VZCZCXRO1177
PP RUEHFK RUEHKSO RUEHNAG RUEHNH
DE RUEHKO #3337/01 1670843
ZNR UUUUU ZZH
P 160843Z JUN 06
FM AMEMBASSY TOKYO
TO RUEHC/SECSTATE WASHDC PRIORITY 3335
INFO RUEKJCS/SECDEF WASHDC PRIORITY
RHEHAAA/THE WHITE HOUSE WASHINGTON DC PRIORITY
RUEAWJA/USDOJ WASHDC PRIORITY
RULSDMK/USDOT WASHDC PRIORITY
RUCPDOC/USDOC WASHDC PRIORITY
RUEAIIA/CIA WASHDC PRIORITY
RUEKJCS/JOINT STAFF WASHDC//J5//
RHHMUNA/HQ USPACOM HONOLULU HI
RHHMHBA/COMPACFLT PEARL HARBOR HI
RHMFIUU/HQ PACAF HICKAM AFB HI//CC/PA//
RHMFIUU/COMUSJAPAN YOKOTA AB JA//J5/JO21//
RUYNAAC/COMNAVFORJAPAN YOKOSUKA JA
RUAYJAA/COMPATWING ONE KAMI SEYA JA
RUEHNH/AMCONSUL NAHA 9390
RUEHFK/AMCONSUL FUKUOKA 6777
RUEHOK/AMCONSUL OSAKA KOBE 0022
RUEHNAG/AMCONSUL NAGOYA 6690
RUEHKSO/AMCONSUL SAPPORO 7927
RUEHBJ/AMEMBASSY BEIJING 2832
RUEHUL/AMEMBASSY SEOUL 9003
RUCNDT/USMISSION USUN NEW YORK 0779

UNCLAS SECTION 01 OF 11 TOKYO 003337 
 
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 06/16/06 
 
 
Index: 
 
1)   Top headlines 
2)   Editorials 
3)   Prime Minister's daily schedule 
 
Defense and security issues: 
4)   Prime Minister Koizumi in an unusual move taking Defense 
  Vice Minister Moriya with him on his US trip 
5)   Japan, told by British that public-safety authority may be 
transferred to Iraqi forces, will start pulling out GSDF troops 
perhaps this month 
6)   84 being punished in DFAA bid-rigging scandal 
7)   Japan agrees to US request for Yokosuka port dredging to 
accommodate nuclear-powered carrier when it arrives 
 
8)   LDP's Yamasaki puts off planned trip to North Korea 
 
ODA for "weapons": 
9)   One-day late but Japan, Indonesia finally sign exchange of 
  notes on controversial patrol-boat grant 
10)  Voices challenge appropriateness of using ODA to supply 
patrol boats 
 
BOJ on Diet hot seat: 
11)  BOJ Governor apologizes, admits investment in Murakami Fund, 
  refuses to resign 
12)  Koizumi will not replace Fukui as BOJ governor, but 
opposition wants his resignation 
 
Political agenda: 
13)  Koizumi will not name a successor when he steps down as 
  prime minister 
14)  Prime Minister's final question-answer session in Diet 
brings out his mellowness 
15)  Rumors of one more Koizumi "surprise" abound, ranging from 
surprise visit to Iraq, third trip to Pyongyang 
16)  Rumor that Fukuda may pull out of the LDP presidential race 
17)  Interim report by non-partisan Diet panel seeks funding for 
national war memorial 
 
18)  Food Safety Commission to look into imports of beef from 
  Chile, Mexico, etc., and not just US 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi: 
In meeting with Mori on LDP presidential race, Koizumi clearly 
tells him that he will not designate his successor 
 
Mainichi, Yomiuri, and Sankei: 
BOJ Gov. Fukui apologizes for causing stir over Murakami Fund 
investment but rejects calls to resign; Fails to show profit from 
investment 
 
Nihon Keizai: 
Communications Ministry eyes making it mandatory for telecom 
carriers to open wireless communication networks to others to 
increase new entrants and competition 
 
 
TOKYO 00003337  002 OF 011 
 
 
Tokyo Shimbun: 
Social Insurance Agency mishandled 400 cases in FY2005 
 
2) EDITORIALS 
Asahi: 
(1)  BOJ governor's apology not enough 
(2)  Jikei University School of Medicine's hospital equally 
guilty for allowing reckless surgery 
 
Mainichi: 
(1)  Diet session to end: Who is responsible for the lost 150 
days? 
(2)  Okinotorishima separate from Takeshima/Dokdo issue 
 
Yomiuri: 
(1)  Can revised building standards law prevent building code 
violations? 
(2)  BOJ head must be above suspicion 
 
Nihon Keizai: 
(1)  For boosting tourism, attractive sites more important than 
new investments 
(2)  Medical reform must continue 
 
Sankei: 
(1)  Ruling on botched surgery sounds alarm against medical world 
(2)  Japan must take initiative at IWC meeting with scientific 
logic 
 
Tokyo Shimbun: 
(1)  Japan's credibility harmed by BOJ chief Fukui's conduct 
(2)  Is nuclear-powered aircraft carrier really safe? 
 
3) Prime Minister's Official Residence (Kantei) 
 
Prime Minister's schedule, June 15 
 
NIHON KEIZAI (Page 2)  (Full) 
June 16, 2006 
 
10:36 
Met at Kantei with Chief Cabinet Secretary Abe, followed by 
Deputy Chief Cabinet Secretary Suzuki. 
 
13:00 
Attended Upper House Budget Committee session. 
 
16:47 
Met at Kantei with Administrative Reform Minister Chuma and 
Administrative Reform Promotion Office Chief of Secretariat 
Matsuda, attended by Deputy Chief Cabinet Secretary Futahashi. 
Met later with Financial Affairs Minister Yosano and Cabinet 
Office's Director General Takahashi. 
 
17:29 
Posed for a group photo with World Economic Forum President 
Schwab and others. Attended reception of WEF on East Asia. 
 
19:06 
Met at Haneda Airport the Emperor and Empress, who returned from 
overseas trip. 
 
 
TOKYO 00003337  003 OF 011 
 
 
19:56 
Met with former Prime Minister Mori at Akasaka Prince Hotel. 
 
21:02 
Returned to his official residence. 
 
4) Vice defense minister going along with Koizumi to US as 
security aide-de-camp 
 
ASAHI (Page 4) (Full) 
June 16, 2006 
 
Prime Minister Koizumi will have Defense Agency Administrative 
Deputy Director General Takemasa Moriya accompany him on his 
upcoming US trip scheduled for late this month. Koizumi will meet 
with US President Bush on June 29, and the two leaders are 
expected to talk about the realignment of US forces in Japan and 
the situation in Iraq as well. Moriya is expected to serve as 
Koizumi's aide-de-camp in the area of security affairs. 
 
Moriya was a key player in a series of talks with the United 
States over the US military realignment. In past Japan-US 
summits, however, the Foreign Ministry used to be on the front. 
It is extremely rare for an administrative deputy director 
general of the Defense Agency to accompany a prime minister to 
the United States. 
 
"Even the Foreign Ministry's administrative vice minister is not 
going, so it's unprecedented," a senior official of the Defense 
Agency said. "The two countries' leaders are now very much 
concerned about defense issues, I guess," the official added. 
 
5) British forces to transfer security powers to Iraq; GSDF may 
pull out this month 
 
YOMIURI (Page 1) (Full) 
June 16, 2006 
 
The British government has told the Japanese government that 
Britain will announce plans on June 15 to transfer security and 
administrative powers from the multinational force to the Iraqi 
government in the southern Iraqi province of Al Muthanna, which 
includes Samawah, where a Japanese detachment of Ground Self- 
Defense Force troops has been deployed to assist with Iraq's 
reconstruction, officials said yesterday. Britain would like to 
transfer the powers immediately after announcing the plan, 
according to the officials. In response, the government has 
entered into coordination to make a decision late this month on 
the GSDF detachment's withdrawal. Four countries-Japan, the 
United States, Britain and Australia-will shortly hold a meeting 
of working-level officials in London to coordinate their views. 
 
The United States, Britain, and other multinational force members 
have been holding informal meetings with the Iraqi government to 
look into the possibility of transferring security and 
administrative powers in each province of Iraq. The multinational 
force and the Iraqi government have agreed that it would be 
possible to transfer the powers at an early date in the province 
of Al Muthanna, where the GSDF has been operating, according to 
officials. 
 
According to Japanese government officials, the Iraqi government 
 
TOKYO 00003337  004 OF 011 
 
 
and the multinational force will hold a meeting of their powers 
transfer committee after reaching a general agreement in their 
informal meeting. The committee is made up of Iraqi cabinet 
ministers, including the defense minister and the interior 
minister, and the commanders of US and British forces in Iraq and 
the US and British envoys to Iraq. The Iraqi government and the 
multinational force, after reaching a final agreement, will 
announce when to transfer the powers, according to the officials. 
 
The Japanese and British governments recently held a meeting of 
their officials to consult on when to announce the transferal. In 
the meeting, the British government told the Japanese government 
that Britain would like to announce the transferal of security 
powers on June 20 and that the Australian government has also 
basically agreed to do so. This is believed to based on the 
results of their informal meetings. Japan and Britain will now 
enter into final coordination with the United States, which is 
the core of the multinational force. 
 
The Japanese government will make a formal decision on the GSDF's 
withdrawal when the transferal of powers is determined. The 
government would like to start withdrawing the GSDF troops in 
late June at the earliest along with the Samawah-based British 
and Australian forces. The government is making preparations for 
the GSDF's pullout from Samawah in about 30-35 days. The GSDF 
troops will move to Kuwait in late July and will return home 
thereafter if Japan's coordination with the multinational force 
members is well under way and the GSDF is ready to pull out. 
 
6) All-time high of 84 officials punished over DFAA bid-rigging 
incident; Investigative committee report blames amakudari 
 
TOKYO SHIMBUN (Page 1) (Excerpt) 
June 16, 2006 
 
The Defense Facilities Administration Agency (DFAA) Investigative 
Committee (chaired by DFAA Director General Iwao Kitahara), which 
has investigated bid-rigging cases led by its officials, 
yesterday released a report noting that an attempt to secure 
posts for retiring DFAA officials was behind the wrongdoings. The 
report, however, failed to clarify the full picture of the 
incident, with the question whether cost estimates for 
construction projects were leaked or not remaining vague. 
Following the report, the DFAA took disciplinary action against 
52 officials, including the demotion of Construction Department 
Director General Toshiaki Kawano, who ordered the scrapping of 
order-placement lists, by two levels, and a warning to Director 
General Kitahara. Thirty-two Defense Agency officials, including 
Director General Takemasa Moriya, were disciplined. The 
punishment of a total of 84 personnel is the largest for the JDA 
and DFAA. 
 
7) Japan to renovate Yokosuka Port for US nuclear flattop 
 
ASAHI (Page 4) (Full) 
June 16, 2006 
 
Japan and the United States held a meeting of their 
intergovernmental joint committee yesterday and agreed that the 
Japanese government will dredge the Port of Yokosuka in Kanagawa 
Prefecture to berth the USS George Washington, a nuclear-powered 
aircraft carrier to be deployed to the US Navy's Yokosuka base in 
 
TOKYO 00003337  005 OF 011 
 
 
¶2008. 
 
8) LDP's Yamasaki puts off visit to North Korea 
 
Taku Yamasaki, former vice president of the ruling Liberal 
Democratic Party, has now made up his mind to postpone his 
scheduled visits to North Korea and South Korea for the time 
being. Yamasaki had planned to leave Japan on June 20 for the two 
countries. "I will postpone my foreign trip," Yamasaki said in a 
general meeting of his intra-party faction yesterday. "I will 
work on our (faction's) policy proposals," he added. 
 
9) Provision of patrol boats to Indonesia: Signing ceremony held 
one day behind schedule with Japan's concessions to Indonesia's 
request for creating supplementary document 
 
YOMIURI (Page 2) (Full) 
June 16, 2006 
 
Etsunari Kurose, Jakarta 
 
The signing ceremony for a letter of agreement on Japan's offer 
of three patrol boats in grant aid to Indonesia, which had been 
suspended due to the Indonesian government's objection, was held 
in Jakarta yesterday one day behind schedule. 
 
According to sources from both governments, Indonesia raised an 
objection to the restricted use of the patrol boats for such 
purposes as antiterrorism at sea and antipiracy, but afterwards, 
both the governments reached a compromise on creating a 
supplementary document that will give consideration to 
Indonesia's request instead of modifying the agreement and 
signing the document. 
 
According to an Indonesian Foreign Ministry official, the 
supplementary document states that the patrol boats shall be used 
for comprehensive purposes under the peacekeeping framework for 
the Strait of Malacca as agreed on in August 2005 among 
Indonesia, Malaysia, and Singapore, in accordance with the United 
Nations Convention on the Law of the Sea, and under Indonesia's 
control. 
 
Japanese Ambassador to Indonesia Shin Ebihara said firmly: "The 
supplementary document is not contradictory to the agreement that 
restricts the use of patrol boats." 
 
On the other hand, an Indonesian Foreign Ministry official 
commented, "The security measures for the Strait of Malacca 
include the securing of safe navigation and the preservation of 
the environment, so we need to grapple with the security matters 
from various angles," implying a possible expansion of the 
purposes of the use of the patrol boats. 
 
10) Some are skeptical of the restricted use of patrol boats, 
saying it may not meet international standards 
 
YOMIURI (Page 2) (Full) 
June 16, 2006 
 
Japan decided to provide patrol boats to Indonesia as an 
exception to Japan's three principles banning weapons exports, 
and in following the procedures for this provision, Indonesia 
 
TOKYO 00003337  006 OF 011 
 
 
raised an objection to the restricted use of the boats for such 
purposes as antiterrorism at sea and antipiracy. Analyzing this 
objection, many in Japan said: "Perhaps Indonesia was concerned 
that the limited use would bring about inconvenience about the 
use of the boats." An exception was added to the three principles 
in 2004 when the government reviewed them, but a Liberal 
Democratic Party (LDP) member cast doubts, saying: "It may be too 
strict to meet international standards." 
 
Senior Vice Foreign Minister Yasuhisa Shiozaki told a news 
conference yesterday: "We were interrupted by technical matters. 
It's absolutely not that some problem arose about the three 
principles banning weapons exports." A senior Foreign Ministry 
official likewise emphasized: "No modification was made to the 
agreement both sides signed. The conditions set by Japan, such as 
limiting the use of the boats to antiterrorism and antipiracy, 
should be observed." 
 
11) BOJ Governor Fukui's investment in Murakami Fund: Determined 
to perform his duties; Apologizes over all the fuss; Reveals 
possession of stock in several companies 
 
YOMIURI (Top Play) (Lead para.) 
June 16, 2006 
 
The Upper House Budget Committee yesterday held an intensive 
deliberation on the issue of Bank of Japan Governor Toshihiko 
Fukui having invested 10 million yen in the Murakami Fund. Fukui 
indicated his perception that in compliance with the BOJ internal 
regulations, there was no problem about his continued investment 
in the fund led by Yoshiaki Murakami even after taking office as 
BOJ governor. Murakami was arrested on suspicion of violating the 
Securities and Exchange Law. Fukui later told a news conference 
that he wants to continue his duties as BOJ governor. He thus 
stressed that he had no intention of stepping down. Prime 
Minister Koizumi expressed his acceptance of Fukui's account, but 
the opposition camp is strongly opposing this stance of the prime 
minister. 
 
12) Koizumi on fund flap involving BOJ Governor Fukui: "I am not 
thinking about replacing him" 
 
TOKYO SHIMBUN (Page 2) (Full) 
June 16, 2006 
 
Asked by reporters about the future course of Bank of Japan (BOJ) 
Governor Toshihiko Fukui over his investment in the Murakami 
Fund, Prime Minister Junichiro Koizumi categorically said at his 
official residence yesterday afternoon: "I am not thinking about 
replacing him." On Fukui's replies in a meeting of the House of 
Councillors Budget Committee yesterday, Koizumi said: "I 
understand his explanations. As long as he abides by the BOJ 
rules, there is no problem." 
 
In this connection, Chief Cabinet Secretary Shinzo Abe also 
indicated in a press conference the same day that his resignation 
would not be necessary. He said: "I generally understood (the 
replies by Fukui). I hop he will continue to properly fulfill his 
duty, based on public confidence." 
 
In the recording of a TV program yesterday, Minshuto President 
Ichiro Ozawa lashed out at Fukui's continued investment in the 
 
TOKYO 00003337  007 OF 011 
 
 
Murakami Fund even after assuming the present post, saying: "It 
is inconceivable that he continued (the investment) even after 
assuming office as BOJ president. He should feel great 
responsibility." 
 
After the taping, Ozawa told reporters: "His action, if it is 
found true, is the ultimate insider trading. He should 
voluntarily resign, instead of doing so by being told by others." 
 
Japanese Communist Party Chairman Kazuo Shii and Social 
Democratic Party President Mizuho Fukushima also said that Fukui 
should resign. Rengo (Japanese Trade Union Confederation) also 
issued a statement calling for his resignation. 
 
13) Koizumi tells Mori he has no intention to name his successor 
 
ASAHI (Top Play) (Excerpts) 
June 16, 2006 
 
The current session of the Diet will essentially end today with 
no extension of its term, which will formally expire on June 18. 
Now the three-month-campaign for the September Liberal Democratic 
Party (LDP) presidential race will move into full swing. Prime 
Minister Junichiro Koizumi last night told former Prime Minister 
Yoshiro Mori that he would not name a successor. At present, 
Chief Cabinet Secretary Shinzo Abe, who is regarded as a 
successor to the Koizumi reform drive, aims to replace Koizumi. 
With former Chief Cabinet Secretary Yasuo Fukuda in mind, LDP 
forces seeking an end to the Koizumi reform line are now trying 
to form a group opposing Abe. Many in the non-Abe group are 
strengthening their calls urging Fukuda to make his position 
clear. 
 
Koizumi met last night with Mori, who heads the largest faction 
of the LDP, to which Abe and Fukuda belong, at a Tokyo hotel, and 
they exchanged views for about one hour on the party leadership 
race. Mori had hoped to hold a meeting with Koizumi in an attempt 
to prevent factional discord, as well as to avoid turmoil in the 
LDP. 
 
With Koizumi's remark that he will clarify for whom he will vote 
in mind, Mori told Koizumi: 
 
"I think you should refrain from announcing your choice for the 
next LDP president. All (post-Koizumi contenders: Abe, Fukuda, 
Foreign Minister Taro Aso, and Finance Minister Sadakazu 
Tanigaki) have supported you. I want you to consider this point." 
 
Koizumi then replied, "Let's not mention the name of the next 
president." He added: "I left the faction and assumed the prime 
minister's post. I no longer can return to the faction." He 
indicated that he would not return to the Mori faction after he 
steps down from his post. 
 
14) "Things that look ruthless are beneficial for the people, and 
they will understand that in the future," says Koizumi in his 
last committee session 
 
MAINICHI (Page 2) (Full) 
June 16, 2006 
 
"I have been conducting politics, believing that things that may 
 
TOKYO 00003337  008 OF 011 
 
 
look ruthless on the surface are in fact beneficial for the 
people of Japan and that the public will understand that in the 
future." 
 
Prime Minister Junichiro Koizumi summed up his performance this 
way in the House of Councillors Budget Committee session 
yesterday, his last as premier. 
 
It has been over five years since he took office in April 200l. 
Koizumi has handled Diet interpellations aggressively and 
defiantly at times, saying at one point, "It's not a big deal to 
break a promise of this level." 
 
In yesterday's session, Minshuto (Democratic Party of Japan) 
member Yasuhiro Tsuji criticized the growing social disparity, 
saying, "We don't believe in a small government." Koizumi brushed 
aside Tsuji's view, stating: "A big government will force a 
greater tax burden on the people. With such a public pledge, I 
don't thing Minshuto can take over the reins of government." 
 
In response to questions from members of the Japanese Communist 
Party and the Social Democratic Party, Koizumi also stated 
bluntly: "We have been in power because we are entrusted by a 
majority of the people who have all sorts of views." 
 
Above all, yesterday's highlights were Bank of Japan Gov. 
Toshihiko Fukui's investment in the Murakami Fund and the Social 
Insurance Agency's irregularities regarding national pension 
premiums. Questioners grilled the top officers of the two 
organizations, appointed by Koizumi. The session broke off four 
times over answers by Fukui and others. Forced repeatedly to wait 
for the session to resume, Koizumi looked gloomy in his last 
committee session. 
 
15) Will Koizumi visit North Korea or Iraq as another surprise? 
 
TOKYO SHIMBUN (Page 2) (Full) 
June 16, 2006 
 
Attention is being focused on what Prime Minister Koizumi will do 
before he steps down in September after the current Diet session 
adjourns today. The prime minister has in the past astonished the 
people by suddenly visiting North Korea and by making unexpected 
personnel decisions. Will there be another surprise? 
 
Asked by reporters the other day about how he would spend the 
summer, the prime minister made this reply: "I have a lot of 
things to do. There are a huge backlog on the policy agenda, 
including foreign, domestic, economic, and fiscal issues." 
 
The prime minister is scheduled to visit the US and Canada 
starting on June 27. After having the Basic Policies for Economic 
and Fiscal Management, with which the Koizumi reform initiative 
will be completed, adopted at a cabinet meeting on July 7, he 
will make an overseas trip to attend the G-8 summit (St. 
Petersburg Summit) in Russia in mid-July. 
 
Afterward, however, there is nothing major on the calendar until 
Sept. 12, the expected date of the Liberal Democratic Party 
presidential election. But the prime minister adamantly rejected 
an extension of the Diet session. Given this, speculation has 
been rife that he might be planning some surprise. 
 
TOKYO 00003337  009 OF 011 
 
 
 
Some talk about a possible visit to Iraq to encourage Self- 
Defense Force (SDF) troops. This conjecture floated whenever he 
made an overseas trip, but US President Bush's sudden visit to 
Iraq on June 13 has revived such speculation. The prime minister, 
though categorically denied the possibility on June 14. A close 
aide to Koizumi made this explanation: "SDF troops have been 
dispatched to help the entire nation of Iraq. If the prime 
minister goes there to encourage SDF troops, it could give the 
wrong impression that the SDF are the focus of his attention." 
 
In addition, SDF members are not allowed to use armed force 
overseas, so if Koizumi decides to visit Iraq, the government 
will have to ask other countries' troops to guard him. As it 
stands, there are many hurdles to clear in order to bring about 
an Iraq visit by the prime minister. 
 
Also a topic of speculation is a third visit to North Korea. In 
the past two visits, Koizumi succeeded in getting North Korean 
President Kim Jong Il to admit that Pyongyang had abducted 
Japanese citizens and to allow five abduction victims and their 
families to return to Japan. Later, the abduction and nuclear 
development issues reached an impasse. Some speculate that the 
prime minister might visit North Korea to break the impasse on 
these issues. 
 
Although Koizumi has not completely ruled out the possibility, 
saying: "I'm not considering it now," his aide said: "The prime 
minister will visit North Korea only when the two countries 
normalize diplomatic ties. " Since the prime minister has 
indicated that he does not necessarily aim at resolving the 
abduction issue before leaving office, this possibility is also 
seen as extremely slim. 
 
On a visit to Yasukuni Shrine this year, many anticipate that the 
prime minister will visit the shrine on Aug. 15, as he pledged in 
the LDP presidential election campaigning in 2001. Some officials 
are quoted as saying that a visit to the shrine on the day 
marking the end of World War II will no longer be a surprise. 
Rather, visits to China and South Korea to improve the strained 
relations, instead of Yasukuni Shrine, would be more of a 
surprise. 
 
16) Former Chief Cabinet Secretary Fukuda declines to deliver 
speech at study meeting, fueling speculation that he may not run 
in presidential race 
 
MAINICHI (Page 5) (Full) 
June 16, 2006 
 
By Yoshiaki Nakagawa, Ryuko Tadokoro 
 
Yasuo Fukuda, a member of the Liberal Democratic Party (LDP) and 
former chief cabinet secretary, yesterday revealed that he had 
declined to deliver a speech at the Asia Study Council planned 
for June 20. When asked about the reasons by reporters, Fukuda 
told them: "If the council intends to invite contenders (for 
premiership) equally to its gathering, I am not among them. I am 
not qualified." Anti-Koizumi lawmakers of the LDP are pushing 
Fukuda to clarify his plans at an early date, but this decision 
not to give a speech is fueling speculation. For instance, a 
veteran lawmaker noted: "Mr. Fukuda may be thinking about backing 
 
TOKYO 00003337  010 OF 011 
 
 
out of the presidential race." 
 
The council planned to have Fukuda as a guest speaker on June 20, 
but Fukuda, upon returning from New Zealand on June 13, told a 
leading member of the council about his refusal to deliver a 
speech. After deciding to invite Fukuda to its meeting as a guest 
speaker, the council invited Chief Cabinet Secretary Shinzo Abe, 
Foreign Minister Taro Aso, and Finance Minister Sadakazu Tanigaki 
to separate meetings as guest speakers. 
 
According to a lawmaker close to Fukuda, Fukuda told him, "I 
can't attend something like a speech meeting for the presidential 
race. Those who want to attend it should attend," and he did not 
made any commitment. Former Prime Minister Yoshiro Mori 
complained to New Komeito Upper House Caucus Chairman Shozo 
Kusakawa: "Mr. Fukuda stays mute." 
 
A sense of disappointment is spreading among veteran lawmakers 
who have urged Fukuda to clarify his attitude. A former cabinet 
member of the LDP said: "If Mr. Fukuda has no intention to run, 
we need to put up someone to replace him." 
 
17) Parliamentary group's interim report calls for allocation of 
money for feasibility study of new war memorial, says official 
visits to Yasukuni Shrine are unconstitutional 
 
SANKEI (Page 4) (Excerpts) 
June 16, 2006 
 
A nonpartisan group of lawmakers from the ruling Liberal 
Democratic Party (LDP), New Komeito, and the main opposition 
party Minshuto (Democratic Party of Japan) yesterday compiled an 
interim report calling on the government to build a secular 
national peace memorial to honor those who died in war. Taku 
Yamasaki heads the group. The interim report stipulates that 
funding for a feasibility study should be allocated in fiscal 
¶2007. It also points out that official visits to Yasukuni Shrine 
by the prime minister and state ministers are unconstitutional. 
 
The contents of the report are similar to one formulated in 
December 2002 by an advisory panel to then Chief Cabinet 
Secretary Yasuo Fukuda. The 2002 report stressed that when state 
 
SIPDIS 
officials honor the war dead, they should give full consideration 
to other countries, especially to the sentiments of neighboring 
countries. It also called on the government to conduct a 
feasibility study on the name, nature, and location of a new 
facility. 
 
18) Japan to conduct BSE testing on beef from additional 
countries; Mexican, Chilean beef to be subject to inspection 
 
ASAHI (Page 2) (Full) 
June 16, 2006 
 
The Food Safety Commission yesterday began considering the 
possibility of conducting BSE testing on beef imported from 
various countries. Products from Mexico, Chile, and China, whose 
imports have sharply increased due to the embargo against US and 
Canadian beef, will become subject to this policy. The panel will 
formally make the decision after hearing opinions from the Prion 
Expert Council; the Ministry of Health, Labor, and Welfare; and 
the Ministry of Agriculture, Forestry, and Fisheries. 
 
TOKYO 00003337  011 OF 011 
 
 
 
In fiscal 2005, 97.4% of beef imported by Japan was from 
Australia (approximately 410,000 tons), followed by New Zealand 
(approximately 40,000 tons). Mexico ranked third with 7,426 tons, 
940 times the level of fiscal 2003. Imports from Chile, which 
ranked fourth, also markedly increased to 2,680 tons, 44 times 
the level of the same year. Imports form China stood at 376.9 
tons, but the largest portion of more than 10,000 tons of 
materials for beef-related products, such as hamburgers and beef 
bowls, was from this country. 
 
No BSE cases have been reported in those countries. 
 
SCHIEFFER