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UNCLAS SECTION 01 OF 09 TOKYO 003025 
 
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 06/02/06 
 
 
Index: 
 
1)   Top headlines 
2)   Editorials 
3)   Prime Minister's daily schedule 
 
4)   Prime Minister Koizumi refuses to give speech before US 
  Congress 
 
5)   Government may provide "weapons" to Indonesia under ODA 
  program 
 
6)   KEDO laid to rest but Japan stuck with $400 million cost of 
  its failure 
 
7)   Foreign Minister Aso lays out news Central Asian policy 
 
Defense issues: 
8)   Three suspects arrested in Samawah in connection with the 
  roadside bombing of GSDF convoy 
9)   Bill raising JDA's status to a ministry to go to the Diet on 
June 9 
 
Political agenda: 
10)  Strong disgruntlement in the LDP due to no Diet extension 
  and backlog of important bills 
11)  Bill to make conspiracy a crime now likely to pass the Diet 
as LDP swallows Minshuto revisions 
12)  Mindan refuses to join Chosen Soren ceremony, causing 
suspicion the groups' reconciliation may derail 
13)  Takenaka panel on NTT reform going nowhere in discussions 
due to LDP intransigence 
 
14)  Government starts public hearings on US beef imports 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi, Mainichi, Yomiuri, and Nihon Keizai: 
Tokyo District Public Prosecutors Office investigating Murakami 
Fund suspecting insider trading of Nippon Broadcasting System 
shares in violation of Securities Exchange Law 
 
Sankei: 
Book on Pingtien case to be published in Japan; Two politburo 
members many have ordered discontinuation of publication; Chinese 
Communist Party attempted to minimize impact overseas 
 
Tokyo Shimbun: 
Conspiracy legislation to clear Lower House today following 
ruling coalition's total acceptance of Minshuto plan 
 
2) EDITORIALS 
 
Asahi: 
(1)  Fertility rate 1.25: New work styles necessary 
(2)  Buraku Liberation League must return to the starting point 
 
Mainichi: 
(1)  Preventing suicide a national challenge 
(2)  Uri Party's setback: Solid North Korea diplomacy still 
 
TOKYO 00003025  002 OF 009 
 
 
essential 
 
Yomiuri: 
(1)  Birthrate drops to 1.25: Shocking figure must be taken 
seriously 
(2)  Uri's poll defeat a sign of popular discontent 
 
Nihon Keizai: 
(1)  Birthrate 1.25 critical 
(2)  Roh administration losing momentum 
 
Sankei: 
(1)  South Korean local polls: Critical decision made on Roh Moo 
Hyun administration 
(2)  SDF team to Indonesia: Peace cooperation a top priority 
 
Tokyo Shimbun: 
(1)  Stopgap measures no longer effective to rectify disparities 
in relative value of votes 
(2)  Food safety: Stop wasting food 
 
3) Prime Minister's Official Residence (Kantei) 
 
Prime Minister's schedule, June 1 
 
NIHON KEIZAI (Page 2)  (Full) 
June 2, 2006 
 
08:10 
Arrived at Kantei. 
 
08:15 
Met Deputy Chief Cabinet Secretary Nagase. 
 
09:00 
Attended a meeting of the Lower House Basic Education Law Special 
Committee. 
 
12:09 
Arrived at Kantei. 
 
12:33 
Returned to his official residence. 
 
14:03 
Met at Kantei with Antigua and Barbuda Prime Minister Spencer, 
with Foreign Ministry Latin American and Caribbean Affairs Bureau 
Director General Sakaba and others present. 
 
15:05 
Met Science and Technology Minister Matsuda and Hitachi President 
Kazuo Furukawa. 
 
16:00 
Met Senior Agriculture and Fisheries Vice Minister Miura, 
Forestry Agency Director General Kawamura, and Deputy Chief 
Cabinet Secretary Suzuki. 
 
16:35 
Met former Prime Minister Kaifu, former Foreign Minister 
Machimura and others who once served as education minister. 
 
 
TOKYO 00003025  003 OF 009 
 
 
17:00 
Met Cabinet Intelligence Director Mitani. Later visited the IT 
Strategy Headquarters. 
 
19:04 
Had a hair cut at a barbershop in the Capital Tokyu Hotel. 
 
20:00 
Returned to his official residence. 
 
4) Prime Minister refuses to give speech before the US Congress, 
even though requested by the US; Reason for turning it down is 
not clear 
 
NIHON KEIZAI (Page 2) (Full) 
Evening, June 1, 2006 
 
It was learned today that although Prime Minister Junichiro 
Koizumi was asked by the US government to give a speech before 
the US Congress during his late June visit to Washington, he has 
turned the offer down. A speech before a joint session of the 
Congress is considered in US political circles as a formal 
occasion, and there is no precedent of a Japanese prime minister 
ever having given one. The Foreign Ministry is puzzled as to the 
Prime Minister's motive for not accepting such an honored role. 
 
According to a source connected to Japan-US relations, the US 
government has urged him to give the speech several times, as "an 
opportunity that hardly ever comes." One of the approaches came 
directly from Ambassador Schieffer himself. 
 
Reportedly, the Prime Minister has not clarified his reason for 
turning the speech down. There was the case of House of 
Representatives Foreign Affairs Committee Chairman Hyde 
(Republican) sending a letter to Speaker Hastert expressing 
concern about the Prime Minister's visit to the US while he 
continues to visit Yasukuni Shrine. Some in the Japanese 
government take the view that the Prime Minister "gave heed to 
such moves in the US Congress." 
 
Only three Japanese prime ministers have given speeches before 
the US Congress in the postwar period: Shigeru Yoshida, Nobusuke 
Kishi, and Hayato Ikeda. But there is no precedence for any prime 
minister addressing a joint session of both chambers. 
 
5) Government to provide Indonesia with "weapons" under ODA 
program: three patrol boats to counter terrorism 
 
TOKYO SHIMBUN (Page 1) (Full) 
June 2, 2006 
 
The government decided yesterday to provide Indonesia with three 
patrol boats to counter terrorism and piracy. The decision was 
reported to the ruling coalition's security project team. A 
formal decision will be made with the approval of the ruling 
coalition. 
 
The government has categorized the three patrol boats equipped 
with bulletproof glasses -- sturdier than regular vessels -- as 
"weapons." 
 
It will be the first case to provide a foreign country with 
 
TOKYO 00003025  004 OF 009 
 
 
"weapons" under the official development assistance (ODA) 
program. 
 
Japan's three weapons-export principles effectively prohibit 
weapons exports. The government has reached an agreement with 
Indonesia on the following conditions: (1) the patrol boats will 
be used only for cracking down on terrorism and piracy and other 
purposes; and (2) the boats will not be shifted to a third 
country without Japan's concurrence. 
 
In 2004, the chief cabinet secretary released a statement on the 
joint development and production of missile defense saying that 
the three weapons-export principles would be considered on a case- 
by-case basis. The two conditions have already been applied to 
cases in which Japan provided other countries with equipment to 
dispose of mines and abandoned chemical weapons. 
 
6) Issue of which country should bear 400-million-dollar loss 
emerging with KEDO decision to scrap light-water project 
 
NIHON KEIZAI (Page 2) (Full) 
June 2, 2006 
 
The Korean Energy Development Organization (KEDO) has officially 
decided to scrap its light-water reactor construction project in 
North Korea. Following the decision, the Japanese government will 
soon launch discussion on what to do with the approximately 400- 
million-dollar loss (about 45 billion yen) in funds extended to 
KEDO through the Japan Bank for International Cooperation (JBIC). 
Keeping in mind the extremely small possibility that Pyongyang 
will make up for the loss, some officials have indicated that the 
loss should be covered by taxpayers' money. Relevant government 
agencies, however, are being slow to take action. 
 
In a press conference yesterday, Senior Vice Foreign Minister 
Yasuhisa Shiozaki stressed the need for the government to ask 
North Korea to return the money extended to KEDO by JBIC, saying: 
"It is rational to return something borrowed." 
 
Based on a basic agreement between the US and the North in 1994, 
KEDO started a project to construct two light-water reactors for 
North Korea in return for its freeze of its nuclear development 
programs. Japan, the US, South Korea, and Europe have joined the 
project, which will cost approximately 4.6 billion dollars. South 
Korea has also extended 1.135 billion dollars. 
 
The government has attributed the cancellation of the KEDO 
project to Pyongyang's breach of the basic agreement with the US. 
But since the government has guaranteed the repayment of the 
loans, there will be no other means but to cover the loss by 
disbursing funds from the general account. 
 
A JBIC official said: "The government has stated it would take 
every possible measure, so we will establish some framework with 
the Foreign Ministry and other relevant government agencies." But 
the Finance Ministry remains cautious about using taxpayers' 
money. With an eye on possible normalization of diplomatic 
relations between Japan and North Korea sometime in the future, 
some government officials suggest an idea of disposing of the 
loss under arrangements for economic cooperation with the North. 
A senior Foreign Ministry official commented yesterday: "A high- 
level political judgment is necessary for fiscal disbursements. 
 
TOKYO 00003025  005 OF 009 
 
 
There is no need to hurry." 
 
7) Foreign Minister Aso reveals plan to draw up promotion 
measures for Central Asia 
 
ASAHI (Page 4) (Full) 
June 2, 2006 
 
Foreign Minister Aso yesterday held a news briefing at the Japan 
National Press Club and revealed that he would form the first 
action plan that would include promotion measures centering on 
regional cooperation in Central Asia. After consulting on this 
plan at a foreign ministerial meeting of Japan, four Central 
Asian nations, and Afghanistan in Tokyo set for June 5, Aso will 
announce the plan. 
 
Aso stated: "Central Asia is rich in underground natural 
resources. There are clashes of interests among various forces. 
Japan would like to play the role of catalyst for open regional 
cooperation." Aso's plan is likely to overlap with the Shanghai 
Cooperation Organization, a group consisting of Russia, China, 
and four Central Asian nations, but Aso said: "There's nothing 
that would cause trouble." 
 
The plan will include measures to prevent proliferation of 
terrorism and narcotics, promotion of afforestation in areas 
around the Aral Sea, and improvement in transportation access 
from nearby areas. 
 
8) Iraqi authorities arrest three suspects in connection with 
GSDF attack; Connection with al-Sadr suspected 
 
YOMIURI (Page 2) (Full) 
June 2, 2006 
 
Ryoji Yanagisawa, Cairo 
 
Iraqi security authorities have arrested three suspects in 
connection with the May 31 bomb attack on a convoy composed of 
Ground Self-Defense Force and Australian military vehicles in the 
southern Iraqi city of Samawah, a local security source revealed 
on June 1. One of them was found to have ties to hard-line Shiite 
leader Muqtada al-Sadr. 
 
The British military, which is responsible for security in 
Muthanna Province (Provincial capital: Samawah), arrested another 
suspect after searching houses in the eastern suburb of Samawah 
in connection with the May 11 bomb attack on a vehicle contracted 
by the GSDF. British commander Brown revealed the information in 
a press conference on June1. 
 
9) LDP intends to get cabinet approval of bill to upgrade JDA to 
ministry status at cabinet meeting on June 9 
 
ASAHI (Page 4) (Full) 
June 2, 2006 
 
The governing Liberal Democratic Party (LDP) and its junior 
coalition partner New Komeito yesterday held a meeting of the 
Project Team on Security Affairs headed by Taku Yamasaki in the 
Diet. In the meeting, the LDP explained its plan to get cabinet 
approval of the bill to upgrade the Defense Agency (JDA) to 
 
TOKYO 00003025  006 OF 009 
 
 
ministry status during a cabinet meeting on June 9. The New 
Komeito told the LDP that it would make efforts to come up with a 
conclusion about the bill in line with that schedule. Following 
this move, the government intends to submit the bill to the 
current Diet session, but it seems difficult to enact the bill 
into law while the Diet is in session. 
 
10) LDP unhappy with decision to carry over bills; Koizumi's 
interference in Diet session "inappropriate" 
 
YOMIURI (Page 4) (Excerpts) 
June 2, 2006 
 
With Prime Minister Junichiro Koizumi strong determination not to 
extend the current Diet session, the ruling camp has now decided 
that contentious bills will be carried over to the next session. 
In this regard, criticism erupted yesterday in the Liberal 
Democratic Party (LDP). It is extremely unusual for the prime 
minister to interfere to this extent in the affairs of a Diet 
session. Speculation is therefore rampant over Koizumi's 
motivation. 
 
Legislature has the right of Diet management 
 
In a meeting yesterday afternoon of the LDP House of 
Representatives members, Fumiaki Matsumoto of the Mori faction to 
which Koizumi belongs, turned upon the executive, arguing: "It's 
strange that the session will not be expended when important 
bills are about to clear the Diet. The legislature has the right 
of Diet management" All the more because successive prime 
ministers said that the ruling party would decide on whether to 
extend Diet sessions, Secretary General Tsutomu Takebe said, "We 
accept the prime minister's view, but we will look for our own 
position, as well." 
 
In the meetings of other factions, too, many lawmakers criticized 
Koizumi's move. Yuya Niwa, co-leader of the Niwa-Koga faction, 
said, "I think you are unhappy since extremely important bills 
have been carried over. I assume the decision was made in 
consideration of the presidential election." 
 
Six former education ministers, including former Prime Minister 
Toshiki Kaifu, called yesterday at the Prime Minister's Official 
Residence, to urge Koizumi to extend the session in order to pass 
a bill to revise the Basic Education Law, but Koizumi turned them 
down, responding: "The bills to be carried over would be able to 
pass through the Diet during the next session. We should deal 
with the bills with passion." 
 
Reporters asked Koizumi last night, "Don't you think the next 
government will have heavy responsibility for so many key bills?" 
He just responded, "They should not take it as a burden. If the 
bills are enacted, they will be seen as the achievements of the 
next government." 
 
11) Conspiracy bill to be enacted into law, with governing 
parties' acceptance of revisions called for by opposition 
Minshuto; Bill to clear Lower House possibly today; International 
crimes to come under new legislation 
 
TOKYO SHIMBUN (Top play) (Excerpts) 
June 2, 2006 
 
TOKYO 00003025  007 OF 009 
 
 
 
During a directors' meeting yesterday afternoon of the Lower 
House Committee on Judicial Affairs, the governing Liberal 
Democratic Party (LDP) and its junior coalition New Komeito 
announced that they would wholly accept the revisions called for 
by the main opposition Minshuto (Democratic Party of Japan) 
regarding an amendment to the Law for Punishing Organized Crimes, 
commonly known as the "conspiracy bill." The amendment makes 
conspiracy a crime punishable by law. The ruling parties intend 
to adopt the Minshuto-initiated revisions to the conspiracy bill 
by a majority from the ruling camp and Minshuto at a meeting of 
the same committee today. The ruling parties gave up on enacting 
the bill at one point, but the bill is now likely to be enacted 
into law during the current Diet session. 
 
Minshuto, after listening to the government's explanation 
regarding the conspiracy bill at a committee meeting today, will 
decide on its attitude toward the bill, including whether to 
approve it or not. The government's explanation is expected to 
somewhat satisfy Minshuto. 
 
In discussing the government's conspiracy bill, the ruling 
coalition and Minshuto have submitted their respective revisions. 
Some have said that the government's bill and the ruling bloc's 
revisions apply the crime of conspiracy too broadly. Minshuto's 
revisions to the bill include: 1) Crimes subject to the law 
should warrant at least five years in prison at hard labor, as 
opposed to the four years stipulated by the government version, 
and 2) crimes subject to this legislation should be limited to 
those with international implications. 
 
The United Nations Convention Against Transnational Organized 
Crime, which aims to make conspiracy a crime, was adopted by the 
UN in 2000. Japan has signed the convention, which states that 
the crimes subject to punishment should not be limited to 
transnational offenses. 
 
But Minshuto claims that limiting the legislation to 
international crimes would not go against the purpose and aim of 
the convention. The party insists that it is possible for Japan 
to indicate that some provisions will not apply to it. But the 
government and the ruling parties have until recently criticized 
Minshuto's position. 
 
Analysis: Politically-motivated move with Upper House election in 
mind 
 
By Kei Sato 
 
It became likely yesterday that the tug-of-war over the 
establishment of a conspiracy bill between the ruling and 
opposition parties would end in the ruling camp would wholly 
accepting Minshuto's revisions to the bill, although the ruling 
bloc at one point had given up on enacting the bill during the 
current Diet session. The reason why the ruling parties have now 
decided to wholly accept Minshuto's revisions at this point is 
because they want to put a stop to Minshuto's move to continue 
the battle over the conspiracy bill until the Upper House 
election slated for summer of next year. 
 
The ruling parties were gearing up to force the bill through the 
Lower House Committee on Judicial Affairs during their meeting on 
 
TOKYO 00003025  008 OF 009 
 
 
May 19, but Prime Minister Junichiro Koizumi and his staff 
expressed concern over the possible impact on Diet deliberations. 
The ruling bloc eventually deferred taking a vote on the bill, 
accepting Lower House Speaker Yohei Kono's mediation. At this 
point, the option of ramming the bill through was taken off the 
table. 
 
The ruling bloc thus has no choice but to somehow reach an 
agreement with Minshuto on revisions to the bill. But the problem 
with Minshuto's revisions is that crimes regarded as conspiracy 
are limited to organized crimes with international implications. 
On this point, the ruling parties have been unable to yield, as 
the United Nations Convention Against Transnational Organized 
Crime says that conspiracy should not be limited to transnational 
crimes. 
 
12) Mindan passes on June 15 ceremony; Dark clouds over 
reconciliation with Chongryun 
 
ASAHI (Page 39) (Excerpts) 
June 2, 2006 
 
The pro-Seoul Korean Residents Union in Japan (Mindan) decided 
yesterday to forgo taking part in the June 15 Unification 
Ceremony, which will be held in Gwangju, South Korea, from June 
14, to cerebrate the sixth anniversary of the summit between the 
leaders of North and South Korea in 2000. Mindan made this 
decision following strong objections from its regional bureaus. 
The participation in the ceremony was one of the main features in 
the agreement reached in the first meeting of the top leaders of 
Mindan and the pro-Pyongyang General Association of Korean 
Residents in Japan (Chongryun). The decision will likely have a 
serious impact on the development of the two groups' 
reconciliation efforts. 
 
Yesterday, Mindan held a meeting at its central headquarters in 
Minato Ward, Tokyo. Senior members of the central executive 
committee and local bureaus attended the meeting. They discussed 
whether the organization would take part in the June 15 Joint 
Declaration Executive Japan Committee. 
 
The memorial ceremony will be conducted jointly by the committee 
made up of North and South Koreans and the committee in Japan, 
which is composed of Chongryun and other organizations. Mindan 
was asked at the end of April to take part. Following this, the 
pro-Seoul group wrote in the May 17 joint statement that it would 
attend the ceremony as a representative of the committee in 
Japan. 
 
However, objections were raised in its central committee meeting 
yesterday. In the meeting, criticism focused on the fact that a 
senior member of the pro-Seoul Association of Korean Unification 
in Japan, which Mindan regards as "an enemy organization," chairs 
the ceremonial committee in Japan. Therefore Mindan was unable to 
obtain approval. 
 
Commentary 
 
The joint statement released by Mindan and Chongryun states that 
the two groups will proactively join the ethnic movement to 
realize the June 15 South and North Korea Declaration. However, 
participation in the ceremony, a possible starting point for the 
 
TOKYO 00003025  009 OF 009 
 
 
reconciliation, was rejected due to internal conflict within 
Mindan. 
 
Soon after the agreement on the reconciliation was reached, the 
Niigata prefectural bureau expressed displeasure, saying that it 
was unbelievable. Some regional bureaus have called for a 
withdrawal of the joint declaration. 
 
13) Takenaka panel comes up with no specific plan for NTT reform 
in face of LDP reaction 
 
ASAHI (Page 11) (Excerpts) 
June 2, 2006 
 
The Telecommunications and Broadcasting Committee had indicated a 
strong determination to carry out NTT reform, saying that it 
would not regard anything as a taboo. But the panel now has 
failed to come up with any specific measures. In the face of a 
strong reaction from the Liberal Democratic Party and NTT, the 
panel is likely to put the matter on hold. The organization of 
NTT, though, has been strained, as remarkable technical 
renovation is going on in the telecommunications industry. Under 
such a situation, NTT reform debate, which was started after NTT 
was privatized in 1985, is unlikely to die down. 
 
Presenting four plans three weeks ago, including one for 
completely splitting the organization, the Takenaka panel came up 
with this conclusion: "It is necessary at least to separate the 
function of access networks (local phone circuits) from the 
organization." 
 
14) Government starts public hearings on US beef imports 
 
ASAHI (Page 4) (Slightly abridged) 
June 2, 2006 
 
On the issue of whether to resume US beef imports, the government 
started public hearings with consumers, with one in Sendai 
yesterday. Japan imposed a second ban on US beef imports this 
January,. The ban has left some of imported beef stored in 
freezers or refrigerators at port facilities in the nation. If 
Japan decides to resume US beef imports and finds no problem with 
the stored product in inspections, the government will approve 
their import, too. According to an industrial association, more 
than 1,000 tons of beef are in storage, and that beef is expected 
to be the first shipment of imports. 
 
In the hearing, the government explained additional safeguard 
measures, such as a strengthened quarantine system to have 
Japanese inspectors to check products at meat-processing 
facilities in the US based on a provided list of export- 
authorized products. 
 
According the US government's re-inspections, however, no faults 
were found only in 10 out of the 35 plants with licenses to ship 
beef. The government also disclosed this fact to consumers. 
 
SCHIEFFER