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UNCLAS SECTION 01 OF 11 TOKYO 003264 
 
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 06/14/06 
 
 
Index: 
1) Top headlines 
 
2) Editorials 
 
3) Prime Minister's daily schedule 
 
4) Overseas dispatch of the SDF would have public security as a 
main role under LDP's draft permanent PKO bill 
 
5) LDP permanent PKO bill would let SDF be dispatched overseas 
without a UN resolution 
 
6) Yokosuka mayor de facto accepts deployment of a nuclear- 
powered US carrier to the US Navy base 
 
7) EEZ negotiations between Japan, South Korea end without 
results 
 
8) ROK refuses to halt its surveys in disputed waters near 
Takeshima 
 
9) Chief Cabinet Secretary Abe: The 3 patrol boats to Indonesia 
under ODA program will be exceptions to the no-weapons export 
rule 
 
10) Stock market plunges 614 points, worst drop since 9-11 
attacks, affected by aftershocks of Murakami fund case 
 
11) Bank of Japan Governor Fukui apologizes for providing 
Murakami with 10 million yen start-up money years ago 
 
12) Opposition parties in the Diet calling for BOJ Fukui's 
resignation over Murakami fund connection 
 
13) Opposition in Diet pursuing Prime Minister Koizumi's 
responsibility for Murakami fund incident 
 
14) All four opposition parties come out against resuming imports 
of "unsafe" US beef, ask Koizumi not to give President Bush a 
"gift" by reopening market    10 
 
15) Government to decide next week to resume imports of US beef 
 
16) Non-partisan group of lawmakers issue statement calling Prime 
Minister's Yasukuni visits unconstitutional 
 
17) Presidential hopeful Yasuo Fukuda remains active on foreign 
policy front, but still mum about his candidacy in the LDP 
election 
 
18) Fukuda supporters in LDP presidential election alarmed by his 
reticence about stating his candidacy 
 
Contents: 
1) TOP HEADLINES 
 
Asahi: 
Revision of labor regulations: Drop in premium rate for overtime 
work; Working time regulations to be abolished for workers 
earning over a certain level 
 
 
TOKYO 00003264  002 OF 011 
 
 
Mainichi: 
Illegal exemption of subscription to government pension plan 
reaches 200,000 cases 
 
Yomiuri: 
Information on 4 million DION customers leaked; Insider 
involvement suspected 
 
Nihon Keizai: 
Competition over public works spreads; Contract prices for major 
general contractors drop due to revision to Antimonopoly Law 
 
Sankei: 
Trust in Bank of Japan Governor Fukui shaken; Keeping investment 
private invites suspicion 
 
Tokyo Shimbun: 
Tokyo stocks suffer biggest loss since 9/11; BOJ Governor Fukui's 
investment adding to problem? 
 
2) EDITORIALS 
 
Asahi: 
(1)BOJ Governor Fukui's investment hurts trust in banking system 
(2)Foreign A-bomb victims: Government is responsible for helping 
them 
 
Mainichi: 
(1)North Korea human rights law: Toughen pressure by helping 
North Korean defectors 
(2)17 trillion yen needed to shift primary balance into the 
black; Fiscal reconstruction to be issue in Upper House election 
next year 
 
Yomiuri: 
(1)Stock price fall: Cautiously monitor risks 
(2)Japan-South Korea EEZ talks should be pursued separately from 
Takeshima/Dokdo ownership issue 
 
Nihon Keizai: 
(1)It is not possible to reconstruct finances with hesitant 
spending cuts 
(2)BOJ governor should disclose his personal assets 
 
Sankei: 
(1)Japan-South Korea EEZs: South Korea's claim bewildering 
(2)BOJ Governor Fukui cannot escape for being criticized for 
carelessness 
 
Tokyo Shimbun: 
(1)EEZs of Japan and South Korea: Another demarcation needed for 
practical advantage for both countries 
(2)Avoiding return of internal conflict in East Timor 
 
3) Prime Minister's Official Residence (Kantei) 
 
Prime Minister's schedule, June 13 
 
NIHON KEIZAI (Page 2)  (Full) 
June 14, 2006 
 
09:02 
 
TOKYO 00003264  003 OF 011 
 
 
Attended cabinet meeting in the Diet building. 
09:25 
Arrived at Kantei. 
11:01 
Responded to interview for the cabinet's email magazine. 
16:03 
Met Upper House member Seiko Hashimoto. 
17:33 
Attended monthly-economic-report-connected cabinet ministers' 
meeting. 
18:52 
Had haircut at the barber in Capital Tokyu Hotel. 
19:46 
Returned to his official residence. 
 
4) LDP bill eyes overseas security missions for SDF 
 
MAINICHI (Page 1) (Abridged) 
June 14, 2006 
 
The ruling Liberal Democratic Party has worked out its draft of a 
bill to create a permanent law stipulating requirements for Japan 
to dispatch Self-Defense Forces personnel overseas for their 
engagement in international peace cooperation activities. The LDP- 
drafted bill, revealed yesterday, allows SDF personnel to operate 
only in areas where there is no armed conflict. In addition, the 
bill eases Japan's current legal guidelines for SDF personnel's 
use of weapons-or the rules of engagement (ROE)-and authorizes 
them to engage in public security and escort missions. The bill 
does not require a United Nations resolution for Japan's overseas 
dispatch of SDF personnel, and it allows the government to send 
SDF troops overseas at its own judgment. However, the bill 
requires the government to ask for Diet approval. The bill is 
expected to be reported to an LDP defense policy subcommittee in 
its meeting today. The government and ruling parties will now 
restart their stagnated discussions on the permanent legislation. 
 
SDF members on overseas assignments are currently authorized to 
use weapons in self-defense or emergency evacuation only. The LDP- 
drafted bill, however, allows SDF personnel to use weapons on 
their overseas missions in compliance with the internationally 
recognized rules of engagement (ROE). In addition, the LDP bill 
also allows the SDF to engage its personnel in public security 
operations, escort services, and armed rescue activities. 
 
5) LDP legislation allows SDF dispatches without UN resolution 
 
ASAHI (Page 4) (Full) 
June 14, 2006 
 
The ruling Liberal Democratic Party has revealed its draft of a 
bill to establish a permanent law, instead of an ad hoc special 
measures law, for Japan to send Self-Defense Forces personnel 
overseas. The LDP-drafted bill allows Japan to participate in 
multinational forces without a United Nations resolution or an 
international organization's request. The bill will be presented 
in today's meeting of an LDP defense policy subcommittee chaired 
by former Defense Agency Director General Shigeru Ishiba. 
 
Japan's overseas dispatch of SDF troops is currently allowed 
under the Law for Cooperation on United Nations Peacekeeping 
Operations, the so-called PKO Cooperation Law. In addition, there 
 
TOKYO 00003264  004 OF 011 
 
 
is a time-limited law for special measures against terrorism and 
another temporary special measures law for Japan's assistance 
with Iraq's reconstruction. All these laws require a UN 
resolution or an international organization's request for Japan 
to dispatch SDF troops. 
 
The LDP-drafted bill, however, allows Japan to dispatch SDF 
troops overseas if there is a request based on an agreement 
between the parties to a dispute or even in the case of "a 
situation where Japan's contribution to the international 
society's efforts is recognized to be necessary in particular." 
 
In addition, the LDP bill allows SDF personnel to engage in 
public security operations and VIP escort services overseas. The 
bill also gives expanded authority to SDF personnel to use 
weapons to protect facilities and supplies. 
 
The LDP bill further requires the government to obtain 
parliamentary approval before sending SDF troops overseas. 
However, Japan under its postwar Constitution is prohibited from 
using armed force overseas. In the event Japan is allowed to 
dispatch troops overseas under a permanent law, its 
constitutionality would be called into question. The LDP is 
expected to face some difficulties in its discussions. 
 
6) Yokosuka mayor to approve nuclear carrier deployment 
 
YOMIURI (Page 2) (Full) 
June 14, 2006 
 
The city of Yokosuka, Kanagawa Prefecture, will hold a plenary 
meeting of its municipal assembly today to discuss the US Navy's 
planned deployment of a nuclear-powered aircraft carrier to its 
Yokosuka base. In the session, the city's mayor, Ryoichi Kabaya, 
will clarify his approval to dredge the port of Yokosuka for a US 
nuclear-powered aircraft carrier. This means the mayor's de facto 
acceptance of a nuclear-powered warship's deployment to Yokosuka. 
The mayor will shortly respond to consultations with the 
government on the dredging work. 
 
The Japanese and US governments have agreed to replace the USS 
Kitty Hawk, a Yokosuka-based conventional aircraft carrier, with 
the USS George Washington, a nuclear-powered flattop. 
 
However, Yokosuka port is not deep enough at its present aircraft 
carrier berth to moor the George Washington. It is therefore 
necessary to dig down about two meters there. The mayor is in 
charge of Yokosuka port, so the Defense Facilities Administration 
Agency needs the mayor's permission to start the work. On June 
12, Foreign Minister Aso called at the city's municipal 
government office and asked for the mayor's cooperation. 
 
7) Japan, ROK fail to fill gap in EEZ talks; Next round of talks 
set to occur in Seoul in September 
 
YOMIURI (Page 2) (Excerpts) 
June 14, 2006 
 
The Japanese and South Korean governments yesterday wound up two 
days of talks held in Japan's Ministry of Foreign Affairs (MOFA) 
on demarcation of the boundaries of their respective exclusive 
economic zones (EEZ). In the talks, both sides went no further 
 
TOKYO 00003264  005 OF 011 
 
 
than to exchange their stock principles, both asserting that 
Takeshima/Dokdo should be used as the base point of their 
respective EEZ. They agreed to continue the talks and meet again 
in Seoul in September. 
 
In the talks, MOFA International Legal Affairs Bureau Director- 
General Ichiro Komatsu insisted: "Our assertion is the same as 
before, namely, that an equidistant line should be drawn between 
Takeshima and Ullungdo with Takeshima as the base point." 
 
On the other hand, South Korea's chief negotiator, Park Hee Kwon, 
director-general of the Treaties Bureau of the South Korean 
Foreign Ministry counterargued: "We have to assert that our base 
point should be Dokdo." 
 
At the outset of the negotiations, both sides clashed with each 
other over the question of what the base point of their 
respective EEZ would be. Park criticized Japan for its plan to 
conduct a maritime survey in waters around Takeshima in April, 
stressing that this sort of behavior has led to his country's 
assertion that Dokdo should be used as the base point of his 
country's EEZ. 
 
The South Korean delegation apparently gave the highest priority 
to "clearly conveying to Japan that South Korea has sovereignty 
over Dokdo," according to a source familiar with Japan-ROK 
negotiations. Behind South Korea's this approach lies the South 
Korean people's growing desire for a hard-line policy toward 
Japan, since the South Korean public took Japan's plan to conduct 
a marine survey in April as an unjustified violation of their 
country's sovereignty. 
 
In the talks, South Korea insisted that the borderline should be 
drawn between Takeshima and Okinoshima islets, although it 
previously had used Ullungdo as the base point. 
 
Problem of rock 
 
South Korea previously had asserted that Ullungdo should be used 
as the base point, viewing Takeshima as protruding rocks. Rocks 
cannot serve as the base point of EEZ under international law. If 
South Korea asserted Takeshima as the base point, there is the 
possibility that South Korea will find it difficult to reject 
Japan's assertion of using Torishima Island as the base point of 
its EEZ, because South Korea has previously asserted that 
Torishima is a rock. A MOFA official explains: "South Korea would 
lose a much more part of its EEZ and more undersea natural 
resources by recognizing Torishima as Japan's base point than 
what South Korea will gain by using Takeshima as its base point." 
 
South Korea seems to have put emphasis on sovereignty over 
profits in the talks this time, some observers say. 
 
Meanwhile, Japan attached importance to continuing talks and 
avoiding a conflict. A senior MOFA official said: "We needed to 
secure an occasion for both sides to discuss the EEZ issue in a 
cool-headed manner while avoiding a recurrence of a dispute 
between the two countries like the one in April over a plan for a 
marine survey in waters around Takeshima." 
 
In the talks, both Japan and South Korea agreed to resume the 
next round in September. Japan somehow achieved one of the goals. 
 
TOKYO 00003264  006 OF 011 
 
 
From a long-term perspective, Japan is looking into the 
possibility of EEZ demarcation, and another aim of Japan is that 
"As long as negotiations continue, the waters around Takeshima 
are considered to be a disputed area between Japan and South 
Korea. This would prevent South Korea from creating a fait 
accompli by illegally occupying Takeshima," a Japanese government 
official says. 
 
8) ROK refuses to cancel planned ocean survey in EEZ talks, but 
both Japan, ROK agree to hold next round in September 
 
SANKEI (Page 5) (Excerpts) 
June 14, 2006 
 
The 5th Japan-South Korea talks intended to demarcate their 
exclusive economic zones (EEZ) ended yesterday without narrowing 
the gaps of views over, for instance, the base points of their 
respective EEZs in waters around the Takeshima/Dokdo islets. In 
the talks, Japan asked South Korea to cancel its planned 
oceanographic survey in July, but South Korea refused to accept 
Japan's request. The two countries, however, agreed to continue 
the talks and hold the next round in Seoul in September, but the 
possibility cannot be ruled out that a similar dispute as seen in 
April, when Japan planned to conduct an ocean survey in April, 
will flare up again in coming months. 
 
According to a source involved in the talks, Japan insisted as in 
the past that the equidistant line should be determined by using 
Takeshima/Dokdo as Japan's base point and Ullungdo as South 
Korea's base point. But South Korea, switching from its previous 
position that its base point should start from Ullungdo, 
requested that its base point should be Takeshima/Dokdo and that 
Japan's should be Okinoshima. South Korea said this policy switch 
came in response to Japan's recent marine survey plan, saying 
that the fault lies with Japan. 
 
Referring to South Korea's planned ocean survey, Japan called on 
South Korea to exercise self-restraint, noting, "It's important 
for both sides to exercise self-restraint." Japan proposed 
establishing a prior notice system for both sides to inform the 
other if they plan to conduct a marine survey in waters 
surrounding Takeshima, but South Korea dismissed these two 
requests by Japan, saying, "They are not the subjects for EEZ 
negotiations." 
 
9) Chief cabinet secretary's statement: Providing Indonesia with 
patrol boats with ODA funds is exception to three principles 
banning arms exports 
 
SANKEI (Page 5) (Full) 
June 14, 2006 
 
The government decided yesterday in a cabinet meeting to provide 
Indonesia with grant aid for the purchase of three patrol boats. 
A bulletproof patrol boat corresponds to a "weapon," the export 
of which is forbidden under Japan's three principles on arms 
exports. The government has, however, made it an exception, 
citing the vessels would be used to track down terrorists and 
pirates. It will be the first time for Japan to use its official 
development assistance (ODA) to offer "weapons" to another 
country. 
 
 
TOKYO 00003264  007 OF 011 
 
 
Chief Cabinet Secretary Shinzo Abe released a statement 
explaining yesterday's cabinet decision. The statement wrote: 1) 
The patrol boats will be used only for cracking down on 
terrorists and pirates; and 2) they will not be sold to a third 
party without prior approval of the Japanese government. Abe 
explained in the statement that the basic philosophy of the three 
basic principles banning arms exports would be secured. 
 
The total cost of the three patrol boats will be 1.921 billion 
yen. They will be deployed to Indonesia' National Police 
Headquarters' Maritime Police Bureau and other posts. They will 
be used to crack down on pirates and terrorists, as well as 
prevent proliferation of weapons of mass destruction. 
 
10) Tokyo stocks fall by 614 yen; Biggest drop since 9-11 
terrorist attacks on US 
 
ASAHI (Page 1) (Full) 
June 14, 2006 
 
Following the worldwide fall in stock prices, Tokyo stocks 
continued to fall yesterday with the Nikkei index and TOPIX, 
which shows the movements of all stocks listed on the First 
Section of the Tokyo Stock Exchange, posting an all-time low. The 
Nikkei Stock Average recorded the biggest point loss, finishing 
the day with the biggest point loss of 600 since the 9-11 
terrorist attacks in the US. The revelation of Bank of Japan 
Governor Fukui's investment of 10 million yen in Murakami Fund 
put a further dent in the market. 
 
The TSE closed with the Nikkei Stock Average dropping to 14,218, 
down 614.41 points from the day before and TOPIX to 1458.30, down 
by 52.59 points from the day earlier. The trading volume stood at 
1.96 billion stocks. 
 
11) BOJ Governor Fukui apologizes over investment issue; 
Government determined not to pursue matter 
 
ASAHI (Page 1) (Full) 
June 14, 2006 
 
During a government meeting held yesterday evening that included 
Prime Minister Koizumi, Bank of Japan (BOJ) Governor Toshihiko 
Fukui apologized for investing 10 million yen in the Murakami 
Fund represented by Yoshiaki Murakami. He noted, "I am sorry for 
all the fuss." The government and the ruling parties do not 
intend to call Fukui to account for his involvement, taking the 
position that since his action is not in violation of BOJ 
regulations, there is no problem with his investment. However, 
the ruling parties plan to pursue the responsibility of Fukui and 
the prime minister for his appointing him. There is the 
possibility of calls for seeking Fukui's resignation mounting. 
 
Commenting on reasons why he invested in the Murakami Fund, Fukui 
during a monthly meeting of cabinet ministers involved with a 
monthly economic report held at the Prime Minister's Residential 
Office (Kantei) yesterday evening explained, "I invested in 
Murakami Fund along with my colleagues in order to encourage that 
brave young man." 
 
Fukui later told reporters that he had no comment to make on his 
moral responsibility and whether he would remain in office or 
 
TOKYO 00003264  008 OF 011 
 
 
resign. According to him, he asked the Murakami Fund to cancel 
his investment contract this February. The cancellation will 
likely be made in late June. It is said that he has paid taxes 
worth more than 100,000 yen a year at the most for investment 
profits. However, the actual amount of investment profits has not 
been revealed. 
 
Media organizations have called on the BOJ to hold a press 
conference by Fukui, but the BOJ turned down the request. The BOJ 
Public Relations Office issued a comment on Fukui's investment 
activities, which read: "Governor Fukui's investment action is 
not in violation of the BOJ internal regulations. It is our 
understanding that the governor has properly reported income 
gained through the investment." 
 
Prime Minister Koizumi told reporters at the Kantei: "There is no 
problem with his action." He then indicated his perception that 
there is no need for him to step down. 
 
12) BOJ Gov. Fukui under fire 
 
SANKEI (Page 2) (Excerpts) 
June 14, 2006 
 
In the wake of Bank of Japan Governor Toshihiko Fukui's 
revelation that he invested 10 million yen in the Murakami Fund, 
market players and others have begun pointing out the moral 
responsibility of the nation's top financial policy officer. 
Fukui might be asked for a detailed explanation on his decision 
to invest in the fund and profit from it. 
 
Toin University of Yokohama economic criminal law Professor Nobuo 
Gohara, a former Tokyo District Public Prosecutors Office 
prosecutor, took this view: 
 
"What was his view of the fund in investing it? If he had a 
consistent policy, there was no need for him to get upset with 
the arrest of (fund manager Yoshiaki Murakami). His excuse tells 
of his poor perception of the fund. It was a problem that he 
continued providing money to the fund." 
 
A mid-level bank executive also criticized Fukui: 
 
"Investing in the fund before assuming the BOJ post is 
understandable to some extent, but he should have withdrawn all 
the money once he took on the job. As the chief financial 
officer, it is unthinkable that he didn't know the Murakami 
Fund's modus operandi until it resorted to arbitrage. He is 
simply too insensitive." 
 
Opposition camp to demand Fukui's resignation 
 
Fukui's revelation that he invested 10 million yen in the 
Murakami Fund has sent shockwaves through the political 
community, with the ongoing Diet session scheduled to end in just 
a few days. The opposition camp intends to demand Fukui's 
resignation and pursue Prime Minister Koizumi's responsibility 
for appointing him. 
 
Minshuto (Democratic Party of Japan) President Ichiro indicated 
in a press conference that his party would take up the issue in 
the Diet, saying, "The matter is serious in that it involves the 
 
TOKYO 00003264  009 OF 011 
 
 
Bank of Japan governor, who is the nation's top financial 
officer." Diet Affairs Committee Chairman Kozo Watanabe also 
criticized Fukui, noting, "His resignation is inevitable. The 
government and Prime Minister Koizumi also need to take 
responsibility." 
 
13) Opposition camp to pursue Koizumi's responsibility for 
appointing Fukui as BOJ governor in wake of revelation of his 
investment in Murakami Fund 
 
YOMIURI (Page 4) (Excerpts) 
June 14, 2006 
 
Bank of Japan Governor Toshihiko Fukui once invested 10 million 
yen in the fund run by Yoshiaki Murakami, who has been arrested 
over alleged insider trading in violation of the Securities and 
Exchange Law. In this connection, the opposition bloc decided 
yesterday to pursue Prime Minister Koizumi's responsibility for 
appointing Fukui to the post and Fukui's moral responsibility. 
 
Minshuto (Democratic Party of Japan) President Ichiro Ozawa told 
a press conference yesterday: "It is a serious problem that the 
Bank of Japan president has invested in a fund that is directly 
under the central bank regulation." Secretary General Yukio 
Hatoyama also indicated that his party would file a no-confidence 
motion against the Koizumi cabinet, saying: "It was a mistake in 
a series of personnel appointments by the prime minister. It 
speaks of the actual situation of the Koizumi reform drive." 
 
The opposition camp intends to grill Koizumi and Fukui at the 
Upper House Budget Committee session tomorrow and the Lower House 
Fiscal and Financial Committee meeting on June 15. The opposition 
block also plans to urge the ruling camp to summon Fukui as an 
unsworn witness in an out-of-session meeting even after the 
ongoing Diet session ends on June 18. 
 
In contrast, many in the government and the ruling coalition are 
defending Fukui. 
 
14) Four opposition parties unite in opposition to resumption of 
US beef imports: We oppose giving such "gifts" to the US 
 
ASAHI (Page 4) (Full) 
June 14, 2006 
 
The four opposition parties -- Minshuto (Democratic Party of 
Japan), Japanese Communist Party (JCP), Social Democratic Party 
(SDP), and the People's New Party -- yesterday held a meeting 
near the Diet called the "National Rally to Stop the Hasty 
Resumption of US Beef Imports." The heads of each party and 
approximately 600 persons showed up from consumer organizations 
and other groups to criticize Prime Minister Koizumi for timing 
the resumption of imports with his trip to the US so he can bring 
this as a "gift" (to President Bush). 
 
Minshuto President Ichiro Ozawa pointed out, "The US will only 
have contempt for Japan if we go so far in such obvious 
obsequiousness." JCP head Shii said: "He has placed loyalty to 
the US over the lives of the Japanese people." The SDP 
representative said: "He wants to bring gifts for the Okinawa (US 
military) bases." 
 
 
TOKYO 00003264  010 OF 011 
 
 
15) Government to decide on resumption of US beef imports 
possibly next week 
 
NIHON KEIZAI (Page 5) (Full) 
June 14, 2006 
 
The Japanese and US governments are expected, possibly next week, 
to hold the final phase of talks to determine specific procedures 
for the resumption of US beef imports and then make a decision on 
a resumption. Town meetings with consumers were planned for 10 
locations across the country, and they will end with the one in 
Tokyo set for today. Through such meetings, the government has 
thought that a certain degree of public understanding toward a 
set of preventive measures against recurrences, including prior 
inspections of US facilities, on which both Japan and the United 
States have reached a basic agreement, has been obtained now. US 
beef is likely to arrive in Japan in late July if things go 
smoothly. 
 
During the Japan-US meeting in May, Japan gave approval to the US 
report on reinspections of its facilities handling beef for 
Japan, noting there will be no safety problem. Both sides then 
agreed in principle that Japan would directly confirm America's 
safety control system by, for instance, conducting prior 
inspections or snap inspections after the resumption of beef 
imports. The final phase of bilateral talks is set to occur after 
all town meetings are over. 
 
Through the town meetings, the government has now a good grip on 
consumers' opinions, as a senior Agricultural Ministry official 
pointed out, "We've exhausted all ideas regarding the steps that 
can be taken." The government now thinks that it has come to the 
stage of stepping up inspections of US plants and the quarantine 
system at home. 
 
16) LDP group complies set of proposals stipulating prime 
minister's visits to Yasukuni Shrine are unconstitutional 
 
NIHON KEIZAI (Page 2) (Full) 
June 14, 2006 
 
A nonpartisan parliamentary group thinking of creating a national 
war memorial, chaired by Taku Yamasaki, yesterday came up with a 
set of proposals calling on the government to build a secular 
memorial. The group points out that with Prime Minister Junichiro 
Koizumi's visits to Yasukuni Shrine in mind, there are concerns 
that the visits are unconstitutional. The recommendation also 
stipulates that the fact that Class-A war criminals are enshrined 
along with the other war dead has angered neighboring countries. 
 
17) Fukuda supporters nudging him to make his decision to run in 
LDP presidential race 
 
YOMIURI (Page 4) (Excerpts) 
June 14, 2006 
 
Lawmakers close to former Chief Cabinet Secretary Yasuo Fukuda of 
the Mori faction in the Liberal Democratic Party are perplexed by 
his elusive attitude about entering the LDP presidential race in 
September. Although Fukuda has suggested his eagerness to run in 
the election through his diplomatic activities, moves of his 
supporters have been far more inactive than those backing Chief 
 
TOKYO 00003264  011 OF 011 
 
 
Cabinet Secretary Shinzo Abe, who has declared his readiness to 
seek the LDP presidency. The fence sitters have begun urging 
Fukuda to make up his mind soon. 
 
Winding up a meeting of the Asian Forum of Parliamentarians on 
Population and Development, Fukuda returned home from New Zealand 
yesterday afternoon. He is chair of the forum. As chairman of the 
Japan-Indonesia Association, Fukuda is also scheduled to visit 
that country later this month to hold talks with key Indonesian 
government members. 
 
With Asia diplomacy expected to become a campaign issue, many 
observers regard Fukuda's activities in that area as his 
expression of eagerness for the LDP presidency. Although Fukuda 
has come out second after Abe in various opinion polls, the 
number of lawmakers supporting him has not increased probably 
because of his elusive attitude. The situation contrasts sharply 
with Abe, whose supporters have begun dashing ahead toward the 
presidential goal. 
 
18) LDP presidential race: Anti-Koizumi, non-Abe support groups 
impatient with Fukuda's silence 
 
NIHON KEIZAI (Page 2) (Excerpts) 
June 14, 2006 
 
There is growing concern in the ruling camp that Yasuo Fukuda has 
still not said whether he will run in the September Liberal 
Democratic Party (LDP) presidential election. Forces opposing 
Prime Minister Junichiro Koizumi aim to tighten the noose around 
Chief Cabinet Secretary Shinzo Abe, who it is believed would 
continue the Koizumi policy line. They are concerned that they 
have yet to choose their own candidate. Some LDP lawmakers are 
now taking action with an eye on Fukuda not running in the race. 
 
Koichi Kato, who has been critical of Koizumi's Asia diplomacy, 
said on a TV program recorded yesterday: "It's better to announce 
early whether he will run or not. I think he will probably do so 
before the end of this month." He was urging Fukuda to make up 
his mind. Taku Yamasaki, a longtime ally of Kato, also has made 
similar remarks. 
 
"Mr. Fukuda has said nothing," Yoshiro Mori, chairman of the 
largest faction in the LDP, to which both Abe and Fukuda belong, 
told Shozo Kusakawa, a vice representative of the New Komeito, 
yesterday at a Tokyo hotel. Mori was complaining that he was 
unable to divine Fukuda's real intention. 
 
The New Komeito, the LDP's junior coalition partner, also is 
interested in the LDP leadership race. Since the party has 
opposed to Koizumi's visits to Yasukuni Shrine, it feels an 
affinity with Fukuda. It also has hopes for Abe's high popularity 
when considering next year's House of Councillors election. 
 
Many Mori faction members are worried that if both Abe and Fukuda 
run in the race, the faction will split. Senior members will soon 
hold a meeting to discuss the matter. 
 
SCHIEFFER