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UNCLAS SECTION 01 OF 12 TOKYO 003632 
 
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//06 
 
 
Index: 
 
1) Top headlines 
2) Editorials 
3) Prime Minister's daily schedule 
 
Bush-Koizumi summit: 
4) President Bush, Prime Minister Koizumi meet, declare alliance in 
21st century 
5) US, Japan to pressure North Korea in event of missile launch 
6) US-Japan relationship maturest ever 
7) Bilateral alliance to go global 
8) "Prime Minister Koizumi is my friend": President Bush 
9) Prime Minister Koizumi himself lifts ban, orders US beef at D.C. 
steakhouse 
10) Gist of Bush-Koizumi press remarks 
11) Joint statement underscores results in security area 
12) Joint document pursues common values 
 
North Korea problem: 
13) 'Yokota's husband' says wife killed herself, accuses Japan 
14) Yokota's parents infuriated 
15) "They can't speak out": CCS Abe 
 
WTO & FTA run-up: 
16) Focus on US concessions, Japan to tag with France, Canada 
17) US tough for farm market liberalization, rejects Japan-EU 
counterproposal 
18) Japan to enter into FTA talks with ASEAN in Jakarta 
 
Defense & security issues: 
19) US, Japan agree to set up panel on USFJ realignment 
20) Okinawa Gov. Inamine says to step down 
21) Okinawa Gov. Inamine to retire; Ruling, coalition blocs 
screening candidates with focus on Futenma relocation 
22) GSDF robot aircraft crashes in Iraq 
23) MSDF destroyer heading home from RIMPAC drill off Hawaii 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi: 
Kim in interview backs Pyongyang's claim Megumi committed suicide, 
criticizes Japan's response to remains presented by North 
 
Mainichi, Yomiuri, Nihon Keizai, Sankei, & Tokyo Shimbun 
Japan, US declare "alliance for 21st century" in global context, 
confirm cooperation to apply pressure on North Korea over nuclear, 
missile, abduction issues 
 
2) EDITORIALS 
 
Asahi: 
(1) Kim's interview stage-managed by Pyongyang 
(2) In quake-resistance data scam, all parties irresponsible 
 
Mainichi: 
(1) Kim speaks for Pyongyang 
(2) Companies urged to pursue transparent management to prevent 
hostile takeovers 
 
 
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SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 06//06 
 
Yomiuri: 
(1) Kim's remarks follow Pyongyang's script 
(2) Cigarette prices still too low in Japan 
 
Nihon Keizai: 
(1) Difficulties lie ahead for Hankyu-Hanshin merger 
(2) Taiwan President Chen Shui-bian urged to tighten official 
discipline 
 
Sankei: 
(1) Kim makes remarks in line with Pyongyang's script 
(2) Thorough reform necessary of telecommunications and 
broadcasting 
 
Tokyo Shimbun: 
(1) North Korea again plays trick with abduction issue 
(2) Public servants found guilty of distributing political flyers: 
Freedom could be undermined 
 
3) Prime Minister's Official Residence (Kantei) 
 
Prime Minister's schedule, June 28 & 29 
 
NIHON KEIZAI (Page 2)  (Full) 
June 30, 2006 
 
June 28 
 
Noon Attended a luncheon hosted by Prime Minister Harper at the 
Federal Parliament Building in Ottawa.Received a courtesy call from 
the representative of the Canadian Managers' Association. 
 
Evening Left Ottawa aboard a government plane. Arrived at Andrews 
Airport in a suburb of Washington, DC Attended a welcome ceremony 
and arrived at the Blair House. Stayed there. 
 
June 29 
 
Morning  Attended a welcome ceremony at the White House. Held talks 
with President Bush. 
 
4) Japan-US summit talks: Koizumi, Bush adopt Japan-US alliance for 
the 21st century, vowing cooperation to block Taepodong-2 launch 
 
MAINICHI (Top play) (Abridged) 
June 30, 2006 
 
Munehiro Hirata, Washington 
 
Prime Minister Junichiro Koizumi held talks with US President George 
¶W. Bush on the morning of June 29 (late June 29, Japan time). The 
talks with Bush that day would be the last for Koizumi, who is 
scheduled to step down from the post in the fall. Summing up the 
bilateral cooperative relations of the past five years based on the 
honeymoon-like personal relationship, the two leaders also released 
the "US-Japan alliance of the 21st century" to declare continued 
cooperation in a global context. In a joint press conference that 
followed, Koizumi highlighted Japan's stance of putting high 
priority on the US. 
 
The meeting on June 29 marked the 13th summit meeting for Koizumi 
and Bush, who last met in November 2005 in Kyoto. To the outgoing 
 
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SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 06//06 
 
Japanese prime minister, who made the first official visit to the US 
since Prime Minister Keizo Obuchi in 1999, the US government gave 
special treatment, including a banquet at the White House. Such 
treatment is usually given only to state guests. 
 
In the talks, Koizumi and Bush reached an agreement to cooperate 
closely to prevent North Korea from launching a Taepodong-2 
long-range ballistic missile and to apply pressure in various ways 
in the event it launches a missile. Bush said: "Referring the matter 
to the United Nations (Security Council) could be one of them." 
 
Bush also expressed his gratitude for contributions made by Ground 
Self-Defense Force troops, who have begun preparations for leaving 
southern Iraqi city of Samawah. Koizumi indicated that the Air 
Self-Defense Force will continue its airlift mission even after the 
ground troops leave Iraq. 
 
The joint statement on the Japan-US alliance highlighted the two 
countries' determination to promote universal values, such as 
freedom, human rights, and democracy. The statement also noted that 
cooperation in such areas as missile defense and emergency 
legislation has progressed under the Koizumi administration and that 
the Japan-US alliance has been strengthened in a global context 
through SDF missions in the Indian Ocean and Iraq. 
 
The joint declaration also highlighted the two countries' 
determination to call on China to become a responsible international 
player, noting, "Firm Japan-US cooperation will help utilize China's 
vitality for the maintenance of peace and stability of Northeast 
Asia." At the same time, the declaration defined freedom, human 
rights, democracy, and the rule of law as common values. 
 
Under UN Security Council reform, the joint statement also specified 
greater bilateral cooperation for realizing Japan's bid for a 
permanent UNSC seat. The US has expressed its support for Japan's 
UNSC bid, but it has yet to present any concrete steps in response 
to Japan's request. 
 
5) Japan, US will apply pressure on North Korea if Taepodong-2 
launched; Japanese, US leaders declare "alliance for new century" 
 
YOMIURI (Top Play) (Lead para.) 
June 30, 2006 
 
Prime Minister Junichiro Koizumi and US President George W. Bush 
held a meeting for about one and a half hours on the morning of June 
29 (midnight of June 29, Japan time) at the White House. At a joint 
press conference after the meeting, the two leaders revealed that 
Japan and the United States would urge North Korea to exercise 
self-restraint over its plan to launch a Taepodong-2 long-rang 
ballistic missile and that the two countries would apply pressure on 
Pyongyang if it test-launched. The two leaders released a joint 
statement on a new bilateral alliance in which they declared that 
the governments of Japan and the United States would deepen 
cooperation in such areas as politics, the economy, and security. 
 
6) Joint Japan-US statement hails most mature bilateral alliance 
 
ASAHI (Page 1) (Excerpts) 
June 30, 2006 
 
Hiroshi Ito, Washington 
 
TOKYO 00003632  004 OF 012 
 
SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 06//06 
 
 
Prime Minister Junichiro Koizumi held a meeting with US President 
George W. Bush for about two hours at the White House in Washington. 
The two leaders released a joint statement on an "alliance for a new 
century." They agreed to strengthen the Japan-US alliance "in a 
global context" based on common values and interests. In the 
meeting, they spent a lot of time on the North Korea issue, 
including the abductions of Japanese nationals. They shared the view 
that Japan and the United States should send "clear messages" to 
North Korean leader Kim Jong Il in order to resolved the abduction 
issue and the North's nuclear and missile programs. They reaffirmed 
the need for strengthening cooperation on those issues. 
 
The joint statement proclaimed the Japan-US relationship as the most 
mature bilateral relationship ever. It also called freedom, human 
rights, democracy, a market economy, and the rule of law universal 
values and said that victory in the war on terror, promotion of the 
market economy, the protection of human rights, and improvement in 
energy security are common interests. 
 
7) Joint Japan-US statement declares global Japan-US alliance for 
new century 
 
NIHON KEIZAI (Top Play) 
June 30, 2006 
 
Fumiyoshi Inudo, Washington 
 
Prime Minister Junichiro Koizumi met with US President George W. 
Bush at the White House on the morning of June 29 for about 90 
minutes. The two leaders agreed to strengthen cooperation to prevent 
North Korea from launching a ballistic missile, as well as to 
resolve the abductions of Japanese nationals by the North and deal 
with Iran's nuclear programs. They released a joint statement on a 
"bilateral alliance for a new century," which declared that Japan 
and the United Stated would cooperate not only on bilateral security 
but also on global matters. 
 
8) President Bush: Prime Minister Koizumi is friend of mine; Koizumi 
gets red carpet treatment at welcoming ceremony 
 
NIHON KEIZAI (Page 2) (Full) 
June 30, 2006 
 
At a welcoming ceremony on June 29, US President George W. Bush 
offered the maximum consideration to Prime Minister Junichiro 
Koizumi, saying "Welcome back to America, my friend!" 
 
Since heavy rain that had continued for five days ended on the day 
when Koizumi arrived in Washington, the ceremony was conducted under 
a blue sky. Koizumi then stated in the ceremony: "Even the weather 
welcomes me. President Bush is the only world leader whom I can 
trust." 
 
Bush concluded his speech, by saying, "The real highlight is a trip 
to Graceland, the home of the King (of rock Elvis Presley)." 
 
In the welcoming ceremony for Chinese President Hu Jintao in April, 
Bush only just stated specific pending bilateral issues. There were 
no exchanges of warm words between them. 
 
The president and his wife will present Koizumi with a jukebox 
 
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SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 06//06 
 
recording the songs of Elvis. During a joint press conference, Bush 
even made a joke, using the title of a song of Presley saying, 
"Don't be cruel to the prime minister!" 
 
9) Prime minister himself 'lifts ban' on US beef; Orders prime rib 
at US restaurant 
 
ASAHI (Page 4) (Full) 
June 30, 2006 
 
Prime Minister Koizumi, now visiting the US, yesterday evening had 
US beef along with his secretary and other officials traveling with 
him at a posh steak house, a regular haunt for congressional 
staffers and government officials. The BSE issue has neared a 
settlement, and one of the agenda items at the upcoming summit with 
President Bush is the resumption of US beef by Japan. Thus, the 
prime minister himself lifted the ban on US beef prior to the 
summit. 
 
He ordered prime rib, one of the popular dishes on the menu at the 
restaurant. Steaks weighing 24 ounces (approximately 680 grams) are 
usually served there. However, the prime minister reportedly ordered 
a boneless steak weighing half the regular size (12 ounces or about 
340 grams). 
 
10) Main points from a joint press conference held on June 29 by 
Prime Minister Junichiro Koizumi and President George W. Bush 
 
NIHON KEIZAI (Page 2) (Full) 
June 30, 2006 
 
Japan-US relations 
 
President Bush: I have built a free and friendly relationship with 
the prime minister. The prime minister strongly believes in 
universal values and has taken actions based on them. The United 
States and Japan will be able to work more closely in the 21st 
century. Japan has also extended cooperation on the realignment of 
US forces in Japan with courage. I am grateful for it opening the 
Japanese market to US beef. 
 
Prime Minister Koizumi: Thanks to the friendship with President Bush 
over the last five years, I was able to exchange views with him 
frankly. We confirmed the policy direction that the Japan-US 
alliance will tackle various issues from a global context. Regarding 
US force realignment, we also affirmed that the two countries will 
work closely to reduce the burden on base-hosting communities and 
maintain deterrence. We also confirmed that the two countries hold 
common views on various other issues, such as Iran and North Korea. 
 
Cooperation on antiterrorism 
 
Bush: The Japanese troops did a splendid job in Iraq. The 
cooperation of Japan's Self-Defense Forces has helped reduce our 
work in Iraq. The prime minister has promised Japan's continued 
transport and maritime cooperation. 
 
Koizumi: Japan has been assisting Iraq's nation-building efforts in 
a way different from the United States. Although the troops will 
withdraw from Samawah, Japan will continue cooperating with the 
United States, the United Nations, and other countries as a member 
of the coalition. 
 
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SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 06//06 
 
 
North Korea 
 
Koizumi: We also discussed the North Korean issue. We agreed to 
(urge) the North to become a responsible member of the six-party 
talks. We also confirmed that we will urge Pyongyang not to launch a 
Taepodong missile, practicing self-restraint. We also discussed 
applying pressure in the event the North fires a missile. 
 
Bush: We discussed the need to send a clear message to the North 
Korean leader. We will not tolerate a missile launch. The North 
Korean leader owes us an explanation of his intentions. The 
six-party talks must maintain their unity. Referring the issue to 
the United Nations (Security Council) and establishing a missile 
defense system could be effective means. 
 
Iran 
 
Koizumi: Possible nuclear proliferation by Iran is a great concern 
for Japan as well. Japan will cooperate with other countries. 
 
11) Japan-US joint document highlights achievements in security 
area; Wrangling over document between MOFA, JDA 
 
YOMIURI (Page 4) (Excerpts) 
June 30, 2006 
 
Takaharu Yoshiyama, Washington 
 
"The Japan-US alliance for the new century," a joint document issued 
on June 29 by Prime Minister Koizumi and US President Bush, 
highlighted the significance of the Japan-US joint strategic goals 
set in February of last year and the plans agreed on this May for US 
force realignment in Japan. It also played up the achievements both 
sides have made in the security area. 
 
The joint document hails an alliance that has deepened through 
cooperation over missile defense (MD) and legislation for 
contingencies. It also stipulates that deep cooperation between 
Japan and the US will contribute to maintaining stability in 
Northeast Asia by utilizing Chinese vitality and that the bilateral 
alliance is "based on universal values and common interests," 
indirectly underlining that Japan and the US are different from 
China in terms of their political systems. 
 
Under Prime Minister Koizumi and President Bush, significant 
progress has been made in the security area over the past five 
years. 
 
The Defense Agency (JDA) initially aimed to draw up "a new 
declaration" to replace the 1996 Japan-US Security Joint 
Declaration, which worked to prompt the review of the Japan-US 
defense cooperation guidelines. The aim was to pave the way to 
forming "a new defense cooperation guideline" to replace the current 
guidelines worked out in 1997. The JDA deems the current guidelines 
insufficient in terms of describing Japan-US cooperation on MD and 
Japan's participation in multilateral international cooperation 
activities. 
 
However, the Ministry of Foreign Affairs (MOFA) was negative about 
"a new framework" and "a new joint security declaration," insisting 
that implementing the agreed US realignment plans is the first 
 
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SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 06//06 
 
priority. The US government also took the view that priority should 
be given to drawing up a joint operation plan in times of emergency 
in Japan and a mutual cooperation plan assuming regional 
contingencies, rather than working out guidelines that feature 
abstract arguments. 
 
12) Joint document: Japan, US to pursue common values 
 
ASAHI (Page 4) (Excerpts) 
June 30, 2006 
 
"The Japan-US alliance for the new century," a joint document issued 
by the Japanese and United States leaders, is to complete the reform 
of the alliance that the two countries have addressed through the 
realignment of US forces in Japan. The document is designed to alter 
the Cold War alliance focusing on responses to threats into a new 
one to play a wider role based on common values and interests. 
 
The document specifies common interests, as well as values. In the 
document, the two countries advocate a new cooperation framework 
that reflects the agreed common strategic goals. 
 
Changes in the strategic environment surrounding Japan and the US 
are behind their proposal for a new framework. In the Cold War era, 
the focus was on how to deal with threats from the Soviet Union. 
Since 9/11, however, it has become vital to prevent the world and 
the region from being destabilized. It is also necessary to tackle 
reconstruction from natural disasters and energy problems. As it 
stands, the challenges facing Japan and the US have diversified. 
 
The joint declaration notes: "Asia is in the process of changing 
into a region based on universal values." Based on this perception, 
the document reiterated that the Japan-US alliance is based on the 
common values of freedom and democracy. It then set the goal of 
"jointly designing and helping the historic reform of Asia." 
 
But it is not easy to realize this goal. The Bush administration 
launched the Iraq war on the principle of spreading democracy around 
the world. In reaction, criticism is erupting from the Middle East 
and Europe. There is criticism even within the US. 
 
It is uncertain if Asia is actually in a reform process. Will the 
Japan-US alliance help Asia's reform? Will a rapidly growing China 
go along with what Japan and the US expect of it? There are many 
tasks facing the Japan-US alliance. 
 
13) ROK abductee Kim Young Nam insists, "Megumi is dead," saying he 
was adrift and rescued, rejecting the claim he was abducted; 
Criticizes Japan over "ashes" 
 
ASAHI (Top play) (Excerpts) 
June 30, 2006 
 
Tadahisa Takatsuki, Seoul 
 
South Korean abductee Kim Young Nam, 44, believed to be the husband 
of Japanese abductee Megumi Yokota, yesterday had a news conference 
in Mt. Kumgang, a North Korean resort he was visiting for a reunion 
with his mother and sister. According to South Korean media that 
attended the news conference, Kim reiterated North Korea's past 
assertions, including that Megumi killed herself in 1994. He also 
rejected the claim that he had been abducted to North Korea, 
 
TOKYO 00003632  008 OF 012 
 
SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 06//06 
 
arguing, "I was rescued by a North Korean boat while adrift at sea." 
In addition, he criticized Japan for its claim that the ashes North 
Korea had handed to Japan as those of Megumi were someone else's, 
calling it a lie. 
 
The family reunion came as part of the family reunion project for 
separated families. Some abductees had taken part in this project in 
the past, but no participants have admitted to the abductions by 
North Korea. This interview by Kim Young Nam is seen as North 
Korea's attempt to demonstrate to South Korea the importance of 
cooperation between the Korean peoples as well as to check Japan's 
call for an early settlement of the abduction issue. 
 
14) South Korean abductee Kim Young Nam's news conference: Megumi 
Yokota's parents "boiling with rage," "expected his remarks" 
 
ASAHI (Page 39) (Excerpts) 
June 30, 2006 
 
"Unfortunately, Megumi died in 1994. This is all I can say," South 
Korean abductee Kim Young Nam, 44, believed to be the husband of 
Japanese abductee Megumi Yokota, said during his news conference 
held in North Korea. Megumi's father, Shigeru, 73, watched this news 
conference on TV in Tokyo, biting his lip. Megumi's mother, Sakie, 
70, breathed deeply. "This is what we expected," they said, but they 
revealed their anger toward Young Nam, who mentioned the word 
"death" with an attitude of unconcern. 
 
"He leaves us with the impression that he came there (for a news 
conference) after being trained hard. All he said was what we had 
expected." "There's no new information in his remarks. We hope the 
government will continue negotiations (with North Korea) on the 
premise that Megumi is alive." 
 
During a press conference, Shigeru and Sakie remained calm, noting, 
"All the remarks are the same as what North Korea has insisted in 
the past." Referring to Young Nam's remarks concerning the ashes 
that "(Japan's) conclusion that the ashes are someone else's is an 
insult to me and Megumi," they said: "He insisted that we should 
accept someone else's ashes. This, too, is the same as that country 
has done before." 
 
In the middle of the conference, Shigeru and Sakie revealed their 
parental and grandparental love for their daughter and 
granddaughter. Referring to Megumi's illness, Sakie reiterated: 
"I've always thought how hard it was for her to have a baby and take 
care of a child without any knowledge and experience. She might have 
suffered depression;" and, "She would have felt lonely but she had 
to live. She led a happy life until she was 13. I thought it would 
be only natural for her to have a happy life." 
 
When they were asked about Young Nam, they said in a trembling 
voice: "She'd have been forced to marry him because she happened to 
be there. If she'd been in Japan, she'd have had a happy marriage 
and children." 
 
15) Chief Cabinet Secretary Abe: "Nobody is free to state his views 
in North Korea" 
 
ASAHI (Page 3) (Full) 
June 30, 2006 
 
 
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SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 06//06 
 
When asked by reporters at the Prime Minister's Official Residence 
yesterday about South Korean abductee Kim Young Nam's news 
conference, Chief Cabinet Secretary Abe said: "As repatriated 
Japanese abductees have pointed out, nobody is free to state his 
views in North Korea. Some in (Japanese government) organizations 
point out there are some contradictions (in Mr. Kim's remarks)." 
 
Abe also stated: "I hope we can close in on the truth by asking the 
North Koreans about the contradictions. We'll continue negotiations 
on the premise that all the abductees are alive." 
 
The Japanese government will continue its efforts to (1) bring all 
surviving abductees back to Japan; and (2) have North Korea hand the 
abductors over to Japan. After watching the news conference, Deputy 
Chief Cabinet Secretary Seiji Suzuki told reporters: "That is 
completely unbelievable. We continue our efforts to resolve the 
abduction issue." 
 
16) WTO six-nation talks; Whether the US will make concessions is of 
primary concern; Japan to confirm cooperation with France and 
Canada 
 
MAINICHI (Page 9) (Full) 
June 30, 2006 
 
Geneva, Yotaro Fujiyoshi and Katsumi Sawada 
 
An informal ministerial meeting of six major economies (G-6) 
yesterday kicked off at the multilateral trade talks (Doha Round) at 
the World Trade Organization (WTO). The course of the meeting will 
likely determine the fate of a formal ministerial meeting to be held 
today with the participation of approximately 40 nations. The focus 
was on whether the US could make concessions on domestic subsidies 
for agriculture. The dominant view is that if the talks fail to make 
progress this time, it will be impossible for the round to be 
completed this year. A sense of alarm is growing. 
 
The participants at the meeting were Japan, the US, the EU, Brazil, 
India, and Australia. Meeting the press prior to the G-6, EU Trade 
Commissioner Mandelson categorically said, "We are ready to make 
concessions if conditions, such as a cut in domestic subsidies by 
the US, are met." A senior US official called on the EU and Brazil 
to cut tariffs but refrained from referring to domestic subsidies. 
 
This has generated the view that since the US administration has a 
weak base at present, it would be difficult for it to substantially 
cut subsidies, as a senior British official put it. A senior 
Japanese official pointed out that with the Japanese and British 
administrations soon to be replaced and Brazil having a presidential 
election close at hand, it is difficult for them to make a political 
decision, because representatives to the meeting are feeling 
pressure from their parliaments, or votes from agricultural 
organizations are weighing on their minds. 
 
The key point for Japan is the number of key trade items treated as 
exceptions to liberalization, including rice, and the handling of 
such items. The Japanese representatives will meet with their French 
and Canadian counterparts on the 29th and reaffirm their 
relationship of strategic cooperation. WTO Secretary General Lamy is 
pressing the participating countries to boil down issues and make 
political decisions. The cliff-hanger negotiations will likely 
continue. 
 
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17) WTO talks; US increasingly becoming firm, rejecting Japanese and 
EU concession proposals for tariffs of farm produce 
 
NIHON KEIZAI (Page 5) (Slightly abridged) 
June 30, 2006 
 
Geneva, Takeshi Kawanami 
 
The US is seeking substantial liberalization of the agricultural 
market at the multilateral trade talks (Doha Round) at the World 
Trade Organizations (WTO). Its hard-line stance is now becoming even 
clearer. Japan and the EU on June 29 indicated a decision to raise 
the rate of cuts in tariffs, based on the precondition that the US 
makes concessions. However, a US senior official rejected the 
proposal, noting, "Proposals made by countries other than the US are 
insufficient." Reaching an agreement on trade liberalization rules 
at the ongoing meeting has thus become even more difficult. 
 
The G-10 consisting of farm-produce importers, such as Japan and 
Switzerland, yesterday held a ministerial meeting. They reaffirmed a 
policy of making concessions to some extent over the rate of cuts in 
tariffs, provided that the US lowers the level of its requests. EU 
Trade Commissioner Mandelson stated, "We are ready to make a 
compromise on the liberalization of the agriculture market, if the 
US makes concessions on cuts in its domestic subsidies." 
 
However, a senior US official expressed dissatisfaction: "Japan 
imposes a tariff of more than 750% on rice. Even if it lowers that 
tariff in accordance with a proposal made by countries other than 
US, a triple-digit tariff will still remain." The US representative 
underscored that the Japanese, EU, and Brazilian proposal for 
cutting the rate of tariffs on agricultural products up to 45% -75% 
is insufficient. The US is calling for a cut up to 90%. It has ruled 
out the possibility of making substantial concessions, with that 
official noting, "The proposal made by those countries and the 
organization will not lead to true market liberalization." 
 
The US is calling for the introduction of a tariff cap system 
designed to hold tariffs on all agricultural products to 75% or 
less. The G-10 member countries yesterday unanimously opposed the 
introduction of such a system, as they have many high-tariff trade 
items. 
 
18) Government holds FTA talks with ASEAN in Jakarta 
 
NIHON KEIZAI (Page 5) (Full) 
June 30, 2006 
 
The Japanese government and the Association of South-East Asian 
Nations (ASEAN) on June 29 held the fourth round of free trade 
agreement talks in Jakarta. The Japanese side called on 10 ASEAN 
member nations to scrap tariffs on more than 90% of trade items. It 
proposed holding talks on individual trade items, such as autos and 
household appliances. 
 
However, ASEAN side called for FTA negotiations based on a package 
formula, as it employed in talks with China and South Korea. A 
Japanese government official noted, "The two sides are still at odds 
over how to proceed with negotiations." The next meeting will be 
held in Jakarta as early as late July. Both sides will aim at 
reaching a final agreement next spring, after holding a meeting of 
 
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economic ministers this summer. 
 
19) Japan, US agree to set up a US force realignment council 
 
MAINICHI (Page 3) (Full) 
June 30, 2006 
 
The Japanese and US governments yesterday agreed to establish a US 
force realignment council, a consultative panel to deal with the 
realignment of US forces in Japan. The purpose of the panel is to 
map out plans for individual implementation plans, such as the 
transfer of the 1st Army Command to Camp Zama in Kanagawa Prefecture 
and the transfer of a carrier-based air unit to the MCAS Iwakuni, 
and also to confirm the progress of the plans. 
 
Joining the panel from the Japanese side will be the director of the 
Japan-US Security Treaty Bureau of the Foreign Ministry and the 
director of the Defense Policy Bureau of the Defense Agency. 
Participants from the US will include the chief of the US Embassy 
Security Desk and the director of the Policy Planning Office in the 
US Forces Japan Headquarters. 
 
20) Inamine's decision to resign pushes ruling and opposition blocks 
toward fierce maneuvering to determine his successor with Futenma's 
fate at stake 
 
TOKYO SHIMBUN (Page 2) (Excerpts) 
June 30, 2006 
 
Okinawa Governor Keiichi Inamine announced before the prefectural 
assembly yesterday that he will resign from the post without running 
in the gubernatorial race in November. US force realignment will be 
the largest campaign issue for selecting Inamine's successor. Fierce 
bargaining is likely to occur soon in the political world in Tokyo 
as well. 
 
The political world in Tokyo takes a strong interest in the Okinawa 
gubernatorial race, because the outcome will inevitably affect the 
plan to relocate Futenma Air Station to Camp Schwab, a key factor in 
US force realignment. The relocation plan will be affected by the 
response of the governor, who has the authority to issue permission 
to use public waters. 
 
21) Okinawa governor announces he will not seek third term 
 
SANKEI (Page 4) (Full) 
June 30, 2006 
 
Okinawa Governor Keiichi Inamine announced yesterday that he would 
not seek a third term in the gubernatorial election on November 19. 
Following this, the ruling and opposition parties will start work to 
select candidates. In the gubernatorial election campaign, the US 
force realignment issue will be the top issue, and the outcome of 
the election is likely to affect the future of realignment. 
 
22) GSDF drone crashes in Iraq 
 
ASAHI (Page 38) (Full) 
June 30, 2006 
 
A Ground Self-Defense Force unmanned aircraft vehicle (UAV) on an 
intelligence-gathering and scouting mission in the southern Iraqi 
 
TOKYO 00003632  012 OF 012 
 
SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 06//06 
 
city of Samawah crashed at a point several kilometers north of the 
GSDF's Samawah camp at around 4 a.m. on June 29 local time, Defense 
Agency officials said yesterday. The crash is presumably 
attributable to the vehicle's own trouble, not to an attack from the 
ground, the officials said. This is the second UAV crash, following 
the first one that took place on May 22. 
 
23) MSDF destroyer heading home 
 
ASAHI (Page 38) (Full) 
June 30, 2006 
 
The Maritime Self-Defense Force's Yokosuka-based Aegis-equipped 
destroyer Kirishima has been abruptly ordered home from the US-led 
Rim-of-the-Pacific joint maneuvers (RIMPAC 2006) currently going on 
with the fleet participation of Japanese and other foreign naval 
vessels in waters off Hawaii, MSDF sources said yesterday. The MSDF 
destroyer is believed to be on stage in waters near Japan to keep 
watch on North Korea because North Korea remains ready to launch a 
Taepodong-2 long-range ballistic missile. 
 
DONOVAN