air 
wing to Iwakuni base in the city of Iwakuni, Yamaguchi 
Prefecture. Iwakuni City's Mayor Katsusuke Ihara also criticized 
the government, saying, "It's very regrettable that the 
government went ahead with the realignment talks while failing to 
give sufficient explanations to us." The mayor added, "We'd like 
to negotiate with the government in a tenacious manner so as to 
call for the government to retract the planned redeployment." 
Another specific realignment issue is the US Army's planned 
relocation of the 1st Corps' revamped command functionality to 
Camp Zama in Kanagawa Prefecture. The local hosts of Camp Zama, 
namely the cities of Zama and Sagamihara, have released their 
respective comments opposed to the strengthening of base 
functions. 
 
8) Japan's share of US force realignment cost remains invisible 
 
ASAHI (Page 3) (Excerpts) 
May 31, 2006 
 
Following the cabinet's approval of the government's basic policy 
on the realignment of US forces in Japan, the focus of attention 
has shifted to the problem of how to solicit agreement from the 
local communities affected by the realignment plan, as well as to 
the size and financial resources of Japan's share of the 
realignment cost. The government's plan did not present any 
specific cost estimate. The Japanese government already bears a 
huge financial burden to maintain the US military presence in 
Japan. In addition, a new burden, the cost of relocating Marines 
to Guam, will be imposed on Japan. Japan is unlikely to see any 
reduction in its burden for hosting the US forces in Japan. 
 
Regarding the estimated total realignment cost, Prime Minister 
Koizumi told reporters at noon of yesterday: "Close examination 
is necessary. It will take some time to work out the 
calculations." 
 
US Deputy Under Secretary of Defense Lawless estimated Japan's 
share of the realignment cost at 3 trillion yen late April. 
Regarding this estimate, Defense Agency (JDA) Director General 
Nukaga said: "It is a groundless figure." Some JDA officials have 
come up with 1.5 to 2 trillion yen as a rough estimate. 
 
Administrative JDA Deputy Director General Takemasa Moriya also 
said in a speech in April: "We estimate Japan's share at 2 
trillion yen after deducting the share of the cost for relocating 
Okinawa-based Marines to Guam." If about 700 billion yen in 
Japan's estimated share of the Guam relocation cost is added to 
this figure, the total amount will reach nearly 3 trillion yen. 
 
The government set 2014 at the target year for the plans of 
transferring the US Marine Corps Futenma Air Station, and Marines 
to Guam. Assumed that the 3 trillion yen is paid over an eight- 
year period, Japan's share on an annual basis will be 375 billion 
yen in new expenses. Given the country's current difficult fiscal 
 
TOKYO 00002969  007 OF 011 
 
 
situation, it will not be easy for the government to squeeze out 
such fiscal resources. 
 
Once the US military vacates the bases located south of Kadena 
Air Base in Okinawa Prefecture in accordance with the agreement 
reached between Japan and the US, the government will be released 
from the obligation of paying ground rents and pay for local 
employees. The government, though, remains unable to presume a 
total balance, a government source remarking: "It is still 
impossible to make a calculation in detail." 
 
9) LDP team suggests bold cut in host nation outlays in US force 
realignment 
 
ASAHI (Page 4) (Full) 
May 31, 2006 
 
The Liberal Democratic Party's "project team for expenditure 
reform" decided yesterday to drastically review "sympathy budget" 
allocations for US forces in Japan, or host nation outlays, as a 
measure to cut expenditures. The US force realignment plan will 
impose a huge amount of financial burden on Japan. By 
significantly reducing host nation outlays, the LDP aims to 
obtain public understanding toward Japan's share of the 
realignment cost and underscore the stance of cutting 
expenditures without sanctuary. 
The project team will compile this week an interim report on 
items up for spending cuts in general areas (including ODA, 
defense, and energy) and will include in it this wording: "The 
drastic review of host nation outlays." The government has begun 
budget allocations for US forces in Japan as welfare expenses for 
US base workers. Since the sympathy budget reached a record 282 
billion yen (contract base) in fiscal 1997, it has been on the 
decline. The amount in fiscal 2006 is set at 215.1 billion yen, 
but the interim report is expected to call for a larger 
reduction. 
 
Related to defense affairs, the interim report will also include 
these measures: (1) Reduction in the number of Self-Defense Force 
regular members; (2) cost cuts by joint procurement by the Air, 
Maritime, and Air Self-Defense Forces; (3) cut in facility- 
maintenance costs by preventing bid-rigging; and (4) sweeping 
review of measures for local communities near US military bases. 
 
10) Public concerned about involvement in US war 
 
TOKYO SHIMBUN (Page 2) (Full) 
May 31, 2006 
 
The government made a cabinet decision yesterday on a basic 
course of action over the planned realignment of US forces in 
Japan. With the US military's realignment going on, Japan will be 
a command linchpin of US forces in the Asia-Pacific region. In 
the event of emergencies in Japan, the Self-Defense Forces (SDF) 
and US Forces Japan (USFJ) will act in concert. Japan will 
solidify its alliance with the United States. At the same time, 
however, Japan is also likely to "blindly follow" the United 
States and may be involved in US warfare. 
 
In their talks over the US force realignment, Japan and the 
United States factored in the Korean Peninsula and the Taiwan 
Strait and considered maintaining deterrent capabilities. 
 
TOKYO 00002969  008 OF 011 
 
 
However, the United States has shifted its forces to its mainland 
since the Sept. 11, 2001 terrorist attacks at its nerve centers. 
The United States therefore had to strengthen its military 
partnership with the three SDF services in order to make up for 
its weakened military presence in the Far East. 
 
In the planned realignment of US forces in Japan, the US Army 
will set up a new command at Camp Zama in Kanagawa Prefecture, 
for example. The US Army, Navy, and Air Force will combine their 
commands with their SDF counterparts, namely the Ground, 
Maritime, and Air Self-Defense Forces, or GSDF, MSDF, and ASDF 
for short. In addition, Japan and the United States will further 
conduct joint training exercises and share intelligence. The 
Japanese government will also study bilateral defense planning in 
anticipation of emergencies in Japan and mutual cooperation 
planning in anticipation of emergencies in areas surrounding 
Japan. 
 
In 1997, Japan and the United States revised their bilateral 
defense cooperation guidelines. The Defense Agency, meanwhile, 
wants to overhaul the defense guidelines in an aim to push for 
bilateral cooperation in counterterrorism, missile defense, 
international disaster relief, and various other areas. 
 
Japan and the United States have now agreed on the realignment of 
US forces in Japan. The Japanese government praises itself for 
the agreement. "This is an outcome of our harmonized efforts to 
lessen the burden of base-hosting localities while maintaining 
deterrent capabilities," a senior official of the Defense Agency 
said. 
 
As a result of USFJ realignment, however, a fusion of the SDF and 
USFJ will not start. Eventually, Japan may become almost 
automatically involved in America's wars. This is a matter of 
concern to the public. There is such concern even within the 
ruling Liberal Democratic Party. "The United States can decide on 
where to send troops," a one-time cabinet minister in the LDP 
said. "Unlike the United States," this LDP lawmaker added, "Japan 
has no choice but to blindly follow the United States." 
 
If the SDF and USFJ act in concert to deal with emergencies, 
enemy countries and terrorists would inevitably equate Japan with 
the United States. In that case, SDF bases are highly likely to 
come under attack. 
 
Article 9 in the Constitution of Japan prohibits Japan from 
exercising the right of collective self-defense. However, Japan 
would be poised to fight together with the United States as a 
result of USFJ realignment. If that is the case, there is no 
doubt that the LDP will call for the government to unseal Japan's 
self-imposed prohibition against collective defense. 
 
The government, in its cabinet decision yesterday, underscored 
the necessity of USFJ realignment, recounting: "It is important 
to maintain and develop the security arrangement between Japan 
and the United States in order to ensure Japan's national 
security and maintain peace and stability in the Asia-Pacific 
region." However, the cabinet decision on USFJ realignment may 
become controversial on the point of whether the US military 
realignment in Japan will really help Japan. 
 
11) Japan-China gas field development: Tokyo sidesteps 
 
TOKYO 00002969  009 OF 011 
 
 
demarcation, gives priority to talks on joint development 
 
SANKEI (Page 2) (Lead paragraph) 
May 31, 2006 
 
The government yesterday decided to put on the backburner the 
work of demarcation to determine the exclusive economic zone 
(EEZ) during talks with China on oil and gas field development in 
the East China Sea. Behind this decision is Tokyo's judgment that 
because talks on demarcation are likely to drag on, it is wise to 
first engage in talks on joint development on a profit-sharing 
basis. But this move might be taken by China to mean that Japan 
has now accepted China's claim about an expansion of the 
continental shelf. 
 
12) Koizumi refuses to extend Diet session; Key bills to be 
carried over; Reform of the Social Insurance Agency given up 
 
SANKEI (Page 5) (Excerpts) 
May 31, 2006 
 
Prime Minister Junichiro Koizumi announced yesterday his final 
decision not to extend the ongoing Diet session, which ends on 
June 18. Reacting, the government and ruling coalition have 
started coordination to abandon plans linked to a possible 
extension of the current session. This will be the last Diet 
session to be conducted under the Koizumi government, but many 
contentious bills will now be carried over to the next session 
(under a new prime minister). Therefore, some lawmakers in the 
ruling camp, which holds more than two-thirds of the House of 
Representatives seats, have voiced their unhappiness with 
Koizumi's decision. 
 
Asked by reporters last night "Is it your last decision that the 
current session will not be extended?" Koizumi responded, "That's 
right." Prior to this, Koizumi called Liberal Democratic Party 
(LDP) Diet Affairs Committee Chairman Hiroyuki Hosoda in his 
office and told him, "The Diet session will not be extended." 
 
Hosoda, who had called for extending the session, told reporters: 
 
"There are slight gaps between the prime minister, who believes 
the term of the current session should be respected, and the Diet 
Affairs chairman, who wants to get the bills through the Diet at 
any cost." 
 
The ruling camp intends to put priority on the enactment of a set 
of bills on medical reform, which is now being deliberated in a 
House of Councillors committee. In the wake of a widening scandal 
involving social insurance offices' waivers of pension premium 
payments, the ruling coalition has given up on passing bills to 
reform the Social Insurance Agency through the Diet during the 
current session. They will decision within 10 days on whether to 
kill the bills or carry them over. 
 
Of important legislation submitted to the current session, only 
the administrative reform promotion bill has cleared the Diet. 
The medical reform bill might be the only other one that will be 
enacted before the end of the ongoing session. If the session is 
not extended, it will be difficult to enact an education reform 
bill, a bill on national referendum for amending the 
Constitution, a bill that would make conspiracy a crime, and a 
 
TOKYO 00002969  010 OF 011 
 
 
bill upgrading the Defense Agency to ministry status. 
 
13) Koga's proposal creates debate pro and con in Japan 
Association for the Bereaved Families of the War Dead; Reaching 
consensus difficult on removing Class-A war criminals from 
Yasukuni Shrine 
 
MAINICHI (Page 5) (Full) 
May 31, 2006 
 
Makoto Koga, chairman of the Japan Association for the Bereaved 
Families of the War Dead, proposed on May 30 that the issue of 
removing Class-A war criminals from Yasukuni Shrine should be 
discussed. Following the proposal, the association discussed the 
issue at its council of directors, but the group ended up divided 
into those for and those against it. The association therefore 
simply reaffirmed the conventional view that it is up to Yasukuni 
Shrine as to whether to remove Class-A war criminals. The 
association's leadership will discuss whether the proposal should 
be on the agenda. It will likely be difficult to reach consensus 
since the issue, being delicate, might split the membership in 
two. 
 
About 130 members attended yesterday's meeting. Koga walked out 
of the meeting soon after referring to the issue in his speech. 
The issue was discussed in his absence. 
 
During the meeting, one member said, "It is useless to discuss 
the matter because Yasukuni Shrine has said that it cannot remove 
Class-A war criminals once enshrined." Some said, "We should not 
shy away from discussing this matter." 
 
The association, a major supporter of the Liberal Democratic 
Party, is made up of 1 million households. Touching in a meeting 
of the association in June on Prime Minister Junichiro Koizumi's 
visits to the shrine, Koga expressed his view that Japan should 
give consideration to its neighboring countries, but he later 
changed that view. A senior association member commented on 
Koga's proposal: "I think that's his personal view. I don't think 
he has decided to make disenshrinement of Class-A war criminals a 
policy issue." 
 
In addition to disenshrinement, Koga has made a policy proposal 
calling for consideration of the removal of Class-A war criminals 
from the Shinto shrine. Political observers think that he aims to 
make the Yasukuni issue a major campaign issue in the September 
LDP presidential election. Many take the view that he wanted to 
cause a stir by making the proposal even though he knows reaching 
consensus would be difficult. 
 
14) Justice Ministry likely to limit the number of foreign 
residents to 3% of total population, reconsider preferential 
treatment now taken toward foreign nationals of Japanese descent 
 
TOKYO SHIMBUN (Page 1) (Excerpts) 
May 31, 2006 
 
The Ministry of Justice's (MOJ) project team yesterday ended its 
discussions and came up with a policy proposal concerning ways to 
accept immigrants. As a medium and long-term goal, the proposal 
states that the number of immigrants, excluding special permanent 
residents, should be limited to 3% of the total population, and 
 
TOKYO 00002969  011 OF 011 
 
 
that immigrants would be required to improve their Japanese 
language capability as well as other skills when they extend 
their stay in Japan. The proposal also seeks to reconsider the 
policy of preferential treatment toward foreigners of Japanese 
descent, namely, unconditionally offering permanent residence 
status to them and instead to apply the same requirements to them 
as those applied to other foreigners. 
 
The MOJ intends to make adjustments to this policy proposal after 
discussing it with other relevant ministries and agencies in the 
coming weeks and then prepare legislation. 
 
The project team was established in the MOJ in last December. 
Senior Vice Minister of Justice Taro Kono heads the team. 
 
According to the MOJ's Immigration Bureau, the share of 
immigrants excluding special permanent residents, such as South 
and North Korean residents, was 1.2% of the total population as 
of the end of 2005. Business circles, concerned about the 
increasingly aging population and declining birthrate, are 
strongly calling on the government to accept more foreign workers 
in such areas as nursing care. But Senior Vice Minister Kono 
said, "Japan can't follow in the footsteps of European nations 
and the United States, where (immigrants) make up 5-10% of the 
total population" Kono wants Japan to set some kind of limit on 
the increase in immigrants. 
 
According to the policy proposal, the current training programs 
for foreign workers intended to accept those foreigners wishing 
to learn skills will be abolished because those programs have 
been simply used to bring in unskilled workers. Instead, a new 
system will be established. Under the new system, if foreigners, 
after working as regular employees at firms during a certain 
period of time, do not improve their skills and Japanese language 
ability, they will not be allowed to continue working in Japan. 
 
Until now Japan has unconditionally offered foreigners of 
Japanese descent like children and grandsons of Japanese 
nationals permanent residence status that does not restrict their 
activities in Japan, such as employment, but the policy proposal 
points out the need to reconsider this treatment. 
 
SCHIEFFER