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UNCLAS SECTION 01 OF 11 TOKYO 003407 
 
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 06/20/06 
 
 
Index: 
 
1)   Top headlines 
2)   Editorials 
3)   Prime Minister's daily schedule 
 
North Korea missile issue: 
4)   Prime Minister Koizumi: If North Korea launches Taepodong 
  missile, it will meet a severe response from Japan 
5)   Ambassador Schieffer: If North Korea launches missile, US 
will take issue to UN Security Council 
6)   Government on alert that North Korea missile launch may come 
on 42nd anniversary of Kim Jong Il's political career 
7)   US-Japan missile defense cooperation may be sped up by new 
North Korea missile threat 
 
8)   Government to issue order today pulling out GSDF from Iraq 
  by next month 
 
9)   President Bush, Prime Minister Koizumi to discuss North 
  Korea, Iran nuclear issue at their summit meeting 
 
10)  Text of Prime Minister Koizumi's news conference yesterday 
 
Yasukuni Shrine issue: 
11)  Poll shows 37% of public against prime minister's visits to 
  Yasukuni Shrine, with only 17% approving 
12)  LDP's Taku Yamasaki: If prime minister visits Yasukuni 
August 15, would have an impact on the LDP presidential election 
 
Political agenda: 
13)  Prime Minister preparing way for Shinzo Abe as his successor 
14)  Popularity gap widens between Abe, Yasuo Fukuda  44% vs. 19% 
in Yomiuri poll 
15)  Kyodo poll shows Abe's popularity rose from 40.1% to 45.6% 
in a month, and Fukuda's dropped from 31.4% to 24.3% 
 
16)  Japan scores victory at IWC meeting with members supporting 
  it by one vote margin on commercial whaling 
 
17)  Chugai Pharmaceuticals mistakenly used banned US beef blood 
  in two of its medical products 
 
18)  Keidanren report card on regulatory reform shows drop in 
  achievements in fiscal 2005 to 47% 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi, Mainichi, Yomiuri, and Tokyo Shimbun: 
Koizumi to announce GSDF pullout from Iraq today along with 
British and Australian troops aimed at completing withdrawal in 
August 
 
Nihon Keizai: 
New syndicate loans topped 25 trillion yen last year on growing 
demand for buyouts and revivals 
 
Sankei: 
Murakami admits insider trading involving Livedoor 
 
 
TOKYO 00003407  002 OF 011 
 
 
2) EDITORIALS 
 
Asahi: 
(1)  LDP presidential race: Fukuda must make up his mind 
(2)  Seiko Hashimoto as new Japan Skating Federation President 
 
Mainichi: 
(1)  North Korea must immediately stop preparations for firing a 
Taepodong-2 
(2)  Japan happy with IWC's pro-whaling vote 
 
Yomiuri: 
(1)  Cultural Affairs Agency must rebuild itself 
(2)  Growing local brands must win consumer confidence 
 
Nihon Keizai: 
(1)  Japan must persistently search for ways for continued use of 
whaling 
(2)  Future of Shanghai Cooperation Organization raises concern 
 
Sankei: 
(1)  Taepodong-2 and defense of Japan 
(2)  Medical reform requires greater national awareness 
 
Tokyo Shimbun: 
(1)  Elevator accidents: Safety is top priority 
(2)  Japan Skating Federation President Seiko Hashimoto must 
pursue reform for skaters 
 
3) Prime Minister's Official Residence (Kantei) 
 
Prime Minister's schedule, June 19 
 
NIHON KEIZAI (Page 2)  (Full) 
June 20, 2006 
 
10:00 
Handed written official appointment to BOJ Policymaking Board 
member Tadao Noda. Met afterwards Minister in Charge of Declining 
Birthrate Inoguchi. 
 
11:00 
Met with High-tech Industry Institute Chairman Junichi Nishizawa, 
followed by Deputy Foreign Minister Nishida. 
 
13:31 
Met with Chief Cabinet Secretary Abe, LDP Secretary General 
Takebe, and Diet Affairs Committee Chairman Hosoda in Diet 
building. Visited various factions in the Lower House to thank 
them at the end of the regular Diet session. 
 
14:00 
Arrived at Kantei. 
 
15:00 
Held press conference. Met with Nishida and North American 
Affairs Bureau chief Kawai. 
 
16:14 
Met with Land, Infrastructure, and Transport Minister Kitagawa. 
 
17:00 
 
TOKYO 00003407  003 OF 011 
 
 
Met with Assistant Deputy Chief Cabinet Secretary Saka and 
Cabinet Office Director General Hayashi. Met later with Internal 
Affairs and Communications Minister Takenaka. 
 
18:15 
Returned to his official residence. 
 
4) Prime Minister: Calls for self-restraint but warns of stern 
action if North Korea launches Taepodong-2 missile 
 
SANKEI (Page 1) (Excerpts) 
June 20, 2006 
 
Prime Minister Junichiro Koizumi indicated that Japan would take 
such severe actions as economic sanctions, if North Korea 
launches a long-range Taepodong-2 missile, saying: "If a missile 
is launched, Japan will consult with the United States and other 
major powers and take stern action." 
 
Speaking at the press conference held at the Prime Minister's 
Official Residence yesterday afternoon to mark the adjournment of 
the Diet session, the prime minister urged Pyongyang to exert 
self-restraint, saying: "Japan, in close cooperation with the US 
and South Korea, has been calling on North Korea to refrain from 
launching a missile in a rational, restrained manner." Koizumi, 
though, declined to comment on what specific measures Japan is 
planning to take if Pyongyang test-fires a ballistic missile. 
 
5) US ambassador to Japan: If a missile fired, the US will refer 
the matter to UNSC 
 
YOMIURI (Page 2) (Full) 
June 20, 2006 
 
US Ambassador to Japan Thomas Schieffer yesterday met with 
Japanese reporters, and when asked about America's response if 
North Korea were to test-fire a Taepodong-2 long range ballistic 
missile, he indicated that the US government would seek to 
convene the United Nations Security Council (UNSC) and refer the 
matter to the UNSC. He also emphasized that the US would consider 
additional economic sanctions against North Korea, noting: "We 
are discussing appropriate steps with our allies, including 
Japan, but I think we must consider sanctions." 
 
Speaking of the possibility of holding a meeting between the 
United States and North Korea to discuss the missile issue, 
Schieffer indicated that the first thing for that country to do 
is to return to the six party talks, saying: "If it returned to 
the six-party talks, North Korea would be able to discuss a 
variety of issues with the US." 
 
6) Government vigilant against North Korea's moves, especially on 
an anniversary 
 
YOMIURI (Page 3) (Full) 
June 20, 2006 
 
Tatsuya Fukumoto 
 
"Today is said to be the 42nd anniversary of the beginning of 
North Korean leader Kim Jong Il's political activities, and when 
that country launched a missile in 1998, one of the anniversaries 
 
TOKYO 00003407  004 OF 011 
 
 
was nearing," a high-level Japanese government official said at a 
press conference yesterday morning. 
 
Pyongyang launched a Taepodong-1 missile on Aug. 31, 1998, nine 
days before the 50th anniversary of the national foundation. At 
the time, the Japanese government remained on alert against a 
second launch even after the first one. Referring to North 
Korea's moves this time, some in the government had speculated 
that if it were to launch a missile, the most likely date would 
be June 19. 
 
The Defense Agency (JDA) stays alert and continues monitoring the 
situation by mobilizing Maritime Self-Defense Force's (MSDF) 
Aegis ships and the EP-3 information-gathering aircraft for 
electronic warfare, and also by using the Air Self-Defense 
Force's (ASDF) FPS-XX ground-based radar and other means. The US 
Forces Japan (USFJ), as well, continued monitoring via its 
RC0135S Cobra Ball. 
 
The Japanese government is considering restricting remittances 
and trade under the Foreign Exchange Law as well as port entries 
under the Law for Banning Certain Vessels' Port Entries in 
working together with the United States. The Foreign Exchange Law 
has provisions on economic sanctions, under which Japan can 
regulate remittances to and trade with North Korea. In order to 
invoke this law and the Law for Banning Certain Vessels' Port 
Entries, which prohibits ships that stopped at North Korean ports 
from entering Japanese ports, the government needs to obtain 
approval at a cabinet meeting. A Japanese government official 
explained: "Japan has already started discussions on such matters 
as the priority order of sanctions and the duration." 
 
7) Japan, US may expedite missile defense cooperation 
 
SANKEI (Page 3) (Abridged) 
June 20, 2006 
 
Japan and the United States are facilitating bilateral missile 
defense cooperation against the backdrop of North Korea's 
preparations to fire a Taepodong long-range ballistic missile, 
sources said yesterday. US Forces Japan (USFJ) will deploy 
Patriot Advanced Capability-3 (PAC-3) surface-to-air missiles in 
Japan within the year to intercept ballistic missiles, and the 
two countries will go ahead with role sharing as well as 
intelligence sharing. 
 
The Japanese and US governments held a consultative meeting of 
officials for foreign and defense affairs in Hawaii on June 15 
over USFJ realignment. In the meeting, the two governments looked 
into the possibility of setting up a team to prioritize and 
implement specific plans described in their final report released 
in May on USFJ realignment. 
 
In the meantime, North Korea was almost ready to launch a missile 
after having set it on a launch pad at a missile test site. So 
the Japanese and US governments exchanged views there about North 
Korea's readiness to launch a Taepodong-2 missile, according to 
sources. Japanese and US officials there reaffirmed that North 
Korea was threatening to launch a ballistic missile. Based on 
that view, they also agreed to expedite missile defense 
cooperation between Japan and the United States in the process of 
realigning US forces in Japan. 
 
TOKYO 00003407  005 OF 011 
 
 
 
In concrete terms, USFJ will deploy PAC-3 missiles within the 
year, while the final report did not specify when to deploy them. 
The Air Self-Defense Force is also going to deploy PAC-3 missiles 
by next March, and the US military's deployment of PAC-3 
intercept missiles will start before that. 
 
8) Iraq: Withdrawal order expected today for GSDF 
 
YOMIURI (Top play) (Abridged) 
June 20, 2006 
 
The government will decide today to withdraw Ground Self-Defense 
Force troops currently deployed in the southern Iraqi city of 
Samawah. That is because Britain will transfer its security 
powers in July to the Iraqi government in the province of Al 
Muthanna, which includes Samawah. Defense Agency Director General 
Nukaga will order the GSDF today to withdraw the Samawah-based 
troops. In response, the GSDF troops will begin to pull out of 
Iraq. They will move to Kuwait in late July and will return home. 
 
Prime Minister Koizumi and New Komeito President Kanzaki will 
meet this morning, and the ruling parties will hold a liaison 
conference to approve the government's decision to recall the 
GSDF troops. The government will then hold a Security Council 
meeting to make a formal decision on the GSDF's withdrawal. 
Koizumi is expected to meet the press today. 
 
"When the time has come, I will make an appropriate judgment and 
want the GSDF members return home safely with understanding 
obtained from the United States, Britain, Australia, and the 
Iraqi government," Koizumi told a press conference yesterday. He 
added, "I will consider what Japan can do as a responsible member 
of the international community to help stabilize Iraq, and I'd 
like to continue to do so (even after the GSDF's pullout)." With 
this, the premier underscored his intention to continue engaging 
the Air Self-Defense Force in airlift missions between Kuwait and 
Iraq. The government will extend ASDF airlifts to Baghdad and 
other locations in response to a request from the United Nations. 
 
9) North Korea, Iran's nuclear issue likely to be on agenda of 
upcoming Japan-US summit; Both leaders to reaffirm close 
cooperation 
 
YOMIURI (Page 2) (Full) 
June 20, 2006 
 
The major agenda items for the upcoming Japan-US summit meeting 
between Prime Minister Koizumi and President Bush in Washington 
on June 29 were set yesterday. During their talks, the two 
leaders will reaffirm their closer cooperation to resolve the 
North Korea nuclear and missile development and abduction issues. 
In addition, they will exchange views on Iran's nuclear program, 
reconstruction assistance to Iraq, and the East Asian situation, 
centering on China's economic and military rise. A joint 
statement reaffirming the significance of the Japan-US alliance 
in a global context is will be released after the summit. 
 
In the meeting, both leaders will confirm the need to urge North 
Korea, which has shown signs of preparing to test-fire a 
Taepodong-2 missile, to end this provocative act and quickly 
return to the six-party talks. 
 
TOKYO 00003407  006 OF 011 
 
 
 
On the Iranian nuclear issue, the two leaders will urge Iran to 
accept a comprehensive proposal offered by the permanent members 
of the United Nations Security Council (UNSC) plus Germany. On 
Iraq, the prime minister will declare his determination to 
continue reconstruction assistance even after the pullout of 
Ground Self-Defense Force (GSDF) troops from Iraq. 
 
10) Main points in prime minister's remarks in press conference 
 
YOMIURI (Page 4) (Full) 
June 20, 2006 
 
The following is a gist of remarks made by Prime Minister Koizumi 
in a press conference yesterday. 
 
(Tasks that lie ahead) 
In drawing up budgetary request guidelines for next fiscal year's 
budget, emphasis should be placed on both economic revitalization 
and fiscal reconstruction, and this task is extremely important. 
Next week, I will be leaving for the United States and Canada. 
St. Petersburg Summit is scheduled for July. In September, the 
Liberal Democratic Party's presidential election will be held. 
Many problems lie ahead, and I have a lot of things to do. 
 
(LDP presidential election) 
The next premier must push ahead with both revitalizing the 
economy and reconstructing the nation's financial system. My 
successor should demonstrate leadership without fearing 
criticism, but it is also necessary to leave some duties to 
trustworthy party (LDP) members. Great breadth as a human and 
passion to doggedly resolve problems are required of my 
successor. 
 
In the LDP presidential election, since the prime minister will 
be elected, there might be scenes in which candidates engage in a 
power struggle. There might be cases in which relations become 
strained. When all candidates who obtain support from more than 
20 LDP members declare their candidacy, I will have to clarify 
for whom I will vote. Until then, I will make no comment. 
 
(North Korea's missile issue) 
Japan, in cooperation with the US and South Korea, has been 
calling on North Korea to refrain from launching a missile in a 
rational, restrained manner. I am still hoping North Korea won't 
launch one. But if Pyongyang test-fires a missile, Japan will 
have to consult with the US government and others and take stern 
actions. I had better not comment for now on what response Japan 
will take. 
 
(Plan for GSDF withdrawal from Iraq) 
When the right time comes, Japan will make a proper decision and 
pull Ground Self-Defense Force (GSDF) troops out of Iraq upon 
obtaining approval from various countries concerned (the US, 
Britain and Australia) and the Iraqi government. 
 
Japan, as a responsible member of the international community, 
will continuously think what it can do for the stability of Iraq 
and provide assistance (even after the troops are withdrawn). 
 
11) Poll: 37% against Yasukuni visit; 17% for upgrading Defense 
Agency to ministry, 21% against 
 
TOKYO 00003407  007 OF 011 
 
 
 
NIOHN KEIZAI (Page 2) (Full) 
June 20, 2006 
 
In the latest poll, 37% of respondents answered "no" when asked 
if they thought Prime Minister Junichiro Koizumi should pay 
homage at Yasukuni Shrine this year, with 32% saying he should 
visit the shrine but not on Aug. 15, the day World War II ended, 
and 17% insisting that he should visit the shrine on Aug. 15. 
 
Respondents were also asked if they would support a government- 
introduced bill to upgrade the Defense Agency to the status of a 
ministry. In response to this question, 17% answered "yes," with 
21% saying "no." Those who "can't say which" accounted for 51%. 
 
12) LDP's Yamasaki: If Prime Minister Koizumi visits Yasukuni 
Shrine on Aug. 15 will affect the LDP presidential race 
 
MAINICHI (Page 5) (Full) 
June 20, 2006 
 
Taku Yamasaki, a former vice president of the Liberal Democratic 
Party (LDP), delivered a speech at a forum sponsored by the 
Mainichi Shimbun held yesterday in Fukuoka City. Referring to the 
upcoming LDP presidential election, he indicated his view that 
should Prime Minister Junichiro Koizumi visit Yasukuni Shrine, it 
would affect the results of the LDP presidential race. He stated: 
"This year, Aug. 15 is particularly significant. After that, I 
think the presidential race will move ahead speedily." He 
stressed that he will watch former Chief Cabinet Secretary Yasuo 
Fukuda's move, saying, "Waiting for the (announcement of his 
candidacy) until (Aug. 15) will benefit national interests." 
Regarding his possible candidacy, Yamasaki stated: "I will not 
clarify my intentions before the mid-August Obon holiday break." 
 
Yamasaki criticized Prime Minister Koizumi's visits to Yasukuni 
Shrine, noting: 
 
"Official visits are unconstitutional. Private visits (by the 
prime minister) are no different. China and South Korea will 
protest strongly soon after the prime minister visits the shrine. 
As a result, it will be impossible to hold summits with the 
leaders of the two countries." 
 
Yamasaki apparently sought to check Chief Cabinet Secretary 
Shinzo Abe, a possible post-Koizumi contender, who supports 
Koizumi's visits to the Shinto shrine. 
 
13) 2006 LDP presidential election: Koizumi to announce his 
support for particular candidate in September in consideration of 
Mori; begins paving way for Abe 
 
MAINICHI (Page 2) (Abridged slightly) 
June 20, 2006 
 
Prime Minister Junichiro Koizumi indicated in a press conference 
yesterday that he would clarify his support for an LDP 
presidential candidate timed with the official kickoff of the 
election campaign, apparently in an effort to pave the way for 
greater support for Chief Cabinet Secretary Shinzo Abe, his 
favorite. Support for Abe is growing in recent public opinion 
surveys on presidential candidates, while that for former Chief 
 
TOKYO 00003407  008 OF 011 
 
 
Cabinet Secretary Yasuo Fukuda is leveling off. Koizumi's 
strategy is to hand over the baton to his successor while keeping 
momentum through such means as his diplomatic engagements, 
including his upcoming visit to the United States, and 
overhauling the nation's revenues and expenditures as a package. 
 
"He must deal with matters flexibly while using both hard and 
soft approaches. He must also be prepared to face backlashes from 
within the party in efforts to convince people." 
 
Koizumi discussed some requirements for his successor as if to 
offer words of encouragement to Abe. 
 
Earlier, on June 15, Koizumi met with former Prime Minister 
Yoshiro Mori to discuss the LDP presidential race. In the 
session, Mori warned Koizumi not to designate anyone as his 
successor. Koizumi expressed his intention to wait for doing so 
until early September when the presidential election would be 
officially announced, while sticking to his policy of making it 
clear where he stands on the race before hand. In 1987, Prime 
Minister Yasuhiro Nakasone designated Secretary General Noboru 
Takeshita as his successor. Koizumi does not envisage a similar 
scenario. However, if Koizumi speaks of his favorable candidate, 
that would be a de facto designation of his successor. 
 
Koizumi may not announce his support for any particular candidate 
until the official kickoff of campaigning out of consideration 
for Mori. But if his clout is extremely low at that point, 
Koizumi's designation of his successor would lose its magical 
power. In the Mainichi Shimbun's June 17-18 opinion poll, Abe's 
support rate increased 4 points from the previous month to 42%, 
while Fukuda's rate dropped 1 point to 19%. Fukuda's support rate 
is leveling off. 
 
A former LDP cabinet minister explained Koizumi's comment this 
way: "Because there is already a clear trend in favor of Mr. Abe, 
the prime minister is trying to back him in a modest manner." 
 
But whether or not the prime minister visits Yasukuni Shrine on 
the August 15 end-of-the-war anniversary is still a delicate 
matter closely associated with the presidential race. Koizumi is 
likely to make a final decision while keeping in mind how his 
shrine visit would affect Abe. 
 
14) Poll: Abe leads Fukuda in post-Koizumi race 
 
YOMIURI (Page 1) (Abridged) 
June 20, 2006 
 
In a recent face-to-face nationwide public opinion survey 
conducted by the Yomiuri Shimbun on June 17-18, respondents were 
asked who they thought would be the most appropriate person to 
become Prime Minister Koizumi's successor, and they were asked to 
pick one out of five lawmakers in the ruling Liberal Democratic 
Party. In this popularity rating, Chief Cabinet Secretary Abe 
topped all others at 44%. Yasuo Fukuda, one of Abe's predecessors 
in the CCS post, ranked second at 19%. The results of previous 
polls and the one taken this time cannot be simply compared 
because the number of post-Koizumi candidates was narrowed down 
this time from the last survey taken in May. However, Fukuda, who 
closed in on Abe in last month's survey, went down in the latest 
survey, with Abe rising. The margin has now widened. Fukuda has 
 
TOKYO 00003407  009 OF 011 
 
 
yet to clarify whether he will run in the LDP presidential 
election. 
 
Abe ranked top for the fifth month in a row. Among other 
candidates, Foreign Minister Aso stood at 4%, with Finance 
Minister Tanigaki at 2%. Among LDP supporters, Abe was at 63% and 
Fukuda at 19%. 
 
In the survey, respondents were also asked if they were 
interested in the LDP race. In response to this question, a total 
of 72% answered "yes." Respondents where further asked to pick 
one or more issues for the LDP presidential election. In 
response, the most common answer was a reform of pension, 
healthcare, and other social security systems at 53%, followed by 
economic and employment measures at 47%. 
 
The approval rating for the Koizumi cabinet was 52.0%, down 
2.4percentage points from the last survey. 
 
15) Kyodo poll: 45% favor Abe as successor to Prime Minister 
Koizumi; 24% support Fukuda 
 
TOKYO SHIMBUN (Page 2) (Full) 
June 20, 2006 
 
According to a poll Kyodo News Service conducted on June 17-18, 
Chief Cabinet Secretary Shinzo Abe was the most suitable lawmaker 
to succeed Prime Minister Junichiro Koizumi, obtaining 45.6% 
support, up from 40.1% in the May survey. While 24.3%, down from 
the 31.4% of the previous poll, favored former Chief Cabinet 
Secretary Yasuo Fukuda. The gap between Abe and Fukuda widened to 
 
SIPDIS 
21.3%. Abe essentially expressed on May 24 his intention to run 
in the Liberal Democratic Party (LDP) presidential race, while 
Fukuda has not clarified his position. Fukuda's reluctance to 
explicitly declare his intention to run in the election is 
believed to have eroded support for him. 
 
Foreign Minister Taro Aso secured 4.3% (4.5% in the previous 
poll) and Finance Minister Sadakazu Tanigaki obtained 2.6% (2.7% 
in the May poll). Senior Vice Justice Minister Taro Kono came 
fourth with 2.9% (1.6% in the previous survey), passing Tanigaki. 
 
Those who favored Abe were asked the reasons for their choice, 
and 23.0% cited his diplomatic ability to improve relations with 
China and South Korea, with 19.1% hailing his leadership 
abilities. Of those who favored Fukuda, 42.5% hoped for his 
diplomatic skills to repair the strained ties with China and 
South Korea. The respondents expected him to reform Asia 
diplomacy. Of the respondents supporting Aso, the majority 
expressed hopes for his diplomatic capabilities. About half the 
respondents who favored Tanigaki hoped for financial 
reconstruction. Of those who supported Kono, many expected him to 
reform the social security system. 
 
16) Support for resumption of commercial whaling; IWC plenary 
session adopts declaration by margin of one vote 
 
SANKEI (Page 2) (Full) 
June 20, 2006 
 
The International Whaling Commission (IWC) at its plenary session 
held in St. Christopher Nevis in the Caribbean Sea adopted a 
 
TOKYO 00003407  010 OF 011 
 
 
declaration promoted by Japan seeking the normalization of the 
functions of the commission by a 33-32 vote. The declaration 
calls for the withdrawal of the temporary suspension of 
commercial whaling adopted in 1982. It is a step forward to the 
resumption of commercial whaling. 
 
The declaration was jointly proposed by 30 pro-whaling countries, 
including Japan. This is the first time that the number of pro- 
whaling countries topped that of anti-whaling counties. However, 
since the resumption of commercial whaling requires support from 
more than three quarters of members at a plenary session, the 
declaration has no binding power. Even so, it was the first major 
achievement for pro-whaling countries. 
 
However, anti-whaling countries, such as Britain and New Zealand, 
were against the adoption of the declaration. The skirmish 
between pro-whaling countries and anti-whaling countries will 
likely further heat up. 
 
Touching on the adoption of the declaration that supports the 
resumption of commercial, Agriculture, Forestry and Fisheries 
Vice Minister Mamoru Ishihara yesterday noted: "In view of the 
future of the IWC, I am very pleased that the declaration was 
adopted." He then added: "We will make steady efforts next year 
as well to ultimately garner support from three quarters of 
members." 
 
17) Chugai Pharmaceutical uses serum derived from US cattle; 
Mistake occurred in process of switching to material from other 
countries; Voluntary recall begins 
 
SANKEI (Page 31) (Lead para.) 
June 20, 2006 
 
It was learned that Chugai Pharmaceutical Co., a major drug 
maker, discovered that it used serum derived from US cattle 
embryos, whose use is prohibited in Japan, as raw materials for 
two medicines it manufactured and sold. It has already started 
recalling about 900,000 products that had been shipped to 11,000 
hospitals throughout the nation. In order to avoid the risk of 
BSE contamination, the use of serum that was derived from embryos 
of US cattle has been banned, in principle, since 2004. Chugai 
Pharmaceutical explained, "It was a simple mistake. The risk of 
damage to health is extremely low." Judging that the case is a 
violation of the Pharmaceutical Law, the Ministry of Health, 
Labor, and Welfare intends to check whether there are similar 
cases involving other pharmaceutical companies. 
 
18) Deregulatory requests from Nippon Keidanren; Compliance rate 
drops to 47% in fiscal 2005 
 
ASAHI (Page 4) (Full) 
June 20, 2006 
 
Nippon Keidanren (Japan Business Federation) yesterday revealed 
that the compliance rate of deregulatory requests it submitted to 
the government dropped to 47% in fiscal 2005, down 2 points from 
49% posted in fiscal 2004 and 13 points from 60% recorded in 
fiscal 2003. 
 
The business organization noted that the reason for the drop in 
such a ratio is that bureaucrats have begun taking the initiative 
 
TOKYO 00003407  011 OF 011 
 
 
of regulatory reform since fiscal 2004. 
 
The Japan Business Federation submits 200 to 300 requests a year 
to the government. Since the government's Regulatory Reform and 
Privatization Promotion Headquarters, chaired by Prime Minister 
Koizumi, replaced the private sector-led Comprehensive Regulatory 
Reform Council in fiscal 2004 as a point of contact for the 
submission of requests, Nippon Keidanren's deregulatory requests 
have been handled in a routine manner, as the Industrial Affairs 
Headquarters put it. 
 
SCHIEFFER