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UNCLAS SECTION 01 OF 13 TOKYO 003368 
 
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 06/19/06 
 
 
Index: 
 
1)   Top headlines 
2)   Editorials 
Prime Minister's weekend schedule: None 
 
Opinion polls: 
3)   Koizumi Cabinet support rate plunges 9 points to 41% in 
  Mainichi poll 
4)   Abe support for next prime minister is up 4 points to 42% in 
Mainichi poll, with rival Fukuda losing ground at 19% 
5)   Abe pulling ahead of Fukuda even more in Nikkei poll 
6)   Abe the leading candidate for next premier in poll of LDP 
lawmakers but half remain undecided 
7)   60% of the public positive about the achievements of the 
Koizumi Cabinet 
8)   90% of local LDP party chiefs want to revise the Koizumi 
reform line 
 
North Korea threat: 
9)   Foreign Minister Aso, Ambassador Schieffer meet to discuss 
  mutual concern over possible North Korea missile launch 
10)  US, Japan strengthen cooperation to constrain North Korea 
from launching Taepodong 2 missile 
11)  If North Korea launches missile, Japan will take issue to 
the United Nations Security Council 
12)  Government continues alert status about North Korea missile 
launch 
13)  US, Japan concerns about North Korea will be mentioned in 
joint statement at end of upcoming summit meeting 
 
Iraq reconstruction: 
14)  Government likely to announce on June 21 the pullout of the 
  GSDF from Samawah, Iraq 
15)  Cabinet ministers to meet today on the Iraq withdrawal issue 
 
Defense issues: 
16)  US, Japan to announce shared values in summit statement but 
  avoid mentioning revision of defense guidelines 
17)  US military excluded MSDF from communication net during 
Hawaii-based MD test 
18)  US, Japan to sign note that MD missile parts will be banned 
from being used for any other purpose 
 
Ozawa power: 
19)  Minshuto President Ichiro Ozawa to issue policy vision in 
  August 
20)  Ozawa almost certain to be re-elected Minshuto president, 
while Komeito likely to choose Ota to replace Kanzaki as party 
head 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi, Mainichi, Yomiuri, Sankei, and Tokyo Shimbun: 
Japan draws with Croatia 0-0 in World Cup Sunday; Advancing to 
the final round difficult 
 
Nihon Keizai: 
Survey: 97% of listed companies to change corporate charters 
under Corporate Law to open door to email-based board meetings 
 
TOKYO 00003368  002 OF 013 
 
 
and flexible dividend policy 
 
2) EDITORIALS 
 
Asahi: 
(1)  North Korea must heed warning 
(2)  Solid medical reform necessary 
 
Mainichi: 
(1)  Eliminating gray zone the first step to normalizing money- 
lending industry 
(2)  Cancer registration system deserved further Diet 
deliberations 
 
Yomiuri: 
(1)  Redouble efforts to solve cancer crisis 
(2)  Shanghai Cooperation Organization a power game in Central 
Asia 
 
Nihon Keizai: 
(1)  Yokosuka's decision to accept nuclear-powered aircraft 
carrier commendable 
(2)  Shanghai Cooperation Organization: Japan must be prepared 
against change in power balance 
 
Sankei: 
(1)  North Korea must not launch Taepodong missile 
(2)  Workplace must be free from indirect discrimination 
 
Tokyo Shimbun: 
(1)  Shanghai Cooperation Organization must not be anti-US 
alliance 
(2)  Science and Technology White Paper needs specific plans 
 
3) Mainichi poll: Cabinet support rate plummets 9 points to 41%, 
with few expectations of Koizumi until September, when he steps 
down 
 
MAINICHI (Page 2) (Full) 
June 19, 2006 
 
In a nationwide opinion poll carried out by this newspaper June 
17-18, the support rate for the Koizumi Cabinet plummeted nine 
points to 41%, compared to the previous survey in May. The non- 
support rate increased two points to 38%, but those who answered 
they "had no interest" rose seven points to 20%. The results 
seemed to indicate that the public has little expectation of 
Prime Minister Junichiro Koizumi, who has indicated he will step 
down at the end of his term in September. 
 
The most often chosen reason for supporting the Cabinet was as 
before, "The way politics is being carried out seems to be 
changing," with a six point increase to 53%. There was an eight- 
point drop to 9% in those who chose, "I have expectations for new 
policies," the rating is now half of what it was before. The main 
reason for not supporting the Cabinet, with 57% choosing it, was, 
"I cannot feel that the economy has recovered." 
 
Regarding party support, the Liberal Democratic Party had 28% (3- 
point drop), and Minshuto (Democratic Party of Japan) had 21% (up 
a point). The New Komeito had 5% (down a point), the Japanese 
Communist Party, 3% (up a point), and the Social Democratic 
 
TOKYO 00003368  003 OF 013 
 
 
Party, 1% (down a point). Those who supported no party rose three 
points to 38%. 
 
4) Abe rises 4 points to 42% as popular favorite for next prime 
minister widening gap with Fukuda, who has 19% in Mainichi poll 
 
MAINICHI (Page 1) (Excerpts) 
June 19, 2006 
 
The Mainichi Shimbun carried out a national opinion survey (by 
telephone) carried out on June 17-18, querying the public about 
which of the six Liberal Democratic Party (LDP) candidates they 
favored as the next prime minister. The top favorite was Chief 
Cabinet Secretary Shinzo Abe with 42%, up four points from the 
previous poll in May. The next favorite was former Chief Cabinet 
Secretary Yasuo Fukuda with 19% (down a point since the last 
 
SIPDIS 
time). The gap between the two has widened to 23 points. One 
factor influencing the number apparently is Fukuda's stance of 
not making it clear whether he will run in the race or not. Those 
in the party urging him to declare his candidacy can be expected 
to strengthen their calls. 
 
Other than those two, Foreign Minister Aso received 4% (up one 
point) and Finance Minister Tanigaki, 2% (down a point), neither 
changing their rating very much. Among LDP supporters, Abe had 
61% support, up 7 points, and Fukuda 15%, down a point. As for 
the priority policy of the next prime minister, the most chosen 
answer was "dealing with the low birth rate/aging population 
crisis," with 25%, followed by "dealing with the social disparity 
issue," with 17%. 
 
5) Poll: Abe support up to 41% in post-Koizumi race, Fukuda at 
17%; Cabinet support slightly down to 47% 
 
NIHON KEIZAI (Page 1) (Full) 
June 19, 2006 
 
Chief Cabinet Secretary Shinzo Abe has risen to 41% as the 
popular favorite to become the next prime minister, the Nihon 
Keizai Shimbun found from a public opinion survey conducted June 
16-18. The figure is up 8 percentage points from the last survey 
in May. Yasuo Fukuda, one of Abe's predecessors, ranked second at 
17%, down 4 points. The gap between the two post-Koizumi 
candidates has widened from 12 points to 24 points. 
 
Abe has gained more support in the post-Koizumi race. He has now 
clarified his de facto candidacy for the ruling Liberal 
Democratic Party's presidential election scheduled for this 
September and is now coming out with his own policy stance. This 
appears to have reflected the rise in popularity rating. Foreign 
Minister Taro Aso was at 3%. Three others-Finance Minister 
Sadakazu Tanigaki, Economic and Fiscal Policy Minister Kaoru 
Yosano, and Taro Kono were all at 1%, leveling off from the last 
survey. There is no change in the trend of public support 
centering on Abe and Fukuda. 
 
The approval rating for the Koizumi cabinet was 47%, down 2 
points from the last survey. The disapproval rating rose 2 points 
to 41%. In the breakdown of public support for political parties, 
the LDP stood at 42%, down 2 points from the last survey. The 
leading opposition Democratic Party (DPJ or Minshuto) was at 25%, 
up 1 point. The DPJ has risen in public support since Ichiro 
 
TOKYO 00003368  004 OF 013 
 
 
Ozawa became DPJ president. 
 
In the survey, 54% answered "yes," with 32% saying "no," when 
asked if they would like to see a change of government between 
the ruling and opposition parties. 
 
The survey was taken by Nikkei Research Inc. over the telephone 
on a random digit dialing (RDD) basis. For the survey, samples 
were chosen from among males and females, aged 20 and over, 
across the nation. A total of 1,505 households with one or more 
voters were sampled, and answers were obtained from 889 persons 
(59.1%). 
 
6) Poll of LDP lawmakers; Abe takes lead over Fukuda in 
presidential race; Half the members have yet to decide who to 
support 
 
SANKEI (Page 4) (Full) 
June 17, 2006 
 
Kyodo News Agency as of June 16 surveyed the current situation of 
the Liberal Democratic Party (LDP) regarding post-Koizumi 
contenders. The survey directly interviewed 403 LDP members of 
both Diet chambers and found that Chief Cabinet Secretary Shinzo 
Abe has taken the lead, garnering support of nearly 130 members 
from the Mori faction, to which he belongs, and from among those 
who are affiliated with no factions, followed by former Chief 
Cabinet Secretary Yasuo Fukuda, who has support from about 40 
members, although he has not yet declared his candidacy. 
 
Chances are that this situation could change with about half the 
members or about 200 members of both the Upper and Lower House 
members undecided about which candidate to support. The view is 
strong that the Tsushima faction (35 members) led by Upper House 
LDP Caucus chairman Mikio Aoki and the Nikai Group led by 
Minister of Economy, Trade and Industry (METI) Toshihiro Nikai 
will act as a body. Their move will, therefore, come into the 
focus in the later stage of the election race. 
 
Among 86 Mori-faction members, to which both Abe and Fukuda 
belong, more than 40 categorically replied or hinted that they 
support Abe. The number of those who support Fukuda stood at 
below 10. About 30 members did not clarify which candidate they 
support. 
 
Among 74 non-faction-affiliated members, mainly those who were 
first elected in last year's Lower House election, about 40 
revealed their support of Abe, while about 30 remain undecided. 
Only a few cited support of Fukuda. 
 
Most of the members of the Tsushima faction and Yamasaki faction 
in the Lower House have yet to clarify their voting behavior, but 
among those who have decided whom to support, those who support 
Abe exceeded those who were in favor of Fukuda. A majority of the 
Ibuki faction members have yet to decide whom to support, but 
about 10 declared their support of Abe. There are both Abe and 
Fukuda supporters in the Komura faction, but the number of those 
who support Abe topped those who support Fukuda. Supporters of 
Foreign Minister Taro Aso from the Kono faction, and Sadakazu 
Tanigaki of the Tanigaki faction, who have expressed their 
intention to run in the race, numbered less 20, respectively. 
 
 
TOKYO 00003368  005 OF 013 
 
 
7) Poll: 60% give positive response to Koizumi government's 
achievements 
 
NIHON KEIZAI (Page 2) (Full) 
June 19, 2006 
 
According to the result of an opinion poll on the achievements of 
the government of Prime Minister Junichiro Koizumi, 15% "highly 
valued," and 45% "appreciated to a certain extent." A total of 
60% gave positive responses. Twenty-two% said that they did not 
appreciate to a certain extent and 11% said they did not 
appreciate the achievements at all. 
 
Compared to the outcome of a poll conducted in May, the positive 
response decreased by 5%age points, while the negative response 
increased by 9 percentage points. The reason is because the 
scandal involving the Social Insurance Agency and the Bank of 
Japan Governor's investment in the scandal-tainted Murakami Fund 
came to light at the end of the regular session of the Diet. 
 
8) LDP presidential election: Officers of local chapters expect 
successor to Koizumi to revise his reform policy 
 
ASAHI (Top Play) (Excerpts) 
June 18, 2006 
 
The Asahi Shinbun's interviews with senior officials of local 
chapters of the Liberal Democratic Party (LDP) found that most of 
them are calling for the successor to Prime Minister Koizumi to 
revise his structural reform policy. More than 90% of the 
surveyed members are calling for a correction of the present 
reform policy in some form or other. With the Upper House 
election and simultaneous local elections close at hand in 2007, 
local LDP members have a strong sense of alarm that it will be 
difficult for them to win unless the LDP under its new president 
deals with the gap between urban and regional districts. To a 
question as to whom they support, 23 chapters cited Chief Cabinet 
Secretary Abe. 
 
SIPDIS 
 
In the survey, the Asahi Shimbun directly interviewed secretaries 
general and other senior officials of 47 prefectures who are 
regarded as properly representing local LDP members. The daily 
carried out similar interviews this March, but there have been 
changes in the members of local chapter officers due to 
reelections. 
 
Regarding a four-option question on what the next LDP president 
should do about Prime Minister Koizumi's structural reform 
policy, no pollees replied that it should be continued and 
expanded. A total of more than 90% sought a revision, with 32 
calling for a slight revision in consideration of the situation 
in regional districts and 12 noting that the policy should be 
revised extensively. 
 
9) US would impose additional sanctions on North Korea; Foreign 
Minister Aso, US Ambassador to Japan Schieffer warn Pyongyang to 
immediately stop preparations for missile launch 
 
SANKEI (Top play) (Excerpts) 
June 18, 2006 
 
Foreign Minister Taro Aso and US Ambassador to Japan Thomas 
 
TOKYO 00003368  006 OF 013 
 
 
Schieffer on the evening of June 17 met at the Foreign Ministry 
to discuss North Korea's move to test-fire a Taepodong-2 long- 
range missile, and they confirmed a policy of urging North Korea 
to immediately put a stop to its preparations for a missile 
launch and quickly return to the six-party talks. They also 
revealed that they are warning North Korea against a missile 
test, noting it will be a grave issue for the international 
community, and Ambassador Schieffer indicated that the US is 
ready to impose additional sanctions on Pyongyang. Japanese and 
US authorities remain on high alert, taking into account the 
possibility that a serious situation could take place on the 
afternoon of June 18 or afterwards, as North Korea seems to have 
completed its preparations for a test launch. 
 
According to a government official, the North Korean leadership 
has instructed its people to fly the national flag at 2:00 p.m. 
on June 18 and watch a message on TV or other media in the 
evening. Taking this move as hinting at a possible test-launch of 
a missile, the government is keeping a close eye on Pyongyang's 
movements. 
 
Foreign Minister Aso in his talks with Ambassador Schieffer 
expressed concern: "Should North Korea test-fire a missile, that 
would threaten the peace and stability of our country as well as 
the international community and would be of grave concern in 
terms of nonproliferation of weapons of mass destruction." Aso 
revealed that on June 16, Japan urged North Korea through its 
embassy in Beijing not to proceed with plans for a missile 
launch. Schieffer explained that the US had directly conveyed its 
concern through the United Nations office in New York to North 
Korea. 
 
Both Aso and Schieffer shared the perception that test-firing a 
missile is an act that would violate the Japan-North Korea 
Pyongyang Declaration that stipulates a moratorium on missile 
launches and the Joint Statement of the six-party talks that 
specifies efforts to contribute to peace and stability in the 
East Asian region. They also discussed what action should be 
taken should the North fire a missile. 
 
After the meeting, Schieffer criticized North Korea's move, 
telling reporters: "It's a very provocative act and will isolate 
it from the international community further." "If the missile is 
fired, we'll take every possible action," he added, hinting that 
even UN sanctions are being considered. 
 
10) Japan, US give stronger warning to North Korea for its 
preparations for missile test; SDF, USFJ now on high alert 
 
NIHON KEIZAI (Page 2) (Full) 
June 18, 2006 
 
The Japanese government is now working in much closer cooperation 
with the United States on the diplomatic front against North 
Korea as there is a growing probability that Pyongyang will test- 
fire a long-range ballistic missile thought to be a Taepodong-2. 
Meanwhile, the Self-Defense Forces (SDF) and US Forces Japan 
(USFJ) are on high alert, mobilizing such patrol units as Aegis 
ships and patrol planes to the Sea of Japan. 
 
The meeting on the evening of June 19 between Foreign Minister 
Taro Aso and US Ambassador to Japan Thomas Schieffer took place 
 
TOKYO 00003368  007 OF 013 
 
 
in response to America's sudden request for a high-level 
dialogue. Aso, who was outside of Tokyo, quickly returned to meet 
with the ambassador. Holding this sort of meeting itself can send 
a political message to North Korea. 
 
A careful analysis of North Korea's moves is being made in the 
government under the leadership of the Ministry of Foreign 
Affairs (MOFA), the Defense Agency (JDA), and the Cabinet 
Secretariat. Tokyo will "continue its efforts to urge North Korea 
 
SIPDIS 
to exercise self-restraint," a senior MOFA official said, but the 
official added there has been no other response than this: "We 
will convey your request to our home country." 
 
Considering this situation, the USFJ has strengthened its 
monitoring system by putting the observation vessel Observation 
Island at its Sasebo Base and also deploying the Cobra Ball RC- 
135 aircraft to Kadena Air Base from the US mainland. In 
addition, there is information that Aegis ships have been 
deployed in the Sea of Japan. 
 
In line with these US moves, the SDF dispatched its Chokai Aegis 
ship based in Sasebo to the Sea of Japan and it also has 
mobilized the EP-3 multipurpose aircraft for electronic warfare 
and the reconnaissance aircraft to gather information. 
 
On June 17, a senior JDA official pointed out: "We are readying 
ourselves for a worst-case scenario of a missile launch." A 
senior Maritime Self-Defense Force official also indicated that 
the probability of a missile launch is mounting, noting: "We must 
stay alert." 
 
11) If North Korea fires Taepodong-2 missile, Japan will ask UNSC 
to discuss sanctions 
 
YOMIURI (Page 1) (Excerpts) 
June 19, 2006 
 
The government decided yesterday that if North Korea test-fired a 
long-range ballistic missile "Taepodong 2," Japan would ask the 
United Nations Security Council (UNSC) to convene to discuss 
economic sanctions against that country, in cooperation with the 
US and other major powers. Japan will also consider taking its 
own sanction measures, such as halting the remittance of money 
from Japan to North Korea, suspending trade activities, and 
prohibiting North Korean ships from entering Japanese ports. 
 
In a TV Asahi news program yesterday, Foreign Minister Aso said 
that if Pyongyang fires a Taepodong-2 missile, "Japan will 
strongly protest against the country and apply pressure on it 
under a UNSC resolution. The US is of the same view." The foreign 
minister also indicated an intention to discuss the issue at the 
G-8 foreign ministerial meeting in Moscow on June 29. 
 
The Japanese and US governments interpret a Taepodong-2 missile 
test as a violation of the 2002 Japan-North Korea Pyongyang 
Declaration, which specifies the freeze of Pyongyang's long-range 
missile tests, and a 1999 North Korea-US agreement. The two 
governments have already asked North Korea through diplomatic 
channels to refrain from test-firing and have also agreed that if 
Pyongyang ignores their demand, they will have to take a tough 
stance against that nation. 
 
 
TOKYO 00003368  008 OF 013 
 
 
12) High alert against Taepodong 2 launch, government making 
every effort to analyze North Korea's moves 
 
YOMIURI (Page 2) (Excerpts) 
June 19, 2006 
 
On high alert due to North Korea's preparations to launch a 
Taepodong 2 long-range ballistic missile, senior government 
officials continued analyzing intelligence yesterday. 
 
Assembled at the Defense Agency yesterday afternoon, such key 
defense officials as Defense Agency Director-General Fukushiro 
Nukaga, his deputy Taro Kimura, Vice Defense Minister Takemasa 
Moriya, and SDF Joint Staff Chief Staff Hajime Massaki analyzed 
North Korea's moves based on intelligence from US Navy and 
Maritime Self-Defense Force's Aegis vessels. As a result, they 
agreed to remain on high alert, although chances were slim that 
the North would fire the missile yesterday. 
 
Nukaga told a press conference yesterday evening: "There haven't 
seen any change in particular. I instructed other members to do 
their best to gather intelligence." 
 
The dominant view in the government is that the North's move is 
aimed at securing a chance for direct talks with the United 
States and convince Washington to remove its financial sanctions 
against Pyongyang, which have been in place since last September. 
But views are split on whether the North will actually launch the 
missile. 
 
13) Japanese, US leaders in joint statement to express concern 
about North Korea's moves over nuclear, missile issues 
 
NIHON KEIZAI (Page 1) (Excerpts) 
June 19, 2006 
 
Hiroshi Maruya, Washington 
 
North Korea appears to have completed pumping liquid fuel into a 
Taepodong-2 missile, according to reports. In reaction, the 
Japanese and US governments have started coordination to express 
concern about the moves in a joint statement to be issued when 
their leaders meet later this month. They plan to specify that if 
Pyongyang test-fires a long-range ballistic missile ahead of the 
summit, the two countries will jointly take sanctions, 
interpreting it as a provocative act against the international 
community. 
 
Prime Minister Junichiro Koizumi and US President Bush are 
scheduled to meet in Washington on June 29. As the top priority 
theme for the summit, North Korea's nuclear and missile issues 
are suddenly coming up. In the event that Pyongyang test-fires a 
missile, the two leaders will likely discuss such possibilities 
as referring the problem to the United Nations Security Council 
and sanctions by Japan, the US, and other countries concerned. 
 
Japan and the US have taken it seriously that North Korea, 
without returning to the six-party talks on its nuclear 
development programs, is making preparations to test-fire a 
missile. The two countries have judged it necessary for their 
leaders to call on North to cooperate with the international 
community for the sake of peace and stability in the Asia-Pacific 
 
TOKYO 00003368  009 OF 013 
 
 
region. 
 
14) GSDF mission to Samawah; Government coordinating announcement 
on June 21 of date of withdrawal 
 
YOMIURI (Page 2) (Full) 
June 19, 2006 
 
The government is now coordinating the date of announcing the 
withdrawal of Ground Self-Defense troops, which are now engaged 
in reconstruction assistance in Samawah, Iraq. Prime Minister 
Koizumi will likely announce the decision on June 21 at a press 
conference. A government source on the 16th revealed this. 
 
The transfer of security and administrative authority over 
Muthana Province, which includes Samawah, from multi-national 
forces to the new Iraqi government is expected to be formally 
agreed on as early as the 20th after a decision by the new 
government. The GOJ has determined that it should announce the 
withdrawal of GSDF troops as soon as possible and start 
withdrawal operations. The prime minister's announcement will 
likely come either on the 20th or the 21st, with the 21st viewed 
as more likely due to such factors as the time difference with 
Iraq. 
 
Prior to holding that press conference, the prime minister will 
meet with New Komeito leader Kanzaki to convey the government's 
decision to pull out GSDF troops from Iraq. He also plans to hold 
a security meeting to order Defense Agency Director-General 
Nukaga and Foreign Minister Taro Aso to ensure safety during 
withdrawal operations. 
 
As reasons for withdrawing GSDF troops from Iraq, the prime 
minister is expected to cite: (1) progress of the political 
process with the launch of a permanent Iraqi government; (2) 
stable security in Muthana Province, where GSDF troops are 
deployed; (3) multinational forces, such as British and 
Australian troops, engaging in security-keeping operations in 
Muthana, will end their missions. The prime minister will also 
stress the continuation of Air Self-Defense Force's Kuwait-based 
operations to transport supplies to Iraq even after the 
withdrawal of GSDF troops. Following a request from the UN, the 
government intends to expand the coverage of transportation to 
Baghdad. 
 
Following the prime minister's announcement of the GSDF 
withdrawal, Defense Agency Director-General Nukaga will 
immediately order the withdrawal of the 10th GSDF Iraq 
reconstruction dispatch group operating in Iraq. He will also 
order the dispatch of a withdrawal assistance troop consisting of 
about 100 supply and transport experts. 
 
15) Three cabinet members to discuss GSDF pullout today 
 
TOKYO SHIMBUN (Page 2) (Full) 
June 19, 2006 
 
Foreign Minister Taro Aso revealed on a TV Asahi program 
yesterday that he would meet with Chief Cabinet Secretary Shinzo 
Abe and Defense Agency (JDA) Director-General Fukushiro Nukaga at 
the Prime Minister's Official Residence this morning to discuss 
when to pull out Ground Self-Defense Force (GSDF) troops from 
 
TOKYO 00003368  010 OF 013 
 
 
Iraq's southern city of Samawah. 
 
Samawa is the capital of Muthanna Province. British troops are 
likely to announce plans for a pullout from the province as early 
as tomorrow after transferring security control to Iraq. Japan is 
making arrangements to announce a plan for a pullout of GSDF 
troops possibly on June 21. 
 
When asked whether the pullout would begin by the time of Prime 
Minister Koizumi's visit to the United States slated for late 
this month, Aso said: "It may occur if things go smoothly." 
 
16) In summit statement, Japan and US likely to specify shared 
values but stop short of referring to revision of defense 
guidelines 
 
ASAHI (Page 1) (Excerpts) 
June 17, 2006 
 
The governments of Japan and the United States have begun 
arrangements to issue in a meeting between Prime Minister Koizumi 
and President Bush set for June 29 a joint statement underscoring 
the importance of the "Japan-US alliance in a global context" to 
deal with terrorism and other global issues. With an emerging 
China in mind, the statement will stress that the two countries 
share a set of values, such as freedom and democracy. The 
statement is likely to stop short of mentioning the Defense 
Agency-proposed revision of the guidelines on Japan-US defense 
cooperation and instead confirm the implementation of the plan 
for US force realignment in Japan compiled this May. 
 
Chief Cabinet Secretary Abe called the last meeting with 
President Bush for Koizumi, whose term of office as prime 
minister is to expire late in September, "a wrap-up summit." The 
statement is likely to highlight the importance of the Japan-US 
alliance in wide-ranging areas, including security, diplomacy, 
and economics. 
 
17) MSDF left out of US info loop in missile defense testing off 
Hawaii; Close cooperation dead 
 
TOKYO SHIMBUN (Top play) (Full) 
June 18, 2006 
 
Japan and the United States have now released a final report of 
their talks over the realignment of US forces in Japan, 
incorporating their agreement to "cooperate closely" with each 
other in missile defense (MD). Nevertheless, the United States 
does not allow Japan to use its military communication 
satellites, according to informed sources. North Korea is now 
preparing to launch a Taepodong-2 ballistic missile. Meanwhile, 
the US Navy plans to test its sea-based SM-3 intercept missiles 
late this month with Japan's Maritime Self-Defense Force Aegis- 
equipped destroyer participating. The MD test, however, will end 
up with the MSDF being unable to exchange information with its US 
counterpart. 
 
The missile intercept test will be conducted off Hawaii. In this 
intercept test, the USS Lake Erie, an Aegis cruiser, is to detect 
an intermediate range ballistic missile mockup to be launched 
from Kauai, and the USS Shiloh, another Aegis cruiser, is to 
intercept that projectile with an SM-3 missile. The US Navy will 
 
TOKYO 00003368  011 OF 013 
 
 
share its data with the MSDF about the flight path of a detected 
ballistic missile through a US military satellite communication 
system, or MilSat for short. However, the Kirishima, an MSDF 
Aegis destroyer, will be left out of the US Navy's communication 
network and will track the missile's path. 
 
Japanese and US Aegis ships are loaded with a large-capacity 
tactical information exchange system called Link 16, which 
enables them to exchange information online. The US Navy, 
however, has decided to employ the MilSat system for MD. The 
Kirishima, for its MilSat exploitation, needs the US Navy's 
permission. In addition, the MSDF Aegis ship will also have to be 
loaded with a decoder and a new communication system. However, 
the US Navy is not expected at all to let the MSDF use the MilSat 
system. The MSDF Aegis destroyer also cannot expect to mount 
these new systems on it. 
 
In 1998, North Korea launched a Taepodong missile that flew over 
Japan and landed in waters off Sanriku. At the time, an MSDF 
Aegis ship detected the projectile. The Kirishima is certain to 
detect a ballistic missile mockup in the SM-3 test. The MSDF has 
been participating in a series of US missile intercept tests. 
However, MD introduction is costly. Other countries therefore 
remain reluctant to take part in the US MD initiative. So the 
United States is apparently aiming to play up the MSDF's 
participation in MD testing. 
 
The Kirishima will be staged in waters near the US cruisers but 
will be left out of the US Navy's information loop. As it stands, 
the Kirishima's participation in the missile intercept test is a 
far cry from the "close cooperation" reaffirmed in the final 
report on the planned realignment of US forces in Japan. 
 
When Japan built its Aegis destroyers, the United States provided 
an Aegis system that excels in fleet air defense. However, the 
United States banned Japan from joining the integrated broadcast 
system (IBS) of the US Army, Navy, Air Force, and Marine Corps. 
In point of fact, the United States restricts its information to 
Japan in spite of their favorable relations. 
 
In the meantime, the United States also has plans to install an X- 
band radar system at the Air Self-Defense Force's Shariki 
Detachment base in Aomori Prefecture by this summer, among MD- 
related equipment and systems incorporated in the final report on 
the US military realignment. However, there is no knowing how the 
United States will provide Japan with intelligence detected by 
the X-band radar. The United States may only use Japan as an 
outpost convenient to defend the US mainland. 
 
18) Japan, US to exchange notes on MD parts 
 
ASAHI (Page 4) (Full) 
June 17, 2006 
 
The governments of Japan and the United States will exchange 
notes as early as next week allowing Japan to export missile 
defense system (MD) interceptor parts to be jointly developed by 
the two countries. Although the Japanese government regards 
missile parts as weapons, it defines the joint development and 
production of the MD system as an exception to its three 
principles banning weapons exports. The notes prohibit Japan and 
the US from using MD parts for purposes other than the original 
 
TOKYO 00003368  012 OF 013 
 
 
purposes without each other's prior agreement and shifting them 
to a third country. 
 
The Japanese government plans to make a cabinet decision on the 
notes next week for Foreign Minister Taro Aso and US Ambassador 
to Japan Thomas Schieffer to sign them to make them official. 
Following this process, Japan and the United States will embark 
on MD development later this month. 
 
19) Minshuto head Ozawa to formulate policy vision possibly in 
August, focusing on agricultural and employment issues 
 
NIHON KEIZAI (Page 2) (Excerpts) 
June 18, 2006 
 
Minshuto (Democratic Party of Japan) President Ichiro Ozawa plans 
to compile his own basic policy -- the "Ozawa Vision" -- as early 
as August. The vision will include measures to improve a safety 
net for agricultural and employment policies, in addition to 
steps to promote administrative efficiency by deregulation and 
decentralization. Ozawa, known as a deregulation advocate, 
intends to highlight differences with the Koizumi reform policy, 
stressing a stance of correcting distortion created by the 
Koizumi policy, including the widening income gap. 
 
Taking particular note of the negative effects of the reform 
drive by Prime Minister Junichiro Koizumi, Ozawa's policy vision 
will focus on measures for regional revitalization and job 
security. 
 
Ozawa advocated the need for drafting policies without relying on 
bureaucrats, decentralization and deregulation in his book titled 
Plan to Remodel Japan, which was published in 1993. Many have 
noted, however, that it is difficult to see differences in 
policies between Ozawa and Koizumi, since Koizumi has pushed 
forward with similar reforms. Ozawa, therefore, aims to dig into 
supporters of the Liberal Democratic Party (LDP) in regional 
areas, as well as to gain support from unaffiliated voters. 
 
Ozawa's main basic policies 
 
Agriculture 
Liberalize agriculture. Introduce a new system to compensate 
farmers growing key agricultural products. Create a system 
supported by farmers and consumers. 
 
Employment 
Create stable employment system under which workers can enjoy 
both their jobs and private lives. 
 
Tax administration 
Basic part of the social security should be covered by 
consumption tax revenue. Cut the income tax rate. Abolish the tax 
reduction system and increase benefits. Slash the administrative 
expenditures and keep the consumption tax rate at the present 5% 
for the time being. 
 
Decentralization 
Abolish all subsidies from the central government offices. Local 
government should collect founding on their own and government 
should allocate them subsidies as a package. 
 
 
TOKYO 00003368  013 OF 013 
 
 
Education / nurturing talented people 
Create a system under which municipalities can freely create 
their own programs.The state should bear responsibility for 
compulsory education at the end. 
 
Foreign policy/security 
Under the present Constitution, Japan should actively participate 
in UN-centered activities to contribute to the internal 
community. 
 
20) Ozawa likely to be reelected as Minshuto president; Akihiro 
Ota most likely to be picked as Minshuto leader 
 
YOMIURI (Page 1) (Full) 
June 18, 2006 
 
With the close of the regular Diet session on June 18, Minshuto 
(Democratic Party of Japan) and the New Komeito have stepped up 
their intraparty efforts to choose leaders in fall. Minshuto 
President Ichiro Ozawa, 64, will likely to be reelected as the 
party's leader in the September presidential election, while New 
Komeito representative Takenori Kanzaki, 62, is expected to be 
replaced by Acting Secretary General Akihiro Ota, 60. 
 
Ozawa is currently serving out the remainder of former President 
Seiji Maehara's term, which expires in September. In addition to 
Ozawa showing his willingness to stay on as party leader, Acting 
President Naoto Kan and Secretary General Yukio Hatoyama have 
expressed their intention of supporting him in the election. With 
an eye on the House of Councillors election next summer, more 
Minshuto members are pinning hopes on Ozawa's reputation of 
scoring election victories. As a result, he is highly likely to 
be reelected without going through an election. 
 
Ozawa is expected to announce his policy proposals for the 
party's basic policy platform prior to the presidential race and 
has already ready been working on the party management structure 
on the assumption he will be reelected as its leader. 
 
Since the party has been advertising that those who register as 
party members or supporters can vote in its presidential poll and 
some members have called for taking a vote, there is a 
possibility that young lawmakers will run in the race. However, 
the Kan and Hatoyama groups, and members hailing from the former 
Social Democratic Party have decided to support Ozawa in the 
race. The expectation is that Ozawa will easily win the election. 
 
Meanwhile, Kanzaki will end his term as new Komeito leader at 
October's party convention. Kanzaki has said that he will make a 
final decision after seeing the result of the Liberal Democratic 
Party presidential election in September. There is a possibility 
of his remaining in his post, but he is likely to step down since 
he will have served in the post over eight years. Some members 
supported Kazuo Kitagawa, minister of land, infrastructure and 
transport, but it is highly likely that Ota will be Kanzaki's 
successor. 
 
SCHIEFFER