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UNCLAS SECTION 01 OF 10 TOKYO 003237 
 
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 06/13/06 
 
 
Index: 
1)  Top headlines 
 
2)  Editorials 
 
3)  Prime Minister's daily schedule 
 
4)  Prime Minister Koizumi instructs JDA chief Nukaga to expedite 
talks with Okinawa on Futenma relocation by quickly setting up 
consultative body 
 
5)  Secretary Rice, Foreign Minister Aso confer by telephone on 
Iran issue 
 
6)  Koizumi willing to have summit meeting with Chinese leader 
but without conditions 
 
7)  Chief Cabinet Secretary Abe orders tightening of current 
regulations to curb indirect trade with North Korea 
 
8)  LDP's Taku Yamasaki may travel to North Korea late this month 
 
9)  North Korea human rights bill to pass the Lower House today 
over objections of Japanese Communist Party, Social Democratic 
Party 
 
10)  No progress in Japan-ROK EEZ negotiations, the hang-up still 
being Takeshima Island 
 
11)  Government considering ODA to help Dominican Republic 
emigrants from Japan 
 
12)  Report shows reasons for lack of progress in implementing 
aid projects in Tsunami-ravaged countries 
 
13)  Koizumi meets old nemesis Naoto Kan of Minshuto for a last 
clash in the Diet, this time on Yasukuni Shrine issue 
 
14)  Views of Abe, Aso, Tanigaki, and Yosano on Yasukuni Shrine 
issue elicited in Diet debate 
 
15)  Minshuto Secretary General Hatoyama tries to woo Koichi Kato 
to leave the LDP 
 
16)  Key to restarting US beef imports lies in regaining consumer 
conference as last of government's public hearings closes 
 
17)  Government fiscal and economic policy council still hung up 
over how to fill an expected 17 trillion yen in revenue 
shortfalls 
 
Contents: 
1)  TOP HEADLINES 
Asahi, Mainichi, Yomiuri, Sankei and Tokyo Shimbun: 
World Cup: Japan loses 1-3 to Australia 
 
Nihon Keizai: 
LDP considers extending foreigners' work visas to 5 years 
 
2)  EDITORIALS 
Asahi: 
(1)President Bush, don't forget to sack one more person 
 
TOKYO 00003237  002 OF 010 
 
 
(2)Let's reaffirm importance of mathematics 
 
Mainichi: 
(1)Prime Minister Koizumi should make his swan song at the Diet 
(2)Shortage of doctors would collapse community health care 
system 
 
Yomiuri: 
(1)How to overcome adverse effects of deregulation 
(2)Local governments' roles to protect "beautiful towns" 
 
Nihon Keizai: 
(1)Little concern about Minshuto (Democratic Party of Japan) that 
aims at regime change 
(2)All those involved in elevator accident are irresponsible 
 
Sankei: 
(1)Carrying over of important bills: Does Prime Minister Koizumi 
put top priority on national interests? 
(2)Effective measures for new economic growth 
 
Tokyo Shimbun: 
(1)Reform of revenue and expenditures: Drastic cut in 
expenditures necessary 
(2)Immigration regulation revision: Careful considerations should 
be given to human rights 
 
3)  Prime Minister's Official Residence (Kantei) 
Prime Minister's schedule, June 12 
 
NIHON KEIZAI (Page 2)  (Full) 
June 13, 2006 
 
10:16Met with Deputy Chief Cabinet Secretary Nagase at the Prime 
Minister's Official Residence (Kantei). 
12:05Liaison Council meeting between the government and the 
ruling camp. 
13:00Meeting of the Lower House Committee on Audit and Oversight 
of Administration. 
15:03Arrived at Kantei. 
16:00Met with Finance Minister Tanigaki and Budget Bureau 
Director General Fujii. 
17:02LDP executive meeting in the Diet building 
17:40Met with Defense Agency Director General Nukaga at Kantei. 
Deputy Chief Cabinet Secretary Futahashi was present. 
19:00Met with New Komeito Head Kanzaki and Upper House LDP Caucus 
Chairman Aoki. Chief Cabinet Secretary Abe joined. 
 
4)  Koizumi orders local talks over USFJ realignment 
 
ASAHI (Page 4) (Full) 
June 13, 2006 
 
Prime Minister Koizumi met Defense Agency Director General Nukaga 
at his office yesterday and told the defense chief to consult 
well with local communities on the planned relocation of the US 
Marine Corps' Futenma Air Station in the city of Ginowan, Okinawa 
Prefecture, to the cape of Henoko in the northern coastal city of 
Nago in the island prefecture. Japan and the United States have 
reached an agreement to relocate Futenma airfield in the process 
of realigning the US military presence in Japan. Koizumi has also 
told Nukaga to obtain a local consensus for Futenma relocation. 
 
TOKYO 00003237  003 OF 010 
 
 
Koizumi was replying to Nukaga's report of petitions from the 
mayors of 12 municipalities in the northern part of Okinawa 
Prefecture. Nukaga, prior to his meeting with Koizumi, met with 
Nago Mayor Yoshikazu Shimabukuro and other local mayors. In that 
meeting Nukaga was asked to set up a consultative body with 
Okinawa Prefecture and its base-hosting localities at an early 
date. This consultative body was incorporated in a cabinet 
decision made in May. Abe also met with Shimabukuro and others 
yesterday. In the meeting, the mayors asked Abe to continue an 
economic stimulus package for Okinawa's northern localities. The 
package was based on a cabinet decision of 1999, but the 
government has repealed it in its cabinet decision made this 
time. "The government will set up a consultative body with 
Okinawa Prefecture and local public entities to consult well on 
local development," Abe also promised to consider the request. 
 
The government has decided to launch the consultative body in 
order to hold talks with Okinawa Prefecture and its 
municipalities about an alternative construction plan, safety and 
environmental protection, and local development. 
 
However, Okinawa Governor Keiichi Inamine has indicated that the 
Okinawa prefectural government would not participate in the 
consultative body as long as it is premised on the government's 
policy of implementing its plan. "We won't participate in that 
consultative body if that is to talk about the government's plan 
only," Inamine has said. The government therefore cannot expect 
when to set it up. 
 
5)  Aso briefs Rice on talks with Iran 
 
ASAHI (Page 4) (Full) 
June 13, 2006 
 
Foreign Minister Aso called US Secretary of State Rice yesterday 
evening to talk about Iran's nuclear program. Aso told Rice that 
Japan has worked on Iran to accept a package of incentives 
proposed by six countries including the United States and 
European countries. Aso also told her that Japan would consult 
closely with the United States. Rice said the United States would 
like to strengthen cooperation, with Prime Minister Koizumi 
scheduled to visit the United States late this month. 
 
Aso held telephone talks with Iranian Foreign Minister Mottaki on 
June 6 and met with Iranian Vice Foreign Minister Araqchi in 
Japan on June 9. Mottaki has explained that Iran would seriously 
consider the proposal. Aso appears to have told Rice about such a 
response from Iran and the two talked about how to deal with 
Iran. 
 
6)  Prime Minister Koizumi: Japan-China summit should be realized 
with no conditions 
 
SANKEI (Page 5) (Full) 
June 13, 2006 
 
Asked by reporters last night about Chinese President Hu Jintao's 
remark that he would like to visit Japan if the circumstances are 
improved, Prime Minister Junichiro Koizumi replied: 
 
"Japan is always open. We are ready anytime even conditions are 
not met. If we have different views on a single issue, Japan will 
 
TOKYO 00003237  004 OF 010 
 
 
hold talks anytime because China is important for us." 
 
He urged the Chinese side to respond to his offer to resume the 
summit program. 
 
When asked about a possible meeting with the Chinese leader 
during his tenure as prime minister, Koizumi responded: "Japan 
will not ask for any conditions. That depends on the Chinese 
side." 
 
7)  Gov't to step up watch for indirect trade with North Korea 
 
NIHON KEIZAI (Page 2) (Full) 
June 13, 2006 
 
Chief Cabinet Secretary Shinzo Abe instructed government 
ministries and agencies yesterday to look into facts about 
indirect trade between Japan and North Korea via third countries 
and step up Japan's oversight of such trade in order to 
strengthen Japan's pressure on North Korea. The amount of trade 
between Japan and North Korea has decreased. However, the 
government presumes that there has been an increase in the amount 
of illegal trade via third countries, such as Thailand. The 
government is aiming to tighten its economic control through 
strict law enforcement. 
 
According to the Finance Ministry, the total amount of trade 
between Japan and North Korea reached 21.4 billion yen in 2005, 
broken down into imports amounting to 14.5 billion yen and 
exports amounting to 6.9 billion yen. The total amount of trade 
between the two countries dropped to below half the level in 
¶2002. It further decreased to 6.1 billion yen in the January- 
April quarter of this year. This is believed to reflect the 
government's enhanced measures, such as controlling exports 
against military diversion and conducting stricter vessel safety 
checkups. 
 
The government surmises that illegal trade between Japan and 
North Korea is probably via Thailand and China, which have shown 
an increase in the amount of their trade with North Korea. The 
Ministry of Economy, Trade and Industry will watch out for 
illegal trade in a stricter way. 
 
In 2003, a Tokyo-based trading house was found to have attempted 
to illegally export military convertible equipment to North Korea 
via Thailand. Japan's enhanced oversight of trade is also aimed 
for North Korea's concessions on bilateral issues, such as the 
problem of Japanese abductees. However, it could incur North 
Korea's backlash. 
 
8)  LDP's Yamasaki mulling a visit to North Korea in late June 
 
SANKEI (Page 5) (Full) 
June 13, 2006 
 
It was learned yesterday that Taku Yamasaki, former vice 
president of the Liberal Democratic Party (LDP), was looking into 
the possibility of visiting North Korea late this month. 
According to several informed sources, former Defense Agency 
chief Gen Nakatani, a member of the Tanigaki faction in the LDP, 
and House of Representatives members Kisaburo Tokai and Masaaki 
Taira, members of the Yamasaki faction, will likely accompany 
 
TOKYO 00003237  005 OF 010 
 
 
Yamasaki. They are expected to visit the North for about three 
days from June 20, following their planned visit to South Korea. 
The group is expected to visit Kaesong and other places in North 
Korea. Coordination is now underway. Yamasaki's office, however, 
said, "(A visit to North Korea) has yet to be decided." 
 
9)  North Korean human rights bill to pass through Lower House 
today, despite opposition of JCP, SDP 
 
TOKYO SHIMBUN (Page 2) (Full) 
June 13, 2006 
 
The Lower House Special Committee on the Abduction Issue, chaired 
by Katsuei Hirasawa, adopted a plan yesterday afternoon to submit 
to the Diet a North Korean human rights bill urging the 
government to impose economic sanctions on North Korea in 
connection with the abduction issue, with a majority vote of the 
Liberal Democratic Party, Minshuto (Democratic Party of Japan), 
and the New Komeito. The Japanese Communist Party and the Social 
Democratic Party opposed the step. The bill is now likely to 
clear the Lower House today and then sent to the Upper House to 
be enacted in the ongoing Diet session. 
 
Draft bills mapped out separately by the ruling coalition and 
Minshuto have been integrated into the single bill. 
 
10)  No progress on Japan-ROK EEZ demarcation talks; Japan 
insists on putting aside Takeshima issue 
 
YOMIURI (Page 2) (Full) 
June 13, 2006 
 
The Japanese and South Korean governments yesterday held 
negotiations aimed at demarcating their exclusive economic zones 
(EEZs) at Japan's Ministry of Foreign Affairs (MOFA). But the 
talks failed to narrow the gap as both sides insisted that 
Takeshima/Dokdo should be used as a base point of their 
respective EEZs. The talks will continue today. 
 
So far EEZ talks have been held four times during a period from 
1996 through 2000, and they have been suspended until recently, 
but they have now been resumed after an interval of six years. 
Participating in the talks from Japan were Ichiro Komatsu, 
director-general of MOFA's International Legal Affairs Bureau, 
and other officials from the Fisheries Agency and the Japan Coast 
Guard. Participants from South Korea included Park Hee Kwon, 
director-general of the Treaties Bureau of South Korea's Ministry 
of Foreign Affairs and Trade and other officials from the 
Ministry of Maritime & Fisheries. 
 
The talks yesterday lasted for six hours. Japanese negotiators 
cited the agreement reached in 1996 between then Prime Minister 
Hashimoto and then President Kim Yong Sam to promote EEZ talks by 
separating the sovereignty issue involving Takeshima/Dokdo islets 
and urged their South Korean counterparts to separate the 
Takeshima issue from EEZ negotiations, saying: "We are ready to 
make our maximum effort for substantial progress. We hope the 
South Korean negotiators will engage in the negotiations in a 
similar manner." 
 
In addition, Japan expressed concern about South Korea's planned 
marine survey in July within Japan's EEZ waters near Takeshima 
 
TOKYO 00003237  006 OF 010 
 
 
and proposed establishing a prior notification system for both 
sides to inform the other side of their respective marine surveys 
if they are carried out in the waters where the border of their 
EEZs has not yet been determined. 
 
In response to these assertions, South Korean negotiators did not 
deny the existence itself of the top-level agreement. But turning 
around from their previous position of drawing a border between 
Ullungdo and Okinoshima islets with Ullungdo as a base point, 
they strongly insisted on using Takeshima as the base point. They 
did not come up with a clear response to Japan's proposal on a 
prior notification system. 
 
11)  Government to extend assistance to Japanese emigrants to 
Dominica, with ODA to local association in mind 
 
SANKEI (Page 2) (Excerpts) 
June 13, 2006 
 
The government as of yesterday began discussions at Prime 
Minister Junichiro Koizumi's order to study additional assistance 
measures for Japanese emigrants to the Dominican Republic. This 
move has come, reflecting the Tokyo District Court's recent 
recognition of the government's responsibility for compensation 
in the suit over the government's campaign for emigration to the 
Dominican Republic. Aid plans now being considered include 
financial assistance to local Japanese associations through the 
Grass-roots Aid under official development assistance (ODA). 
 
In the past the government has disbursed 10 million yen as grant 
aid cooperation for the construction of a community center for 
emigrants. As for aid this time, the government intends to listen 
first to emigrants' requests and decide on additional assistance 
measures. The government intends to implement considerate, 
detailed measures, such as an offer of Japanese language 
education through volunteers from the Japan International 
Cooperation Agency. 
 
12)  Delay in selection of companies for emergency aid to Tsunami- 
hit region called into question in a Foreign Ministry-chosen 
third party's assessment 
 
YOMIURI (Page 1) (Full) 
June 13, 2006 
 
Consultants who have been entrusted by the Ministry of Foreign 
Affairs (MOFA) to make an interim assessment of the Japan 
International Cooperation System's (JICS) way of rebidding for 
the road repair work planned as part of an emergency aid project 
for Indonesia hit by the Indian Ocean Tsunami had pointed out 
that "local residents have become increasingly irritated at the 
lack of progress in the repair work because of the delay in 
selecting construction companies," according to information 
obtained by the Yomiuri Shimbun. It was also found that the 
Indonesian government, when questioned by those consultants, 
expressed doubts on the lack of transparency of the JICS's way of 
selecting construction companies by bidding, as well as its 
capability to select such firms. MOFA's responsibility for 
recommending the JICS to Indonesia is likely to be called into 
question. 
 
As emergency aid to the regions stricken by the Indian Ocean 
 
TOKYO 00003237  007 OF 010 
 
 
Tsunami, Japan from its official development assistance (ODA) 
 
SIPDIS 
budget has offered 14.6 billion yen in grant aid to Indonesia, 8 
billion yen to Sri Lanka, and 2 billion yen to Moldova. Last 
December, one year after the occurrence of the disaster, MOFA 
entrusted 10 consultants from a third-party organization to 
assess Japan's relief efforts so that Japan can make good use of 
such an assessment for future relief efforts and worked out an 
interim assessment report. 
 
The report takes issue with the repair work, noting that the 
causes of the delay lie in the bidding process, for instance, 
rebidding. In extending emergency aid, it is important to 
'implement aid without delay.' Local communities have been 
irritated at the delay in the repair work." Indonesia's Ministry 
of Public Works told the consultants when it was interviewed by 
them as part of their survey for an interim assessment: "JICS has 
a lack of experience in selecting firms relating to construction 
works." 
 
The JICS rebutted: "The criticism that we lack experience is not 
correct because we have selected construction companies for other 
reconstruction assistance to other countries, such as Iraq." MOFA 
made this comment: "We take advice from a third party sincerely 
and use it for our future action." 
 
13)  Kan-Koizumi debate ends with Yasukuni issue 
 
ASAHI (Page 4) (Full) 
June 13, 2006 
 
In yesterday's meeting of the Lower House Committee on Audit and 
Oversight of Administration, Minshuto (Democratic Party of Japan) 
Acting President Naoto Kan took the floor as a questioner for the 
last time to Prime Minister Junichiro Koizumi, who is to step 
down from the post in September. The two, who have exchanged 
verbal jabs numerous times at the Diet, again sparred over the 
Yasukuni Shrine issue and other matters yesterday. In response to 
Kan's pursuit, Koizumi rebutted, "I still don't understand why he 
has to criticize me." 
 
Kan and Koizumi have had over 20 one-on-one debates, including 
party-head debates. In January 2003, Koizumi referred to his 
failure to keep an LDP presidential campaign pledge as "not a big 
deal," causing a stir. 
 
Yesterday, Kan challenged Kan, saying: "It was the Prime Minister 
Koizumi himself that made Yasukuni into a campaign issue for the 
2001 general election, as you said, 'I will visit the shrine on 
August 15.'" 
 
In response, Koizumi reiterated his stock argument: 
 
"I have never made it a campaign issue. The media did. Paying 
homage at the shrine is a matter of the heart." 
 
After the debate, Kan note about Koizumi: 
 
"It was regrettable that he repeatedly obscured contentious 
points. He once said that breaking a promise was not a big deal. 
I think that's how he really feels." 
 
14)  Kan raises questions on Yasukuni: Abe - Matter must not be 
 
TOKYO 00003237  008 OF 010 
 
 
turned into a political issue; Aso - State must deal with it 
properly; Tanigaki - Strategic ambiguity necessary; Yosano - 
Shrine must make decision voluntarily 
 
MAINICHI (Page 2) (Full) 
June 13, 2006 
 
In yesterday's meeting of the Lower House Committee on Audit and 
Oversight of Administration, Chief Cabinet Secretary Shinzo Abe, 
Foreign Minister Taro Aso, Finance Minister Sadakazu Tanigaki, 
and Economic and Fiscal Policy Minister Kaoru Yosano answered 
questions from Minshuto (Democratic Party of Japan) Acting 
President Naoto Kan regarding visits to Yasukuni Shrine. Abe, 
Aso, and Tanigaki are post-Koizumi contenders. 
 
Touching on Abe's speech in the United States in May of last year 
in which he said, "Anyone succeeding Prime Minister Koizumi 
should visit Yasukuni Shrine," Kan asked Abe, "Has your view 
changed?" In response, Abe said: 
 
"I want to keep expressing my gratitude and respect for those who 
died fighting for their country in offering my sincerest prayers 
to them. China has now turned the matter into a diplomatic issue. 
It should not be made into a diplomatic or political issue." 
 
Abe stopped short of indicating whether he would visit the shrine 
if he became prime minister. 
 
Aso said: 
 
"The war dead are now enshrined at a facility controlled by one 
religious organization, and whenever a problem arises, some say 
that politics should stay away from the matter concerning the 
religious organization. The state should deal with the matter 
properly." 
 
Aso against suggested his view that the government should 
consider removing Class-A war criminals from Yasukuni Shrine with 
the option of turning the shrine in to a non-religious 
organization in mind. 
 
Tanigaki commented: 
 
"The government should not say, 'We will do such and such because 
of views overseas.' Instead, Japan must make a decision 
independently. I call it strategic ambiguity." 
 
Yosano expressed hope for Yasukuni's voluntary decision to remove 
Class-A war criminals, saying: "I would like to the shrine make a 
decision voluntarily." 
 
15)  Minshuto Secretary General Hatoyama urges Koichi Kato to 
leave LDP 
 
NIHON KEIZAI (Page 2) (Full) 
June 13, 2006 
 
Yukio Hatoyama, secretary general of the main opposition party 
Minshuto (Democratic Party of Japan, met yesterday with Koichi 
Kato, former secretary general of the Liberal Democratic Party 
(LDP), and the Social Democratic Party's House of Representatives 
member Kiyomi Tsujimoto. Hatoyama was quoted as urging Kato to 
 
TOKYO 00003237  009 OF 010 
 
 
bolt the LDP, but Kato did not respond positively. 
 
16)  Resumption of US beef imports; Eradicating consumer distrust 
holds the key; Town meetings with government ends tomorrow 
 
YOMIURI (Page 10) (Slightly abridged) 
June 13, 2006 
 
A series of town meetings for the government to exchange views 
with consumers on conditions for resuming US beef imports will 
end tomorrow with one in Tokyo as the last one of ten sessions 
held throughout the nation. While the predominant view heard from 
consumers included skepticism about the US inspection system and 
anxieties about the safety of US beef, beef retailers called for 
easing import guidelines. The government is expected to decide to 
resume beef trade before the end of June. Dissolving consumer 
distrust will likely hold the key in restoring their trust in US 
beef. 
 
During the first town meeting held in Sendai on July 1, some 
participants voiced their skepticism about the US inspection 
system, noting, "We heard that about 70% of beef processing 
plants have problems." At the Naha meeting held on the 2nd, 
consumers voiced their deep-rooted distrust of US beef, saying, 
"Even if we are given explanations, we cannot trust them, as 
there is no track record to endorse them." 
 
Regarding conditions for resuming US beef imports, too, including 
prior inspections of US beef processing plants by the Japanese 
side, a number of consumers called for a strict approach with a 
participant in the Niigata meeting saying, "Japan should 
tenaciously call for a safety system that includes blanket cattle 
testing" and a participant in the Sapporo meeting suggesting, 
"Japanese inspectors should be stationed on a permanent basis." 
 
17)  Council on Unified Reform of Fiscal and Economic Systems 
rejects 17 trillion yen request to reform fiscal revenues and 
expenditures; Upper House members oppose proposal with election 
close at hand next summer 
 
MAINICHI (Page 5) (Excerpts) 
June 13, 2006 
 
The government and the ruling camp have started the work of 
setting the amount of a targeted spending cut for each spending 
item, such as social security and local finances, by holding the 
second round of a working-level meeting of the Council on Unified 
Reform of Fiscal and Economic Systems (CURFES) yesterday. During 
the meeting, the representative of the government presented a 
plan to set the amount of funding needed to shift the balance 
between revenues and expenditures in the fiscal revenues and 
expenditures of the central and local governments, excluding 
borrowings and repayments, in fiscal 2011. The proposal was 
turned down, meeting strong opposition from Liberal Democratic 
Party (LDP) members of the Upper House. LDP Policy Research 
Council Chairman Hidenao Nakagawa plans to finalize the ruling 
parties' spending cut plan before the end of June, but he will 
likely be pressed to take a fresh approach to the discussion on 
the issue. 
 
During the meeting State Minister for Economic and Fiscal Policy 
Hajime Yosano, who represented the government's side, presented 
 
TOKYO 00003237  010 OF 010 
 
 
the necessary amount of funding, but Upper House LDP Policy 
Deliberations Council Chairman Masatoshi Wakabayashi expressed 
his strong dissatisfaction with the proposal, noting, "We need to 
further vet such matters as an economic growth rate. I would like 
to take the proposal off for consideration." 
 
 
Nakagawa, who is taking the initiative in the move to cut 
expenditures, and Yosano have worked out the necessary amount. As 
Deputy Chief Cabinet Secretary Nagase put it, it is impossible to 
pursue discussions on the issue without some base. The amount 
was, therefore, adopted as the starting point for discussion, but 
it has only highlighted the gap in views of in the LDP. The 
meeting ended before entering discussions on specifics, as it 
failed to show a menu for spending cuts. 
 
SCHIEFFER