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UNCLAS SECTION 01 OF 12 TOKYO 003743 
 
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 07/06/06 
 
Index: 
1) Top headlines 
 
2) Editorials 
 
3) Prime Minister's daily schedule 
 
4) Secretary Rumsfeld, JDA chief Nukuga vow cooperation in dealing 
with North Korean missile threat 
 
5) Ambassador Schieffer tells press that various options being 
considered toward North Korea after missile launches 
 
6) Japan preparing joint UNSC draft resolution to denounce North 
Korea for launching missiles 
 
7) Government considering additional sanctions measures against 
North Korea 
 
8) Assistant Secretary Hill to visit Japan, China, South Korea, 
Russia to seek coalition of willing in dealing with North Korea 
 
9) North Korea presenting challenge for US-Japan missile defense 
program 
 
10) US, Japan exchange intelligence real time as North Korea 
launches missiles 
 
11) Taepodong-2 launch was an apparent failure, indicating a second 
attempt likely 
 
12) JDA alarmed about North Korea's rising missile technology 
 
13) Text of Japan's statement about response to North Korea missile 
launches 
 
14) South Korea-aligned Mindan pulling plug on reconciliation with 
Pyongyang-aligned Chosen Soren in wake of missile launches 
 
15) North Korea missile launches give boost to hard liners in LDP 
 
16) Minshuto head Ozawa takes cautious stance on sanctions toward 
North Korea 
 
17) LDP presidential election formally set for Sept. 20, with 
security affairs as main campaign issue    11 
 
18) WTO chief Lamy in Tokyo but slim hope that Japan will compromise 
on agricultural trade in WTO round 
 
19)  ROK survey vessel in Japan's EEZ 
 
20) Japan protests survey ROK survey vessel in its EEZ 
 
Contents: 
1) TOP HEADLINES 
 
Asahi: Mainichi: Yomiuri: Nihon Keizai: Sankei: Tokyo Shimbun: 
 
North Korea launches seven missiles; Japan, US to seed adoption of 
resolution censuring it for the missile launches at UNSC; Government 
considering strengthening sanctions, including suspension of bank 
 
TOKYO 00003743  002 OF 012 
 
 
remittance, trade 
 
2) EDITORIALS 
Asahi: 
(1)North Korea launches missiles: We protest this reckless action 
 
Mainichi: 
(1)North Korea launches missiles: International society must not 
allow provocative actions by Pyongyang 
(2)Democratic Party of Japan (Minshuto) President Ozawa visits 
China: Cool-headed dialogue with China took place took after long 
interval 
 
Yomiuri: 
(1)Missile launches by North Korea are a grave challenge to the 
international community 
 
Nihon Keizai: 
(1)We strongly protest missile launches by North Korea 
 
Sankei: 
(1)"Fireworks" displayed by impoverished nation: How should Japan 
deal with threats coming from a ridiculous country 
 
Tokyo Shimbun: 
(1)North Korea launches missiles; The threat will further isolate 
North Korea 
 
3) Prime Minister's Official Residence (Kantei) 
 
NIHON KEIZAI (Page 2)  (Full) 
July 6, 2006 
 
06:31 
Arrived at Kantei. 
07:16 
Met Chief Cabinet Secretary Abe and Assistant Deputy Chief Cabinet 
Secretary Ando. Later, attended a Security Council meeting. 
 
SIPDIS 
10:15 
Met Asahi Shimbun columnist Yoichi Funahashi. Followed by 
Agriculture, Forestry and Fisheries Minister Nakagawa, METI Minister 
Nikai, and others. 
11:23 
Deputy Foreign Minister Yabunaka, and Disarmament, Non-proliferation 
and Science Department Deputy Director General Nakane. Attended a 
Security Council meeting. 
12:10 
Met Deputy Chief Cabinet Secretary Futahashi, Cabinet Affairs Office 
Director General Shibata, and others. 
14:19 
Met Afghanistan President Karzai, with Japan International 
Cooperation Agency President Sadako Ogata and others present.. 
15:37 
Joined the videotaping of the program "Challenged Japan Forum 2006 
International Conference." Later met Jiji Press President Hiroshi 
Izumi and chief editor Sadafumi Tani. 
16:06 
Met Lower House member Toshikazu Matsuoka. Followed by the Benin 
president 
17:18 
Met Agriculture Minister Nakagawa and others. Followed by Abe. 
19:04 
 
TOKYO 00003743  003 OF 012 
 
 
Met at his official residence with Health, Labor and Welfare 
Minister Kawasaki, the Welfare and Labor Committee chairmen of the 
Lower and Upper House, ruling party directors, and others, joined by 
Abe. 
 
4) Nukaga, US secretary of defense pledge continued cooperation 
 
TOKYO SHIMBUN (Page 2) (Full) 
July 6, 2006 
 
Defense Agency Director General Fukushiro Nukaga and his US 
Secretary of Defense Rumsfeld yesterday evening discussed North 
 
SIPDIS 
Korea's missile launches for about ten minutes on the phone. The two 
defense chiefs agreed that the two countries would continue to 
closely cooperate with each other in responding to the issue. During 
the conversation Nukaga stressed, "The Japanese government will deal 
with North Korea's provocative act in a severe manner." Rumsfeld 
responded: "It is good that cooperation between US forces in Japan 
and the Pacific Command is going well. It is only natural for us to 
act in concert." 
 
5) US Ambassador to Japan Schieffer: US considering all options in 
response 
 
SANKEI (Page 3) (Full) 
July 6, 2006 
 
US Ambassador to Japan Thomas Schieffer yesterday held a press 
conference about North Korea's missile launches at the US Embassy at 
Akasaka, Tokyo. He stated: "The US will discuss sanctions with the 
Japanese government and other friendly countries. The US will 
consider all options." 
 
Schieffer did not rule out the possibility of using armed force, 
saying: "Resolving the matter with diplomatic efforts is desirable, 
but the US is responsible for protecting the citizens of a friendly 
country." 
 
When asked about responses the Japanese and US governments and 
relevant organizations have taken after the missile launches, the 
ambassador said, "Both sides are working in unprecedentedly close 
cooperation to exchange intelligence. The US and Japan have an 
extremely close relationship." He expressed gratitude for Japan's 
responses. 
 
6) Japan to present a draft UN resolution condemning North Korean 
missile launches; Seventh missile lands in Sea of Japan 
 
ASAHI (Top play) (Excerpts) 
July 6, 2006 
 
The UN Security Council held an emergency meeting on the morning of 
July 5 (in the late hours of July 5, Japan time) at Japan's request 
to discuss North Korea's missile launches. In the afternoon, Japan 
will present a draft UN resolution condemning North Korea. Prior to 
this, Foreign Minister Taro Aso had telephone conversations with his 
counterparts of the United States, China, South Korea, and Russia to 
seek their support for an adoption of the resolution. Meanwhile, the 
Defense Agency announced last evening that North Korea had launched 
another missile at around 5:20 p.m. and that landed in the Sea of 
Japan. A senior Defense Agency official said, "We believe it was 
either a Scud or a Rodong." North Korea launched a total of seven 
 
TOKYO 00003743  004 OF 012 
 
 
missiles yesterday. Prime Minister Junichiro Koizumi said 
disapprovingly last evening, "For whatever reason, the lunches won't 
benefit North Korea." The government is considering additional 
economic sanctions following its nine-item sanctions, including a 
ban on port calls for six months by the North Korean cargo-passenger 
ship Man Gyong Bong-92. 
 
7) Government to consider additional sanctions against North Korea 
 
ASAHI (Page 1) (Excerpts) 
July 6, 2006 
 
The government will consider additional economic sanctions related 
to finance and trade after carefully monitoring UN Security Council 
discussion and North Korea's response. The focus will shift to the 
suspension of cash remittances to the North in accordance with the 
Foreign Exchange and Foreign Trade Control Law. 
 
The government adopted yesterday a set of nine items, including a 
ban on port calls by the Man Gyong Bong-92 ferry, as the first step 
against North Korea. Chief Cabinet Secretary Shinzo Abe announced in 
a press conference yesterday, "The government will consider all 
sanctions. Suspending cash remittances is one option." 
 
People bringing cash out of Japan are required to report it. But if 
the government judged it necessary for the security of Japan, it can 
adopt a permission system to apply it to specific countries under 
the Foreign Exchange and Foreign Trade Control Law. The government 
can also apply a permission system to trade with certain countries. 
 
Once the cabinet adopts economic sanctions under the Foreign 
Exchange and Foreign Trade Control Law, the Economy, Trade and 
Industry Ministry can suspend trade with North Korea. Economy, Trade 
and Industry Minister Toshihiro Nikai announced that the ministry 
would consider measures, including the suspension of trade with the 
North. Agriculture, Forestry and Fisheries Minister Shoichi Nakagawa 
also indicated that marine products from North Korea should be 
subject to sanctions. 
 
8) US assistant secretary of state to travel to Japan, China, ROK, 
Russia for consultations, considering putting pressure by forming a 
"coalition of the willing" toward DPRK 
 
NIHON KEIZAI (Page 3) (Excerpts) 
July 6, 2006 
 
Hidenori Kato, Washington 
 
The Bush administration will send Assistant Secretary of State Hill 
for East Asia and the Pacific, the chief negotiator in the six-party 
talks, to Japan, China, South Korea, and Russia to discuss how to 
deal with North Korea. Hill will likely depart the United States on 
July 5. He will discuss how to resume the now stalled six-party 
talks in each country he will visit. In Japan, he is expected to 
discuss sanction measures with Japanese officials. 
 
The US intends to step up pressure on North Korea by taking 
advantage of such international fora as the United Nations Security 
Council (UNSC) and the Group of Eight industrialized nations summit 
conference (G-8 Summit at St. Petersburg). Washington wants to 
encircle North Korea by involving China, which has a strong 
influence over North Korea, and other countries, but depending on 
 
TOKYO 00003743  005 OF 012 
 
 
circumstances, the US may do so under a "coalition of the willing." 
 
The first such diplomatic occasion comes on July 5 at the UNSC. Next 
week and after, the G-8 Summit will take place, followed by the 
ASEAN Regional Forum (ARF) foreign ministerial session. Secretary of 
State Rice is considering making a round of visits to Japan, China, 
and South Korea. A high-level US government official has revealed 
that coordination is underway for the G-8 Summit to release a 
statement that will refer to North Korea's missiles. 
 
The US government's basic position is that bilateral talks between 
the US and North Korea are likely if North Korea returns to the 
six-party talks. This position remains the same. 
 
9) Challenges left behind in missile counteraction 
 
ASAHI (Page 4) (Abridged) 
July 6, 2006 
 
North Korea's launch of missiles, including a Taepodong-2 missile, 
took place when Japan and the United States were building a missile 
defense (MD) system in the wake of North Korea's launch of 
Taepodong-1 missiles in 1998. Around May, US reconnaissance 
satellites spotted North Korean preparatory moves for launching 
missiles. In response, Japan went on the alert. This made it 
possible for the Japanese government to take action without delay, 
according to an official. However, the missile aftermath has also 
left challenges to address, such as how to inform local governments 
and communities. Another problem remaining is what to do about 
consistency with Japan's constitutional constraints on its use of 
the right of collective self-defense. 
 
The first missile was launched into the Sea of Japan from North 
Korea's southeastern area at around 3:30 a.m. yesterday. At 3:52 
a.m., about 20 minutes later, Prime Minister Koizumi received a 
report of the missile launch from a secretary via US Forces Japan 
(USFJ). At almost the same time, the government issued an emergency 
warning to call up senior officials from various ministries and 
agencies. 
 
At 4 a.m., the government set up an emergency task force at the 
prime minister's office. Shortly thereafter, Chief Cabinet Secretary 
Abe, Defense Agency Director General Nukaga, and Foreign Minister 
Aso arrived there. At 5 a.m., the task force held a meeting to 
analyze the missile's type and landing point. North Korea's intent 
was also analyzed there. The government announced the missile 
launches at 6:15 a.m., 2 hours and 45 minutes after the first 
missile was launched. The announcement was made in a press 
conference with Abe at the prime minister's office. 
 
When North Korea launched the Taepodong-1 in 1998, the government 
had no manual in particular, according to Deputy Assistant Chief 
Cabinet Secretary Kyoji Yanagisawa. This time, the government could 
readily get in touch with officials to call them up, Yanagisawa 
explained. 
 
10) US military intelligence in real time 
 
ASAHI (Page 4) (Abridged) 
July 6, 2006 
 
The Defense Agency secured intelligence in real time from US 
 
TOKYO 00003743  006 OF 012 
 
 
military early-warning satellites on North Korea's missile launches. 
The Maritime Self-Defense Force had an Aegis-equipped destroyer on 
stage in the Sea of Japan, where the MSDF destroyer teamed up with a 
US Navy Aegis ship and they tracked the paths of the launched 
missiles. 
 
When North Korea launched a Taepodong-1 missile in 1998, the missile 
landed at a point off the coast of Sanriku. At the time, only the US 
military could grasp the missile's landing, and the Defense Agency 
was belatedly informed of the missile launch. This event made Japan 
and the United States decide to deepen their MD cooperation. 
 
US Forces Japan (USFJ) plans to deploy the USS Shiloh to the US 
Navy's Yokosuka base in Kanagawa Prefecture in August. The Shiloh is 
an Aegis ship loaded with Standard Missile 3 (SM-3) missiles against 
Rodong and other missiles with a range of 1,000 kilometers. USFJ 
will also deploy Patriot Advanced Capability 3 (PAC-3) 
surface-to-air guided missiles to the US Air Force's Kadena base in 
Okinawa Prefecture within the year. Japan has also decided to 
introduce PAC-3s from the United States at the end of the current 
fiscal year and SM-3s by the end of next fiscal year. 
 
Japan and the United States will also hurry to lay down a monitoring 
system. USFJ has installed a mobile early warning radar system, 
called X-band radar, at the Air Self-Defense Force's Shariki 
Detachment base in Aomori Prefecture. Its test operation started in 
late June earlier than scheduled. Japan and the United States will 
share radar-detected intelligence. However, there may be a case 
where the United States, based on intelligence from Japan, shoots 
down a Taepodong-2 missile launched at the United States, and vice 
versa. In this case, however, the question is whether it corresponds 
to participation in collective self-defense. There were arguments on 
this even before the government decided to introduce an MD system. 
This problem has yet to be cleared. However, Japan and the United 
States are going to conclude an intelligence sharing agreement this 
summer. 
 
11) North Korea likely to test-fire another Taepodong-2 missile 
 
YOMIURI (Page 3) (Abridged) 
July 6, 2006 
 
The Japanese and South Korean governments announced yesterday that 
the launch of a Taepodong-2 missile might have ended in failure. 
North Korea has a missile that can reach the US mainland. North 
Korea probably wanted to show off that missile. If the Taepodong-2 
missile crashed into the Sea of Japan shortly after it was launched, 
it means that North Korea's aim has gone wrong. North Korea has 
developed the Taepodong-2 as a card to play with the United States. 
However, its efficacy has weakened, according to one South Korean 
professor. However, this professor also noted that North Korea could 
test-fire another Taepodong-2 missile to recover the failure. 
 
However, there is also a cautious view. "North Korea might have held 
down the missile's range so that Japan and the United States will 
not take an extremely strict stance," said a North Korea expert at a 
South Korean think tank on national defense. This South Korean 
expert recounted that North Korea avoided landing the Taepodong-2 
missile at the US mainland for fear or US counterattacks and that 
North Korea calculated the missile's flying distance and only 
test-fired it in an aim to show off its missile attack capability 
while bearing in mind its proposal to hold talks with the United 
 
TOKYO 00003743  007 OF 012 
 
 
States in the future. Another South Korean professor also supports 
that view, saying North Korea must be prepared for war with the 
United States if the Taepodong reached Alaska. 
 
This time, North Korea, unlike its previous launch of a Taepodong-1 
missile in 1998, launched not only a Taepodong-2 missile but also 
many other short-range missiles, including Scud and Rodong missiles, 
at the same time. There is no doubt that North Korea intended to 
show off its military power to the full. 
 
Another South Korean professor surmises that the launch of those 
short- and intermediate-range missiles, which were certain to be 
successfully launched, was a kind of "insurance" for the Taepodong-2 
missile's potential failure. 
 
12) Defense Agency alarmed at North Korea's improved missile 
technology 
 
NIHON KEIZAI (Page 3) (Excerpts) 
July 6, 2006 
 
The Defense Agency and the Self-Defense Forces have been monitoring, 
in concert with US military forces, North Korea's preparations for 
missile launches, after having grasped signs of such at an early 
stage. Although the US military speedily notified the Defense Agency 
of the North's confirmed missile launches, the agency lacks the 
means to intercept them at present. Japan intends to expedite the 
deployment of a missile defense system in collaboration with the 
United States in order to enhance its air defense system. 
 
The Defense Agency learned of the North's first missile launch from 
the US military shortly after 3:30 a.m. yesterday. A US early 
warning satellite detected the missile's heat with its infrared 
rays. The Maritime Self-Defense Force's Aegis vessel carrying 
high-performance anti-antiaircraft radar capable of tracking and 
recovering missiles confirmed the North Korean missile's wake. The 
MSDF and the Air Self-Defense Force used their electronic 
surveillance aircraft to gather intelligence by monitoring North 
Korea's signals. 
 
US forces in Japan has also deployed Aegis vessels and the missile 
observation vessel Observation Island to the Sea of Japan. 
Electronic surveillance aircraft RC-135S (Cobra Ball) is also 
believed to have detected the missiles' tracks with infrared rays. 
 
Although the Taepodong-2 is said to be capable of reaching parts of 
the continental United States, such as Alaska, the one launched 
yesterday landed in the Sea of Japan about 600 to 700 kilometers 
from North Korea's test site. Because Japanese and US Aegis radars 
did not detect any signs of its first-stage booster falling, 
observers believe that the missile failed to separate from its 
booster and landed in the sea after flying only a short range. 
 
Nevertheless, the Defense Agency is highly alarmed at North Korea's 
steady development of missile technology. An analyst said: "The 
Taepodong missile launched by the North might have been able to fly 
over Hokkaido if conditions had been right, such as the launching 
angle." 
 
13) Government's measures against North Korea (full text) 
 
MAINICHI (Page 5) (Full) 
 
TOKYO 00003743  008 OF 012 
 
 
July 6, 2006 
 
The government yesterday adopted the following set of measures 
against North Korea for launching missiles: 
 
1.Japan will continue to express its regret at every level and 
protest to North Korea. It will also call on the North not to carry 
out another missile firing and to suspend and scrap its missile 
development program, as well as to embargo missiles. Japan will urge 
Pyongyang to confirm the missile-launch moratorium, act in line with 
it, and return to the six-party talks swiftly and unconditionally. 
2.The Mangyongbong-92 has been banned from calling at Japanese 
ports. 
3.North Korean officials will not be allowed to enter Japan in 
principle. Regarding other entry cases, strict examination will be 
carried out. In addition, if North Korean ships call at Japanese 
ports, their crewmembers will be not be allowed to make a land in 
principle. 
4.North Korean officials currently in Japan will in principle be 
prohibited from re-entering Japan after heading to North Korea 
5.Japanese government officials are requested in principle to 
suspend any trips to North Korea for the time being, and Japanese 
nationals will be requested to refrain from going to that nation. 
6.Chartered flights' entry from North Korea into Japan will not be 
allowed. 
7.Japan will continue to take strict export-control measures to 
prevent a proliferation of missiles and nuclear weapons involving 
North Korea. 
8.Stern legal measures pertaining to illegal acts by North Korea 
will continue to be taken. 
9.Japan will look into additional sanction measures while watching 
North Korea's future moves, including its response. 
 
14) Korean Residents Union in Japan to announce decision to retract 
reconciliation with General Association of Korean Residents in 
Japan 
 
YOMIURI (Page 38) (Excerpts) 
July 6, 2006 
 
The recent reconciliation between the pro-Seoul Korean Residents 
Union in Japan (Mindan) and the pro-Pyongyang General Association of 
Korean Residents in Japan (Chongryun) caused many local chapters of 
Mindan to react strongly. Mindan has now decided to withdraw the 
reconciliation, and it will formally announce its decision as early 
as today. 
 
A person affiliated with Mindan told the Yomiuri Shimbun yesterday: 
"We made the final decision due to (North Korea's) launch of 
missiles." The historical reconciliation after 
50-yerar-confrontation between the two groups of Korean Residents in 
Japan is to be withdrawn after a month and a half. 
 
In the reconciliation statement revealed on May 17, Mindan and 
Chongryun agreed to cooperate for ethnic unity. They also agreed on 
six points such as joint participation in the June 15 ethnic 
unification ceremony commemorating the 2000 South-North Korea 
summit. 
 
Meeting opposition by its regional chapters, Mindan gave up on its 
participation in the June 15 ceremony. In a special meeting of its 
central committee on July 24, Mindan leader Ha Byong Ok said, "The 
 
TOKYO 00003743  009 OF 012 
 
 
reconciliation has now returned to square one." 
 
15) North Korea's missile launches: Tough views dominant in LDP; 
Attention being paid to Abe's capability, with eye on presidential 
race 
 
MAINICHI (Page 5) (Excerpts) 
July 6, 2006 
 
The news of North Korea's ballistic missile launches has sent shock 
waves across the political world. Especially in the Liberal 
Democratic Party, hard-line views are dominant. Some members, 
though, are calling for caution in invoking sanctions, fearing that 
(the international community) might have to launch a military attack 
if the North resorts to violence in reaction. Such cautious voices, 
however, have been drowned out by others inflamed with anger. In the 
LDP presidential election, North Korea issues will inevitably be the 
top issue. Attention is being paid to what capabilities Chief 
Cabinet Secretary Shinzo Abe and Foreign Minister Taro Aso will 
demonstrate in working out the government's response measures. Their 
skillfulness will likely affect the outcome of the presidential 
race. 
 
The LDP held a meeting of officials in charge of defense and foreign 
policies, as well as from the Cabinet Offices yesterday afternoon. 
At the outset, former Foreign Minister Nobutaka Machimura stated: 
"Japan has dealt with that nation based on the "dialogue and 
pressure" principle. From now, pressure will prevail." In the 
meeting that lasted for about one hour and 20 minutes, views calling 
for tough measures erupted, such as: "The North Korean ferry 
Mangyongbong-92 should be prohibited from Japanese ports forever, 
not just for six months;" and "Serious sanction measures should be 
taken." 
 
Former Defense Agency Director General Shigeru Ishiba, though, 
called for caution, though such views are in the minority. Ishiba 
said: 
 
"A tough stance should be taken after arrangements are fully 
prepared to prevent anyone from being sacrificed, and on the 
assumption of every possible situation. Keeping in mind that a 
military attack could occur, satisfactory measures must be worked 
out to avoid such a risk; otherwise, a serious outcome could be 
brought about." 
 
The LDP and the New Komeito set up the ruling camp's taskforce to 
deal with North Korea's missile issue, headed by LDP Secretary 
General Tsutomu Takebe, and confirmed that they would support such 
measures as economic sanctions by the government and a referral of 
the issue to the United Nations Security Council. The House of 
Representatives' Security Committee in its directors meeting decided 
to carry out a questioning session with the participation of Foreign 
Minister Aso and JDA Director General Fukushiro Nukaga on July 6. 
 
16) Minshuto head Ozawa cautious about sanctions against North 
Korea; JCP, SDP positive 
 
MAINICHI (Page 5) (Full) 
July 6, 2006 
 
Tatsuo Eto, Tienchin 
 
 
TOKYO 00003743  010 OF 012 
 
 
Asked by reporters about economic sanctions against North Korea, 
which launched a set of missiles, Ichiro Ozawa, president of the 
main opposition party Minshuto (Democratic Party of Japan), who is 
now visiting China, took a cautious stance, saying, "It's not that 
simple to impose sanctions," stressing a stance of giving priority 
to dialogue rather than pressure. 
 
Ozawa pointed out: "Economic sanctions would lead to coercion and 
the use of military force. The public should consider such in a calm 
manner." He commented on the government's sanction policy:  "I want 
to ask the government whether it is serious. I think at present that 
the issue should be resolved through discussion by taking advantage 
of the six-party talks." 
 
Ozawa met yesterday in haste with Li Chun, head of the International 
Bureau of the Chinese Communist Party. He requested that China tell 
North Korea to stop provocative actions in East Asia that threaten 
peace and to resolve the issue at the six-party talks. He is 
expected to meet again today with Wang Jiarui, head of the 
International Department of the Chinese Communist Party's Central 
Committee, to tell him the importance of dialogue. 
 
Ozawa appears to be concerned about a possibility that Pyongyang may 
pose a danger for Japan as retaliation against Tokyo's economic 
sanctions. 
 
In the largest opposition party, however, many other lawmakers favor 
economic sanctions. The dominant view in a meeting yesterday of the 
party's task force was that the government should take more tough 
measures. 
 
Japanese Communist Party Chairman Kazuo Shii said, "It is possible 
to take appropriate measures, including economic sanctions." 
 
Social Democratic Party Chairperson Mizuho Fukushima made this 
comment, "It is inevitable that sanctions be taken." 
 
17) Security issue to become major campaign issue in LDP 
presidential race; Election set on Sept. 20 
 
NIHON KEIZAI (Page 2) (Full) 
July 6, 2006 
 
North Korea's firing of missiles will likely effect the Liberal 
Democratic Party (LDP) presidential election in September. It is 
certain that frosty relations between Japan and China and between 
Japan and South Korea and security issues will become main campaign 
issues. Chief Cabinet Secretary Shinzo Abe and Foreign Minister Taro 
Aso have top responsibility now for handling the North Korea issue. 
The possibility is that if they make any mistake in judgment, they 
will come under fire from the public. 
 
The LDP formally decided yesterday that the official campaign for 
the presidential election would begin on Aug. 30 with the election 
scheduled for Sept. 20. However, the North Korean missile issue is 
gradually affecting moves by candidates. 
 
In the wake of the North Korea's launch of missiles, the Niwa-Koga, 
Tanigaki and Kono factions in the LDP have put off a planned meeting 
today of their senior members. Aso and Finance Minister Sadakazu 
Tanigaki were expected to attend the meeting. 
 
 
TOKYO 00003743  011 OF 012 
 
 
In the ruling camp, there are two separate views: one is that Abe is 
now being exposed on spotlight and the missile issue would give a 
positive impact on Aso, and the other is that if Abe and Aso fail, 
they will suffer the effects. 
 
18) WTO director general visits Japan for first time; Japan unlikely 
to make concessions on agricultural tariff cuts 
 
ASAHI (Page 12) (Excerpts) 
July 6, 2006 
 
Pascal Lamy, director general of the World Trade Organization (WTO), 
yesterday came to Japan. He is expected to meet with Prime Minister 
Koizumi and Chief Cabinet Secretary Abe and urge them to make a 
concession on the call for cutting tariffs on agricultural products 
in order to bring progress to the stalemated multilateral trade 
liberalization talks (Doha Round). However, the Minister of 
Agriculture, Forestry and Fisheries (MAFF) and other concerned 
ministries are determined to take a wait-and-see stance with a 
senior MAFF official noting, "We will not show our hand until other 
member nations make concessions." This is Lamy's first visit to 
Japan since he came into office, but there is a slim chance of his 
visit producing results. 
 
The WTO ministerial meeting ended in failure on July 1. US Trade 
Representative Schwab expressed her dissatisfaction: "There are too 
many exceptions. There is a long way to go before agricultural talks 
make progress." She criticized farm produce importers for "asking 
for exceptional treatment on too many products, blocking 
negotiations from making progress." She called on them to make 
substantial concessions. 
 
19) ROK survey boat leaves Japan's EEZ 
 
MAINICHI (Page 2) (Excerpts) 
July 6, 2006 
 
Akiko Horiyama, Seoul 
 
A  South Korean government official yesterday revealed that a South 
Korean survey boat, which had continued exploring the waters near 
the Takeshima/Dokdo islets, completed its research, which was 
conducted by dropping a device to the seabed, and left Japan's 
territory near Takeshima at around 2:10 p.m., according to Yonhap 
news agency. 
 
20) Japan notifies ROK of protest survey plan 
 
MAINICHI (Page 2) (Full) 
July 6, 2006 
 
By Tomoko Onuki 
 
The government yesterday protested to South Korea against its survey 
of the marine current and waters near the Takeshima/Dokdo islets and 
conveyed to South Korea that as a counteraction, Japan plans to 
explore waters around Takeshima. The measures Japan took this time 
against the South Korean survey ship were, for instance, a Japan 
Coast Guard patrol boat calling on the South Korean ship to stop its 
survey by radio, instead of taking such tough measures as seizing 
the South Korean survey ship. 
 
 
TOKYO 00003743  012 OF 012 
 
 
Later in the day, Foreign Minister Taro Aso discussed the matter 
with South Korean Minister of Foreign Affairs and Trade Ban Ki Moon 
on the phone and protested against South Korea: "It's regrettable 
that South Korea implemented the survey in spite of Japan's repeated 
call for the cancellation of the survey." Administrative Vice 
Foreign Minister Shotaro Yachi summoned South Korean Ambassador to 
Japan Ra Jong Yil to his ministry and told the ambassador: "Japan, 
too, will conduct a survey." 
 
South Korea refused to halt the survey. But on North Korea's missile 
launches, both leaders confirmed that the two countries would work 
in close cooperation to deal with the matter. 
 
SCHIEFFER