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UNCLAS SECTION 01 OF 08 TOKYO 003911 
 
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-1 
Index: 
1) Top headlines 
 
2) Editorials 
 
3) Prime Minister's daily schedule 
 
4) 68 PERCENT  of public recognize SDF contributions to Iraq, 59 
PERCENT  appreciate the dispatches in Yomiuri poll 
5) Mainichi survey of 158 companies finds 37 favoring Shinzo  Abe, 
17 favoring Yasuo Fukuda for next prime minister 
 
6) Prime Minister Koizumi unveils new peace-supporting initiative 
during Middle East tour 
 
7) China comes up with own draft UNSC resolution critical of North 
Korea, seeks compromise from US, Japan 
 
8) Alarm in Japan that effort in the UN Security Council to slap 
North Korea for missile launches going along at China's pace 
 
9) Japan feels sense of stalemate on North Korea sanctions issue 
 
10) Government gives a certain amount of credit to China for efforts 
on North Korea, scrutinizing its draft UNSC resolution 
 
ARTICLES: 
1) TOP HEADLINES 
 
Asahi, Mainichi, and Yomiuri: 
China, Russia to circulate draft resolution on North Korea at UNSC 
 
Nihon Keizai: 
Bank of Japan to end zero-interest-rate policy tomorrow 
 
Sankei: 
Japan rejects France's proposal of "two-step approach" to North 
Korea 
 
Tokyo Shimbun: 
Former Mizutani Kensetsu Co. chairman arrested 
 
2) EDITORIALS 
 
Asahi: 
(1)Didn't Toyota neglect safety? 
(2)Growing superpower India suffering from terrorist attacks 
 
Mainichi: 
(1)Presidents of four postal services companies decided: Political 
responsibility is still grave 
(2)Has Prime Minister Koizumi lost political energy? 
 
Yomiuri: 
(1)North Korea will be puffed up with delay in adoption of UNSC 
resolution 
(2)Competitive tender bid should be breakthrough to review 
"government jobs" 
 
Nihon Keizai: 
(1)Japan should show its presence through Middle East diplomacy 
(2)Terrorist attack on the core of India's economy 
 
TOKYO 00003911  002 OF 008 
 
 
 
Sankei: 
(1)Adoption of UNSC resolution needed 
(2)Government should support four postal corporation presidents 
responsibly 
 
Tokyo Shimbun: 
(1)Toyota ignored defects: Safety important above anything else 
(2)India-Pakistan relations should be improved without yielding to 
terrorism 
 
3) Prime Minister's Official Residence (Kantei) 
 
Prime Minister's schedule, July 11 
 
NIHON KEIZAI (Page 2) (Full) 
July 13, 2006 
 
Night: 
Arrived at Ben Gurion Airport in Tel Aviv, Israel. Spent an 
overnight at the David Citadel Hotel. 
 
July 12 
 
Morning: 
Toured the Holocaust Memorial. 
Attended a welcome reception at the prime minister's office. Held 
talks with Prime Minister Ehud Olmert. 
Afterward held a joint press conference at the prime minister's 
official residence 
Noon: 
Attended a luncheon meeting hosted by Prime Minister Olmert. 
Afternoon: 
Held talks with Israeli and Palestinian youths at the David Citadel 
Hotel. 
Evening: 
Met President Moshe Katzav at his office. 
Met Foreign Minister Tzipi Livni and persons familiar with 
Japan-Israel relations at the David Citadel Hotel. 
 
4) Poll: 68 PERCENT  see SDF as helpful to Iraq reconstruction, 59 
PERCENT  positive about deployment 
 
YOMIURI (Page 2) (Abridged) 
July 13, 2006 
 
The Yomiuri Shimbun conducted a face-to-face nationwide public 
opinion survey on July 8-9, in which respondents were asked if they 
thought the Self-Defense Forces' activities in Iraq contributed to 
Iraq's reconstruction. In response to this question, "yes," 
including "very much" and "somewhat," totaled 68 PERCENT , with "no" 
reaching 28 PERCENT . As seen from the figures, positive answers 
markedly outnumbered negative ones. In the survey, respondents were 
also asked about the Koizumi cabinet's sending of SDF troops to 
Iraq. In response, positive answers accounted for 59 PERCENT , 
showing an increase of 8 percentage points over the 51 PERCENT 
rating in this April's survey. 
 
Questions & Answers 
 
TOKYO 00003911  003 OF 008 
 
 
(Figures shown in percentage.) 
 
Q: The government has decided to withdraw Ground Self-Defense Force 
personnel engaged in humanitarian assistance activities in Iraq. In 
addition, the government has also decided to continue and expand the 
scope of the Air Self-Defense Force's backup activities including 
airlift missions. Do you support the Koizumi cabinet's sending of 
SDF members to Iraq for humanitarian reconstruction assistance? 
 
Very much    19.0 
Somewhat    39.9 
Not very much   23.7 
Not at all   13.9 
No answer (N/A)  3.4 
 
Q: How much do you think the SDF has contributed to Iraq's 
reconstruction? 
 
Very much    14.6 
Somewhat    53.0 
Not very much   22.1 
Not at all   5.5 
N/A     4.9 
 
Q: Japan has deployed SDF members in Iraq for humanitarian 
reconstruction assistance. Do you support Japan's continued sending 
of SDF members overseas for humanitarian reconstruction assistance? 
 
Yes       23.1 
Yes to a certain degree   27.2 
No to a certain degree   23.6 
No       22.3 
N/A       3.8 
 
Polling methodology 
Date of survey: July 8-9. 
Subjects of survey: 3,000 persons chosen from among all eligible 
voters throughout the country (at 250 locations on a stratified 
two-stage random sampling basis). 
Method of implementation: Door-to-door visits for face-to-face 
interviews. 
Number of valid respondents: 1,867 persons (62.2 PERCENT ). 
 
5) 37 firms pick Abe, 17 firms prefer Fukuda for next premiership 
 
MAINICHI (Page 1) (Abridged) 
July 13, 2006 
 
The Mainichi Shimbun conducted a questionnaire survey of 158 leading 
companies' top executives and asked them to give the name of the 
politician they thought would be appropriate for the next prime 
minister. In response to this question, 37 companies picked Chief 
Cabinet Secretary Shinzo Abe, with 17 companies choosing Yasuo 
Fukuda, one of Abe's predecessors in the CCS post. 
 
The survey was conducted from late June through early July, and 
answers were obtained from 144 companies. Abe ranked top in the 
survey's popularity rating. In the business community, an increasing 
number of top executives are also pinning their hopes on Abe, who 
 
TOKYO 00003911  004 OF 008 
 
 
has been leading all other post-Koizumi candidates in various public 
opinion surveys. Among other politicians, three companies favored 
Economic and Fiscal Minister Kaoru Yosano, with two companies naming 
Finance Minister Sadakazu Tanigaki. No companies picked Foreign 
Minister Taro Aso, former Liberal Democratic Party Vice President 
Taku Yamasaki, or Senior Vice Justice Minister Taro Kono. Among the 
responding companies, however, 80 companies withheld their answers, 
apparently assuming a wait-and-see attitude. 
 
6) Koizumi to make new Middle East peace proposal to Israeli 
counterpart 
 
TOKYO SHIMBUN (Page 1) (Full) 
July 13, 2006 
 
Mutsumi Aoki, Jerusalem 
 
Prime Minister Junichiro Koizumi, currently visiting Israel, met 
with Prime Minister Ehud Olmert on the morning of July 12, local 
time, at the Prime Minister's Office and proposed creating a 
"corridor to peace and prosperity" as a medium- to long-term 
challenge for Japan to bring about peace in the Middle East. He then 
proposed that Japan, Israel, the Palestinian Authority, and Jordan 
set up a four-party council. Koizumi also urged Israel to make 
efforts to reach a peace accord with the Palestinian Authority. 
 
Koizumi stated in reference to the recent clash between the Israeli 
military and Palestinian armed insurgents in the Gaza Strip: "I am 
concerned about the deteriorated situation. A chain of hatred will 
benefit neither Israel nor the Palestinian authority. I hope both 
sides will exercise the utmost self-restraint with the aim of 
co-existence and co-prosperity." 
 
Prime Minister Olmert adamantly replied: "Israel takes a firm 
position. I understand such a stance brings pain." 
 
The "corridor to peace and prosperity" is to show Japan's 
willingness to earnestly cooperate in attaining peace in the Middle 
East. The concept will lead to confidence building among the 
countries concerned through the promotion of economic development 
that would have people enjoy the "dividend of peace." 
 
Under this concept, the four-party council would be established and 
an agricultural complex would be built on the western side of the 
Jordan Valley with Japan's official development assistance (ODA) 
funds. Farm products grown there would be shipped to various 
places. 
 
After meeting with Olmert, Koizumi emphasized that the concept is to 
support the Middle East in a different way from that of the US and 
Europe. He said that Olmert agreed to the concept, but under the 
tense situation in the Middle East, it is likely to take time for it 
to take shape. 
 
Prime Minister Koizumi plans to explain this concept to Palestinian 
leader Abbas and Jordan King Abdallah II, whom he will meet on July 
¶13. 
 
7) China to submit to UNSC its own draft resolution on North Korean 
 
TOKYO 00003911  005 OF 008 
 
 
missile launches, moving closer to Japan, US 
 
YOMIURI (Top Play) (Almost Full) 
July 13, 2006 
 
New York, Yoshikazu Shirakawa 
 
Chinese Ambassador to the UN Wang Guangya on the morning of July 12 
(midnight on the same day, Japan time) told reporters that China 
would introduce a draft resolution on North Korea's missile launches 
to the UN Security Council (UNSC). The specifics of the resolution 
have yet to be unveiled, but it appears to be based on the draft 
presidential statement, which it had already introduced. China has 
apparently been pressed to make further concessions, facing the 
hard-line stance of Japan and the US, which are determined not to 
accept the presidential statement proposal, and the Chinese mission 
having difficulty in persuading North Korea. 
 
Possibility of not referring to sanctions 
 
UNSC resolutions are binding and carry more weight than presidential 
statements. US Ambassador to the UN John Bolton underscored to 
reporters his government's policy of aiming to adopt the sanctions 
resolution sponsored by Japan, the US, and other countries. He also 
praised China's move to introduce a draft resolution as a new step 
forward. He noted, "If China has agreed that the UNSC needed a 
resolution, it is progress." 
 
However, Wang has thus far opposed a binding resolution that invokes 
Chapter VII of the UN Charter. As such, there is a strong 
possibility that the draft resolution sponsored by China does not 
refer to Chapter VII, and therefore it is in fact a condemnation 
resolution. The focus will now move to how to find a settlement in 
line with the sanctions resolution presented by Japan, the US and 
other countries, which invokes Chapter VII. 
 
The UNSC adopts a Chapter VII resolution when it recognizes the 
situation as a threat to international peace and security. The 
British and French ambassadors to the UN, which are trying to find a 
compromise between Japan and the US, and China and Russia, hold that 
the resolution should at least define the missile launches by 
Pyongyang as a threat. 
 
8) Scope column - Japan wary about China's move over Japan-sponsored 
resolution against North Korea 
 
TOKYO SHIMBUN (Page 2) (Full) 
July 13, 2006 
 
Time goes on, leaving the fate of the resolution submitted by Japan 
and some other countries to the United Nations Security Council 
(UNSC) unclear. Most UNSC members still wait to see the outcome of 
China's efforts to persuade North Korea, so Japan's call for an 
early vote on the resolution seems unlikely to draw attention. The 
Japanese government is increasingly wary about Japan losing momentum 
to China, which is opposed to the resolution. 
 
Undermining solidarity 
 
 
TOKYO 00003911  006 OF 008 
 
 
"This must be settled as swiftly as possible. We need to make a 
decision at some point to put the resolution to a vote." This remark 
came from Chief Cabinet Secretary Shinzo Abe during at a press 
conference yesterday, in which he emphasized the necessity of 
putting the sanctions-based resolution against North Korea to a vote 
as quickly as possibly. 
 
A vote on this resolution had been initially set for late at night 
on July 10, Japan time. But China called on the UNSC to postpone 
voting, citing its efforts to persuade North Korea. Many UNSC 
members then thought it would be wise to wait to see what will 
happen to China-North Korea negotiations; as a result, voting has 
been postponed. Abe had explained: "Such talks would be given at 
least 48 hours." 
 
China-North Korea talks have run into difficulties, and their fate 
still remains unknown. UNSC members aside from Japan and the United 
States are beginning to look for ways to avoid voting instead of 
taking a vote. 
 
What the Japanese government is most worried about is, according to 
a high-level government official, "China's moves to undermine the 
solidarity of UNSC members." The resolution has been endorsed by 13 
of the 15 UNSC member nations, but China wants to replace it with a 
less binding chairman's statement, and it is reportedly approaching 
Middle Eastern and African UNSC members in trying to undermine their 
solidarity with other UNSC members. Some in the Japanese government 
take the view that China-North Korea negotiations are merely a tool 
to buy time to undermine that solidarity. Late last night, the news 
came to the government that China would submit an alternative 
resolution without binding force. 
 
At the same time, France, which holds the UNSC presidency, on July 
11 proposed a two-stage action to adopt first a tough chairman's 
statement before a resolution on sanctions. Britain came around to 
France's idea. Their move is apparently intended to avoid a split in 
the UNSC, but it has become another cause for concern for Japan. 
 
Close coordination confirmed 
 
The government aims to get the resolution adopted before the Group 
of Eight (G8) industrialized nations summit at St. Petersburg (St. 
Petersburg Summit) starts on July 15. It continues "working on other 
UNSC member nations in Tokyo and at various levels," according to 
Abe. 
 
Yesterday evening, Abe invited US Ambassador to Japan Thomas 
Schieffer to the Prime Minister's Official Residence, and 
afterwards, Foreign Minister Taro Aso talked to US Secretary of 
State Condoleezza Rice on the phone. They have reaffirmed that Japan 
and the United States would work in close cooperation for a vote on 
the resolution. 
 
Yesterday afternoon, Aso held a teleconference with French Foreign 
Minister Philippe Douste-Blay and asked him to take a vote on the 
resolution immediately if China-North Korea talks failed. But 
Douste-Blay went no further than to say: "In order to prevent North 
Korea from repeating another provocative action, it's important for 
the UNSC to stand together and take a specific action." There seems 
 
TOKYO 00003911  007 OF 008 
 
 
to be no wild card available for now. 
 
Some in the government are becoming less optimistic about an early 
vote on the resolution, as a senior Foreign Ministry official said, 
"(A chairman's statement) is not necessarily something 
meaningless." 
 
9) Japan unable to find an effective move over sanctions-based 
resolution on North Korea, relies on US for negotiations with China, 
North Korea 
 
MAINICHI (Page 2) (Excerpts) 
July 13, 2006 
 
Nobutake Yamashita 
 
The Japanese government appears to be at a stalemate in dealing with 
North Korea's missiles. Now that diplomatic maneuvering among the 
United States, China, and North Korea has begun aiming at resuming 
the six-party talks, all Japan can do now is to call for an early 
vote on the sanctions-based resolution against North Korea at the 
United Nations Security Council (UNSC) while working in close 
coordination with the US, given that Japan has difficulties in 
holding direct talks with China and North Korea. At the UNSC, 
France, which chairs the council, has proposed a two-stage scheme to 
issue first a chairman's statement and then discuss the resolution. 
China is likely to couterpropose a resolution condemning North Korea 
without sanctions on the afternoon of July 12, local time. The 
Japanese government is increasingly frustrated at the current 
situation. 
 
Foreign Minister Taro Aso late last night talked with US Secretary 
of State Condoleezza Rice on the phone. Referring to slow progress 
in China-North Korea negotiations, Aso indicated his intention to 
call for a vote on the resolution before the Group of Eight (G8) 
summit in St. Petersburg, Russia, which will start on July 15. But 
Rice did not shift her stance of watching China's diplomatic efforts 
and hinted at the possibility of making modifications to the 
resolution. 
 
Afterwards, Aso, when asked by reporters about the two-stage 
proposal, dismissed it, noting, "We won't support it." All Japan can 
do for now is call for an early vote on the resolution but not to 
force it and work in close coordination with the United States, 
which is waiting for China-North Korea talks to bear fruit. 
 
"It's all right even if China uses its veto," someone said at a 
Ministry of Foreign Affairs (MOFA) staff meeting on July 7. MOFA 
then decided to aim to put the resolution to a vote on July 8, even 
though China opposes it. This decision came, following the 
determination that it would become more difficult to get the 
resolution adopted as time passes. But later the US turned around to 
wait for the outcome of China's efforts to persuade North Korea. 
Japan then accepted the postponement of a vote on the resolution. 
 
10) China proposes submission of own draft proposal; Government to 
closely examine contents 
 
YOMIURI (Page 2) (Full) 
 
TOKYO 00003911  008 OF 008 
 
 
July 13, 2006 
 
China has indicated that it would present to the United Nations 
Security Council (UNSC) its own draft resolution to impose sanctions 
on North Korea for its recent missile launches. The Japanese 
government now intends to closely examine its contents and then to 
decide whether or not to support the Chinese resolution. 
 
A senior Foreign Ministry official praised China's proposal to some 
extent early this morning, remarking: "Given that North Korea has 
not responded to China's efforts to bring it back to the six-party 
talks, China might have come closer to Japan's call by upgrading a 
chairman's statement to a resolution." 
 
The government remained unwavering in its stance to seek a binding 
UNSC resolution even after France came up with a proposal for a 
"two-step approach." Prime Minister Junichiro Koizumi emphatically 
stated in a meeting with Israeli Prime Minister Ehud Olmert 
yesterday: "I hope the resolution (submitted by the United States, 
Japan and other countries) will be adopted as soon as possible." 
Chief Cabinet Secretary Shinzo Abe also said in a press briefing 
yesterday: "Japan will continue to work with other countries 
concerned to have the international community's message be expressed 
in the form of a resolution." 
 
Foreign Minister Taro Aso held a telephone conference with French 
Foreign Minister Philippe Douste-Blazy last evening, in which Aso 
said: "If China's diplomatic efforts end in failure, Japan will 
promptly resume the process to adopt the resolution." His French 
counterpart indicated a negative view about the idea of adopting the 
resolution without support from China and Russia, remarking: "It is 
important for the UNSC to unite in taking action." 
 
The governments of Japan and the US agreed with China engaged in 
negotiations with North Korea to put off a vote on the condition 
that Pyongyang accept these three terms: North Korea should (1) 
freeze missile tests; (2) unconditionally return to the negotiating 
table; and (3) abide by the joint statement issued in the six-party 
talks last September. The Japanese government intends to seek the 
UNSC adopting the resolution if North Korea does not meet the three 
conditions, based on the judgment that "North Korea will never take 
a forward-looking stance unless the international community apply 
pressure to it by adopting a legally binding resolution," according 
to a government source. 
 
SCHIEFFER