VZCZCXRO5992
PP RUEHFK RUEHKSO RUEHNAG RUEHNH
DE RUEHKO #3878/01 1930248
ZNR UUUUU ZZH
P 120248Z JUL 06
FM AMEMBASSY TOKYO
TO RUEHC/SECSTATE WASHDC PRIORITY 4222
INFO RUEKJCS/SECDEF WASHDC PRIORITY
RHEHAAA/THE WHITE HOUSE WASHINGTON DC PRIORITY
RUEAWJA/USDOJ WASHDC PRIORITY
RULSDMK/USDOT WASHDC PRIORITY
RUCPDOC/USDOC WASHDC PRIORITY
RUEAIIA/CIA WASHDC PRIORITY
RUEKJCS/JOINT STAFF WASHDC//J5//
RHHMUNA/HQ USPACOM HONOLULU HI
RHHMHBA/COMPACFLT PEARL HARBOR HI
RHMFIUU/HQ PACAF HICKAM AFB HI//CC/PA//
RHMFIUU/COMUSJAPAN YOKOTA AB JA//J5/JO21//
RUYNAAC/COMNAVFORJAPAN YOKOSUKA JA
RUAYJAA/COMPATWING ONE KAMI SEYA JA
RUEHNH/AMCONSUL NAHA 9756
RUEHFK/AMCONSUL FUKUOKA 7157
RUEHOK/AMCONSUL OSAKA KOBE 0457
RUEHNAG/AMCONSUL NAGOYA 7037
RUEHKSO/AMCONSUL SAPPORO 8299
RUEHBJ/AMEMBASSY BEIJING 3231
RUEHUL/AMEMBASSY SEOUL 9378
RUCNDT/USMISSION USUN NEW YORK 1119

UNCLAS SECTION 01 OF 07 TOKYO 003878 
 
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 07/12/06 
Part-1 
Index: 
1) Top headlines 
 
 
2) Editorials 
 
3) Prime Minister's daily schedule 
 
4) President Bush in interview sees peaceful use of nuclear power as 
main item at upcoming G8 summit 
 
5) Foreign Minister Aso seeks support for Japan at UNSC from 
Britain, several other countries 
 
6) China using high-level diplomacy to try to persuade North Korea 
to halt missile launches 
 
7) China's vice foreign minister in Pyongyang to persuade leadership 
to back down on missiles but prospects for success are slim 
 
8) Two days before North Korea missile launch, US sent probe to 
Pyongyang about bilateral talks 
 
9) Government snipes back at South Korea for criticism of Japan's 
reaction to North Korea launches 
 
10) Official remarks in Japan about need for strike capability sets 
off domestic political waves 
 
Contents: 
1) TOP HEADLINES 
 
Asahi: 
Increasing number of private universities joining hands with middle 
and high schools to secure students in advance 
 
Mainichi: 
Terrorist attacks at seven locations in Mumbai, India, kill 137; 
Islamic militants responsible? 
 
Yomiuri: 
Chinese president tries to persuade North Korea in talks with 
chairman of the Standing Committee of the Supreme People's Assembly 
of North Korea 
 
Nihon Keizai: 
Operating profits at overseas bases of listed companies increase 21 
PERCENT ; Last year's rise tops domestic growth; Operations in US 
and Asia upbeat 
 
Sankei: 
China having difficulty persuading North Korea; US assistant 
secretary visits China for talks 
 
SIPDIS 
 
Tokyo Shimbun: 
China opposes sanctions resolution as excessive; Effort to persuade 
Pyongyang has run into snags? 
 
2) EDITORIALS 
 
Asahi: 
(1)Preemptive attack argument: Do not respond to missile launches by 
North Korea too hastily 
 
TOKYO 00003878  002 OF 007 
 
 
(2)G-8 Summit: Heavy challenge for Putin 
 
Mainichi: 
(1)Preemptive attack argument: Cool-headed and thorough debate 
needed 
(2)Disaster-prevention measures: Be aware of the possibility that a 
disaster could happen to us 
 
Yomiuri: 
(1)Scrapping hard-to-see interest rates would help prevent consumers 
from becoming heavily indebted 
(2)Information and Telecommunications White Paper shows that 
Internet is now indispensable 
 
Nihon Keizai: 
(1)Continue diplomatic effort to adopt resolution on North Korea 
sanctions 
(2)What is the purpose of the teacher's license renewal system? 
 
Sankei: 
(1)Criticism of Japan by South Korea: Seoul is criticizing the wrong 
country 
(2)Social Insurance Agency: Stem cozy relations with trade unions 
 
Tokyo Shimbun: 
(1)Missile launches by North Korea: China's role is big 
(2)Preemptive attack argument will mar trust in Japan's defense-only 
policy 
 
3) Prime Minister's Official Residence (Kantei) 
 
Prime Minister's schedule, July 11 
 
NIHON KEIZAI (Page 2)  (Full) 
July 12, 2006 
 
09:32: 
Attended an executive meeting at LDP headquarters. 
10:03: 
Attended a cabinet meeting at Kantei. Later, met Economic and 
Financial Policy Minister Yosano. 
13:03: 
Left Haneda Airport by government plane to visit the Middle East, 
including Israel, and to attend the St. Petersburg G-8 Summit. 
 
4) President Bush in interview reveals plans to promote peaceful use 
of nuclear power with Russia 
 
YOMIURI (Page 1) (Excerpts) 
July 12, 2006 
 
Takashi Sadahiro, Washington 
 
In an interview with representatives from the Yomiuri Shimbun and 
other foreign news organizations on July 10, United States President 
Bush revealed plans to promote the peaceful use of nuclear power on 
a global scale, including a new cooperation accord with Russia. He 
also indicated that he would bring up this issue as a major agenda 
item during the G-8 summit in St. Petersburg to start on July 15. 
 
TOKYO 00003878  003 OF 007 
 
 
 
Nuclear cooperation between the US and Russia is now limited to work 
to dismantle nuclear warheads. Once a new agreement is reached 
between the two countries, Russia will join the international 
framework for the peaceful use of nuclear power, and it will 
eventually become possible to store and reprocess in Russia the used 
nuclear fuel shipped from Japan and other countries. 
 
Citing the development of a next-generation fast-breeder reactor as 
a specific challenge for international cooperation, President Bush 
said: "The US will cooperate with Japan, Russia, France, and 
Britain." The president has proposed the Global Nuclear Energy 
Partnership (GNEP) initiative, an international framework to promote 
the peaceful use of nuclear weapons while preventing nuclear 
proliferation. The president's remark in the interview was to 
express his desire to include Russia in the GNEP initiative and to 
deem that nation as its partner in pursuing the goal of expanding 
the use of nuclear power for civilian applications. 
 
5) Aso asks Britain and other countries for their support for 
Japan's stand 
 
TOKYO SHIMBUN (Page 2) (Full) 
July 12, 2006 
 
Foreign Minister Taro Aso had a telephone conversation with British 
Foreign Secretary Margaret Beckett last night. In the conversation, 
Aso asked for Britain's support and cooperation for the Japanese 
government's policy course of having an immediate adoption of a UN 
Security Council resolution presented by Japan, Britain and other 
countries to impose sanctions against North Korea in the event 
China's efforts to convince North Korea fails. 
 
In response, Beckett supported Japan's stand, while calling for 
reviewing measures depending on the situation. 
 
Aso also had telephone conversations with his counterparts of 
Greece, Slovakia, Denmark, and the Republic of the Congo, who are 
nonpermanent UN Security Council members, to seek their support for 
Japan's position. They are cosponsors of the UN resolution, with the 
exception of the Congo. 
 
6) Chinese president urges North Korea to stop missile tests 
 
YOMIURI (Top Play) (Excerpts) 
July 12, 2006 
 
Tetsuya Suetsugu, Beijing 
 
Meeting with visiting North Korean Parliamentary Vice President Yang 
Hyong Sop in Beijing on July 11, Chinese President Hu Jintao urged 
North Korea to stop missile tests and to return to the six-party 
talks at an early date. United States Assistant Secretary of State 
Christopher Hill also made an unscheduled visit to Beijing to 
discuss the North Korean missile situation with Chinese officials. 
Over the resolution (drafted by Japan) calling for sanctions against 
North Korea at the United Nations Security Council, diplomatic 
efforts have reached a crucial point, with an eye on the upcoming 
G-8 summit in St. Petersburg to start on July 15. 
 
TOKYO 00003878  004 OF 007 
 
 
 
On July 10, Japan and the US announced a decision to delay a vote on 
the draft UNSC resolution and carefully watch the outcome of a visit 
to North Korea by Chinese Vice Foreign Minister Wu Dawei. In a move 
to prevent sanctions from being imposed on North Korea, the Chinese 
government has been pressed to bring about some specific achievement 
this week. 
 
The unprecedented diplomatic effort by President Hu reflects growing 
frustration in China. According to the Xinhua News Agency, Hu told 
Yang: "A new factor that will complicate the situation on the Korean 
Peninsula has appeared," expressing his grave concern about North 
Korea's recent missile launches. Adding: "We are against any actions 
that will aggravate the situation," Hu aimed to forestall North 
Korea's possible missile tests. The Chinese president also said: 
"China will make efforts with other countries concerned to bring 
progress in the stalled six-party talks," urging North Korea to 
return to the negotiating table. 
 
In response, Yang only said: "We will make efforts to protect the 
peace and stability of the peninsula and the region." Chinese 
Foreign Ministry's Deputy Spokesperson Yang indicated in a regular 
press conference on July 11 that China's efforts to resolve the 
crisis are facing difficulty, saying: "Everything will not be easily 
resolved through just one or two visits and efforts by China." 
 
7) China's efforts to convince North Korea run into difficulties; 
Hill hastily visits China for talks 
 
SANKEI (Top play) (Excerpts) 
July 12, 2006 
 
Tadashi Ito, Beijing 
 
US Assistant Secretary of State Christopher Hill, US chief delegate 
to the six-party talks, hastily arrived on July 11 in Beijing from 
Tokyo for talks with China in the wake of the UN Security Council 
decision to postpone a vote on a sanctions resolution against North 
Korea for its missile launches. Hill's China visit follows talks on 
July 10 between Chinese Vice Foreign Minister Wu Dawei and North 
Korean officials in Pyongyang. China's efforts to persuade the North 
to return swiftly to the six-party talks seem to have failed, with 
Pyongyang responding to it negatively and presenting the removal of 
US financial sanctions as a condition. 
 
Hill's China visit was decided through a telephone conversation 
between Chinese State Councilor Tang Jiaxuan and US Secretary of 
State Condoleezza Rice on the night of July 10. Although Hill's 
China trip is believed to be for emergency talks, he said late at 
night on July 11: "I did not see any Chinese officials today; I will 
hold talks with Foreign Minister Li Zhaoxing on the morning of July 
12." 
 
Ahead of the Tang-Rice telephone conversation, China called for the 
postponement of a vote on the sanctions resolution by the UN 
Security Council, citing Wu's North Korea visit. China's request was 
approved. Wu is believed to have urged the North to freeze missile 
launches and return to the six-party talks to avoid sanctions, 
telling Pyongyang that the US has pledged that it would conduct 
 
TOKYO 00003878  005 OF 007 
 
 
bilateral talks with the North at informal six-party talks. 
 
But a Chinese Foreign Ministry press officer in a press conference 
on July 11 suggested tremendous difficulty in China's effort to 
convince the North, saying: "The issue will not be resolved with a 
visit or two. Diplomatic efforts take time and patience. Our efforts 
for a resumption of the six-party talks have yet to bear fruit." Wu 
largely attributed North Korea's missile launches to America's 
financial sanctions. China's efforts to convince North Korea seem to 
have bogged down, with Pyongyang demanding a removal of the 
financial sanctions. 
 
8) US sounded out North Korea on bilateral talks two days before 
missile launches; US hardened stance following launches 
 
SANKEI (Page 1) (Excerpts) 
July 12, 2006 
 
On July 3, two days before North Korea launched ballistic missiles, 
Washington informed countries concerned that it was willing to 
conduct bilateral talks with Pyongyang on the condition North Korea 
return to the six-party talks to discuss the nuclear issue, sources 
revealed yesterday. It also came to light that the US and North 
Korea had secretly held informal talks in New York in mid-June. But 
the North went ahead and launched a Taepodong-2 long-range ballistic 
missile, prompting the US to harden its stance. 
 
According to government sources, the United States has searched for 
ways to contact North Korea behind the scenes since its spy 
satellites detected in late May the North's preparations for 
launching a Taepodong-2 missile. US and North Korean officials in 
charge secretly met in New York in mid-June. But the talks ended in 
failure, with the North unilaterally demanding the financial 
sanctions be removed. 
 
Once that the United States made contact with North Korea, albeit 
informally, speculation was afoot among the concerned countries that 
the North would abstain from launching missiles for the time being. 
But in late June, the North began actively making preparations for 
missile launches. Such countries as the United States and China 
undertook coordination for informal six-party talks in July. Timed 
with the planned informal talks, the United States conveyed on July 
3 its willingness to hold bilateral talks with the North to the 
countries concerned, including Japan. Arrangements were made for 
China to inform North Korea of America's willingness. 
 
But North Korea launched seven missiles on July 5 in defiance of 
America's message. There are various views in the Japanese 
government about North Korea's motive behind the missile launches, 
such as: (1) China did not convey America's wishes to North Korea; 
or (2) the North expected that the missile launches would help 
elicit further concessions from the United States. 
 
9) Government perplexed by ROK's verbal attack on Japan in 
connection with North Korea missile issue 
 
TOKYO (Page 2) (Full) 
July 12, 2006 
 
 
TOKYO 00003878  006 OF 007 
 
 
The government is perplexed by the Republic of Korea government's 
constant showering of criticism on Japan in connection with North 
Korea's launching of missiles. The office of the ROK President has 
mounted on its home page criticism of Japan imposing its sanctions 
on North Korea and for seeking a UN sanctions resolution. The 
emerging argument in Japan for possessing a capability to strike 
enemy bases has also set off alarms, with a Blue House spokesperson 
stating: "We will respond with strong stance to the arrogance and 
reckless remarks of Japanese government leaders." 
 
 In response, the Japanese government has underscored its 
cool-headed response, with Chief Cabinet Secretary Abe saying, "The 
Japanese government will not comment on every statement." For that 
reason, some in the Japanese government let this statement of regret 
slip out: "There is nothing that can be done as long as President 
Roh Moo Hyun is in the Blue House." 
 
10) Argument for Japan to possess an enemy-base strike capability 
creates stir inside Japan and overseas: Takebe calls for debate on 
preparing legislation, while Katayama cites constitutional 
restriction on such a capability 
 
NIHON KEIZAI (Page 2) (Full) 
July 12, 2006 
 
With the launching on missiles by North Korea, a view has emerged in 
the government and ruling camp calling for the Self-Defense Forces 
(SDF) to possess a capability to strike enemy bases. This suggestion 
has created a stir both in Japan and overseas. Already China and 
South Korea, with which Japan's relations already are cool, have 
reacted sharply, and even in the United States, concern is starting 
to grow. 
 
Members of the ruling and opposition parties yesterday came out with 
one statement after the other to the press corps. Liberal Democratic 
Party (LDP) Secretary General took a positive stance toward giving 
consideration to the idea: "It would be unacceptable for us to do 
nothing if we learn that the other country without a doubt will 
launch missiles and cause great harm to Japan. We should discuss 
setting up legislation (for such a contingency)." 
 
But there are arguments pro and con in the LDP. Upper House 
Secretary General Toranosuke Takayama said: "We have to consider 
 
SIPDIS 
this cautiously for Japan is restricted by the Constitution to sole 
self-defense."  Defense Agency Director General Nukaga, who set off 
the debate with his remark, advocated: "Although there has been 
interpretation in the past that such would legally be permissible, 
the fact is that is has never been debated in practical terms." He 
took a position of seeing a need for starting discussion on the 
issue.' 
 
In the opposition Minshuto (Democratic Party of Japan), as well, 
there was no unified view, with some party officials like Secretary 
General Yukio Hatoyama indicating a certain level of understanding. 
President Ichiro Ozawa revealed his view that minute discussion was 
necessary, stating: "The enemy is not just limited to North Korea. 
First, we have find out how to determine who the enemy is. We would 
have to be ready to fight any country we determine as the enemy." 
 
 
TOKYO 00003878  007 OF 007 
 
 
SCHIEFFER