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UNCLAS SECTION 01 OF 08 TOKYO 003250 
 
SIPDIS 
 
SIPDIS 
 
DEPT FOR E, P, EB, EAP/J, EAP/P, EAP/PD, PA 
WHITE HOUSE/NSC/NEC; JUSTICE FOR STU CHEMTOB IN ANTI-TRUST 
DIVISION; TREASURY/OASIA/IMI/JAPAN; DEPT PASS USTR/PUBLIC AFFAIRS 
OFFICE; SECDEF FOR JCS-J-5/JAPAN, 
DASD/ISA/EAPR/JAPAN; DEPT PASS ELECTRONICALLY TO USDA 
FAS/ITP FOR SCHROETER; PACOM HONOLULU FOR PUBLIC DIPLOMACY 
ADVISOR; CINCPAC FLT/PA/ COMNAVFORJAPAN/PA. 
 
E.O. 12958: N/A 
TAGS: OIIP KMDR KPAO PGOV PINR ECON ELAB JA
SUBJECT:  DAILY SUMMARY OF JAPANESE PRESS 06/13/06 
 
 
INDEX: 
 
(1) US Ambassador to Japan: Completion of alternative facilities 
a prerequisite for relocating US forces in Japan 
 
(2) US Ambassador Schieffer calls for understanding toward US 
force realignment in speech in Kumamoto 
 
(3) Barriers standing in airlines' way to Yokota base 
 
(4) Tug-of-war between Abe, Fukuda to intensify after regular 
Diet session ends this weekend; Focus on Fukuda's decision and 
manifestos 
 
(5) Fiscal recapitalization; Opposition parties against further 
spending cut 
 
(6) Editorial: Japan's national interests really considered first 
in delaying critical legislation? 
 
ARTICLES: 
 
(1) US Ambassador to Japan: Completion of alternative facilities 
a prerequisite for relocating US forces in Japan 
 
ASAHI Kumamoto edition (Full) 
June 9, 2006 
 
US Ambassador to Japan Thomas Schieffer delivered a speech in 
Osaka on June 8 at the invitation of the Asahi Shimbun. Touching 
on the question of realigning US forces in Japan, the ambassador 
reiterated the US view that the completion of alternative 
facilities based on Japan's cooperation is a precondition for 
relocating Okinawa-based US Marines to Guam, Futenma Air Station, 
and other installations, stating: "US Marines will leave Okinawa 
only after new facilities are constructed in Guam." 
 
The ambassador also said: "(In terms of security), it is too 
dangerous to move them when things are not ready." He thus 
expressed his hope for an early start of construction work for 
alternative facilities, as was agreed upon by the Japanese and US 
governments. 
 
The ambassador also underlined Japan's requests regarding 
bilateral talks on the cost of relocating US Marines, stating: 
 
"There have been many articles saying that the United States is 
conspiring to make Japan foot the bill. (But in America's view), 
Okinawa residents asked us to cut the number of troops but not to 
reduce (military) capabilities, so we simply decided to comply 
with their requests." 
 
He also sought the understanding of the Japanese people, saying: 
"Please don't forget that the United States will also pay a large 
amount of the cost." 
 
(2) US Ambassador Schieffer calls for understanding toward US 
force realignment in speech in Kumamoto 
 
KUMAMOTO NICHI-NICHI SIMBUN (Full) 
June 9, 2006 
 
US Ambassador to Japan Thomas Schieffer visited Kumamoto 
 
TOKYO 00003250  002 OF 008 
 
 
Prefecture on June 8 and delivered a speech titled "An outlook on 
US-Japan relations" at the Kumamoto City International Center in 
Hanabata-cho. The ambassador highlighted the need for 
deregulation in Japan and other matters, while seeking 
understanding regarding the realignment of US forces in Japan. 
The event, held by the Japan-America Society of Kumamoto 
(President: Mitsuya Nagano), brought together some 180 people. 
 
Referring to the society's 45th anniversary this year, Schieffer 
pointed to good relations between Japan and the United States, 
saying: "Society has changed drastically over the past 45 years. 
The United States and Japan have fostered good partnership by 
overcoming the hatred aroused by the war." 
 
The ambassador also referred to the recent bilateral agreement on 
US force realignment as the most important decision since the 
revision of the US-Japan Security Treaty, stressing that the 
presence of US forces in Japan has been deterrence against 
attacks (on Japan) from other countries. He also indicated that 
Okinawa's base-hosting burden would be reduced, while the 
integration of Japan's Self-Defense Forces and US forces in Japan 
would pick up speed. 
 
The ambassador also underlined the need for additional economic 
deregulation, saying: "Fair corporate competition must not be 
inhibited. The survival of companies is decided by the market." 
 
Ahead of delivering the speech, Schieffer had a pleasant talk 
with Governor Yoshiko Shiotani at the prefectural government 
office. 
 
(3) Barriers standing in airlines' way to Yokota base 
 
ASAHI (Page 1) (Full) 
Eve., June 10, 2006 
 
Tokyo is now locking on the US Air Force's Yokota base; located 
in the western district of the metropolis, having targeted the 
facility for joint use with commercial airlines. Tokyo Governor 
Shintaro Ishihara made it a public pledge in his gubernatorial 
election campaign to have the airbase ultimately returned. "We 
will start regular domestic flights in a year," Ishihara vowed. 
Meanwhile, airline companies have asked in writing the Tokyo 
metropolitan and Japanese governments for commercial use of the 
airbase. However, some of the local communities hosting the 
airbase are crying out against such joint military-civilian use, 
citing such reasons as noise pollution. Prospects still seem poor 
for a civilian Yokota airport. 
 
"We will have airlines start their domestic regular flights at 
least in a year, so I hope you will use their services." 
 
Ishihara made this remark on May 24 at a meeting of governors 
from prefectures in the Kanto region. In the meeting, which was 
held in Tokyo, Ishihara was full of confidence. Then, on June 6, 
when Tokyo's metropolitan assembly opened its regular session, 
Ishihara in his policy speech again referred to the feasibility 
of Yokota airbase for actual joint use. 
 
Yokota base reversion was Ishihara's campaign pledge when he was 
first ran for Tokyo's governorship in 1999. The central 
government has remained silent about this issue. In May, however, 
Japan and the United States finalized a report on the planned 
 
TOKYO 00003250  003 OF 008 
 
 
realignment of US forces in Japan, incorporating their 
intergovernmental agreement to study specific conditions and ways 
for the possible dual use of US military bases and complete their 
studies within 12 months after their start. "US forces would 
allow some commercial access (to Yokota)," said an official of 
the Ministry of Land, Infrastructure and Transport (MLIT)." 
 
On May 31, a study group, including Ishihara's brain trust, 
released a report of its study of airports in Tokyo's 
metropolitan area. The report provides an estimate of passenger 
needs for having a civilian airport at Yokota, specifying a total 
of 40 flights on seven air routes to and from Shinchitose, Itami, 
Komatsu, Hiroshima, Fukuoka, Kagoshima, and Naha airports. The 
report also estimates user needs in the three nearby prefectures 
of Saitama, Kanagawa, and Yamanashi. It predicts 5.6 million 
passengers for 2022. Yokota airport is expected to create 8,850 
jobs with a tax revenue of 17 billion yen. 
 
Based on this estimate, the Tokyo metropolitan government will 
negotiate with the United States and other counterparts. 
 
According to the metropolitan government's estimate, the city of 
Hachioji in Tokyo-one hour and 25 minutes' train ride to Haneda 
Airport-is 25 minutes to Yokota, and the city of Kawagoe in 
Saitama Prefecture is one hour and five minutes' train ride, or 
20 minutes shorter, to Yokota. 
 
On May 25, Japan Airlines (JAL) and All Nippon Airways (ANA), as 
if they had waited for Ishihara to come out with that remark, 
submitted their petitions for the first time to the metropolitan 
government for flight extensions to Yokota. "There are needs to a 
certain extent in the Tokyo metropolitan area's western districts 
that are far from Haneda," an ANA official said. This official 
added, "It's possible to expect profits if we meet potential 
needs for flight services." 
 
Even so, it seems difficult to use the Yokota airbase in a year. 
 
According to the final accord, civilian aircrafts must not affect 
US military operations as a precondition for their joint use of 
the Yokota airbase. "In the case of 40 flights a day, there will 
be six flights to and from the base," a senior MILT official 
said. This official also said, "I don't think US forces will give 
way that far." 
 
In 2004, the Tokyo metropolitan government worked out a Yokota 
dual use plan with MLIT, the Foreign Ministry, and the Defense 
Agency. The Japanese government has transmitted the plan to the 
US government. According to this plan, Japanese air carriers are 
to serve about 17 flights per day to and from Yokota. The 
foregoing MLIT official said, "The airport starts with a small 
number of flight services in the beginning, but it can serve many 
more flights later on." 
 
Another problem is what to do about the terminal building for 
passengers. The metropolitan government has plans to lease a US 
military facility at the airbase or build a simple building on an 
unused land plot. "If we do so," one airline official said, "it's 
possible to run flights without taking much time." 
 
However, it is inconceivable that US forces will allow passengers 
to enter the airbase's highly confidential areas. The US Air 
Force's Misawa base in Aomori Prefecture is the only base for 
 
TOKYO 00003250  004 OF 008 
 
 
joint use with commercial airlines. The runway is on the premises 
of the base, but the terminal building for passengers is off 
base. To build a passenger terminal near the Yokota airbase, 
there is a need to buy a land lot. "It will take two or three 
years," one MLIT official said. This official added, "The 
governor said 'in a year,' but that's probably because he had 
next year's gubernatorial election in mind." 
 
The most important thing is a local consent. 
 
The Yokota airbase stretches over five cities, including 
Tachikawa, and a town. None of these municipalities is in favor 
of commercial airlines' joint use of the airbase, with the 
exception of Musashimurayama City expecting infrastructure 
construction and local economic revitalization. Mizuho Town and 
Akishima City are opposed to the airbase dual use plan, citing 
noise pollution and other reasons. 
 
Commercial jetliners are less noisier than military jets. 
However, noise levels will go up with their flights. "It's our 
job to forge a local consent, but it is the government's job to 
take noise countermeasures, including compensation," one 
metropolitan government official said. 
 
The Defense Facilities Administration Agency is in charge of 
measures to deal with military aircraft noise at Yokota and in 
its environs. However, one MLIT official deems it possible to 
deal with aircraft noise even if the base environment becomes 
somewhat noisier. "The problem," this official went on with his 
rebuttal, " is how the metropolitan government will obtain local 
understanding." 
 
(4) Tug-of-war between Abe, Fukuda to intensify after regular 
Diet session ends this weekend; Focus on Fukuda's decision and 
manifestos 
 
TOKYO SHIMBUN (Page 2) (Abridged) 
June 12, 2006 
 
Attention in the capitol district of Nagatacho is now focused on 
the presidential election of the Liberal Democratic Party in 
September. Coordination is underway centering on a vote on 
September 20. This means the election could be only 100 days 
away. The post-Koizumi race would heat up once the ongoing Diet 
session ends on June 18. 
 
Competition between two Mori faction members 
 
Foreign Minister Taro Aso, Finance Minister Sadakazu Tanigaki, 
former Chief Cabinet Secretary Yasuo Fukuda, and Chief Cabinet 
Secretary Shinzo Abe were originally regarded as front-runners in 
 
SIPDIS 
the LDP presidential race. 
 
With time, Abe and Fukuda of the Mori faction stood out of the 
crowd. Former Prime Minister Yoshiro Mori, who heads the faction, 
then mentioned the option of fielding a single candidate. Prime 
Minister Junichiro Koizumi immediately objected to it. As a 
result, Abe and Fukuda stole the show, leaving Aso and Tanigaki 
far behind. 
 
Rivalry between Abe and Fukuda is evident. 
 
On May 24, Abe voiced his readiness to run in the race. In the 
 
TOKYO 00003250  005 OF 008 
 
 
following week, the Association of Kuronin (persons who have gone 
through a lot), chaired by Fukuda, held a meeting of some 30 
lawmakers aged 50 or older. 
 
A parliamentary group supporting a second chance also held its 
inaugural meeting on June 2 by bringing together 94 junior and 
mid-level members supportive of Abe. 
 
Aso and Tanigaki factions 
 
Other factions were not watching Abe and Fukuda quietly. 
 
On March 15, the Niwa-Koga faction, the Tanigaki faction, and the 
former Kono faction launched an Asia strategic study group. The 
three factions have their roots in the former Miyazawa faction, 
or Kochikai. The move stirred a conjecture that it was for 
launching a grand Kochikai for the presidential race. With 
Tanigaki and Aso included in those factions, the grand Kochikai 
initiative is likely to keep attracting attention. 
 
The Shimazu faction's basic strategy is to back a winner, but 
some junior and mid-level members are preparing to field their 
own candidate, with Defense Agency Director-General Fukushiro 
Nukaga in mind. 
 
The faction headed by Taku Yamasaki is continuing study sessions 
with other factions possibly in an effort to find its partners. 
 
Once the ongoing Diet session ends, prospective candidates would 
throw their hats in the ring at the right timing. Abe intends to 
announce his candidacy after the July 15-17 St. Petersburg 
Summit. 
 
At the center of attention is Fukuda, who remains mum on his 
candidacy. Many observers say that he will not announce his 
decision until the last moment. If he decided not to run in the 
race, those critical of Abe would scramble for fielding an "anti- 
Abe candidate" in place of Fukuda. 
 
Policy debates 
 
After formally announcing their candidacies, presidential 
candidates would compile manifestos, or campaign pledges, in 
tandem with searching for official supporters. All manifestos 
would be out by late August. 
 
After late August, candidates would conduct policy debates at 
bloc conventions and a variety of roundtable discussions. The 
contents of their manifestos could determine the outcome of the 
presidential race. 
 
(5) Fiscal recapitalization; Opposition parties against further 
spending cut 
 
NIHON KEIZAI (Page 2) (Almost full) 
June 13, 2006 
 
The government and the ruling camp yesterday reaffirmed a policy 
of cutting government expenditures further with approximately 17 
trillion yen as a starting figure to secure funding needed for 
recapitalizing public finances. They plan to cut expenditures 
worth 15.5 trillion yen through cuts in personnel costs for local 
government employees and social security expenditures. However, 
 
TOKYO 00003250  006 OF 008 
 
 
many ruling party members are opposing the idea of cutting 
expenditures any further. With simultaneous local elections and 
an Upper House election set for next spring and summer 
respectively, efforts to draft a specific plan will likely 
encounter objections. 
 
"They are talking about an utterly unacceptable figure unknown to 
us. I want the government to reflect seriously." 
 
Liberal Democratic Party (LDP) Policy Research Council Chairman 
Hidenao Nakagawa during a meeting of the LDP Fiscal Reform Study 
Council expressed his displeasure about the leak of the Finance 
Ministry's estimated shortfall of 15.5 trillion yen needed to 
shift the primary balance into the black in fiscal 2010. 
 
"Decision is to be made by politics" 
 
The 15.5 trillion yen -- below the 17 trillion yen needed to 
shift the primary balance into the black -- is a figure aimed to 
serve as a settlement. This target estimated by the Finance 
Ministry has apparently upset Nakagawa, who is self-confident 
that it is politics that makes a decision. With pressure against 
spending cuts mounting in the ruling camp, meticulous behind-the- 
scene maneuvering will be indispensable for reaching a settlement 
on this figure. 
 
Thought the government refrained from proposing 15.5 trillion yen 
in spending cuts during a meeting of the Council on Unified 
Reform of Fiscal and Economic Systems (URFES) held on June 11, a 
number of participants voiced objections to the idea. 
 
New Komeito Policy Research Council Chairman Yoshihisa Inoue 
called on the government to show a detailed basis the 
calculations used in working out the amount needed to shift the 
primary balance into the black. The New Komeito, which places 
importance on next year's simultaneous local elections and Upper 
House election, is concerned that a substantial constraint on 
social security expenses will work against the party, for it has 
advocated welfare-oriented policy measures. 
 
Major battle ahead next summer 
 
LDP Upper House Caucus Chairman Mikio Aoki yesterday held a 
meeting with first-term Lower House lawmakers who are close to 
Chief Cabinet Secretary Shinzo Abe at LDP headquarters and 
inflamed a sense of alarm about the Upper House election. He 
noted: "Next year's Upper House election will be a major battle. 
The Democratic Party of Japan (DPJ = Minshuto) will try to take 
office and fight without regard to policy issues." 
 
Upper House members who are up for reelection next year were 
elected in 2001, boosted by amazingly high popularity ratings for 
Prime Minister Junichiro Koizumi, who just came into office that 
year. Seeing that the party will have an uphill battle, the LDP 
executive in the Upper House is now trying to gain organized 
votes. As such, major cuts in public works could dampen its 
strategy. 
 
The LDP leadership is also likely to propose a settlement with 
the LDP Upper House members with a so-called elastic clause 
designed to correct the pace of the process of cutting 
expenditures according to economic conditions. However, such a 
strategy, if it comes out at an early stage, could dampen 
 
TOKYO 00003250  007 OF 008 
 
 
enthusiasm for fiscal reconstruction. 
 
How to steer the fiscal recapitalization process is one of the 
most important agenda items for the successor to Koizumi. 
 
The prime minister yesterday evening met reporters and stressed: 
"How to make up for (the balance between revenues and 
expenditures) by cutting expenditures and increasing revenues is 
an issue whoever becomes prime minister or whichever party takes 
the reins of government." 
 
(6) Editorial: Japan's national interests really considered first 
in delaying critical legislation? 
 
SANKEI (Page 2) (Full) 
June 13, 2006 
 
The Diet will now wind up its current session in six days. Prime 
Minister Junichiro Koizumi has said he would not extend the 
current Diet session, and many important legislative measures 
will be carried over to the next Diet session. 
 
These critical legislative measures include a bill to amend the 
Fundamentals of Education Law, a bill to establish a national 
referendum law for amendments to the Constitution of Japan, and a 
bill to upgrade the Defense Agency to the status of a ministry. 
These bills are all concerned with the foundation of Japan. 
 
Prime Minister Koizumi, whose term as president of the ruling 
Liberal Democratic Party will expire in late September, said he 
would not extend the Diet session because there would be many 
other things to do. He instructed the LDP yesterday to do its 
best to legislate the vital bills at an extraordinary session of 
the Diet. 
 
However, we wonder if the prime minister has fully endeavored to 
legislate the bills at the current Diet session. The prime 
minister himself presented the bills to the Diet. The premier 
should not task his successor with the heavy burden and should 
settle them. 
 
The ruling and opposition blocs are compromising with each other 
on some bills that are now before the Diet. This tells that there 
is still room for the prime minister to display his leadership. 
 
One of these bills is intended to establish an anticancer law, 
which requires the government to push ahead with anticancer 
measures. Another legislation is a North Korean human rights 
bill, which urges the government to impose economic sanctions on 
North Korea. These two bills, retouched by the LDP and the 
leading opposition Democratic Party of Japan (DPJ or Minshuto), 
are expected to clear the House of Representatives today. 
 
In addition, there are many other legislative measures the ruling 
and opposition parties should work together to legislate in the 
national interests of Japan. These legislative measures include 
three bills presented by the LDP and the DPJ for Japan's sea- 
related rights and interests. 
 
The LDP-presented bill is to create a sea architecture safety 
zoning law, which designates a safety zone with a radius of 500 
meters around undersea resources prospecting rigs and penalize 
illegal intrusions into the zone. One of the two DPJ-presented 
 
TOKYO 00003250  008 OF 008 
 
 
bills is to enact a law intended to promote Japan's development 
of undersea resources. This DPJ-proposed legislation requires the 
government to develop undersea resources on its responsibility. 
The other DPJ-proposed legislation is for Japan to exercise its 
rights to probe natural resources and conduct marine research 
activities. This legislation bans foreign nationals from probing 
natural resources within Japan's exclusive economic zone (EEZ) 
waters. All these bills are for Japan to establish its first 
legal endorsement allowing Japan to protect its sea-related 
rights and interests. However, the Diet has yet to hold even a 
hearing of the two parties' explanations about the purports of 
these proposed legislations. 
 
For one thing, the LDP is taking its pro-Chinese lawmakers into 
consideration. For another, the DPJ is laying emphasis on its 
difference from the LDP. The administrative and legislative 
bodies' negligence mars Japan's national interests. 
 
In his January policy speech before the Diet, Prime Minister 
Koizumi cited an old saying: "One who is highly spirited must be 
prepared to die for his lofty will." We want him to settle as 
many difficult problems as possible. 
 
SCHIEFFER