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UNCLAS SECTION 01 OF 09 TOKYO 003595 
 
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 06/29/06 
 
 
Index: 
 
1) Top headlines 
2) Editorials 
3) Prime Minister's daily schedule 
 
Bush-Koizumi reunion today: 
4) President Bush, Prime Minister Koizumi to meet today at White 
House 
5) Friendship between samurai, cowboy: US paper 
 
Prime Minister Koizumi in Canada: 
6) Japan, Canada agree to propel economic cooperation 
7) Japan, Canadian leaders concerned about North Korean missiles 
8) Canadian prime minister vows to stand behind Japan against North 
Korea 
 
Pre-summit foreign ministerial in Moscow: 
9) Japan, Russia agree to raise DPRK abduction, missile issues at 
G-8 summit 
10) Japan, France agree to call for Iran to accept overtures 
 
WTO Geneva ministerial talks: 
11) Focus on compromise between exporters, importers 
12) Farm minister urges US to compromise 
13) Japan alone can't give up: farm minister 
 
Japan-DPRK issues: 
14) Abducted son as 'Yokota's husband' meets mother in North Korea 
 
15) Tokyo guarded against Pyongyang's intent to end abduction issue 
 
 
Japan-China ties: 
16) DPJ President Ozawa likely to meet with President Hu's potential 
successor 
17) China willing to expand defense exchanges with Japan 
 
Domestic politics: 
18) LDP looking to hold presidential election on Sept. 20 
19) Prime Minister Koizumi poised to visit Yasukuni Shrine 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi: 
Murakami Fund scandal: Investment association exclusively for Fukui 
established, with Orix serving as coordinator 
 
Mainichi: 
Kim Yong Nam, believed to be husband of abductee Megumi Yokota, 
reunites with family; No reference made to Megumi 
 
Yomiuri: 
Waseda professor suspected of fabricating data 
 
Nihon Keizai: 
MHLW to ease standards for part-timers to join employee pension 
system, corporate health insurance system 
 
Sankei: 
 
TOKYO 00003595  002 OF 009 
 
 
MLHW to cancel plan to sell national hospital in Chiba to 
corporation that hires ex-ministry officials 
 
Tokyo Shimbun: 
Kokudo hit with additional taxes upon revelation that Tsutsumi held 
a majority of shares 
 
2) EDITORIALS 
 
Asahi: 
(1) Bankruptcy of Yubari City: Measures urged to prevent similar 
cases 
(2) Ishihara Sangyo must be strictly punished 
 
Mainichi: 
(1) Efforts needed to reduce damage by sharing information with 
residents 
(2) Intermediary efforts necessary to bring Israel, Palestinian 
Authority to negotiating table 
 
Yomiuri: 
(1) Japan should follow Germany's 3%  consumption tax hike 
(2) Shareholders general meetings: Not apologies, but constructive 
dialogue necessary 
 
Nihon Keizai: 
(1) Overly optimistic estimates of future birthrate unacceptable 
(2) Sharp increase in appropriations lies behind embezzlement of 
scientific research funds 
 
Sankei: 
(1) Postal privatization: Don't forget principles of reform 
(2) Expand use of idle land 
 
Tokyo Shimbun: 
(1) Illegal labor contract law important but needs thorough debate 
(2) Measures against illegal parking: Consideration should be given 
to welfare services 
 
3) Prime Minister's Official Residence (Kantei) 
 
Prime Minister's schedule, June 28 
 
NIHON KEIZAI (Page 2)  (Full) 
June 29, 2006 
 
June 27 
Afternoon Toured Niagara Falls in Toronto, Canada. 
Evening 
Left Toronto for Ottawa aboard a government plane. 
Night Arrived at his hotel and held talks with reporters traveling 
with the prime minister. 
June 28 
Morning 
Held a meeting with Canadian Prime Minister Harper at the Canadian 
Houses of the Parliament and later held a joint press conference. 
 
4) Japan-US summit to take place today 
 
YOMIURI (Page 2) (Full) 
June 29, 2006 
 
 
TOKYO 00003595  003 OF 009 
 
 
Takaharu Yoshiyama, Ottawa 
 
Prime Minister Junichiro Koizumi and US President George W. Bush 
will hold a meeting on the morning of June 29 (on the evening of 
June 29, Japan time) at the White House in Washington. The two 
leaders will meet for the first time since their summit last year in 
Kyoto and the upcoming summit will be their 15th. They will sum up 
that the five years of their efforts to strengthen the Japan-US 
alliance based on their relationship of trust will become the basis 
for the improvement of bilateral ties in the 21st century. 
 
5) US newspaper runs feature on samurai-cowboy friendship, with 
focus on visit to Graceland 
 
SANKEI (Page 2) (Full) 
June 29, 2006 
 
Prime Minister Junichiro Koizumi's plan to visit the legendary 
singer Elvis Presley's mansion Graceland in Memphis, Tennessee, 
accompanied by US President George W. Bush on June 30 is drawing 
much attention in the United States. 
 
The Washington Post ran a feature article on June 27 describing the 
Graceland visit as an   appropriate ending to the unusual 
samurai-cowboy relationship. In a press briefing by a senior US 
official on June 27, many journalists also raised questions about 
Koizumi's visit to Graceland. The official introduced an episode 
that when Koizumi's US visit had been nailed down, President Bush 
expressed his eagerness to do something for his friend, suggesting 
that Bush proposed the trip to Graceland, according to the paper. 
 
The Washington Post, running a composite CD jacket photograph of a 
beaming Koizumi standing besides Presley, said that both Koizumi and 
Bush have strong beliefs and have the stubbornness never to admit 
any mistakes. The paper also cited Japan's cooperation on missile 
defense and the SDF mission in Iraq as examples of strengthened 
Japan-US relations owing to the friendship between Koizumi and Bush. 
The paper also referred to Washington's tilt toward Tokyo's call for 
raising the abduction issue at the six-party talks, a framework to 
discuss the North Korean nuclear issue. 
 
The paper also introduced an expert's view that America's visibly 
pro-Japan stance has estranged its relations with other Asian 
nations, particularly with South Korea. 
 
6) Japanese, Canadian leaders agree on deepening economic 
cooperation 
 
NIHON KEIZAI (Page 2) (Full) 
June 29, 2006 
 
Fumiyoshi Kendou 
 
Prime Minister Junichiro Koizumi, now visiting Canada, and his 
counterpart Harper agreed in their meeting in Ottawa on the morning 
of June 28 that Japan and Canada would deepen economic cooperation. 
 
In a joint press conference after the meeting, Harper stated in 
reference to bilateral economic relations: "We discussed a free 
trade agreement (FTA) between Japan and Canada." Koizumi said: 
"There is still room for development in economic relations. The 
Japanese market is attractive to Canada, and the Canadian market is 
 
TOKYO 00003595  004 OF 009 
 
 
attractive to Japan." 
 
Sharing strong concern about North Korea's nuclear and missile 
development, the two leaders agreed that the two countries would 
strengthen cooperation and try to resolve the issue at the G-8 (St. 
Petersburg Summit) in mid-July and on other occasions. 
 
7) Japanese, Canadian leaders express concern about North Korea's 
nuclear program 
 
TOKYO SHIMBUN (Page 2) (Full) 
June 29, 2006 
 
Yoichi Toyoda, Ottawa 
 
Prime Minister Junichiro Koizumi met with Canadian Prime Minister 
Harper in Ottawa on the morning of June 28, local time. Harper 
assumed office in February in the first change of government in 12 
years with the victory of his Conservative Party in the House of 
Representatives election this January. After their first meeting, 
Koizumi and Harper gave a joint press conference. 
 
In the summit, Koizumi expressed strong apprehension about North 
Korea's nuclear and missile development. In response, Harper said: 
"It is a major threat to international peace, and we will not spare 
our support for Japanese and other allies' efforts to deal with the 
North's provocative stance." The two leaders also agreed that Japan 
and Canada would cooperate to bring about a settlement to the issue 
of abductions by North Korea. 
 
Koizumi sought Canada's support for United Nations reform and 
Japan's bid for a permanent seat on the UN Security Council, but 
Harper refrained from revealing Canada's position, just saying: 
"Canada and Japan have different positions toward UNSC reform." 
 
8) Canadian prime minister expresses support for Japan 
 
YOMIURI (Page 2) (Full) 
June 29, 2006 
 
Takaharu Yoshiyama, Ottawa 
 
Prime Minister Junichiro Koizumi met with Canadian Prime Minister 
Stephen Harper on the morning of June 28, in which Koizumi expressed 
concern about North Korea's nuclear and ballistic missile programs. 
Harper then said: "Those are a threat to the peace and stability of 
the international community.  We will give Japan our strong 
cooperation." 
 
Koizumi also asked Canada's understanding and support for Japan's 
bid for a permanent UN Security Council seat. 
 
The two leaders agreed to cooperate on the reconstruction of 
Afghanistan. They also agreed to strengthen bilateral relations, 
confirming that Japan and Canada share such basic values as 
democracy and human rights. 
 
9) Japanese and Russian foreign ministers agree to take up abduction 
and missile issues at G-8 summit 
 
YOMIURI (Page 2) (Full) 
June 29, 2006 
 
TOKYO 00003595  005 OF 009 
 
 
 
Yoshitaka Kuribayashi, Moscow 
 
Foreign Minister Taro Aso met on the afternoon of June 28 with 
Russian Foreign Minister Lavrov at the Russian Foreign Ministry. The 
two ministers agreed to take up the abductions of Japanese nationals 
by North Korea and Pyongyang's preparations for launching a 
Taepodong-2 long-range ballistic missile at the foreign ministerial 
meeting on June 29 of the G-8 nations and at the G-8 summit on the 
middle of July to be held in St. Petersburg, Russia. 
 
Aso, touching on the Northern Territories, said: 
 
"Both Japan and Russia should make efforts to resolve the 
territorial issue based on such past agreements as the 1956 
Japan-Russia Joint Declaration and the 1993 Tokyo Declaration so 
that a solution acceptable to the two countries can be reached." 
 
Aso expressed anew Japan's basic stance of concluding a peace treaty 
with Russia after resolving the issue of ownership of four 
Russia-held islands -- the Habomai islets, Shikotan, Kunashiri, and 
Etorofu. 
 
The Russian foreign minister only stated:  "Giving consideration to 
the various accords and documents that you mentioned, Russia will 
continue negotiations for concluding a peace treaty. " No compromise 
was reached, however. 
 
Regarding the idea of constructing a Pacific pipeline to transport 
crude oil from eastern Siberia to East Asia, the two officials 
reached an agreement to speed up discussions in both countries, 
aiming at construction at early date. 
 
10) Japanese, French foreign ministers agree to urge Iran to accept 
package of incentives for ending nuclear program 
 
NIHON KEIZAI (Page 2) (Full) 
June 29, 2006 
 
Foreign Minister Taro Aso met with his French counterpart 
Douste-Blazy at a hotel in Moscow on the afternoon of June 28, local 
time. On Iran's nuclear problem, the French foreign minister said: 
"The ball is in Iran's court. Iran should quickly give a reply." Aso 
replied: "It is important to have Iran sit down at the negotiation 
table at an early date." The two foreign ministers thus agreed that 
Japan and France would urge Iran to accept the package of incentives 
for ending its nuclear program, which was worked out by the 
permanent members of the UN Security Council plus Germany. 
 
11) WTO ministerial meeting kicks off; Concessions by farm-produce 
importing and exporting countries to take centerstage of 
agricultural talks; US remains firm 
 
YOMIURI (Page 9) (Full) 
June 29, 2006 
 
Geneva, Tatsuya Watanabe 
 
Talks aimed at reaching a modality agreement on agricultural and 
non-agricultural (mined and manufactured) products under the new 
multilateral talks (Doha Round) of the World Trade Organization 
(WTO) started yesterday. The aim is to create new trade 
 
TOKYO 00003595  006 OF 009 
 
 
liberalization rules. More than 30 countries are taking part in an 
informal ministerial meeting with the aim of reaching an agreement 
by this weekend. Whether farm-produce exporters countries, such as 
the US and Brazil, and farm-produce importers, such as Japan and the 
EU, can make concessions holds the key to finding a breakthrough in 
the talks. Major participating countries are already engaging in 
bargaining. 
 
Agriculture Minister Nakagawa met with Crawford Falconer, chairman 
of the WTO agriculture negotiations group, the same day and conveyed 
Japan's stance: "Farm-produce exporters, such as the US, should come 
up with a proposal for a cut in domestic subsidies." He also sought 
understanding from the chairman for Japan's position, including an 
increase in the ratio of key trade items that are treated as 
exceptions to liberalization. Falconer indicated his view that the 
informal ministerial meeting would also encounter complications. He 
said: "The US will not change its firm stance. The outlook is 
unclear." 
 
Many countries have growing hopes that the US will make concessions, 
following US President Bush's statement made during the US-EU summit 
on the 21st: "The US will do its utmost to reach an agreement." 
However, United States Trade Representative Susan Schwab during a 
press conference on the 27th once again urged importing countries to 
make concessions: "The negotiations will reach a breakthrough if 
farm-produce importers make a tough decision on tariff cuts and 
other issues." A Japanese negotiator commented: "There is no change 
in the firm stance of the US. Whether the talks will make any 
progress has become even more unclear." 
 
The talks this time appear to be a three-sided fight involving 
farm-produce importers, such as the EU and Japan, developing 
countries, such as Brazil, and the US. Brazil in May indicated its 
readiness to cut tariffs on mined and manufactured products. The UE 
has also hinted at the possibility of agreeing to further reduce 
tariffs on agricultural products. Moves to search for ways to find a 
breakthrough are thus underway behind the scenes. 
 
12) Agriculture minister urges US to make concessions during WTO 
talks 
 
ASAHI (Page 11) (Full) 
June 29, 2006 
 
Geneva, Yasushi Sato 
 
Agriculture, Forestry, and Fisheries Minister Shoichi Nakagawa and 
Economy, Trade, and Industry Minister Toshihiro Nikai, both of whom 
are now in Geneva to take part in an informal ministerial meeting 
under the World Trade Organization (WTO), on June 28 separately met 
with WTO Secretary General Pascal Lamy. Meeting the press after 
talks with Lamy, Nakagawa stressed his stance that unless the US 
comes up with fresh concessions during the upcoming agricultural 
talks, Japan will not agree to substantially cut tariffs on 
agricultural products, including rice. 
 
Nakagawa told Lamy: "Unless countries on the offensive, such as the 
US, make concessions, Japan will not be able to move, even if it has 
a new concession plan." Lamy responded, "I want the US to deepen 
discussions on its domestic subsidies and Japan and the European 
Union (EU) on market opening." 
 
 
TOKYO 00003595  007 OF 009 
 
 
Nakagawa also met with Crawford Falconer, who chairs the WTO 
agricultural negotiations group. Falconer indicated his view that 
the US would not come up with new proposals on agricultural 
products. Commenting on new liberalization rules for the 
agricultural sector, he noted, "It would be difficult for the 
meeting to cover necessary discussions by this weekend." He thus 
predicted rocky developments for the ministerial meeting. 
 
The informal ministerial talks will start on the 29th. 
 
13) "It is impossible for Japan alone to lower the level of its 
requests," says Agriculture Minister Nakagawa on WTO 
 
MAINICHI (Page 9) (Full) 
June 29, 2006 
 
Geneva, Katsumi Sawada 
 
Agriculture, Forestry, and Fisheries Minister Shoichi Nakagawa, now 
visiting Geneva to take part in a ministerial meeting of the 
multilateral trade talks (Doha Round) at the World Trade 
Organization (WTO), on June 28 noted, "If the US insists that it 
cannot lower the level of its request, Japan cannot do so, either." 
He made this comment during a press conference held after his 
meeting with WTO Secretary General Pascal Lamy. 
 
In the agricultural talks, the US is opposing a proposal for cutting 
its agricultural subsidies. According to AP, United States Trade 
Representative Schwab on the 27th told reporters, "I have no 
intention of wrapping up small agreements," thus indicating that the 
US has no intention of making concessions. 
 
14) South Korean abductee Kim Young Nam has reunion with family 
 
ASAHI (Page 1) (Lead paragraph) 
June 29, 2006 
 
Tadahisa Takatsuki, Seoul 
 
South Korean abductee Kim Young Nam, 44, believed to be the husband 
of Japanese abductee Megumi Yokota, yesterday reunited in Mount 
Kumgang in North Korea with his mother, Choi Gye Wol, 79, and his 
sister, Kim Young Ja, 47, both living in South Korea, for the first 
time in 28 years. Kim Young Nam made his first public appearance. 
The family reunion involved Kim Hye Gyong, 18, the daughter of Young 
Nam and Megumi. Young Nam seems to be the man who identified himself 
as Kim Chol Jun when he met with a Japanese government delegation. 
Chief Cabinet Secretary Abe told a news conference yesterday: "It is 
highly likely that the two are the same person." 
 
15) Reunion between South Korean abductee Kim Young Nam and his 
mother, sister: Japan alarmed by North Korea's move to bring 
abduction issue to end 
 
NIHON KEIZAI (Page 3) (Excerpts) 
June 29, 2006 
 
Will fresh information about Japanese abductee Megumi Yokota come 
out? Japan noted that it was a good thing for Kim Young Nam, 
believed to be the husband of Japanese abductee Megumi Yokota, to 
meet in North Korea with his family members, including his mother, 
Choi Gye Wol, but it remains cautious about a possible move by North 
 
TOKYO 00003595  008 OF 009 
 
 
Korea to bring the curtain down on the abduction issue. 
 
"It was a good thing for family members to reunite," Chief Cabinet 
Secretary Shinzo Abe said. But the Japanese government harbors mixed 
 
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feelings about this family reunion, because North Korea might insist 
via Kim Young Nam that Megumi has died. Even if information about 
the death of Megumi comes out, though, Tokyo will continue to push 
North Korea to reveal the truth. 
 
Late at night on June 27, Abe met with Megumi's mother, Sakie, and 
told her: "North Korea is likely to have Kim or his family say that 
Megumi is dead." Sakie said to Abe: "I'm ready to face such a 
situation. I won't be shaken." 
 
16) Coordination underway to set a meeting with President Hu 
Jintao's likely successor 
 
NIHON KEIZAI (Page 2) (Full) 
June 29, 2006 
 
A meeting between Ichiro Ozawa, president of the Democratic Party of 
Japan (Minshuto), and Liaoning Province Secretary Li Keqiang, the 
likely successor to President Hu Jintao, is being arranged for 
Ozawa's China tour that starts on July 3, sources revealed. If the 
meeting is fixed, Ozawa intends to shift the date of his return home 
from July 6 to July 8. 
 
17) China eager about expansion of Japan-China defense exchanges 
 
NIHON KEIZAI (Page 2) (Full) 
June 29, 2006 
 
Yuri Momoi, Beijing 
 
Former Defense Agency (JDA) Director-General Shigeru Ishiba and 
others yesterday met with China's State General Military Commission 
Vice Chairman Xu Caihou in Beijing. Xu emphasized that the visit to 
China by Ishiba and other Japanese "will lead to expanding mutual 
understanding in the defense sectors of the two countries, as well 
as developing friendly bilateral relations." Xu thus displayed a 
positive stance toward expanding defense exchanges. 
 
18) LDP to officially announce presidential election on September 8 
for a vote on September 20 
 
MAINICHI (Page 2) (Full) 
June 29, 2006 
 
The Liberal Democratic Party decided yesterday to make an official 
announcement on September 8 for the presidential election on 
September 20. The LDP presidential election committee, chaired by 
Lower House member Hideo Usui, will meet in early July to formally 
adopt the decision.  Prime Minister Junichiro Koizumi has ordered 
Secretary General Tsutomu Takebe to make arrangements centering on 
 
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the same period as that of the previous presidential election in 
¶2003. 
 
19) Koizumi: It poses no problem no matter how many times I visit 
Yasukuni Shrine, for it's an issue of individual freedom; Shrine 
visit on August 15 a real possibility 
 
MAINICHI (Page 2) (Excerpts) 
 
TOKYO 00003595  009 OF 009 
 
 
June 29, 2006 
 
Prime Minister Junichiro Koizumi, now visiting Canada, suggested on 
June 27 (June 28, Japan time) that he would visit Yasukuni Shrine a 
sixth time before stepping down, saying, "It poses no problem mo 
matter how many times I go there." His statement has spread 
speculation in the Liberal Democratic Party that he will visit the 
controversial shrine on the August 15  end-of-the-war anniversary. 
Koizumi's statement came when rumor was, and still is, rife that any 
comment on a Yasukuni visit by Koizumi would force Chief Cabinet 
Secretary Shinzo Abe to postpone the announcement of his candidacy 
 
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for the LDP presidency until late August and that it would also 
affect former Chief Cabinet Secretary Yasuko Fukuda's decision. 
Maneuvering in the presidential race is likely to intensify in the 
LDP. 
 
Koizumi has repeatedly said he will make an appropriate decision on 
a shrine visit. But in Canada, he stated: 
 
 "I think those opposing my shrine visit are subscribing to China's 
view. Is China's view correct? It poses no problem no matter how 
many times I go there. It's an issue of individual freedom." 
 
He also indicated that he would not "back away" from relations with 
China, which has been critical of his shrine visits. 
 
A senior LDP lawmaker noted: "It has become certain that the prime 
minister will visit the shrine during his tenure of office." 
 
DONOVAN