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UNCLAS SECTION 01 OF 11 TOKYO 003440 
 
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 06/21/06 
 
 
Index: 
 
1)   Top headlines 
2)   Editorials 
3)   Prime Minister's daily schedule 
 
Iraq pullout: 
4)   Text of Prime Minister Koizumi's press remarks on GSDF 
  withdrawal from Iraq 
5)   ASDF next month likely to expand transport services in Iraq 
6)   With withdrawal of GSDF from Iraq, Japan will now shift to 
energy development assistance centered on ODA 
7)   As GSDF leaves Iraq, Chief Cabinet Secretary Abe voices 
preference for permanent SDF dispatch law to replace limited 
timeframe measures 
 
8)   US, leaning toward hard-line stand toward North Korea on 
  missile launch issue, schedules talks with Japan to strengthen 
  pressure on Pyongyang 
 
9)   Japan, US, Taiwan strengthening ties at think-tank level to 
  deal with China "threat" 
 
Beef talks: 
10)  Agreement almost there between US, Japan on resumption of US 
  beef imports, with shipments likely to start in July 
11)  US beef could be on supermarket display counters by late 
July 
12)  Yoshinoya planning beef bowls on menu in September, but much 
of food service industry remains cautious about US beef 
13)  Government in resuming US beef imports steamrollering 
objections of consumers, who remain concerned about food safety 
 
Political agenda: 
14)  Shinzo Abe to declare candidacy for LDP president in later 
  August 
15)  Ruling camp fears public reaction to BOJ Governor Fukui's 
admission of profiting from Murakami funds, while opposition 
wants him to quit 
16)  Minshuto (Democratic Party of Japan) puts off punishment of 
lawmaker Matsui for allowing Murakami Fund to pay aide's salary 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi & Yomiuri: 
BOJ Governor Fukui earned 14.73 million yen from investment in 
Murakami Fund 
 
Mainichi & Tokyo Shimbun: 
Supreme Court says "indefinite sentence clearly unjust," orders 
High Court to reexamine murder case with a view to imposing death 
penalty 
 
Nihon Keizai: 
BOJ governor: BOJ will take quick, nimble action on monetary 
policy; Zero-interest policy expected to be kept in place for now 
 
Sankei: 
People's New Party's House of Representatives member Itokawa 
pressured by construction firm employees not to "pursue" land 
 
TOKYO 00003440  002 OF 011 
 
 
deal in Diet interpellations 
 
2) EDITORIALS 
 
Asahi: 
(1)  SDF pullout from Iraq: Ends do not justify the means 
(2)  BOJ: Weightiness of governor's position 
 
Mainichi: 
(1)  GSDF withdrawal from Iraq: Expanding reconstruction 
assistance to Samawah 
(2)  BOJ Governor Fukui: System needed that does not give rise to 
suspicions 
 
Yomiuri: 
(1)  SDF troops in Iraq: Pullout from Samawah does not mean an 
end to assistance 
(2)  BOJ Governor Fukui's investment profit: Job may be in 
jeopardy if confusion continues 
 
Nihon Keizai: 
(1)  We welcome decision to pull out GSDF troops from Iraq 
(2)  BOJ Governor Fukui faces tough task in restoring public 
trust 
 
Sankei: 
(1)  Pullout of GSDF troops from Iraq: Public security remains an 
open question 
(2)  Murder of mother and child: Supreme Court's call for capital 
punishment is appropriate 
 
Tokyo Shimbun: 
(1)  SDF withdrawal from Iraq: Every possible measure should be 
taken until all troops return home 
(2)  BOJ Governor Fukui: Suspicions deepen 
 
3) Prime Minister's Official Residence (Kantei) 
 
Prime Minister's schedule, June 20 
 
NIHON KEIZAI (Page 2)  (Full) 
June 21, 2006 
 
09:01 
Arrived at the Prime Minister's Office (Kantei) 
 
09:33 
Executive meeting at the LDP Headquarters 
 
09:53 
Cabinet meeting, followed by investment meeting, then conference 
on measures to deal with low birth rate. 
 
11:03 
Party head discussion with New Komeito leader Kanzaki. LDP 
Secretary General Takebe and New Komeito Secretary General 
 
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Fuyushiba were present. Then liaison conference between the 
government and the ruling coalition. Then met with Japanese 
Communist Party Chairman Shii and Social Democratic Party Leader 
Fukushima. 
 
12:07 
 
TOKYO 00003440  003 OF 011 
 
 
Security meeting. Met with Iraqi Ambassador to Japan Al-Jumaily, 
followed by Chief Cabinet Secretary Abe. 
 
13:00 
Press conference 
 
14:01 
Met with Miki Yoshida, chairman of the Okami Association of 
Japanese Ryokan, followed by Upper House member Yoriko Kawaguchi. 
 
15:00 
Meeting of the Campaign Headquarters at LDP Headquarters. Took 
photos with those who plan to run in next year's Upper House 
election. Handed an endorsement certificate to a candidate for 
the Lower House by-election for the Kanagawa No. 16 Constituency. 
 
16:30 
Met with Foreign Ministry Middle East and African Affairs Bureau 
Director General Yoshikawa at the Kantei. 
 
17:07 
Cabinet meeting on measures to deal with crime and a joint 
meeting of the Headquarters to Promote Measures to Nurture Young 
People. 
 
18:44 
Met with chiefs of secretariat of various government agencies and 
the Diet Liaison Office chief at Grand Arc Hanzomon Hotel. 
 
19:02 
Dined with LDP Policy Research Council Chairman and Acting 
Chairman Nakagawa and Amari and others at a Chinese restaurant at 
Kioicho. 
 
20:54 
Returned to the official residence. 
 
4) Gist of Koizumi's press remarks 
 
YOMIUIRI (Page 4) (Full) 
June 21, 2006 
 
The following is a gist of Prime Minister Koizumi's remarks in 
yesterday's press conference: 
 
Japan has consulted with the United States and other 
multinational force members, including the United Kingdom and 
Australia. As a result, I judged that the Ground Self-Defense 
Force has now fulfilled its role to a certain extent through its 
reconstruction assistance activities, and I therefore decided to 
withdraw the GSDF unit. Japan will continue to help with Iraq's 
nation rebuilding efforts, and I'd like to continue Japan's 
assistance as far as possible while working together with various 
countries and the United Nations. 
 
This is not a matter of me wanting to or feeling the need to 
withdraw the GSDF unit while I'm in office. I happened to make my 
overall judgment at this point, and I'm pleased that I can 
withdraw the GSDF unit. At this point, I'm not thinking of going 
to Iraq, because I wouldn't want to burden other countries 
unnecessarily with my security. I believe that the various steps 
taken toward Iraq in compliance with United Nations resolutions 
 
TOKYO 00003440  004 OF 011 
 
 
were right. The international community has now overcome the 
difference of opinions we faced when the war started. The 
international community has agreed to carry out assistance 
appropriate for each country. I'm aware of the Japan-US alliance 
and its importance, and Japan will continue to work together with 
the international community. I wouldn't say we need to create a 
permanent law in the next Diet session (for Japan's future 
overseas dispatch of Self-Defense Forces troops). But we must 
discuss the matter. 
 
5) ASDF to expand Iraq airlift missions next month 
 
NIHON KEIZAI (Page 1) (Abridged) 
June 21, 2006 
 
The government has now decided to withdraw Ground Self-Defense 
Force troops deployed in the southern Iraqi city of Samawah. 
Based on the decision, the government began yesterday to prepare 
for the Air Self-Defense Force to expand its airlift missions in 
Iraq. The ASDF will expand the scope of its activities in July at 
the earliest and support the US military and the United Nations 
in order to airlift their supplies and personnel. In addition, 
the ASDF will also send personnel to the multinational force's 
headquarters in Baghdad to facilitate coordination. 
 
The GSDF currently stations some personnel at the multinational 
force's headquarters, but they will be replaced with ASDF 
personnel along with the GSDF's pullout from Iraq. The ASDF 
currently bases its airlift squadron in Kuwait, where about 200 
ASDF members are deployed. The ASDF will reinforce the squadron 
with about 10 more personnel. 
 
ASDF transport planes have been on airlift missions from Kuwait 
to Taril near Samawah. In July, the ASDF will extend its airlifts 
to Baghdad and the northern Iraqi city of Arbil. In Baghdad, 
however, aircraft could be targeted in terrorist attacks. The 
government is therefore careful about the right timing. 
 
Defense Agency Director General Fukushiro Nukaga ordered senior 
officials in a meeting yesterday to fully consider the local 
security situation. "Cargo transport is not something your rush 
into; I want them to pay full attention to safety," Nukaga said. 
 
6) Japan to provide Iraq with energy development assistance 
centering on ODA after GSDF withdrawal, call for creation of 
international assistance framework 
 
YOMIURI (Page 2) (Full) 
June 21, 2006 
 
Following its decision yesterday to withdraw Ground Self-Defense 
Forces (GSDF) troops from Iraq's southern city of Samawah, the 
government made another decision to give reconstruction 
assistance to that country as part of it official development 
assistance (ODA). The focus of the aid will be on development 
projects related to such energy resources as oil and natural gas. 
The aim is to facilitate economic recovery in Iraq by advancing 
the reconstruction of infrastructure relating to energy resources 
that are abundant there. The government intends to call on the 
international community to work together to create an 
international framework for assistance to Iraq, although some 
countries, such as France, which was opposed to US forces' 
 
TOKYO 00003440  005 OF 011 
 
 
attacks on Iraq, still remain unwilling to participate in 
reconstruction assistance to Iraq. 
 
Prime Minister Koizumi met with Iraqi Ambassador to Japan Al- 
Jumaily at the Prime Minister's Official Residence at noon 
yesterday and told the envoy: "We'll continue our assistance to 
Iraq." The ambassador told Koizumi: "We have greatly appreciated 
Japan's assistance it offered during a difficult time." 
 
In October 2003, Japan announced it would provide Iraq with 5 
billion dollars in assistance using the ODA program. Of that 
amount, 1.5 billion dollars in grant aid have already been 
targeted for specific use. Of the 3.5 billion dollars in yen 
loans, approximately 2.8 billion dollars remain undecided as to 
use. 
 
In order to provide assistance to repair works at such facilities 
as the oil factory in Basra in southern Iraq and oil or liquefied 
natural gas (LNG)-related facilities in various other locations 
in the country, coordination is underway. A senior Foreign 
Ministry official commented: "Iraq is abundant in natural 
resources. Development of oil or natural gas fields will directly 
lead to foreign currency earnings and will become driving force 
for the reconstruction of the country." 
 
The government wants to be actively engaged in creating an 
international assistance framework for Iraq. Foreign Minister Aso 
yesterday afternoon held a teleconference with Iraqi Foreign 
Minister Zebari. Zebari asked Aso, "A plan to create a new 
international framework for assistance to Iraq is now afloat. 
We'd like Japan to participate in that framework as an important 
partner of our country." Aso indicated a positive stance, telling 
Zebari: "We'd like to address the matter while basically 
following that direction." 
 
7) Abe positive about enacting permanent law for SDF missions 
overseas and eliminating need for ad hoc legislation 
 
ASAHI (Page 2) (Abridged) 
June 21, 2006 
 
The government has now decided to withdraw Ground Self-Defense 
Force troops currently deployed to the southern Iraqi city of 
Samawah. In this connection, Chief Cabinet Secretary Abe took a 
positive stance in a press conference yesterday about creating a 
permanent law that would allow the government to dispatch Self- 
Defense Forces personnel overseas without need to pass a special 
measures law each time. With the SDF's Iraq dispatch as the 
chance, some in the government and ruling parties are calling for 
permanent legislation to allow SDF participation in multinational 
forces overseas. This will likely be a task for the post-Koizumi 
government. 
 
The ruling Liberal Democratic Party is already studying permanent 
legislation, Abe said in the press conference. "It will be 
possible to take flexible measures and make international 
contributions," he added. One government official also suggested 
the need for the next government to address the matter after all 
Air Self-Defense Force personnel are back from their Iraq 
mission. 
 
"When it comes to a permanent law, there will be various 
 
TOKYO 00003440  006 OF 011 
 
 
problems," Prime Minister Koizumi said in a news conference 
yesterday. "I'm not thinking of creating a permanent law while I 
am in office," Koizumi added. 
 
Meanwhile, Defense Agency Director General Nukaga yesterday 
ordered the ASDF to reinforce its Kuwait-based squadron in order 
to expand the scope of its airlift activities in Iraq. The ASDF 
will send personnel to the multinational force's headquarters in 
Baghdad to liaise. "We will meet the needs of the United Nations 
and the United States," Nukaga said. The ASDF will continue to 
airlift supplies and conduct humanitarian reconstruction 
assistance activities, the defense chief said. The ASDF is 
expected to expand the scope of its activities in Iraq within the 
month after coordination with the United Nations. 
 
8) Preparation for firing Taeopdong-2 missile underway; US taking 
hard-line policy; Will discuss with Tokyo ways to strengthen 
pressure on Pyongyang 
 
YOMIURI (Page 7) (Excerpts) 
June 21, 2006 
 
North Korea is now preparing to launch a long-range ballistic 
missile. The prevailing view among persons familiar with US-North 
Korea relations here in Washington is that even if the North does 
not actually test-fire a missile, the Bush administration's 
policy toward that nation is certain to become even tougher. 
 
Commenting on a possible missile launch, Secretary of State Rice 
on June 19 told a press conference, "We are now considering the 
next step." She thus revealed that Washington is now conferring 
on measures to strengthen pressure on that nation. Pointing out 
that the North has started preparations to launch a missile, 
turning its back on the six-party talks, Rice hinted that there 
is no chance of Washington making concessions in order to stop 
Pyongyang from test-firing a missile. 
 
There has been a clash of views in the Bush administration over 
whether to give priority to dialogue or pressure. However, now 
that Pyongyang is preparing to launch a missile, Deputy Assistant 
Secretary of State Christopher Hill, who has aimed to settle the 
 
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issue through diplomatic efforts, is bound to find himself in a 
difficult situation. 
 
9) Japan, US, Taiwan strengthen cooperation in security talks on 
responding to China threat 
 
SANKEI (Page 5) (Excerpt) 
June 21, 2006 
 
A symposium on the theme, "Security dialogue for peace and 
stability in the Taiwan Strait," (convened by the Okazaki 
Research Institute and sponsored by Sankei Shimbun) was held in 
Tokyo on June 20 to discuss ways to deal with China, which is 
rising economically and militarily. The participants, who 
included lawmakers from Japan, the United States, and Taiwan, 
former senior government officials, and former military brass, 
carried on lively discussions. The symposium consisted of a 
keynote speech and three sessions.  In the keynote speech, former 
ambassador to Thailand Hisahiko Okazaki pointed out the current 
situation in the Taiwan Strait, where China is gradually gaining 
the advantage, upsetting the military balance between it and 
 
TOKYO 00003440  007 OF 011 
 
 
Taiwan. He said there was a possibility in the future of China, 
with the intention of bringing about its unification with Taiwan, 
threatening it with armed force to create turmoil in the 
political realm. In order to avoid such a crisis, he proposed the 
need for creating a new consultative body between the US and 
Taiwan for close discussions on the military issue. 
 
10) Japan, US fail to reach agreement on US beef import 
resumption; Further discussions to be held today 
 
ASAHI (Page 1) (Full) 
June 21, 2006 
 
The governments of Japan and the US held a bureau director-level 
teleconference yesterday evening in order for Japan to resume US 
beef imports. During the talks, the Japanese delegation indicated 
its intention to resume imports under certain conditions, 
including allowing Japan to confirm the safety of US beef by 
conducting prior inspections of US meat-processing plants. 
However, no agreement was reached, so the two sides decided to 
hold another round of talks this morning. 
 
The teleconference started at 8:00 p.m. yesterday, with the 
participation of Deputy Undersecretary of Agriculture Chuck 
Lambert from the US side and bureau director generals and 
councilors of the Foreign Ministry, the Ministry of Agriculture, 
Forestry and Fisheries (MAFF) and the Ministry of Health, Labor 
and Welfare (MHLW) from the Japanese side. As conditions for 
reinstating the beef trade, the Japanese delegation asked the US 
to approve the presence of Japanese officials at surprise 
inspections of meatpackers conducted by the US side. The talks 
continued until shortly after 12:00 am, but the two sides could 
not reach agreement on items subject to prior inspections and 
ways to facilitate such inspections. 
 
The two sides will resume telephone talks at 9:00 this morning. 
If they reach a consensus, experts dispatched by MOFA and MHLW 
will carry out prior inspections of 35 US meatpackers. The 
outlook is that US beef imports will start in late July, once it 
is confirmed that the safety of products to be exported to Japan 
is secured in compliance with the conditions agreed on between 
the two countries. 
 
11) US beef likely to be on shelves again in late July; Last- 
minute negotiations going on 
 
NIHON KEIZAI (Page 4) (Full) 
June 21, 2006 
 
Over the issue of resumption of US beef imports, the governments 
of Japan and the United States held a teleconference between 
senior officials from the Agriculture, Forestry, and Fisheries 
Ministry (MAFF) and the US Agriculture Department last night. The 
conference ended before dawn today and will be resumed this 
morning to work out details. Both countries are expected to 
agree, possibly today, to resume US beef trade on such conditions 
as inspections of facilities certified to export beef to Japan 
before Japan resumes imports. US beef is likely to be put on 
store shelves in Japan again. 
 
The Japanese government imposed a ban on US beef imports in 
December 2003 following the discovery of the first case of BSE in 
 
TOKYO 00003440  008 OF 011 
 
 
the US. The ban was lifted last December but was reinstated this 
January after vertebral columns, a specified risk material (SRM), 
was discovered in a veal shipment to Japan. 
 
Tokyo and Washington are expected to reach an official accord on 
such conditions as prior inspections by Japanese government 
officials of 35 meatpacking plants to check whether they have 
complied with the requirements agreed on for the removal of the 
import ban. In the teleconference yesterday, since details were 
not worked out, both sides decided to continue discuss the 
details today. The possibility is now strong that a settlement 
will be reached on the pending issue of US beef imports prior to 
the Japan-US summit set for next week. 
 
Should no problem be found in the prior inspections, Japan will 
reopen its market to US beef. About 1,000 tons of beef that 
arrived in Japan just before the second ban in January but has 
yet to clear customs has been stored in freezers or refrigerators 
across the nation. The government plans to examine all of the 
beef and then put it on store shelves. 
 
Health, Labor, and Welfare Minister Jiro Kawasaki said yesterday 
that officials "will inspect all beef imported from the US for 
the time being." The government also intends to carry out snap 
and regular inspections of US meatpacking facilities. But many 
consumers are still skeptical of the reliability of the United 
States' safety-management system, keeping in mind the fact that 
prohibited materials were also found in beef shipments to Hong 
Kong and Taiwan. South Korea has put off its planned resumption 
of US beef imports after defects were found in its prior 
inspections into US facilities. MAFF Minister Shoichi Nakagawa 
said that if some flaws are found in inspections, Japan would 
also discuss the issue (with the US) again." 
 
12) Yoshinoya willing to put beef bowl on menu possibly in 
September, but most restaurant chains, distributors remain 
cautious 
 
NIHON KEIZAI (Page 4) (Full) 
June 21, 2006 
 
The governments of Japan and the United States are expected to 
reach an agreement on the resumption of US beef trade. Following 
this development, some gyudon (beef bowl) and beef barbecue 
restaurant operators will soon start preparations to buy US beef. 
Yoshinoya D&C Co. will put gyudon on its menu in late September 
at the earliest. However, consumers have been skeptical of the 
safety of US beef in the wake of the discovery of specified risk 
materials considered to be a BSE risk in a veal shipment to Japan 
in January. Given this, most retailers and restaurant chains are 
cautious about using US beef. 
 
Japan Food Service Association Chairman Kazuhide Maihama said 
yesterday: 
 
"We welcome the growing possibility that US beef imports will be 
resumed soon. Many restaurant operators, including beef barbeque 
and tongue restaurants, have received a serious blow. I hope 
imports will be resumed as soon as possible. I expect the 
government to give an explanation to consumers and operators in a 
proper way." 
 
 
TOKYO 00003440  009 OF 011 
 
 
Under the agreed conditions, shipments are limited to beef from 
cattle aged 20 months or younger, so Yoshinoya expects only 1,000 
tons of meat will be available per month, which is equivalent to 
40% of the volume recorded before the initial import ban was 
imposed in December 2003. It plans to offer the dish only for 
limited hours, like lunchtime. 
 
Although its rivals have used Chinese or Australian beef, 
Yoshinoya has kept its policy of using only American beef and has 
stopped serving gyudon. As a member of its planning office said: 
"In the case of US beef, it is possible to procure a large volume 
of parts that we need and those with plenty of fat on them, which 
Japanese love," the company believes that American beef is most 
suitable for gyudon. 
 
Yorkbenimaru Co., a supermarket chain based in Tohoku, also 
highlighted this point and is eager to resume the sale of US 
beef. 
 
However, many retailers and restaurant operators remain cautious 
about buying in American beef. 
 
Ito-Yokado Co. has decided not to sell US beef for the time 
being, with a spokesperson saying: "It seems difficult to obtain 
understanding from customers." Aeon Corp. intends to watch the 
situation for a while, a staff member saying: "While giving 
priority to a sense of safety, we will decide whether to put the 
product on our shelves." 
 
13) Consumer opposition steamrolled in decision to resume imports 
of US beef; Government maintains it is "carefully following 
procedures" 
 
MAINICHI (Page 2) (Excerpts) 
June 21, 2006 
 
The expected agreement between Japan and the United States to 
resume imports of US beef comes in the form of steamrollering the 
deep-seated opposition of Japanese consumers. Although the 
government has concluded that it has fully followed procedures to 
reach a final decision, the resumption of imports is likely to 
leave most Japanese not quite satisfied. 
 
"I cannot at all sense that you have consumers' understanding," 
said one individual of an open hearing held by the government on 
June 14 to exchange views. Similar cautious views came one after 
the other. However, in the government's view, the issue was 
settled last year when the Food Safety Commission discussed the 
overall safety of US beef and made its risk evaluation. 
 
The judgment criteria for restarting US beef shipments center 
around whether the following two import conditions set by Japan 
can be kept: 1) limiting selection to cows under the age of 20 
months; and 2) removing specified risk materials. The government 
will do no more than listen to any view that goes beyond that 
framework. Although prior inspections and surprise inspections 
have been accepted, the consumers continue to insist, "The US 
cannot be trusted." One can say that the discussions between the 
consumers and Japanese government were at cross purposes to the 
end. 
 
14) Abe to announce his candidacy for LDP presidency in late 
 
TOKYO 00003440  010 OF 011 
 
 
August, ascertaining moves of other possible candidates 
 
NIHON KEIZAI (Page 2) (Full) 
June 21, 2006 
 
Chief Cabinet Secretary Shinzo Abe yesterday began coordination 
to put off announcing his candidacy for the September Liberal 
Democratic Party (LDP) presidential election until late August. 
He revealed that he would announce his candidacy probably after 
the mid-August G-8 summit in St. Petersburg, Russia. Based on the 
fact that he leads various opinion polls among the possible 
presidential candidates, he intends to carefully ascertain the 
moves of other contenders. He plans to publish a book containing 
his policy proposals in late July. He then aims to obtain cross- 
factional support. 
 
In late May, Abe essentially announced his candidacy for the LDP 
leadership race. He has at present an advantage over other 
candidates. An aide to Abe explained his strategy: "Putting off 
the announcement of his candidacy until last moment, he will make 
his move all at once." Abe intends to prioritize policy debate 
that is visible to the public rather than the hard work of 
gathering supporters after an early announcement of his 
candidacy. 
 
In the book to be published, he will introduce his comprehensive 
visions and policies for security, the economy, and education. He 
is expected to focus on such issues as constitutional revision, 
strengthening the Japan-US alliance, and respect for tradition 
and culture, which will be his main campaign pledges for the 
upcoming LDP presidential election. He will prepare for policy 
debate, making clear his own political identity in the policy 
front. 
 
15) Ruling coalition concerned about backlash against BOJ 
governor; opposition to strengthen calls for resignation 
 
NIHON KEIZAI (Page 2) (Full) 
June 21, 2006 
 
Learning yesterday that Bank of Japan Gov. Toshihiko Fukui's 10 
million yen investment in the Murakami Fund had grown to 22 
million yen as of the end of last year, the ruling and opposition 
camps are now stepping up criticism of him. No one from the 
government or ruling coalition has questioned his actions, but 
member after member expressed concern about a backlash from the 
public. 
 
Toranosuke Katayama, secretary general of the LDP caucus in the 
House of Councillors, pointed out: "I think ordinary people feel 
something is wrong. His conduct is not illegal, but he made a lot 
of money." Koichi Kato also made a critical comment: "It is only 
natural that average people envy him. I have to say that he was 
careless." 
 
House of Representatives member Keiichi Ishii of the New Komeito 
asked, "I wonder why he continued to hold the investment when he 
assumed the post of BOJ governor?" 
 
Ichiro Ozawa, president of the largest opposition party Minshuto 
(Democratic Party of Japan), stressed: "As the governor of the 
Bank of Japan, his conduct is dishonorable and questionable. He 
 
TOKYO 00003440  011 OF 011 
 
 
should think seriously about his conduct in light of his 
position." 
 
Opposition parties intend to step up their pursuit of Fukui in a 
closed-door session on June 22 of the Lower House Financial 
Affairs Committee during the Diet recess, calling for his 
resignation. 
 
16) Minshuto will not punish lawmaker Matsui 
 
NIHON KEIZAI (Page 2) (Excerpts) 
June 21, 2006 
 
House of Representatives member Koji Matsui of Minshuto 
(Democratic Party of Japan) said yesterday that a company 
affiliated with the Murakami Fund had paid the salaries of his 
secretaries. However, the main opposition party yesterday decided 
 
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not to punish Matsui. Party head Ichiro Ozawa stated in a press 
conference: "Sincerely explaining the facts, he has reflected on 
his conduct and is determined to fulfill his duty. The party has 
no intention to punish him." He indicated that Matsui has 
fulfilled his accountability. 
 
Matsui, at a press briefing yesterday in Kyoto, said that the 
company temporarily paid the salaries of two secretaries of his 
and that he would report a total of 1, 533,900 yen that the two 
secretaries had received to the government, based on the 
 
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Political Fund Control Law. 
 
SCHIEFFER