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RUCNDT/USMISSION USUN NEW YORK 1148

UNCLAS SECTION 01 OF 06 TOKYO 003910 
 
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 07/13/06 
Part-2 
Index: 
11) Major South Korean daily blasts President Roh, calls on him to 
spend more time worrying about North Korea than criticizing Japan 
 
 
12) Minshuto President Ozawa states categorically that North Korea 
will not attack Japan 
 
13) Abe denies ever mentioning "preemptive strike" option in his 
statements 
 
14) Announcements by prime ministerial contenders of their 
candidacies may slip to after August 15 
 
15) New Komeito to delay presentation of its additions to 
Constitution 
 
16) Minshuto to go on the offensive in Okinawa to capture future 
votes 
 
17)Bank of Japan zero-rate interest rate policy to end tomorrow 
 
ARTICLES: 
11) North Korean missiles: South Korean dailies urge Roh 
administration to warn North Korea instead of criticizing Japan 
 
TOKYO SHIMBUN (Page 6) (Full) 
July 13, 2006 
 
Seoul, Yuji Yamamoto 
 
South Korea's Roh Moo Hyun administration blasted Japanese officials 
for raising the idea of preemptive attacks on missile bases in North 
Korea. Major South Korean dailies yesterday carried editorials 
urging the Roh administration to warn Pyongyang instead of 
criticizing Japan. 
 
The Chosun Ilbo wrote, "The South Korean government is strongly 
concerned over a possible military build up by Japan, but it was 
North Korea's nuclear arms and missiles that gave Japan the excuse 
for raising the idea." It then criticized the delay in the 
administration's response, noting, "There was an easygoing 
atmosphere in the South Korean government concerning the missile 
launches by Pyongyang." 
 
The Joong Ang Ilbo pointed out that the argument made by some 
influential Japanese politicians for attacking North Korea was a 
preposterous, because if such an attack would turn the Korean 
Peninsula into a battlefield. However, it also criticized the Roh 
administration, saying, "The problem is that it was slow to respond 
to North Korea's missile launches, which have threatened our 
security, while Japan has immediately come up with this hard-line 
stance." 
 
The Dong A Ilbo wrote: "South Korea is facing a difficult decision. 
What is the benefit of letting the missile friction between Tokyo 
and Pyongyang sparking confrontation between Seoul and Tokyo?" 
 
12) Minshuto head Ozawa: North Korea will not attack Japan 
 
NIHON KEIZAI (Page 2) (Full) 
July 13, 2006 
 
 
TOKYO 00003910  002 OF 006 
 
SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 07/13/06 
Part-2 
Index: 
11) Major South Korean daily blasts President Roh, calls on him to 
spend more time worrying about North Korea than criticizing Japan 
 
Appearing on a TV Asahi program last night, Minshuto (Democratic 
Party of Japan) President Ichiro Ozawa said: "Although North Korea 
is using brinksmanship as a political tool, it will never wage war 
and attack another country." Asked whether he would cooperate with 
the government to resolve the issue, he stressed: "The person who 
holds the reins of government should fulfill that responsibility. If 
he cannot do so, he should resign." 
 
Asked about how he thought the United States would respond, Ozawa 
responded: "The US has no intention to fight against North Korea and 
China. In order to bring about democracy to North Korea, it is 
absolutely necessary for the US to cooperate with China." 
 
13) Enemy base strike argument creates stir in gov't, ruling 
coalition: Abe denies calling for preemptive strike, Yamasaki calls 
concept "outrageous" 
 
ASAHI (Page 2) (Full) 
July 13, 2006 
 
Chief Cabinet Secretary Abe defended his recent remark suggesting 
the need to study the capability of striking enemy bases in response 
to North Korea's July 5 firing of missiles. "I said we would need to 
study it premised on the case in which Japan came under attack," Abe 
said yesterday. "No one is saying we should strike first," he 
added. 
 
Abe was replying to a question in a press conference yesterday. In 
South Korea, President Roh Moo Hyun called Abe's enemy base strike 
remark a "preemptive strike." Abe rebutted such reactions at home 
and abroad to his remark. 
 
"Some critics sound as if to say Japan would invoke the right of 
self-defense before another country has yet to carry out an armed 
attack," Abe said. "But," he went on, "that's totally incorrect." He 
added, "They're striking the air with a stick though there's nothing 
there." With this, Abe underscored his position that Japan may be 
allowed to strike an enemy base after an enemy country initiated an 
attack (chakushu) on Japan. 
 
Abe also admitted to the difficulty of determining when the enemy 
was initiating an attack Japan. "It is of course highly likely after 
a missile has landed and caused damage," Abe said. 
 
However, Abe noted the necessity of discussing whether Japan should 
acquire the capability of striking an enemy base. 
 
"We have our respective roles to play-Japan as a shield (on the 
defensive) and the United States as a spearhead (on the 
offensive)-in order for the two countries to act in concert to deal 
with an attack, so we need to study our best combination at all 
times," Abe explained. 
 
In the meantime, Taku Yamasaki, chairman of the ruling Liberal 
Democratic Party's security affairs panel, warned strongly of Abe's 
advocacy of discussing whether to acquire the capability of striking 
enemy bases. "It's a highly outrageous argument," Yamasaki said in a 
speech he delivered yesterday in the city of Osaka. He also said, 
 
TOKYO 00003910  003 OF 006 
 
SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 07/13/06 
Part-2 
Index: 
11) Major South Korean daily blasts President Roh, calls on him to 
spend more time worrying about North Korea than criticizing Japan 
 
"It runs counter to Japan's defense-only posture, and it's a serious 
breach of the Constitution." He added, "Government officials in 
charge of foreign and security policies should refrain from saying 
things like that." 
 
Yamasaki went on: "New Komeito President Kanzaki said, 'It could 
develop into an all-out war.' That's correct. The people would think 
of it as pounding an attack-launching base, so it has very risky 
factors. It's dangerous like the prewar mood for doing whatever we 
pleased." 
 
14) Prospective LDP presidential candidates likely to announce their 
candidacies after August 15 
 
TOKYO SHIMBUN (Page 2) (Excerpts) 
July 13, 2006 
 
Although the LDP presidential election in September is less than two 
months away, prospective candidates, such as Taro Aso, Sadakazu 
Tanigaki, Yasuo Fukuda, and Shinzo Abe, have yet to clearly announce 
their candidacies. A full-fledged post-Koizumi race was expected to 
start to coincide with the end of the last Diet session on June 18. 
But that did not happen. Candidates are not likely to come forward 
until at least mid-August. 
 
In late May, Chief Cabinet Secretary Shinzo Abe, the front-runner in 
various opinion polls, indicated that he would announce his 
candidacy after the St. Petersburg G8 summit to start July 15. But 
since the end of the last Diet session, he has been leaning toward 
doing so in mid-August or later. 
 
A person close to Abe explained: "The presidential race is not 
heating up because hardly any lawmaker is in Tokyo while the Diet is 
in recess." Former Chief Cabinet Secretary Yasuo Fukuda, a popular 
figure among anti-Abe forces, has been mum about entering the 
presidential race. This is apparently affecting Abe's attitude. 
 
Former defense chief Seishiro Eto, a supporter of Fukuda, urged 
Fukuda to throw his hat in the ring, saying, "It will take two 
months for you to let the people know your policies. That means you 
have to announce your candidacy no later than late July." Still, 
Fukuda has remained silent. 
 
Many LDP members believe that Fukuda will make up his mind after 
watching whether or not Prime Minister Koizumi will visit Yasukuni 
Shrine on August 15. They think Koizumi's shrine visit would result 
in greater Asia-policy expectations of Fukuda, who is critical of 
such visits. 
 
Regardless of his intentions, Fukuda by remaining silent has turned 
August 15 into a major landmark day in the presidential race. 
 
Meanwhile, Abe, a supporter of Koizumi's shrine visits, seems to 
have judged that it would not be too late to announce his candidacy 
after watching whether Koizumi would pay homage at Yasukuni on 
August 15 and what Fukuda's course of action would then be. 
 
Tanigaki having hard time in obtaining endorsements 
 
TOKYO 00003910  004 OF 006 
 
SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 07/13/06 
Part-2 
Index: 
11) Major South Korean daily blasts President Roh, calls on him to 
spend more time worrying about North Korea than criticizing Japan 
 
 
Overshadowed by the tug-of-war between Abe and Fukuda, Foreign 
Minister Taro Aso and Finance Minister Sadakazu Tanigaki are highly 
alarmed. But they have yet to determine the timing of announcements 
of their candidacies, either. 
 
In a meeting on July 6 of executive members of the Tanigaki faction, 
many urged Tanigaki to formally run in the race in July ahead of Abe 
and Fukuda. In response, Tanigaki said, "I will follow your 
advice." 
 
15) New Komeito to delay adoption of its own constitutional reform 
proposal to September or after 
 
YOMIURI (Page 4) (Excerpts) 
July 13, 2006 
 
The New Komeito decided yesterday in a meeting of its Constitutional 
Research Council not to adopt its own constitutional reform draft 
proposal, which calls for adding new articles in the present 
Constitution, even though the party had planned to adopt it at its 
convention on Sept. 30. As a result, the party has put off the 
adoption of its own constitutional reform proposal. The decision was 
made because the Diet had decided at the recent regular session to 
carry a national referendum bill that would set procedures for 
amending the Constitution over to the next session. The New 
Komeito's decision to delay the work might affect constitutional 
debates in other political parties. 
 
Constitutional Research Council Chairman Akihiro Ota told reporters, 
"A majority of our party members wanted to continue cautious and 
in-depth discussion." 
 
Ota revealed that he would announce at the convention only items and 
themes to be added to a draft proposal and that the draft proposal 
would include: (1) the first paragraph of Article 9 should be 
retained; (2) environment rights, privacy right, the right to 
receive lifelong study, and the human rights of foreigners should be 
added; and (3) authorities of local governments should be made 
clear. He also unveiled that his party would formulate its own 
constitutional reform draft after the fall extraordinary Diet 
session, saying, "The prospect would be passage of the national 
referendum bill." 
 
Ota announced at the party's convention last November that the 
party's own constitutional reform draft proposal would be compiled 
in September 2006. It was thought that the constitutional reform 
draft to be formulated by Ota, the most likely candidate to become 
the next party head, would become a showcase of the September party 
convention. 
 
Since the constitutional referendum bill has been carried over to 
the next session, a cautious view grew in the party. "It is not a 
good timing for the party to adopt a constitutional reform draft 
proposal while discussion on procedures for amending the 
Constitution are going on," said party head Takenori Kanzaki. 
 
16) Minshuto to take aggressive approach to Okinawa; National 
 
TOKYO 00003910  005 OF 006 
 
SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 07/13/06 
Part-2 
Index: 
11) Major South Korean daily blasts President Roh, calls on him to 
spend more time worrying about North Korea than criticizing Japan 
 
secretaries general meeting tomorrow; Security policy holds the key 
 
SIPDIS 
 
ASAHI (Page 4) (Abridged) 
July 13, 2006 
 
Minshuto (Democratic Party of Japan) will hold a national meeting of 
local secretaries general and election campaign managers in Naha 
City tomorrow to strengthen party unity for next year's Upper House 
and unified local elections. The party picked Okinawa to host the 
meeting outside Tokyo for the first time, thinking the prefecture 
will draw much attention among all single-seat constituencies, which 
hold the key to a victory in the Upper House election in terms of 
security policy and a possible united front of the opposition camp. 
Whether or not Minshuto can send a strong message on security 
policy, the party's weakest point, remains to be seen. 
 
Minshuto President Ichiro Ozawa in a press conference on July 11 
highlighted the significance of holding the national secretaries 
general meeting in Okinawa, saying: "It's a tough challenge to win 
the support of the Okinawa public for the Upper House election next 
year." At present, Minshuto has no lawmaker elected from Okinawa. 
Okinawa residents are not necessarily happy with the Liberal 
Democratic Party's policy on US force realignment. Minshuto has 
decided that this is a golden opportunity to take an aggressive 
approach to wrest Okinawa's seat from the LDP. 
 
But in order to achieve a victory in the Upper House election in 
Okinawa, Minshuto needs to join hands with other opposition parties. 
The gubernatorial election in November could serve as a test case. 
 
The party is now searching for ways to join forces with the Japanese 
Communist Party, the Social Democratic Party, Jiyu Rengo, the 
Okinawa Social Mass Party, and local political group Sozo. 
 
Minshuto's bid depends largely on whether it can reach a common view 
with those parties on the plan to relocate Futenma Air Station to 
Cape Henoko in Nago. 
 
Through their talks in late June, Ozawa, his deputy Naoto Kan, and 
Secretary General Yukio Hatoyama confirmed the party's policy course 
 
SIPDIS 
to quickly assemble a unified view on US force realignment. Days 
after the talks, Ozawa and Hatoyama listened in Tokyo to the views 
of National Graduate Institute for Policy Studies Professor Akikazu 
Hashimoto, an expert on the Okinawa base issue. Hashimoto advised 
Minshuto to have its own diplomatic and security policy line. 
 
But work has not been smooth. In compiling the party's Okinawa 
vision last summer, Minshuto originally planned to call for 
relocating Futenma Air Station out of Japan, but ended up with 
"removing it from Okinawa." But since Tokyo and Washington reached 
an agreement, the Minshuto leadership has not presented any clear 
view on the Henoko relocation plan, with many members, especially 
junior lawmakers, taking relocating Futenma Air Station outside 
Okinawa as a pipe dream. Minshuto lawmakers responsible for security 
policy are visibly at a loss, saying, "In order for us to discuss 
the matter, the leadership must show us a clear direction." 
 
17) BOJ to lift zero interest rate policy tomorrow, determining 
 
TOKYO 00003910  006 OF 006 
 
SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 07/13/06 
Part-2 
Index: 
11) Major South Korean daily blasts President Roh, calls on him to 
spend more time worrying about North Korea than criticizing Japan 
 
economy is expanding: Guidance target to be set at 0.25 PERCENT 
 
NIHON KEIZAI (Top Play) (Excerpts) 
July 13, 2006 
 
The Bank of Japan (BOJ) will likely lift at a policy-setting meeting 
starting on July 13 its zero interest rate policy on short-term 
interest rates. Nine panel members with the right to vote have 
determined that the economy is expanding in a sustainable manner and 
that the basic trend of prices is in positive territory, and they 
are now inclined to end the policy. The panel will decide to raise 
the guidance target for short-term interest rates from the current 0 
PERCENT  to 0.25 PERCENT  a year by majority vote at tomorrow's 
meeting. The interest rate in the short-term financial market will 
be raised for the first time in five years and four months. 
 
Coordination underway to set official discount rate between 0.4 
PERCENT and 0.5 PERCENT 
 
Among various interest rates, which the BOJ is responsible for 
raising or lowering in implementing financial policy, the most 
important interest rate is the unsecured overnight call rate. It 
will set a new guidance target for this interest rate at 0.25 
PERCENT a year, followed by a hike in the current official discount 
rate of 0.1 PERCENT. 
 
Major points in BOJ's financial policy change 
 
-- Lifting the zero interest rate policy and raising the guidance 
target for the unsecured overnight call rate to 0.25 PERCENT 
-- Announcing a decision to make the pace of additional interest 
hikes moderate 
-- Raising the official discount rate from the current 0.1 PERCENT 
and undertaking coordination for the new rate between 0.4 PERCENT 
and 0.5 PERCENT . 
-- Maintaining the present amount of 1.2 trillion yen for the 
purchases of long-term government bonds. 
-- Changing its judgment on the present state of the economy from 
steady recovery to expansion. 
 
SCHIEFFER